Turned down: Consolidation continues as competition rises for advertising revenue

The Radio Broadcasting industry has been negatively affected by trends in the broader media sector over the past five years. Traditional media's share of total advertising spend is in long-term decline, as digital behemoths Facebook and Google have taken away market share from radio networks, TV broadcasters and newspaper publishers. Radio networks have also had to contend with media platforms such as Spotify, and the increasing popularity of podcasts. Consumers also have myriad choice over how and where to consume content, which has split advertising spend between an increasing number of platforms. Declining advertising returns are expected to cause industry revenue to fall at an annualised 1.1% over the five years through 2017-18, to $340.5 million. This includes a decline of 5.8%...read more.

Industry Statistics & Market Size
Revenue
$341m
Annual Growth 13-18
-1.1%
Forecast Growth 18-23
Profit
Employment
2,300
Businesses
115

Industry Threats & Opportunities

  • Advertising revenue is in long-term decline due to competition from Facebook and Google
  • The media landscape is highly fragmented, reducing advertising prices and industry revenue
  • Merger activity is likely to continue over the next five years as networks look to cut costs
  • Industry Report - Industry Key Buyers Chapter

    The Radio Broadcasting industry exhibits a high level of market share concentration. The three largest players, Mediaworks, NZME and Radio New Zealand, are estimated to account for over 85% of industry revenue. These broadcasters typically operate nationwide and generate a significant amount of revenue from advertising activities compared with smaller local and regional broadcasters. The major players often operate across several media platforms, including television and newspaper, in an effort to reach more readers and consumers. There has been some merger and restructuring activity over the past five years, as highlighted by Mediaworks being placed into receivership at the start of the five-year period before undergoing a restructure. NZM...purchase to read more.

    Additional Insights for the Radio Broadcasting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Radio Broadcasting Industry are

  • Access to niche markets
  • Having a loyal customer base
  • Market research and understanding
  • IBISWorld analysts also discuss how external factors such as Demand from advertising and market research services and Number of motor vehicles in the Radio Broadcasting industry impact industry performance..

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    What's in this report

    What is the Radio Broadcasting in New Zealand Industry?

    Industry players broadcast audio signals from radio broadcasting studios. Firms that broadcast audio exclusively via the internet, such as podcasts, are excluded from the industry.

    Industry Products
  • Drivetime radio
  • Daytime radio
  • Weekend radio
  • Night-time radio
  • Industry Activities
  • Radio broadcasting service
  • Radio station operation
  • Radio network operation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from advertising and market research services
  • Number of motor vehicles
  • Consumer sentiment index
  • Mobile telecommunications density

  • Current Performance
  • Industry structure
  • Advertising decline
  • Merger and restructuring activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Future media mergers
  • Podcast competition and opportunities
  • Spotify and FM radio
  • Table: Radio Broadcasting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Radio Broadcasting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising and Market Research Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Accounting Services in New Zealand
  • Computer and Computer Peripheral Wholesaling in New Zealand
  • Telecommunications Goods Wholesaling in New Zealand

  • Products & Services
  • Drivetime radio
  • Daytime radio
  • Weekend radio
  • Night-time radio
  • Chart: Radio Broadcasting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged between 18 and 44
  • People aged 45 and over
  • People aged 17 and under
  • Chart: Major Market Segmentation for the Radio Broadcasting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Radio Broadcasting

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Radio Broadcasting Industry

  • Industry Globalization
    Mediaworks Investments Limited, NZME Limited, Radio New Zealand Limited,
  • Table: Mediaworks Investments Limited - financial performance
  • Table: NZME Limited - financial performance
  • Table: Radio New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Radio Broadcasting Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Radio Broadcasting Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Am
  • A broadcast type that uses changes in amplitude to broadcast radio signals. AM radio networks typically broadcast talkback and news programs
  • Fm
  • Radio that uses changes in frequency to broadcast radio signals. FM networks typically broadcast music.
  • Listenership
  • The audience of radio programs and stations.
  • Podcast
  • Digital audio or video files of programs that listeners and viewers usually download or stream.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Radio Broadcasting in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Radio Broadcasting in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Radio Broadcasting in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Radio Broadcasting in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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