Radio Broadcasting in New Zealand - Industry Market Research Report

Going online: The growing popularity of digital platforms is reducing radio broadcasters' revenue

Radio broadcasters mainly derive revenue from advertising expenditure, which is why increased competition from alternative media platforms is eroding much of the industry's ability to generate revenue. The rising popularity of music and podcast streaming platforms like Spotify is taking listeners away from radio stations and encouraging advertisers to shift their advertisements to other media platforms. The growing prevalence of Facebook and Google is also absorbing advertising expenditure. This is causing substantial problems for radio broadcasters, reducing radio broadcasters' revenue and profit margins. There has been some reprieve, with radio maintaining its importance as a crucial form of media due to its wide availability and ease of access, as well initiatives undertaken by radio broadcasters to move radio shows online. Nevertheless, these initiatives haven't done enough to overturn the difficult conditions, causing industry revenue to fall at an annualised 3.1% over the five years to 2022-23, to $358.9 million. Rising interest rates and cost pressures are restricting advertising budgets, decreasing revenue by 4.2% in 2022-23. Industry players broadcast audio signals from radio broadcasting studios. Firms that broadcast audio exclusively over the internet, such as podcasts, are excluded from the industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.