Broadcast Radio Stations - Essay Example

This paper will seek to provide the primary product or service of this business sector, ways of making money in this business, and explain how profitable this sector is. Additionally, the paper will also address the key corporations of this business, recent developments, and discuss the current prospects and direction of this business as well as include an overview of any other unique feature of this business. Primary service The primary product or service of broadcast radio stations today is listeners and the means of production owners.

Research findings point out that, the main of broadcasting radio today is to communicate or rather air out issues to as many listeners as possible (Greb & Adams, 2003). This shows that acquiring the largest number of listeners is of paramount importance to broadcasting radios as of today (Slotten, 2009). This is because, if the number of prospective listeners of a particular broadcasting radio station is high, its demand for commercials is also high. Generally, having a huge volume of listeners dictates a radio station’s demand in the market given the fact that prospective clients opt for widely listened broadcasting radio stations (Sickles, 2008).

The sector’s money generation Every business has ways in which it generates income. However, the case with radio station is a bit complex. Studies show that, most of the money obtained by broadcasting radio stations comes from advertisements (Enrique, 2008). When different companies and organizations as well as other parties come to realize that a certain broadcasting radio station has a huge following in terms of listeners, then these companies choose to advertise with that particular radio station.

As such, when these companies or rather clients bring their advertisements, the radio station charges them (Sickles, 2008). Bear in mind that the common aim of these advertisements is to encourage those listening to buy the advertised product more. Apart from advertisements, radio stations also make money through announcements. These announcements could be mainly about certain messages or meetings whose aim is to reach masses. Radio stations charges these announcements with regard to the amount of the required airing time and the frequency with which to be repeated.

Therefore, by charging companies for their advertisements and charging special announcements, radio stations generate money (Greb & Adams, 2003). Profitability It is understandable that this sector of telecommunication is indeed profitable. Nevertheless, many people fail to understand how broadcasting radio stations make profits. As explained, the demand for a radio station is high if it has the largest number of listeners and in this way, it gets to make its money (Ickes, 2006). Similarly, the level of profits of a radio station relies heavily on the number of listeners that it has.

Observations have indicated that, radios stations with the highest number of listeners make huge profits mainly because their demand is high (Sickles, 2008). Generally, companies and other radio station’s clients seek to make their advertisements and announcements through the most listened radio station. With that respect, radio stations that meet this requirement make huge profits, as the number of advertisements and announcements is always high (Enrique, 2008). Thus, it is agreeable that this sector of business generates very high profits but the level of these profits profoundly