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Internet and the Radio Industry: Strategic Management

The Internet has revolutionized the way business is done all over the world. This is because it has enabled better and faster communication. The world has been reduced into a global village where a larger population can be reached in a very short period. Furthermore, the advent of Instant messaging, webcam, and other communication means closely linked to internet communication have ensured that advertising and entire marketing strategy are faster and efficient.

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Impact of the Internet on Business

The impact the internet had on the radio industry is that the network would boost the programming variety. The radio can offer over one hundred channels all over the region of operation with a broad frequency variety, different brand names, and music display in real-time. The internet reduces the commercial overload to about six minutes contrary to the 15 minutes previously wasted (Marsh et al, 45). The internet is very well-organized in offering digital signals that are of very high quality. The recent advances creating reception of very high quality at a very competitive and reasonable price has enhanced the competitiveness of radio as a medium of communication and entertainment. Everybody can access the radio on the internet (Keith 2009, 67).

Competition and Substitutes

There is still the biggest threat of the satellite radio and the traditional terrestrial stations that are widely spread. The major strengths of terrestrial radio networks are that they are widely spread due to their long time of existence in the market. They offer a variety of programs ranging from weather, sports, news, and traffic updates without necessarily having to scan between stations (Marsh et al, 45). These stations offer what is close to free services. They also base their fanaticism on the natural resistance to change that people are prone to. Over the years, these stations have been able to grow very strong management teams that do excellent jobs (Marsh et al, 46).

Internet radio however should base its advertisement on the ability to offer quality sound with higher commercial loads (Keith, 68). Not that they also offer a variety of radio formats. Terrestrial broadcasters have been very limited in this aspect. It’s been discovered that clients sometimes are unable to find programs that interest them from local channels. Internet radio is expected to offer better services if it manages to win so many clients over the local stations. Investing in digital radio on the internet requires a lot of services and investment which scares so many investors (Keith, 69). Furthermore, other money-generating services like advertising have been very limited causing costs to be even higher.

Since many radio channels on the internet focus mainly on entertainment and especially music, other digital recordings like compact discs and MP3s have been a very serious threat. On the other hand, these types of media have one great disadvantage. They are very limited in access. They lack the mobility that can be found on the internet and satellite digital audio radio service (Marsh et al, 57).

The prominent stations on the internet currently include Winz, Wor, and WMET (Krishnan & Chang 2000). Most of the stations offer frequencies on abroad range so that the clients can be able to select the most appropriate. According to research, close to 80 percent of people in developed countries prefer listening to music on the internet rather than from local radio stations (Keith, 68). The internet has terminated the geographical monopoly that local FM stations used to enjoy.


The radio on the internet is a good source of revenue for the government just like other businesses; these revenues are obtained from activations costs, advertising fees as well as subscription fees. The XM station earned about 3.2 million dollars on advertising which was about 14 percent of the total revenue. The stations also face very tough challenges in their bid to survive. Management is very difficult hence some of them end up being mismanaged. However, over the recent past, there has been a positive response from clients concerning the internet and radio. This has boosted the industry and it’s now set for success (Krishnan & Chang, 78).

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It’s estimated that radio subscriptions on the internet will increase up to over 30 million clients by the end of the year 2010. There is still the challenge of having to lure many clients into subscribing to internet radio. Many people are overwhelmingly accustomed to listening to the local and traditional way of life. It’s very critical for SDARS companies to establish a market niche, define their interoperability influence, and market their alliances. Since this is not a very popular undertaking, a great deal of investing will be required especially advertising.

Work Cited

Marsh J., Maher R & Murphy D., Satellite Radio report. Robertson Stevens Inc. 2002. Print

Keith M.C., The Radio Stations. Transmission, Satellite and Internet. Focal Press. 2009. Print

Krishnan V. & Chang G.S. Customized Internet radio. Computer Networks. 2000. Vol. 33, Issues 6 Pp 607 – 619

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"Internet and the Radio Industry: Strategic Management." StudyCorgi, 30 Nov. 2021,

1. StudyCorgi. "Internet and the Radio Industry: Strategic Management." November 30, 2021.


StudyCorgi. "Internet and the Radio Industry: Strategic Management." November 30, 2021.


StudyCorgi. 2021. "Internet and the Radio Industry: Strategic Management." November 30, 2021.


StudyCorgi. (2021) 'Internet and the Radio Industry: Strategic Management'. 30 November.

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