Small markets versus large markets

[Garrett Wollman]

The current issue of /Radio World/ includes a summary from BIA of the
2005 revenues for the top 25 media companies.  While they didn't do
the math, I thought it would be interesting to compare companies by
revenue per station.  This makes it very obvious how the companies are
weighted with respect to market size; a few companies average as little
as $1 million per station -- which, while not pocket change, isn't
much for a top-25 group.  Here's how they ranked in my
reinterpretation of BIA's results:

 #	Company			$M/station
 1	ABC			17.4	(inc. only stations sold to Citadel)
 2	Emmis			12.9
 3	CBS			12.5
 4	Greater Media		 9.8
 5	Bonneville		 9.6
 6	SBS			 9.4
 7	Jefferson-Pilot		 8.7	(now Lincoln Financial Media)
 8	Cumulus Media Partners	 7.3
 9	Sandusky		 6.4
10	Cox			 6.2
11	Radio One		 5.6
12	Univision		 5.2
13	Entercom		 4.7
14	Inner City		 3.5
15	Beasley			 3.1
16	Clear Channel		 3.0
17	Journal			 2.2
18	Entravision		 2.0
19	Salem			 1.9
20	Citadel			 1.9
21	Saga			 1.5
22	NextMedia		 1.4
23	Multicultural		 1.4
24	Regent			 1.2
25	Cumulus Broadcasting	 1.0

Sandusky is the smallest group on BIA's list, with only ten stations.
That's probably small enough to discount them as being too small a
sample.  (If it were included, WEAZ-FM Radio Inc. would easily be
number one, but that would be apples to oranges, comparing a single
station -- WBEB (101.1B Philadelphia) -- against an entire group of
stations.)

According to BIA, Clear Channel (#1) bills $1 billion more than CBS
(#2) -- but it takes CCU 1,000 more stations to do it.  If I were an
investor,[1] I'm not sure I'd judge that a success.

-GAWollman

[1] I actually am an investor, generally speaking, but I don't own
stock in any U.S. broadcasting companies and consider them to be a bad
investment at present.  This message is not intended as, and should
not be construed as, investment advice.  Your mileage may vary.  Void
where prohibited.  Not available in New Jersey.  Prices subject to
dealer participation.  Objects in mirror may be closer than they
appear.