Radio's Wounded Business Model

Good post on the economic decline of radio.

At an earlier point in their growth cycle, Clear Channel was able to wring out massive cost savings as they consolidated their network. That phase is now over.

This efficiency, cost cutting, and uniformity came at a cost: Clear Channel wracked up big margins with their streamlined McMusic programming, but they ended up driving away listeners, also.

Which ties in directly with this.

On the subject of diseconomies of scale, see this.

Found it via the Carnival of the Capitalists