By Associated Press
New York, NY – Radio station operators -- already suffering from a deteriorating listener base and softening advertising trends -- could be hurt even more if the economy heads south.
With the likelihood of a recession increasing due to the housing market slump, credit crunch and rising fuel costs, analysts say radio operators are highly vulnerable because of their strong ties to local advertising. Lehman Brothers analyst Anthony DiClemente, local advertising accounts for about 80 percent of radio broadcasters' revenue.
At the same time, radio audiences have been eroding as Internet radio becomes more popular, satellite radio expands and listeners increasingly use digital music players like iPods in their cars.
(Copyright 2008 by The Associated Press. All Rights Reserved.)