Present and future of radio in Spain: an application of the Life Cycle Model to the industry

Abstract

Radio in Spain has been losing audience and advertising year after year since 2012. Never before had the sector been through a moment like this, and it is especially relevant for Prisa Radio, Ábside Media and Atresmedia Radio. The theoretical framework of media economics, media management and ILC (Industry Life Cycle), applied to market data, has served to illuminate the resistant variables (dependent dual market, oligopolistic structure and use of star system appeal) that explain this moment in the sector’s life cycle. In this context, the improvement in the economic results of these companies that are in transition from the stage of maturity to defensive resistance, and which can lead to adaptation or obsolescence, is not a paradox. The findings of this research may help companies awaken to the fact that through strategic actions, there is still time to respond to the variables which lead to obsolescence.