Question

Scenario 13-2
A national radio broadcaster's association hosts an annual convention that attracts station owners and program managers, as well as ad agencies and media planners. As a media planner, you take part in forums on the current status of traditional radio, the competition between AM and FM formats, the growth of satellite and Internet radio, and the rise of new technologies. During one forum, a professor of broadcasting initiates a discussion and poses a number of questions based on real-life situations that he has encountered over the years.
The long-time owner of an FM radio station in a mid-size West Coast city is closely monitoring the ups and downs of satellite radio companies. Traditional radio station owners like him, as well as their advertisers, are concerned about the rise of satellite radio mainly because it:
a. offers superior sound reproduction at no extra cost.
b. is more local than local radio.
c. has no advertising.
d. does not charge customers for in-home installation.

Answer

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