Media Revolution

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1. Define the following key concepts in one or two sentences and post in discussions about any concepts you’d like to discuss further:

Music on demand

Recording and playback devices

Thomas Edison

Edison Records

Jukeboxes

Wired and wireless communications

Guglielmo Marconi

Early media conglomerates

Rise of consumerism and the end of amateurism

Compressive effects of technology

2. Read the case study Clear Channel Inc, learn the basics of the radio industry in my class lecture from the Spring, and answer the following study questions:

1. Why is Clear Channel Communications’ radio business financially so successful?

2. In 2000, Air Virginia announced it would sell WUMX-FM in Charlottesville (see Exhibit 7). Clear Channel (CC) management planned to bid on the station, in part because CC thought that Eure Communications, CC’s main competitor in Charlottesville, was likely to bid. An industry rule of thumb was that stations traded at 10 times earnings before interest, taxes, depreciation and amortization (EBITDA = approx. 42% of trade value). As CC’s advisor, what is your recommended bid?

3. In your view, does Clear Channel have the right corporate scope? Would you sell any one of the three divisions?

I think there are quizlets about the key concepts. You can type SPEA-A236 quizlet or copy and paste those terms and you can paraphrase them

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