Read with interest the first radio ratings of 2014 for the Sydney Metropolitan area and the effect of Kyle and Jackie O's defection from 2DAY FM to KIIS. Was a huge result for KIIS with the ratings going from a 4.9% share to an 8.8% share, mainly due to the increase in Breakfast listener's. And I was wondering, what sort of money might that bring into ARN, the owners of KIIS.
Firstly, according to the the Commercial Radio Network statistics, the NSW Metropolitan Radio advertising market was worth $209 million in the year 2012/2013. Not bad for an industry that gets a lot of flack for being outdated.
Secondly if we assume that the advertising is dependent on the share of ratings, we have KIIS originally getting 4.9% of that share, which works out to be around $10.3 million a year.
Provided Kyle and Jackie keep their audience over the year, the increase in market share to 8.8% means that KIIS's share of revenue is now $18.5 million. That's $8.2 million coming into the company coffers, based on grabbing the high profile crew.
Even if the company is paying out $2 million to the presenters, and $1 million in production costs, that still means a nice profit of $5 million or so for the recruitment, which is a real coup for the Australian Radio Network. Well played.
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