Sound waves

Before television, families gathered around the radio for information and entertainment. The Canadian Broadcasting Corporation and Radio-Canada have filled much of those airwaves for over 60 years. Gradually, however, more specialized radio stations have emerged and today digital sounds are available to suit almost every taste. Hoping to add to the wide diversity of voices already on Canada's airwaves, the Canadian Radio-television and Telecommunications Commission moved in 1998 to permit greater concentration of ownership in a single market.

In 2002, private radio broadcasters realized their best financial performance in years. Revenues increased to $1.1 billion, an increase of 2.7% from 2001, and pre-tax profits increased 64% to $162 million.

Much of the radio industry's success is because of the strong performance of FM stations. While AM stations have consistently suffered losses since 1990, FM stations most recently achieved a robust 24.3% profit margin in 2002.

Despite the high returns, the radio industry is facing challenges. The emergence of digital technology and the Internet have given listeners hundreds of channels to choose from. Moreover, portable digital players capable of recording music from the Internet hit the market in the late 1990s, allowing Canadians to enjoy customizable digital-quality sound on the go. A boon for consumers, the devices have created a dilemma for the music industry, which is struggling to cope with the spreading practice of downloading music for free from the Internet.