Final answer:
True. Commercial radio stations indeed obtain revenue from advertisers and spend part of that revenue on content programming. The model includes advertisements that affect the price of consumer goods and the growth of subscription-based satellite radio services like SiriusXM. Industry consolidation and community radio also play roles in radio broadcasting.
Step-by-step explanation:
The statement provided is true: Commercial radio stations generate revenue from advertisers and in turn, they spend money on assets such as content programming, which can include purchasing programming from national network radio. The revenue model for commercial radio entails selling advertising space to businesses that want access to the radio station's audience. The cost of these advertisements is often passed on to consumers through the price of the advertised products. Additionally, the rise of satellite radio services like SiriusXM represents a shift in the industry, where customers pay a subscription fee for access to commercial-free music streams, thus making the service excludable to non-subscribers.
Historically, radio programming has targeted specific audiences based on a variety of factors including musical tastes, ethnic backgrounds, and interests. However, consolidation in the industry, such as the acquisition of numerous radio stations by entities like Clear Channel Communications, has impacted the diversity and availability of certain types of programming. On the other hand, community radio presents an alternative model focused on community ownership, participation, and content relevant to local listeners. Lastly, underwriting by corporations and local businesses allows for on-air acknowledgments, which can influence the type of programming supported due to the desire for politically innocuous content over provocative material.