On Tuesday, CBS Corporation announced that it is putting its radio business up for sale. This change in business is in an attempt to focus more on the CBS Broadcasting Network, their premium channel Showtime and on digital, according to a New York Times article by Emily Steel.
CBS estimates that it currently reaches 70 million people each week in the United States, with 117 radio stations located in 26 different markets. According to CBS, its revenue in the radio group dropped 5 percent in the fourth quarter of 2015. According to Steel, this can mainly be attributed to the increasing growth of online music services like Pandora and Spotify.
CBS hopes that the sale of its radio business will help them to grow their other areas. They have outlined a plan for growth that executives estimate will bring in an additional $3.75 billion of revenue over the next five years.
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