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Am vs. Fm Technology

commercial station a radio station that supports itself financially by selling time on its airwaves to advertisers

noncommercial station a radio station that does not receive financial support from advertisers, but rather from donations from private foundations and listeners, or from commercial firms in return for mentioning the firm or its products at the start or end of programs airing on the station; most of these stations are located at the very left of the FM band (88-92 MhZ) because these frequencies have been reserved by the government exclusively for noncommercial use

billboards the mention of a sponsor’s name or products at the start or end of an aired program in return for money

You already know that terrestrial radio stations broadcast using one of two tech­nologies, AM or FM. The two technologies operate on different ranges of frequencies

called bands) and utilize two different means of broadcasting their signal (see Figure 11.2). There are about 4,700 AM stations and 9,200 FM stations in the United States. Since the 1970s, listeners clearly have preferred FM. In 1981, AM stations attracted 41 percent of the listeners; in 2005, they managed to grab only 18.5 percent. To put it another way, AM's share of radio listeners fell by 55 percent between 1981 and 2000. At the same time, FM's share of listeners increased by 38 percent.

Table 11.1 Radio Listeners (Aged 12+ Years) in the

Both AM and FM radio stations transmit a carrier wave that is somehow changed or “modulated” to carry audio signals such as music or voice. With AM (amplitude modulation) radio, the amplitude or strength of the carrier wave’s vibration fluctuates with the sound. With FM (frequency modulation) radio, the strength of the carrier wave remains constant, and instead it is the frequency or number of vibrations within the wave that changes based on the sound.

Commercial Radio Stations vs. Noncommercial Radio Stations

In addition to distinguishing radio stations by their positions in the AM or FM bands, we can also characterize them by the way they get the money they need in order to survive. In terms of funding, there are two types of radio stations:

  • Commercial stations

  • Noncommercial stations

The vast majority of stations in the United States—about 11,000— are commercial stations. As the name implies, these stations support themselves financially by selling time on their airwaves to advertisers. In 2008, advertisers spent about $17.6 billion on terrestrial radio.3

Noncommercial stations do not receive financial support from advertisers in the traditional sense of airing commercials. Most noncommercial stations are located at the very left of the FM band (between 88 and 92 MHz) because these frequencies have been reserved by the government exclusively for noncommercial use. If your college or university owns a station, it may very well broadcast here. Because the FCC does not permit these stations to sell products directly, the stations support them­selves through donations from listeners, private foundations, and corporations—the latter in return for mentioning the firm or its products in announcements at the beginning and end of their programs. These announcements, called billboards, often sound suspiciously like the commercials these stations aren't allowed by law to run.