Friday, July 02, 2010

Why Are 80% of Bolivian Radio Stations Church Run?

Radio station licenses in La Paz have been bid up so high that most private firms and entrepreneurs cannot make profit after paying for licenses. There are only a handful of wildly popular music stations and a sports radio channel (futbol 24/7!). But beyond that, airwaves are filled with Church choirs and preachers. Churches, not worried about recouping profits, and swimming in more cash than other enterprises in Bolivia, compete with a different set of accounting rules (not profit based), and boost the price of FM licenses up to $40,000. How much advertising money do you think radio stations can really bring in down here? Free markets can't compete, and airwaves are thus filled with God's words.


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