Archive for the ‘Audio Streaming’ Category
As you will see in the next few weeks as we run up to our annual Future of Radio Conference, I’ve become a big fan of the JacoBlog. They have posted today James Cridland’s comments about the debate of what is radio. Cridland is a Brit who comments frequently about our business in the US with credibility. This time he jumps into the ongoing debate about what is radio which I have thought to be a silly discussion. However this is the best most credible comment on the subject I’ve seen. We’ll pick up on this conversation during the first day of the conference when Sean Ross shares his take on the subject. There are still a few places left if you’d like to join the conversation. Let me know if you’d like an invitation to our conference. Space is limited.
Every broadcaster has to look at these numbers. This did not exist five years ago in any significant numbers….32% of the population streams music today. The 16-24 numbers are huge but look at 35-54 year olds…33% steam and 23% of 55-64 year olds stream. Wow!!! Where will this be in five years and where will radio be? Mobile has just started to drive the growth.
Read this article from Audio4Cast:
Global Streaming Music Trends
Early stages of adoption of a new technology are often driven by young males, something that has been true of streaming audio, according to Mark Mulligan, former vp and research director at Jupiter/Forrester Research and now independent advisor to the music industry. Mulligan recently posted an analysis of streaming audio listening based on data from EMI’s Global Consumer Insight data, an 850,000 interview dataset.
54% of streaming music users are male and 46% are female globally, with more users in Norway, Spain, Sweden and France than anywhere else. On average, 32% of the population streams music, which is exactly the penetration of usage in the US. While streaming music reaches close to 50% of 16 to 24 year olds, it also reaches 33% of 35 to 54 year olds and 23% of 55 to 64 year olds.
Mulligan created a nifty infographic that provides an overview of his analysis:
At this year’s Future of Radio Conference in March, Omry Farajun presented “Managing Your Internet Radio Experience in the Connected Car.”
Click this link to download his presentation which examines the evolution of the connected car, and the issues with monetizing it.
This was posted yesterday in Rain, Kurt Hanson’s online magazine. The march is on to a multiplatform world by both advertisers and listeners. We’ll be talking about the implications of this at our Future of Radio Conference March 14-16 in Hilton Head.
Revenue growth outpaced web music audience gains last year, study finds
For years, Internet radio and web music services have been growing their audiences but complained that revenues weren’t keeping up. That all changed last year, says AccuStream Research, when for the first time revenue growth outpaced listening hour increases. Moreover, the research firm expects that growth will “continue unabated in 2012.”
AccuStream’s report (“Internet Music Radio and Track Play Growth 2012-2014: Listening and Monetization Analysis”) found that listening hours for “Internet music radio and track play” (presumably including services like Spotify and Rhapsody) grew 50.5% in 2011, reaching more than 1.3 billion hours monthly.
Meanwhile, mobile listening exploded: it grew 222% in 2011, according to AccuStream, and now accounts for 41% of hours streamed monthly. In 2012 70% of Pandora’s listening is “non-PC,” says the report, as is 50% of Slacker’s audience.
Increases in monetization (including ad and subscription revenue) outpaced listening hour growth, with an advance of 64.6% in 2011. The study reports the industry generated more than $293 million in gross media spending (audio, video, display) and another $171 million in subscription revenue.
In late October 2011 SNL Kagan forecast that Internet-only radio stations would generate $293 million in revenues in 2011. That same study predicted AM/FM digital revenues would reach $713 million in 2011. Audio4Cast has more on SNL Kagan’s predictions here.
AccuStream expects the market to increase 78% in 2012, reaching 6.2 billion avails per month (“driven in part by Pandora’s increasing focus on the in-stream audio format”). Audio fill rates will reach 60% this year, says AccuStream, with an eCPM (average equivalent CPM) of $6.80.
“Combined with an in-house sales force selling into top local DMAs where terrestrial broadcast radio advertising has historically been bought,” writes AccuStream, “the audio format is moving to the forefront of the programmer’s monetization initiatives.”
You can find AccuStream Research’s press release here.
John Gehron, chair of Merlin Media Advisory Board, has a legendary background as a programmer and corporate leader in radio and is now COO of Accuradio, a leader in music streaming and other digital services to the radio business. At this year’s Future of Radio Conference he will report the latest information about the progress music streaming companies have made capturing listeners and why they have had such incredible success in the last few years. He’ll also lay out how terrestrial stations can compete against these formidable companies that are taking listeners away from radio. John will report specific case histories of what some radio operators have done to protect their brand and generate revenue.
To reserve your space for this year’s conference, complete the form on the registration page and indicate your desire to participate. Participation is limited to 35 attendees. Fees for attending are shared among all participants and range from $350 – $500 plus accommodations and meals.
Radio has long been, and — despite all the noise — continues to be the most-trusted “curator” of music for consumers. Nearly as many people today report that Radio is the number-one place they find new music as ever. Forgive me for not having the report in front of me, but it’s somewhere in the 75% range. Not to say that is a defensible position, long-term, but my point is that consumers still trust Radio.
Pure-play digital broadcasters have had a lot of trouble establishing credibility in this regard. We could speculate about a number of different reasons for that; my two cents is that because the brands have no real personality (no jocks, no real imaging, and the music is just “Pandora,” not a brand unto itself) consumers don’t build as much passion for it as they do a Radio brand they like. Read more