Online Radio Will Be 5% of Overall Number for Broadcasters

snl kaganJoining the parade of predictions that online radio revenue will grow in 2010, SNL Kagan predicts that by 2013 online radio revenue will account for nearly 5% of radio’s overall number. Kagan’s announcement, published as part of SNL Kagan’s Broadcaster Investor Service, expects 12% growth this year, with radio’s online revenues tallying $441 million (up from $394 million last year).

Beyond that, SNL Kagan projects an annual online revenue growth rate of 20% in 2010 to $530 million. As the market matures, growth is expected to level off through 2013, rising to $827 million, or 4.7%, of total radio revenues by the end of the five-year period. That compares to 2.0% in 2008 and a projected 2.7% of total radio revenues in 2009.

The decline in broadcast radio revenues has helped to spur the growth of online radio dollars, according to the report. Out of necessity, stations looked to develop online initiatives with websites, streaming and mobile applications to replace traditional ad dollars and increase sales.

The report is focused strictly on broadcasters and appears to refer only to online revenue growth for broadcast stations. Pure online stations such as Pandora, AccuRadio whose revenues would be completely online do not appear to be part of this report.

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