Internet radio revenues will accelerate faster than terrestrial revenues, according to new data presented by Bridge Ratings President Dave Van Dyke at RAIN Summit West last week in Las Vegas. According to his report, revenues will increase a modest 12% this year, from $288 million in 2009 to $324 million this year, then jump 240% over the next five years to more than $800 million in 2015. By 2020, Internet radio revenues will top $1.6 billion.
“The data points for the revenue projects came from interviews conducted earlier this year with buyers, sellers and clients,” says Van Dyke. “We discussed their interest in the internet radio space, their budgets for the past two years and what their intended spending would be going forward for the next 2-3 years. From there we extrapolated growth based on these interviews with people who have their fingers on the pulse of the business.”
The revenue projections are based only on streaming ads, pre-roll and banner advertising in the player, and does not include ads on the website or other monies derived from a station’s digital platform.