Total listening hours to Internet radio are forecast to expand 22% in 2011 building on a more sound economic foundation in 2010, according to a report by AccuStream Research.
In a brand new update to their annual study, AccuStream finds that advertising supported listening (excluding Shoutcast and paid subscriptions) reveals a 5% drop in monetizable inventory in 2009 as large, pure-play services Yahoo Radio and AOL Radio were folded into CBS Radio, while independent operators grappled with royalty rate structures assessed against audience size.
However, ad supported listening hours are forecast to improve 20% in 2010 as inventory sellout rates continue to rise, royalty rates slightly more favorable to smaller operators are reset and mobile platforms achieve greater scale. AccuStream’s forecast for 2010 revenues predicts sellout will reach 55% and generate $135 million in 2010 (audio and video media buys alone), a 41.6% growth spike. The market grew by 13.9% in 2009.
The report pinpoints several factors responsible for the accelerated revenue projection, including greater emphasis being made by terrestrial broadcasters with online extensions to implement a highly localized sales strategy, supported by several companies offering better national sales execution and bundled online solutions to radio broadcasters. The emerging mobile platform is a contributing factor in the growth as well. Mobile music media spend is forecast at $6.7 million in 2010.
Look for more on this report next week as I spend more time with it..