By the end of this decade, 93% of new cars will offer streaming music as part of the built in entertainment system. That’s the prediction of new research out from ABI Research in the UK, which forecasts that global shipments of streaming music enabled automotive infotainment systems will top 66 million by the end of 2019.
The study says that Digital and HD Radio formats will never scale to replace FM, and auto manufacturers will continue to include FM receivers in cars for many years. But listening to FM will gradually be replaced by streaming radio and music services as more and more cars become connected.
Car manufacturers know that in car entertainment systems are important to consumers, particularly younger ones. The race to integrate connected dashboard technology is on. As carmakers search for innovative platforms to call their own, fragmentation is high at this early stage. Streaming services like Pandora, iHeartradio and Spotify, looking for ubiquity, must integrate with each platform individually, an expensive challenge.
The impact of connected dashboards on the future of radio is high. A connected driver can receive highly targeted messages based on what they are driving, and where they are located, offering greatly enhanced value to advertisers, and higher net cpms for the music services.
We’ll be discussing all of the developments, challenges, and impacts that the connected dashboard presents for our industry, with George Lynch, VP Automotive Biz Dev at Pandora; Michael Bergman, Senior Director, CEA; Jake Sigal, Founder, Livio; and other smart folks at RAIN Summit West on Sunday April 6th in Las Vegas. Join us and become part of the amazing buzz surrounding our industry at our biggest event of the year. Early registration rates end soon.
Online music streaming services such as Pandora and Spotify appear to be driving interest in online in-car audio, according to new data from Vision Critical. In an online survey among a representative sample of 4000+ online consumers in the United States, Britain and Canada, the survey found that one-in-four drivers in the United States, Britain and Canada regularly play personal digital music through their car stereo system, and more than 50% are interested in doing so.
Broadcast radio is still the dominant source of audio in the car, more than three quarters of respondents in all three countries had listened to broadcast radio in their cars in the past week. What’s more, numbers indicating an interest in listening to digital audio should not be interpreted as a threat to that. Digital audio sources may well replace listening to cassettes and CDs says the survey.
Young men were the most interested in listening to digital audio in their cars, so stations offering streamed formats that appeal to that demographic will see the earliest benefits of in-car listening to mobile streaming.
Comparisons among listening in the US, UK and Canada are interesting. Streaming audio programs in cars in Canada, where royalty rates are considered too high for entry by Pandora and Spotify. Without them to drive interest, listening is growing more slowly than in the US and UK where Pandora and Spotify, as well as other services, have thrived.