More than one of every three Internet users will listen to Internet radio weekly this year, reports EMarketer. That 37.5% of 12+ Internet users in the US means more than 79 million listeners to online radio. That number will continue to grow and hit 157 million and 67% of that population by 2015.
EMarketer also projects that online stations are billing $800 million this year and will grow that number to $1.6 billion by 2015.
Hmmm. While I am liking the sound of these numbers, particularly the revenue, the write up that I read online isn’t sounding so smart to me, as it appears to compare broadcast revenues to online radio revenues in one breath, but then throws the term “pure plays” in. Revenues derived from pure plays would include online stations only and not include broadcasters’ streams. I ‘think’ it’s a mistake, and the $1.6 billion is meant to project revenues for all of Internet radio, not just for pure plays…
2010 was the year that Internet radio finally became a household word – although to many that word may have been “Pandora“. Pandora’s popularity on iPhone and other smartphones really took hold this year, listening became more commonplace and many other stations benefitted as well. Apple‘s introduction of iPad created more excitement for Internet radio apps, and car manufacturers got into the game as well. Here’s a synopsis of key stories from the second half of the year…
August – In August Bridge Ratings gave us more interesting data on Internet radio’s audience, using Nielsen’s PRIZM lifestyle groupings to establish listening patterns among certain lifestyle groups. Not surprisingly, it’s the young, urban, educated and trend setting groups that are fueling adoption of Internet radio in the US.
September – September brought some interesting data on mobile music listening. According to eMarketer, 21.7 million listen to mobile music now and that number will grow to more than 52 million by 2014. comScore had the number even higher, with info showing that 234 million Americans ages 13 and older used mobile devices during the 3 month average period ending in July, 2010 and close to 34 million (14.5%) of them listened to music on them.
October – In October I wrote that Pandora had recently announced that they had 65 million registered users, a number that increased 8% in three months. In the same post I noted recent words from Pandora’s Tim Westergren who pointed out that all of Internet radio is just 3% of radio listening right now while 90% is to broadcast radio. That, says Westergren, is where Pandora’s growth will come from.
November – In November Clear Channel announced a new partnership with Toyota to put their iheartradio streaming platform in cars, a first for broadcasters moving to work with car manufacturers to create streaming radio opportunities for their platforms in ways similar to Pandora/Ford. Live365 rolled out a new platform Athena 365, targeting women, and RadioTime put their tuner on Google TV.
December – In December we learned, from Coleman Insights, that some folks just prefer to listen online – of the 17% of the population that is streaming monthly, 48% say they don’t listen to any over the air radio. The report emphasized that listeners are not shunning AM/FM radio as much as choosing a preferred platform for listening, making it critical that broadcasters view all of their distribution technologies as equally important. There are indications that that is the case – BRS Media reported that more than 75% of broadcasters who featured Christmas music were doing so online.
In addition to lots of positive news and momentum, the industry as a whole began to shape up this year. RAIN Summits, the premiere educational and networking events for the industry, hosted several excellent events including a sold out event at the Radio Show in September. More people, more professionalism, more buzz – all good things for our burgeoning business.
Thanks for reading Audio4cast this year, I wish you a profitable and healthy 2011!
The ad spend for Internet radio in 2009 will hit $260million, according to a new report by eMarketer. This is in contrast to broadcast radio, which is, as we all know, suffering the steepest spending declines in its history. The report predicts the radio industry will see an 18% drop in revenues from last year. Meanwhile, spending on Internet radio is increasing – moving from $200million in 2008 to $260M in 2009, and projected to hit $351M in 2011.
According to Arbitron Edison the Internet radio audience is now 42 million weekly (12+), up from 33 million in 2008, and eMarketer notes that an expanding number of ways to listen to online radio is driving that audience growth. Smartphones and wifi enabled devices have moved Internet radio away from the desktop and into pockets and even cars in the last year.
Benefits for advertisers, according to the article, include more-targeted advertising and a more educated audience with higher income and a greater chance of being employed. Mobile will bring still more opportunities by offering streaming radio on the go via phones and other connected portable devices.
There’s not a lot of new information in this report, but there are a couple of nifty graphs, and its an article that gets its facts right – starting with the headline Internet Radio Revs Up, which of course has a nifty double meaning..