BlogPageWelcome to my blog -- Grace's Rantings

I have made a study of human communication -- interpersonal as well as mass media.  I am intrigued by tremendous changes in human interaction in recent years.  The computer, Internet, smart phones and social media have dramatically changed the way we interact with each other.  Human discourse hasn't changed, but the mediums by which we communicate have..."and that has made all the difference".

 

Please share your thoughts and join in the discussion. I welcome your input and comments!

 

AM/FM Radio, Satellite and Internet Radio

I have always been a loyal radio listener.  I have had my favorite stations through the years.  Growing up in New Jersey, it was WNEW-FM in New York.  When I moved to New Hampshire, WBCN-FM took over as my top stations, and as formats changed (and I grew older), it became WXRV-FM, The River.  

But, I must confess, for over 10 years I have been an avid XM Satellite Radio listener.  I still listen to the same formats (Classic Rock and Adult Alternative -- Classic Vinyl, Deek Tracks and The Spectrum are my go to stations), I just do so without the chatter and commercials.  I don't find the $14.99 per month onerous.  However, it seems that  most people do!  I am just amazed that everyone doesn't subscribe to Satellite Radio!  As a matter of fact, according to Pew Research, good ol' AM/FM radio is still the standard.  

  • 91% of all people aged 12+ in the US listen to AM/FM radio. This is down just slightly from 96% in 2001.  
  • 236 million people listen to AM/FM terrestrial radio on a daily basis!  
  • By comparison, SiriusXM has 29 million listeners in the US (up only 3.8% from 2008)

And so, while it has its fans (myself included), Satellite Radio currently is not a big threat to terrestrial radio.

 

However, Internet Radio may very well be.  Internet radio (including on-line stations, Pandora, Spotify and even the SiriusXM has an Internet radio service) is growing rapidly.  A study by Edison Research reports that:

  • Online radio reaches 94 million listeners weekly.  
  • In 2003 only 8% of the population listened to online radio.  
  • In 2014 this jumped to 36% -- A 3.5x increase in listenership!

While 94 million is only 40% of AM/FM's 236 million, more revealing is the demographics on on-line radio listenership: 

  • 36% of all adults listen to online radio,but
  • 64% of those aged 12-24 listen to online radio
  • 37% of adults aged 25-54 listen to online radio
  • 13% of older adults aged 55+ listen to online radio

Obviously this will become a situation for terrestrial radio in the not so distant future.

And while most radio listening occurs in the car -- 42%, this is not necessarily going to help AM/FM radio stations.

Cars are beginning to come equiped with Internet connectivity.  Yet, even without Internet ready cars, on-line listenership in cars via cell phones is also on the rise.  

  • In 2010 only 6% of online listeners in cars did so via cell phones
  • In 2014 this jumped to 26%

Demographically

  • 43% of persons aged 12-24 listen to online radio in the car through their cell phone
  • 27% of adults 25-54 do so, and only
  • 10% of older adults 55+ listen to online radio in their car via their cell phone

Radio listenership is changing rapidly and this is not a positive trend for good ol' AM/FM radio.

While video didn't kill radio, online services may very well do it.

 

 

 

For additional reading: http://xappmedia.com/wp-content/uploads/2015/01/Internet-Radio-Trends-Report-2015_january.pdf

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