SNL Kagan on "The Future of Online Radio Revenue"

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On July 21, 2010, SNL Kagan hosted a webinar to discuss "The Future of Online Radio Revenue."

Here are some interesting findings from the webinar:

Digital radio ad revenue (including internet, mobile, and interactive) is growing quickly, but is still a small percentage of total radio revenues. However, streaming and mobile applications are essential for continual growth.

The per-performance fee for larger pure-play webcasters is 0.097 cents per streamed song in 2010 and climbs to 0.14 cents per song in 2015.

Radio’s digital revenue will double, from $552 million this year to $1 billion in 2015. That would make it account for 5.3% of radio's total revenue, up from 3.2% this year.



Mobile is a big driver and viewed as “the next big thing” by online broadcasters. Smartphone owners - now 120 million strong - are expected to reach 221 million by 2015. “The advent of mobile has grown the industry and transformed the business model,” said SNL Kagan associate director Robin Flynn. Advertisers are paying a premium for targeted in-stream audio ads.

10 Reasons Satellite Radio Rocks by Sheryl Owen

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One of our readers, Sheryl Owen, wrote an article entitled "10 Reasons Satellite Radio Rocks" and asked us if we could share with our readers.  If you have an interesting article you'd like to share with us, we will be more than happy to repost your article on our blog... as long as it has to do with radio, of course :)

10 Reasons Satellite Radio Rocks by Sheryl Owen

Satellite Radio is becoming increasingly popular in America and around the world. I suppose there are a lot of different reasons why including several that are extremely subjective. So, here is my very subjective take on satellite radio because, I flat out love my XM radio. Before I get too far… I still call it XM radio (sorry Sirius… I know who owns it so give me a break please). Here are 10 Reasons Why Satellite Radio Rocks:

It comes with new cars (used ones too if you are lucky like I was). I recently purchased a new car (well, new to me it was actually a used 2008 Toyota Sequoia). To my surprise it came with XM satellite radio (http://www.xmradio.com/) fully activated for my enjoyment which I’m sure will end sometime soon, but the fact that it came with even my used car made it super convenient and may have been the only way I would ever have tried their service.

You can try it out to see if you like it in most cases. Especially when you get a new vehicle you generally will have a 30, 60, or 90 day free trial where you can test out their service before subscribing for an extended period of time. If you go to their website you can also try before you buy easily with a free 30-day trial ad right on the homepage.

The quality of the sound is consistent and significantly better than my FM radio (forget about AM, it’s not even close as XM is crystal clear for those programs as well). So whether I am listening to music or news I know I’ll hear the full song or story static free with XM.

The number of stations is actually a bit overkill, but it’s really nice to have. When my family is in the mall shopping and I am out napping in the car, I can spend countless minutes just playing with the various stations on my XM radio.

The number of international stations is of course non comparable to any other radio. I can listen to news from multiple country’s perspectives which I find very interesting. Especially when it comes to things like the big BP oil spill in the gulf. The way that people in England think and the way Americans think on this issue is totally different.

Radio Disney – for the kids (wink, wink, …). Actually my kids are huge fans of all the Disney stars so it actually is really great to have Radio Disney available to us for long or sometimes even short road trips. Keeping the kids entertained goes a long ways in making the ride more enjoyable.

Better news channels are a given. Not only do I get the international viewpoints as mentioned above but there are literally dozens of news channels ranging from liberal to conservative that help to keep me informed on all of the current events (with the improved choice I can get a better feel for the spin being put on each story).

Better talk radio… If you are a fan of talk radio then XM is great for you because you get to hear your favorite programs in digital clarity. Whether it’s Glen Beck or Dave Ramsey you are after they are all there: http://www.xmradio.com/talkradio.  

Wherever you go… your stations go with you. Wow! What a difference! I can’t tell you how much time I used to waste trying to find a station driving from town to town while on the road. I don’t have to worry about that at all anymore because the stations I love are always available to me regardless of where I am on the highway.

Home, car, work, sat radio is portable. So I am so addicted to satellite radio that I have it in my car, a docking station at home, and at work. I just really appreciate being able to have this service available to me 24×7. I actually really do love my satellite radio!

NAB HD Radio Multicast Award

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There’s still time to submit your nomination for the National Association of Broadcasters HD Radio Multicast Award! The deadline to submit entries is July 30, 2010.

The NAB HD Radio Multicast Award was established in 2007 and recognizes stations utilizing HD Radio technology through innovative or groundbreaking programming on a multicast channel. Stations were asked to submit information including programming, on-air personalities, promotions and branding elements that establish the multicast channel with a separate identity from the main station. KBCO-FM Denver's "The Studio C Channel" and WRIF-FM Detroit's "Riff2" were the first stations to receive the NAB HD Radio Multicast Award.

Nominations for the NAB HD Radio Multicast Award will be accepted until July 30, 2010.

This award recognizes a station's unique, innovative or groundbreaking programming on a multicast channel. The station to receive this award is considered at the forefront of HD programming and utilizes this technology to further enhance Radio's overall value to the listening audience.

To be eligible, stations must be NAB members and located within the United States. The winner will be announced in advance, and will be presented with their award during the Radio Show in Washington, DC.

Click here for the nomination form.

News/Talk Remains Most Listened to Public Radio Format United States

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Today Arbitron announced the release of Public Radio Today, 2010 Edition.

Public Radio Today, 2010 Edition is an analysis of audience demographics and listening patterns of the nine most popular public radio formats:

1. News/Talk
2. News-Classical
3. Classical Music
4. News-Music
5. Adult Album Alternative (AAA)
6. Jazz
7. News-Jazz
8. Variety Music
9. News-AAA

“Public radio continues to be a vibrant and relevant part of many Americans’ lives,” said Chris Meinhardt, Arbitron Inc. “The medium plays an important role in today’s media landscape by providing important programming not available anywhere else. Public radio is also meeting the challenges of a crowded media landscape by taking full advantage of technological innovations, including podcasting, Internet streaming and HD Radio® multicasting.”

Here are some highlights Arbitron posted:
  • News/Talk captures nearly half of all public radio listening and remains the most-listened-to public radio format in the nation, with twelve more stations adopting the format in 2009.
  • News/Classical lost 13 stations nationwide (from 263 in 2008 to 250 in 2009) but increased its share by 1 percentage point from 20.2 in 2008 to 21.2 in 2009.
  • The addition of nine Classical stations, combined with a steady decline in the number of commercial Classical stations, increased from a 13.7 share in 2008 to 15.4 in 2010, the largest increase of any public radio format in 2009.
  • Formerly known as AAA/Eclectic, Adult Album Alternative (AAA) had 11 fewer stations in Fall 2009 compared to a year earlier, but its numbers are relatively stable.
  • Twenty-six new Variety Music stations helped boost the format from a 1.7 share to a 2.2 share of the public radio audience in 2009.
  • Thirty-nine stations that were formerly recognized as News, AAA or News-Music are now classified as News-AAA.