Internet Radio Listening in the Car Will Reach Measurable Numbers

As we say hello to 2011 and look back at 2010, we realize that 2010 was the year for internet radio. Many predictions were made; some were right, some were wrong. One prediction about in-car radio streaming turned out to be right.

PREDICTION FROM 2010: Internet radio listening in the car will reach measurable numbers – whether it be from an installed system, OEM system or just plugging iPhones or Blackberrys into the car receiver (or using a simple FM transmitter).

RIGHT: Online music streaming services like Pandora and Spotify appear to be driving interest in online in-car audio, according to data from Vision Critical. In its October online survey among a representative sample of 4,000+ online consumers, it found that 9% of U.S. drivers “streamed audio programs or podcasts on their smartphones through their vehicle’s stereo system.” Toyota will integrate Clear Channel’s iheartradio mobile app into select models starting next year. Ford also announced that they would integrate Pandora into 2011 cars with its sync system that can be purchased in 2010.

The Internet Plays a Bigger Part in the Future of Radio

What makes people listen to the radio via the Internet? Is it because it’s convenient? Is it because of the interaction between station and listener? Whatever the reason is, radio streaming is here to stay.

The number of stations that anticipate having more online than over the air listeners grows gradually each year. Here are some key points in a study conducted by Alethea Research.

Almost all radio tech people believe the Internet will play a bigger part in the future of radio. More people are listening to radio on mobile phones or on their office computers, and since the Internet is interactive, radio stations will be able to do a lot more to engage listeners in the future; a way to better connect with their listeners.

In a survey, 96.73% of radio tech people said YES, the Internet will play a bigger part in the future of radio, while 3.27% said no.

The revenue generating technology that most group owned stations plan on deploying next is a mobile app. While broadcasting in HD Radio are standalone stations’ first priority, deploying a mobile app is second.

With online ad spending at $25.8 billion in the US (eMarketer.com), the mobile Internet presents a great opportunity for audience growth. Mobile apps provide flexibility and an opportunity for stations to engage their listeners. Just like website banner advertising, mobile advertising can be a platform for generating more revenue.

Just because radio streaming is becoming a dominant force, it doesn’t mean radio stations expect to turn off their transmitters at any point in the future. Radio stations may eventually have more online listeners than over the air, but a transmitted signal gives stations an advantage over online-only competitors. About 76% of radio techs say they will never turn off their transmitters.

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Home Streaming to Motorola Mobile Devices

Motorola is aiming to bring streaming video to tablets and mobile phones in the home via a set-top box, according to Reuters. At first, the idea is to provide streaming video (movies, TV programs) to devices within a wireless network at home, but eventually Motorola wants to enable its customers to watch any content, anywhere.

The product, announced at the Reuters Global Media Summit, will be showcased at the Consumer Electronics show right after Motorola spins off Motorola Mobility, which includes its set-top box and cellphone business, from the rest of the company on 1/4.

Daniel Moloney, president of Motorola Mobility, sees the offering as a first step in his efforts to combine set-top box and cellphone technology to eventually allow consumers to view any content anywhere on different devices in the next five years.

"It's one consumer proposition that will come sooner rather than later," Moloney told the Reuters Global Media Summit on Wednesday.

While much of the technology already exists for such offerings, one thorny issue is for equipment makers or operators to forge agreements with programming providers for the right to let consumers carry content around.

This is why the streaming product will initially only send video to devices being used within the home. Moving content outside the home could take much longer, Moloney said.

And after being sold a separate gadget, to be offered via service providers, the home streaming product will eventually be integrated into set-top boxes. Moloney said it would be up to service providers whether to charge an extra service fee for the device or not.

The Home subsidiary, which includes set-top boxes and cable network equipment, represented almost a third of Motorola Mobility sales in the third quarter with revenue of $912 million compared with $2 billion in revenue from cellphones.

Moloney said he sees Motorola Mobility generating operating profits in an 8-12% range in the next three to five years.

Source: http://bit.ly/dI5iWz

Consumers Prefer Internet Only Streams Over Traditional Radio

A recent study by research firm Coleman offers a glimpse into the behavior of internet radio stream listeners.

An estimated 43 million Americans (one in six) listen to some form of audio stream at least once a week. Streaming offers a new form of radio, delivered through consumers’ computer, mobile phone, iPad, and other internet devices. Nielson shows that almost 30% of US mobile phone users own a radio-ready, app-friendly smartphone, up from 21% in Q1 of 2010.

33% of consumers are most aware of AM/FM streams. Pandora is the only individual brand that consumers can call to mind; 28% of streaming audio users have top-of-mind awareness of Pandora. Then there’s only one other brand that has more than 10% awareness, Sirius XM.

Another key finding shows that streaming consumers use internet only streams in total more than AM/FM streams. Pandora accounts for almost half of the regular usage of internet only streams.

When compared to over the air broadcasts of FM and AM radio, 39% of consumers prefer internet only streams and 31% prefer AM/FM streams…leaving only 15% preferring over the air broadcasts. Since traditional radio is preferred by such a small percentage of people, this tells us that internet streams are becoming a dominant force in radio.

What comes out of these findings? Putting more emphasis on brand building is key. A stream offering compelling content won’t automatically find an audience. Having a sustainable streaming service is to have a brand that consumers value and bond with.