We've all heard about how radio is a dieing industry and that iPod's and the Internet have created an atmosphere in which consumers will no longer tolerate advertising in between songs. However, though the existing radio model but might be obsolete, there still may be opportunity for advertisers to reach potential customers in the music space.
A January 2008 Arbitron-Edison Media Research study found that an estimated 33 million Americans had listened to online radio in the past week.As more people gravitate towards the Internet and connection speeds increase, these numbers should only continue to increase in the future. Though people like listening to their own customized playlists, there are a significant amount of music consumers who enjoy the randomness of a radio station. I believe that if a company can demonstrate that the quality of their content and musical taste is of very high quality, that people would be willing to deal with some advertising. The margins on the business most likely would be very low given the fragmentation of the audience and the rights fees necessary to broadcast the content but the opportunity definitely still exists.
This represents 13% of the US population ages 12 and older, and is an increase over the previous year when 11% of the population (29 million) had listened to online radio in the past week.
No comments:
Post a Comment