Online radio in the U.S.- statistics & facts
Unlike many other traditional media formats, radio has managed to adapt to the massive changes brought about by the proliferation of mobile internet. While traditional radio may be in a state of relative decline from its heyday, people in the United States have shown that they appreciate what it offers as source of news and entertainment. New, internet-based or online radio platforms now account for over 672 million dollars’ worth of streaming music revenue and the format continues to grow with each passing year. The decline of over-the-air radio is, in many ways, being offset by the growth of its online counterpart. One example of this is advertising; over-the-air radio station advertising revenue decreased by 24 percent in the last decade, while online ad revenue saw growth of 378 percent in the same period.
In order to ensure that the format continues to expand, online radio providers will need to focus on the aspects of the technology that set it apart from their streaming competitors and bet on local markets and commuting consumers.
Online radio market leaders
iHeartRadio is the clear leader in the online radio market, while NPR has established itself as a distant runner-up. Competition within the industry is somewhat unique; online radio providers compete against each other as well as alternative music streaming services, such as Spotify and Apple Music, for consumers’ time. As these alternative platforms grow, consumers spend less of their time on online radio platforms like Pandora. Because of this the current owner of Pandora Radio, Sirius XM, despite years of continuous subscriber growth, started seeing declines in this matter, with recent figures placing it below 34 million users.The online radio market
The market for online audio in the United States is massive, with an average of 70 percent of Americans listening to radio via internet on a weekly basis. Over two-thirds of U.S. consumers report that they listen to online radio on a monthly basis. The impressive reach and usage of these services creates high user engagement opportunities for the industry players and subsequently a more successful advertising space. Digital local radio advertising in the United States is, in fact, constantly growing, which proves the potential of this medium.In order to ensure that the format continues to expand, online radio providers will need to focus on the aspects of the technology that set it apart from their streaming competitors and bet on local markets and commuting consumers.
