by Hunter Simon and Justin Skerpan
9/12
http://arbitron.mediaroom.com/index.php?s=43&item=778
On September 12, Arbitron released a 2010-2011 comparison of radio audiences in various markets around the country. The results indicate that radio is and will continue to be in slow decline. When large markets like New York City, Los Angeles, Chicago, San Francisco, and Dallas (top five markets respectively) are losing listeners, small markets seem to have no chance. Although radio has adapted to become a local medium, it is struggling to find success in lucrative, high potential markets. The tough economy conditions coupled with a declining interest in radio is diminishing the radio industry as we know it today.
9/15
http://arbitron.mediaroom.com/index.php?s=43&item=780
On September 15, Arbitron released a national study showing that “broadcast radio dominates the choices for information and entertainment in the car.
The study, titled The Road Ahead: Media and Entertainment in the Car, by Edison Research and Scarborough Research debuted today at The Radio Show, “hosted by the National Association of Broadcasters and the Radio Advertising Bureau in Chicago.” The study looks at “ changes and challenges in the in-car landscape” of radio.
One key fact of the study is that AM/FM radio was found to be the top choice for in-car media and entertainment. According to the study, 84 percent of all drivers/passengers report using in-car radio, beating out car CD players (68 percent).
9/19
http://arbitron.mediaroom.com/index.php?s=43&item=781
On September 19, Arbitron reported its September RADAR (Radio’s All Dimension Audience Research) Radio Network Ratings. About 190 million people ages 12+, 73 percent, “heard one or more network radio commercials in an average week of the survey period.” The survey shows that radio reaches a mass audience with commercials on 56 radio networks reaching all demographics.
9/20
http://arbitron.mediaroom.com/index.php?s=43&item=782
On September 20, Arbitron released audience estimates for 56 radio networks owned by American, Urban Radio Networks, Cumulus Media Networks, Crystal Media Networks, Dial Global Inc., Premiere Radio Networks, United Radio Networks and Westwood One Radio Networks. After a year, network radio is now reaching 75 percent of younger demographics (ages 12 and older) each week.
However, the growth in many of the demographics is small, too small to have any significance.
9/26
http://arbitron.mediaroom.com/index.php?s=43&item=783
On September 26, Arbitron released the results of its September 2011 RADAR 110 National Radio Listening Report. The report shows an increase in radio listeners from the September 2010 report, showing an increase of 1.7 million average weekly listeners ages 12 or older.
According to Arbitron’s findings, the spike in listeners is directly correlated with the increased listeners from young demographics. An estimated 241.4 million people, representing 93 percent of the population in this age demographic, are listening to the radio each week. In comparison to 2010, teen listeners (ages 12-17) increased by 36,000. Adults (ages 18-34) increased by 80,000. Overall, both teen and adult radio listeners have increased in the last calendar year—radio is listened by nearly 92 percent of teens and 94 percent of adults.
On the contrary, the number of radio listeners aged 25 to 54 and 18 to 49 dropped by 118,000 and 365,000 listeners respectively in the last year.
The study also shows a wider diversity among radio listeners. In particular, radio listeners are increasing among Black and Hispanic demographics aged 12 and older.
9/30
http://www.kurthanson.com/news/guest-essay-michael-robertson-%22-smart-phone-killed-car-radio%22
Respected entrepreneur Michael Robertson voiced his opinion about smartphones and their integration with cars. Robertson feels that it is inevitable for smartphones to surpass the radio in cars, and points to applications such as DAR.fm, iTunes, and YouTube as the driving force.
10/3
http://www.kurthanson.com/news/cbs-radio-adding-45-new-channels-radiocom
CBS Radio has announced that it will add 45 new channels to Radio.com in response to the departure of AOL Radio, who is merging with Slacker.
http://www.kurthanson.com/news/promotion-endorsement-pittman%27s-digital-initiatives-says-company
On October 3, 2011 Clear Channel announced that Bob Pittman had been promoted to CEO of Clear Channel Media Holdings. Pittman took over for Mark Mays, who announced his would be stepping down from his position, yet still holds a position as chairman of Clear Channel Media Holdings. Pittman has previously held the position of CEO at AOL Networks and was cofounder and CEO of MTV. He began working for Clear Channel in 2010. Click the link for Clear Channel’s press release: http://eon.businesswire.com/news/eon/20111002005059/en/CC-Media-Holdings/Inc./Bob-Pittman
10/4
A new online radio named Sonic Seeds has been developed, and looks to eventually compete with Pandora radio by providing “better recommendations” than the online radio juggernaut.
On October 4, 2011 music subscription service Rhapsody acquired all platform subscribers and intellectual property of Napster radio. Rhapsody already boasts the largest amount of paid users, and this is only expected to increase the services popularity. Also, Best Buy, who had bought Napster in 2008, now holds a minority share in Rhapsody.
10/5
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3030
On October 5, 2011, Clear Channel Radio and Microsoft expanded the multi-year strategic plan that had been in place between the two companies in order to integrate Clear Channel’s “iHeartRadio” with Microsoft’s Xbox 360. The deal combines Clear Channel’s highly popular and free radio service with the most sold entertainment system in the United States. Free use of iHeartRadio was limited to Xbox “Gold members”, and can be used on both the Xbox 360 and the Xbox connect.
10/6
http://www.kurthanson.com/news/itunes-ipad-rain-highlights-how-jobs-impacted-web-radio
On October 6, 2011 co-founder of Apple, Steve Jobs, passed away. His impact on the world of media was vast, including Internet radio. Jobs created an Internet radio section in the media program iTunes, iTunes Genius, and the various Apple products, which allowed online radio to be played in millions of places throughout the world.
http://www.kurthanson.com/news/univision-demands-its-stations-be-removed-robertson%27s-darfm
On October 6, 2011 Univision sent a cease and desist letter to Michael Robertson at DAR.fm, the online site that allows users to record radio broadcasts. Although Robertson feels that this does not infringe on copyright laws, Univision disagrees, pointing out that the site allows users to download programs onto their mobile devices through MP3 files, which can be easily copied and distributed. Univision has requested that all of their programs be taken off of DAR.fm.
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3031
On October 6, 2011, Clear Channel Radio, a leading media company in America, announced the launch of its Artist Integration Program. It was scheduled to launch on October 10, 2011, starting with a campaign promoting Grammy winning band, Coldplay’s new album. The program, part of Clear Channel’s new National Programming platform division will be utilized to inform the public about new projects started by both developing and established artists. Through online and on-air promotional campaigns, the program will take advantage of Clear Channel’s 850 radio stations (stretched between 150 cities) and help gain an increase in audience awareness of new music.
10/7
http://www.kurthanson.com/news/study-shows-usage-pandora-cars-75-over-last-year
Pandora continues to progress in popularity as data from MagnaGlobal’s Media Access Quarterly shows that 11 million people listen to Pandora in their cars. This is a 75% increase from 6.3 million in 2010. MagnaGlobal attributes this growth to the increase of cars with auxiliary input jacks (90%), and the fact that there are now 100 million people with smartphones that utilize these jacks to stream music.
10/11
Morgan Stanley analyst Scott Devitt tells Bloomberg that Pandora’s move to eliminate its monthly listening limit will make the online radio millions of dollars in additional revenue. Desktop listeners produce nine times the amount of revenue as mobile listeners, however, Devitt claims that mobile revenue could double by 2016. More than half of Pandora’ s listeners were via mobile during this past year, and Devitt predicts that by 2021, there will be 159 million listeners worldwide, making Pandora an even greater media influence.
10/12, 10/17
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3032
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3033
On October 12, 2011 Clear Channel announced that popular contemporary Christian stations, K-LOVE and Air1 will be broadcast via iHeartRadio. The stations will be broadcast wherever iHeartRadio is available, which now includes automobiles and the Internet. Bob Pittman, Chief Executive Officer of Clear Channel said, “By adding stations from Educational Media Foundation, one of the leading contemporary Christian broadcasters in the U.S., to the New iHeartRadio platform, we continue to enhance iHeartRadio’s offerings for users.” Five days later on October 17, Clear Channel announced that WNYC “News and Conversation” would be broadcast on the iHeartRadio digital-only channel. The channel will include segments from the WNYC station including “The Brian Lehrer Show” and “The Leonard Lopate Show”.
10/12
http://www.kurthanson.com/news/cadillac-offer-pandora-integration-all-models-2012
Cadillac has announced that their new “infotainment” system CUE (Cadillac User Experience) will allow for the streaming of Pandora radio through iPhone, Android, or Blackberry devices. They have also announced that after 2012 all Cadillac vehicles will utilize the CUE system, providing direct integration with Pandora. This is the twelfth automotive company that has partnered with Pandora.
10/13
On October 13, 2011 Clear Channel announced that Brian Lakamp had been promoted to president of Clear Channel Digital, and Pablo Calamera had been promoted to Chief Technology Advisor of Clear Channel Digital.
10/14
http://www.kurthanson.com/news/fcc-website-spills-beans-details-new-siriusxm-20-device
Details regarding the new Sirius 2.0 system has been revealed through the FCC website. Word of universal docking systems, touch-screen, and the use of WiFi, Bluetooth, or USB has been shared, and many think that the inclusion of the WiFi, Bluetooth, and USB capabilities is in response to the growth of internet radio stations and the use of smartphones and tablets.
10/17
http://www.kurthanson.com/news/buick-offer-pandora-standard-feature-select-2012-models
Buick has announced that the new Sirius 2.0 system will be a standard feature integrated into the dashboard in the 2012 Verano, Regal, and LaCrosse vehicles. This is a large step for Pandora, as they look to move past their online limitations, and hope to challenge SiriusXM in the future.
http://www.kurthanson.com/news/upgrade-includes-20-new-channels-pauserewind-capabilities
On October 17, 2011 Sirius XM Radio released their new 2.0 service. The service includes 20 new channels on, including a new Latino section, and pause and rewind capabilities. The 2.0 service is available through Sirius XM Internet Radio, and the Sirius XM Edge.
10/18
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3036
On October 18, 2011, Clear Channel announced that they had concluded anm exclusive deal with LivingSocial that made LivingSocial the sole daily deal provider for 500 of Clear Channel’s radio stations. The deal allows LivingSocial, the online and mobile source for local values, to advertise to millions of people each day.
http://www.kurthanson.com/news/occupy-austin-movement-launches-web-radio-station
On October 18, 2011, newly formed Occupy Austin went to the radio waves with their cause, launching the “first independent radio station of the Occupy Wall Street Movement.” The station is called Occupy Radio Austin, and streams online 24/7.
10/19
http://textpattern.kurthanson.com/articles/1261/rain-628-aol-radio-migrating-to-slacker
On October 19, 2011 AOL Radio was once again launched, however, instead of partnering with CBS Radio, AOL has turned to webcaster Slacker. At RAIN Summit Chicago AOL general manger Lisa Namerow also announced that AOL has cut the advertising time on AOL Radio to only about 3 minutes per hour.
http://www.kurthanson.com/news/hanson-join-dozens-other-experts-radio-20-paris-conference
On October 19, 2011 Radio 2.0 Paris conference was held, as many of the top experts in the radio industry came together to talk about the progress and future of the industry.
10/20
http://www.kurthanson.com/news/rhapsody-we%27ve-seen-%22tremendous-growth%22-spotify-launched-us
Although many speculated that the launching of Spotify in the U.S. would cause Rhapsody and other services to suffer, Rhapsody senior director of music licensing Adam Parness has stated the complete opposite. Parness has shared that Rhapsody has seen “tremendous growth” since the launch of Spotify. Currently Rhapsody has 800,000 subscribers, and hopes to reach 1,000,000 within the next six months.
http://www.kurthanson.com/news/car-smartphone-listening-growing-amfm-cd-declines
Utilizing a survey distributed by the NPD Group, it has been discovered that digital-to-car integration is the biggest threat to AM/FM radios and CDs. Out of those who took the survey, 29% listen to music through their “ smartphones or smart devices”, a 9% increase from last year. While AM/FM radio still controls the roadways with 80% of drivers tuned in, both the radio and CD use has decreased over the past year, further illuminating the fact that digital media is gaining ground.
10/24
http://www.kurthanson.com/news/post-broadcasters-clear-channel-%22staking-out%22-space-online
In response to the growing popularity of online radios such as Pandora and Slacker, broadcasters such as Clear Channel have begun to pursue space in the online industry. The idea is to create more competition within the online medium, while adapting to the changing media industry.
http://www.nypost.com/p/news/business/radio_to_daze_the_net_LOLFFOrG2mdQF5JqfGU1ZN
Large interest in mobile and digital music platforms has created a push for Internet radio control. Online radio has grown substantially over the past ten years, and, according to Arbitron reports, garners 11% of listeners who only utilize online radio. CEOs from large names such as Clear Channel have shared their distaste for free online radio services such as Pandora, and hope to compete with it through online stations.
10/25
http://www.kurthanson.com/news/internet-radio-payments-power-global-growth-performance-royalties
Digital Music News has announced that global performance royalties are up 9.1% this year, and much of $1.6 billion can be attributed to SoundExchange, who collects and administers royalties for sound recordings that are utilized by Internet radio, cable, and Satellite radio.
http://arbitron.mediaroom.com/index.php?s=43&item=785
On October 25, 2011 international media and marketing firm Arbitron released its third quarter financial results. All results were positive, as the company reported a 35.5% increase in total income, and a 6.1% increase in revenue. For the next year, Arbitron hopes to increase revenue by a full 6-8%.
10/26
On October 26, 2011 the U.S. Copyright Office summarized its priorities for the near future, and once again showed support for sound-recording royalties for over-the-air radio. The press release states that there is an economic disadvantage for those who stream music over the Internet and those who broadcast it over the air, and that the office’s long-standing goal is to “reconcile these differences”. In the statements made, the Copyright Office also supported an increase in criminal penalties for “illegal steaming” of music online.
10/27
SNL Kagan has forecasted that online radio ad revenue will only increase as time goes on. While radio station digital/online is estimated to make $713 million in 2011, SNL Kagan predicts that this number will reach $1.55 billion by 2021. For “internet-only” radio, Kagan predicts that revenue will move from $293 million in 2011 to over $1 billion in 2021. This study only furthers the on-going trend of popularity shifting towards the online mediums.
http://www.clearchannel.com/Radio/PressRelease.aspx?PressReleaseID=3038
On October 27, 2011, Clear Channel appointed members to the newly formed National Programming Platforms division. The appointments are as follows: Tom Poleman has been named President of the division. Guy Zapoleon has been named Vice President of Digital Music Programming. Dennis Clarke has been named Vice President of Talent Development. Zena Burns has been named Vice President of Digital Programming Platforms. Darren Pfeffer has been named Vice President of Music and Entertainment Marketing. Alissa Pollack has expanded her role as Vice President of Integrated Music Marketing at Mediabase to include the National Programming Platforms Division.
10/28
http://www.kurthanson.com/news/aftra-afl-soundexchange-react-siriusxm%27s-direct-licensing-plans
Sirius XM Radio has caused a stir in the radio industry with its direct licensing efforts. In August word came out of Sirius that they were seeking to license the sound recordings they play directly from the copyright owners (record labels). This would cut out SoundExchange, and would give record labels privileges in regards to artist royalties. Sirius would be able to lower the fees they pay for music, and record companies, who would not be obligated to share with artists, would make more money.
10/31
Google has announced that they will be updating Google TV so that it will include 13 new music applications, including Slacker, TuneIn Radio, Rhapsody, Napster, Vevo, Baeble Music and Pandora.
11/1
It has been announced that Entercom is yet another radio company that is losing money. The company produced minimal revenue in the third quarter of the past year, further capturing the struggles of AM/FM radio in the world today.
http://www.radio-info.com/news/q3-report-sirius-xm-subscribers-now-top-213-million
While AM/FM radio slowly begins to decline, satellite radio is doing the opposite. In the same Q3 ratings that showed Entercom’s struggles, Sirius XM boasted 334,000 net subscriber additions, and a drop in subscriber acquisition costs. With the release of Sirius XM 2.0, even more progress is imminent.
11/2
Pandora has partnered with DMX, longtime provider of audio environments for businesses, to help businesses “personalize their brand experiences the same way that people personalize their individual experiences on Pandora.” This is another opportunity for Pandora to step away from online radio broadcasting and integrate more fully into the world.
11/3
http://www.radio-info.com/news/the-political-ad-category-is-starting-to-come-alive-for-radio
Political ads have become a growing source of revenue for the radio industry, as politicians try to gain recognition in the public eye through all mediums.
http://www.radio-info.com/news/clear-channel-names-24-members-of-brand-management-team
Clear Channel named 24 members to their new “Brand Management Team” under the new National Programming Platforms. Each format will have a Brand Manager and Brand Coordinator in an attempt to better organize the newly formed programming platforms.
http://www.radio-info.com/news/radio-ones-q3-radio-revenues-flat-gains-at-tv-and-internet
Radio One has come out with their Quarter 3 statistics, solidifying the fact that radio revenues are flat, but also showing that both TV and Internet revenue rose over the past few months. A rise in Internet revenue may be a sign of changing times for the radio, as we may soon see online radio begin to have more power in the radio industry.
11/4
http://www.radio-info.com/news/highly-doubtful-cbs-would-sell-radio-or-tv-stations
Les Moonves, CEO of CBS, caused a stir when he stated that if an offer was proposed for some of the CBS radio stations then it would be considered and looked at. However, CBS has made it clear today that even after the unimpressive numbers shared from the Q3 reports, the company is happy with the progress of both their TV and radio stations, and any sale is “highly doubtful”.
11/6
http://www.radio-info.com/news/digital-radio-will-be-ending-in-singapore
MediaCorp will end its digital audio broadcasting experiment in Singapore on December 1, citing advances in the Internet and mobile phones as the cause. The Singapore operation was the first broadcasting company to launch a DAB signal in Southeast Asia back in 1999, when it was thought that DAB would be the next step up from FM radio. The DAB system will be replaced by the old analog FM broadcasts.
http://www.radio-info.com/news/cumulus-cuts-more-staff-in-detroit-and-providence
Cumulus cuts have begun to strongly affect the radio industry. While over a dozen employees were dropped in Colorado Springs a few days before, affects of the economy on Cumulus also spread to Providence, Rhode Island and Detroit, where dozens of both on and off air talent have been let go.
11/7
http://www.radio-info.com/news/blackberry-music-ready-for-launch
Further progress has been made in mobile music, as Research in Motion has released its new Blackberry Messenger music system. The program will allow owners to download up to 50 of their favorite songs onto their Blackberry.
11/9
http://www.radio-info.com/news/the-newcap-group-in-canada-reports-radio-revenues-gained-12
While radio revenue falters in the United States, it has been a different story north of the boarder. Newfoundland Capital has reported 18% growth in revenue around Ottawa, and 10% growth in Canada’s “western properties”. Credit has been given to the great ratings results of broadcasting shows during late 2010 and the spring of 2011.
11/13
http://www.radio-info.com/news/radio-hate-speech-is-prevalent-says-a-ucla-report
A study at UCLA has concluded that racist statements, especially in regards to Hispanics, are on the rise in talk shows, and most of the statements made a not based on true, observable fact. Studying three shows in particular, 140 questionable statements were made, yet the content in 37% were not observable, completely false in 11%, and 31% of the comments were distorted.
11/14
http://www.radio-info.com/news/cumulus-revenues-drop-2-including-citadel-and-cumulus-media-partners
Hardships continue to build for Cumulus Media Inc., as third quarter reports show that the company has dropped 2% in total revenue. In addition to the job cuts that many Cumulus offices have made, this shows that Cumulus must change their strategic management if they are going to survive. (Further job cuts were made in Michigan later in the day).
http://www.radio-info.com/news/the-fight-over-internet-sales-tax
For the third time, the bill meant to place a tax on Internet sales has reached Congress. This tax would be included on the sale of music via the Internet.
http://www.radio-info.com/news/world-online-music-sales-increase-7
Worldwide online music sales have increased by 7% over the past year, accumulating approximately $6 billion. In addition, predictions for 2015 revenue have reached $8 billion dollars.
12/5
Clear Channel Radio and Cumulus Media Inc. have entered a broadcasting agreement that will extend both companies’ reach in the media world. According to the agreement, 570 Cumulus radio stations, across 120 markets, will be broadcast on Clear Channel’s iHeartRadio platforms that include the Internet, mobile devices, and automobiles. Clear Channel will also advertise daily deals from Cumulus Media’s SweetJack, a platform used to give local merchants the promotional power of the radio.
12/6
http://arbitron.mediaroom.com/index.php?s=43&item=789
From December 6-8, Arbitron will begin the most “comprehensive study ever conducted” about radio commercial break audiences. Arbitron, Coleman Insights and Media Monitors will analyze about 62 million minutes of commercials on 866 stations in 48 PPM-measured markets over a one year time period. The study will aid research in “how audience levels are impacted during commercials by demographic, day part, market, month and format.” Ultimately, this study could be a large predictor of where the radio industry is headed.
12/9
http://www.pcmag.com/article2/0,2817,2397423,00.asp
On December 9, Spotify announced the development and launch of its own radio station, Spotify Radio. It will be a music-streaming app that functions like a normal radio station but with the added ability to skip songs. Spotify Radio will compete with Pandora as a new online and mobile radio station. However, Spotify allows users to have unlimited skipping of songs and unlimited stations.
Conclusion
After almost four months of research, both the present and future of radio seem clear. Recent events have distinguished the diminishing state of radio as we know it. Although radio still remains king of transportation/commute as well as emergency listening, radio’s economic victories are few and far between. Certain niche demographics have seen increases in listeners, but the radio is doing as much as it can to hide the fact that the industry, overall, is gradually losing listeners. Big markets are tuning out. Generation Y and Z are already tuned out. Where does radio go from here?
Just as recent events tell us where radio is now, it also helps us predict the future state of radio as well. Radio is gradually becoming inter-operable with multiple platforms. The process of doing so will move more quickly as the industry grows desperate. Internet radio and revolutionary products like Spotify Radio will completely change the way radio programming is distributed. Its influence on travel entertainment will decrease due to mobile and more car devices competing for the attention of the consumer. However, radio will still remain one of the dominant sources of commute/travel entertainment. All in all, radio will embrace the platforms of the internet, social media, future mobile applications, and any other platform to distribute and provide ease of access programming.
Overall, the Fall 2011 snapshot of the radio industry magnifies the problems and solutions that radio executives face today and will face tomorrow.