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Internet Music Radio and Track Play Growth 2012 - 2014: Listening and Monetization Analysis Product Image

Internet Music Radio and Track Play Growth 2012 - 2014: Listening and Monetization Analysis

  • Published: February 2012
  • Region: Global
  • 116 Pages
  • AccuStream iMedia Research

FEATURED COMPANIES

  • Abacast
  • Accuradio
  • Pandora
  • Slacker
  • Smooth Jazz
  • Targetspot
  • MORE

Internet music radio and track play listening hours rose 50.5% in 2011 to over 1.3 billion monthly, while monetization initiatives (advertising and subscription) advanced 64.3%. This data-driven research report details how the market's forward momentum accelerated in 2010, delivered strong results in 2011 which continue unabated in 2012.

For the first time, sector revenue growth outpaced that of radio and track play listening hours. The sector achieved $293.7 million in gross media spend (all format executions, including audio, video and display), with another $171.7 million in subscription revenue. The total market is forecast to rise 78% in 2012. Audio inventory expansion to 6.2 billion avails per month in 2012 is projected, driven in part by Pandora's increasing focus on the in-stream audio format. Prior to 2011, Pandora allocated less than one minute of audio advertising inventory per listening hour.

Combined with an in-house sales force selling into top local DMAs where terrestrial broadcast radio advertising has historically been bought, the audio format is moving to the forefront of the programmer's monetization initiatives. Audio fill rates are forecast to improve READ MORE >

EXECUTIVE SUMMARY

Internet radio and track play listening hours averaged 1.3 billion per month in 2011

Internet Radio Listening Hour Growth: 2004-2011

Internet Music Radio Listening Hours Annual Growth: 2004-2014

Mobile users produced 41.1% of total listening hours in 2011

Mobile Listening Hour Percent 2010-2011

Internet Music Radio and Track Play Advertising, Subscription Revenue Combined
Ramp Up 64.3% in 2011

Internet Music Radio and Song Play Revenue: 2005-2014 Advertising and Subscription

Internet Music Radio Advertising and Subscription Market Revenue Contribution
Trend Lines: 2005 - 2014

Internet Music Radio Hours and Revenue: 2006 - 2011

Glossary of Terms

SECTION ONE

Internet Radio and Track Play Listening Hour Growth at 50% In 2011

Market Catalysts

Internet radio and track play listening hours averaged 1.3 billion per month in 2011

Internet Music Radio Listening Hour Comparison: 2004 – 2011

Mobile users produced 41.1% of total listening hours in 2011

Internet Music Radio and Track Play Listening Analysis: 2010 - 2011

Pandora and Shoutcast capture 79.1% of total listening hours

Pandora and Shoutcast Listening Hours: 2011

Internet Radio and Track Play Listening Annual Percent Growth now Exceeds

Shoutcast

Internet Music Radio Listening Hour Growth: 2005 – 2011

Shoutcast Listening Hour Growth: Annual Totals 2005 – 2011

Pandora Listening Hours: 2
Pandora Listening Hours: 2011

Internet music and track play listening hours are forecast to grow 50% in 2012

Internet Music Listening Hour Growth History and Forecast: 2004 - 2014

Internet Music Radio and Track Play Revenue Growth Surpasses Increase in
Listening Hours

Internet Music Radio Listening Hour and Revenue Growth Comparison: 2006 - 2011

Internet Radio and Track Play Listening Hours 2011

Internet Music Radio and Track Play Listening Hours: 2010

SECTION TWO

Internet Music Radio and Track Spins and Media Spend: 2005 – 2014

Monetization fundamentals and growth catalysts 2011 - 2014

Pandora Public Valuation Analysis 2012

Internet Music Radio and Track Play Advertising, Subscription Revenue Combined

Ramp Up 64.3% in 2011

Internet Music Radio/Song Play Market Revenue Analysis

Media spend rose by 103.2% in 2011, subscription revenue by 23.7%

Ad Supported and Subscription-Based Internet Radio Revenue: 2005 - 2014

Total market revenue growth expected to accelerate 78% year-over-year in 2012

Internet Music Radio/Song Play Market Revenue Analysis

Internet Music Radio Gross Media Spend: 2005 - 2014

Audio Inventory Forecast to Rise Substantially in 2012 as Pandora More Aggressively

Monetizes Against the Format

Gross Media Spend: Internet Music Radio 2003 - 2014

Display Advertising Expected to Decline in Media Spend Share through 2014 as
Audio, Video Sales Rise

Total Audio/Video and Display Paid Media Placement: Internet Music Radio 2005 - 2014

Internet Music Radio/Song Play Advertising Media Spend Share: 2003 - 2014

Ad Supported Listening Hours: 2005 - 2014

Listening Hours Supported By Audio Advertising: 2005 - 2014

Ad Supported Listening Hours Declined From 2006 – 2009; Increased From 2010 – 2011

Monthly Ad Supported Listening Hour Comparison: 2005 - 2014

Internet Radio and Song Play Subscription Revenue Estimated at $171.7 Million in 2011

Internet Music Radio/Song Play Subscription Revenue: 2003 - 2011

Subscription Radio/Song Play Revenue Analysis: 2003 - 2011

Subscription Radio and Song Play Service Brands and Revenue Analysis: 2003 - 2011

Royalty Rates as Currently Structured Return 50+% of Revenues Back to Licensing Organizations

Internet Music Radio Royalty Payment Analysis: 2011

Pandora Media: Revenue Analytics

SECTION THREE

Q & A's

ABACAST

ACCURADIO

PANDORA

SLACKER

SMOOTH JAZZ

TARGETSPOT

ACCUSTREAM RESEARCH: INTERNET MUSIC RADIO AND TRACK PLAY HOURS CLIMB 50.5% IN '11; REVENUES JUMP 64.3%

Internet music radio and track play listening hours rose 50.5% in 2011 to over 1.3 billion monthly, while monetization initiatives (advertising and subscription) advanced 64.3%, according to a sector analytics report issued by AccuStream Research.

The report, Internet Music Radio and Track Play Growth 2012 - 2014: Listening and Monetization Analysis, details how the market's forward momentum accelerated in 2010, delivered strong results in 2011 which continue unabated in 2012.

For the first time, sector revenue growth outpaced that of radio and track play listening hours. The sector achieved $293.7 million in gross media spend (all format executions, including audio, video and display), with another $171.7 million in subscription revenue. The total market is forecast to rise 78% in 2012.

Audio inventory expansion to 6.2 billion avails per month in 2012 is projected, driven in part by Pandora's increasing focus on the in-stream audio format. Prior to 2011, Pandora allocated less than one minute of audio advertising inventory per listening hour.

Combined with an in-house sales force selling into top local DMAs where terrestrial broadcast radio advertising has historically been bought, the audio format is moving to the forefront of the programmer's monetization initiatives.

Audio fill rates are forecast to improve to 60% in 2012 across the entire market sector, with an average equivalent CPM (eCPM) of $6.80, according to the report. Pricing, inventory by format, fill rates and market share trends by media execution are included in this report.

The importance of mobile listening corresponds with escalating cross device audio placements, expected to capture increasing format share.
The mobile component to music and track play hours rose by 222% in 2011, accounting for 41% of the total, a strikingly positive audience reach and listening catalyst.

In 2012, for example, non-PC listening on Pandora's service is now 70% of the total, and 50% of Slacker is mobile.

In-depth Q & A's with the sector's leading programmers and rep firms are an important contextual component to this analytics report.

- Abacast

- Accuradio

- Pandora

- Slacker

- Smooth Jazz

- Targetspot

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