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The Market for Web Radio 2008 - 2012
IDATE, January 2009, Pages: 75
Streaming, catch-up and smart radio
Online audio services are expected to achieve revenue of EUR2.1 billion in 2012 to account for 10% of the total audio services market. This study examines the various distribution modes, tools and technologies associated with Web radio.
It reviews the strategies pursued by key players and also the dynamics of audience and advertising growth in the market.
- What will determine market growth between now and 2012?
- How will advertising revenue be affected by audience migration from broadcast radio to online audio services?
- How is radio listening being incorporated into the leading Web applications?
- What advanced features and functions complement radio (e.g., community-based websites, video offerings, etc.)?
- What strategies are players adopting: from content production to aggregation and radio program syndication, player control, in-stream advertising, etc.?
The approach adopted by our team of consultants and analysts employs a combination of methods:
Field research and validation of field research data.
Conventional tools of industry and market analysis: segmentation, competitive analysis, strategic influences, modelling, evaluation and forecasting.
Expert analysis from specialists in the field and from their professional networks.
Specifically, our teams employed the following tools:
1/ A multidisciplinary team of full-time consultants specialized by business sector
We rely primarily on its internal consultants to produce its analyses and only rarely engages freelance analysts. This practice ensures that the team's work capitalizes on the skills and the shared knowledge, ideas, contacts, viewpoints and key data of each member.
Each report is created by a team of specialists under the direction of senior consultants who are recognized experts in their field.
2/ Primary and secondary research
Our reports and databases are developed based on primary data obtained from firsthand interviews with decision makers in the sector and secondary data assembled from public sources and external databases.
3/ An integrated information center equipped with numerous proprietary databases and analytical tools
Over the course of 30 years, we have developed proprietary work methods, data structures, and databases preserving the history of major developments in the sectors under study.
Companies: Our internal information service continually tracks developments in the leading telecom, Internet and media companies worldwide. Innovative and startup firms are tracked by practice experts.
Markets: Our databases are developed using rigorous methods to process major economic indicators for each group of markets (GNP, investment, exchange rates, demographics) and relate them to influential sectoral and national factors (such as CAPEX and national market dynamics).
Technologies: Our organization by practice gives it an efficient way of for tracking innovations. Our engineers ensure an in-depth understanding of product and service trends.
4/ Contents of published reports
Each report describes the structure of the market under study, the challenges facing the market, the driving forces (technologies, regulation, and applications), and the players involved. Special attention is given to the market assessments and forecasts, which are developed within the framework of a core scenario. Every report features a clear and concise presentation illustrated with tables and figures presenting data for key trends.
Our market studies are prepared based on the following process:
Analysis of information available from internal information bases and from feedback on studies completed in the recent past.
Based on a preliminary segmentation and assessment of the market, and using a validated interview guide, our analysts conduct interviews which allow them to validate their working hypotheses.
They then develop a model of the market, which allows them to identify and test various hypotheses bearing on how the market will evolve. These hypotheses are validated through a new round of interviews.
Finally, the report conclusions are debated within the team responsible for the project and with expert consultants from the various fields involved.
A review procedure built into the editorial process concludes production of the final version delivered to the client.
5/ Market assessment and forecasts
Our forecasts are based on:
Primary data gathering worldwide.
Market models which isolate key service consumption parameters and service pricing assumptions.
The results are analyzed systematically against estimates provided by market players.
The forecasts in this report cover:
The period 2007-2012.
Total consumption of broadcast radio, online audio services, and all broadcast radio and online audio services combined.
Advertising revenue per listening hour for broadcast radio and online audio services.
Advertising market for broadcast radio, for online audio services, and for all broadcast radio and online audio services combined.
Regional forecasts for the United States, Japan, Western Europe (with detailed results for France, Germany, Italy, Spain, and the United Kingdom), and Eastern Europe (with detailed results for Poland).
1. Executive Summary
New Internet audio services
Radio audience trends
High growth in online services
3. Market key factors
3.1. Market overview
3.1.2. Market segmentation
Broadcast radio simulcasts
Elements of a radio broadcast
Linear radio specific to the Internet
3.1.3. Web radio distribution
Direct distribution by Web radio service
Distribution via Internet aggregators
Media players and widgets
3.1.4. Product and service trends
Introduction of video
Linear/non-linear radio and personalization
New social features and functions
3.2. Current market estimate
3.2.1. Market by segment and platform
3.2.2. Market by geographic region
3.3. Key factors
3.3.1. Key technologies
Broadcast encoding: online, unicast
Web radio reception
Transmission and reception of metadata
3.3.2. Regulatory environment
Situation in Europe
Royalty battles in the United States
Web radio audiences
New services: podcasts
4. Industry organization and strategy
4.1. Industry structure
4.1.1. Value chain
PC-based consumption of audio content
Online audio services market
4.1.2. Business models
Financing through advertising
What about a pay model?
E-commerce: music sales
4.2. Player strategies: case studies
4.3. Strategic options
Models of radio groups evolving to the
5. Market forecasts
5.1. Growth factors
5.1.1 Factors driving growth and shifts in the
Web radio usage
- Service access
- Service use
The market for Web radio advertising
5.1.2. Forecast assumptions
5.2. Market forecasts 2012
5.2.1. Forecast for 2008-2012
Audio services in advanced countries
Market for broadcast and online audio services
5.2.2. Detailed forecasts by region United States, Japan, Western Europe (France, Germany, Italy, Spain, United Kingdom), Eastern Europe (Poland)
For each country studied:
- Time spent listening to radio (hour/person)
. of which broadcast, online radio
- Time spent listening to radio (billions of hours)
. of which broadcast, online radio
- Audio advertising market (USD billions)
. of which broadcast
List of Tables
Table 1: Segmentation of online radio services
Table 2: Three models of Web radio development
Table 3: Segmentation of online radio services
Table 4: Protocol compatibility
Table 5: Operating system compatibility
Table 6: "Container" file format compatibility
Table 7: Average weekly radio audience in the United States
Table 8: Three models of radio groups evolving to the Internet
Table 9: Market for online broadcast services in advanced countries
Table 10: Online share of total audio services market in 2012
Table 11: Market for audio services in the United States
Table 12: Market for audio services in Japan
Table 13: Market for audio services in Western Europe
Table 14: Market for audio services in Germany
Table 15: Market for audio services in Spain
Table 16: Market for audio services in France
Table 17: Market for audio services in Italy
Table 18: Market for audio services in United Kingdom
Table 19: Market for audio services in Eastern Europe
Table 20: Market for audio services in Poland
List of Figures
Figure 1: The audio services market in advanced countries
Figure 2: Listening to a broadcast in catch-up mode using the BBC iPlayer
Figure 3: Web radio station NRJ Nouveautés
Figure 4: NRJ radio widget
Figure 5: Registering and creating personalized radio stations on Goom
Figure 6: The Goom player
Figure 7: The Last.fm player
Figure 8: The Mi-Xfm player
Figure 9: Deezer smart radio service
Figure 10: Purchase link on the Live365 player
Figure 11: Purchase link on the Yahoo! LAUNCHcast player
Figure 12: BBC Radio application on a Facebook user profile
Figure 13: BBC widget and LabPixies Radio widget on iGoogle
Figure 14: Sprint Radio
Figure 15: AOL Radio player
Figure 16: Podcast offerings on the BBC Radio 1 site
Figure 17: Play.It personalized radio station generated from artist name Bruce Springsteen
Figure 18: Creation of a personalized radio station by a registered user based on the user's music preferences30
Figure 19: Excerpt of a user listening profile on Radio Pop
Figure 20: List of programs bookmarked by a "pop"
Figure 21: Distribution of the online audio services market in advanced countries in 2007 by geographic region33
Figure 22: Distribution of the online audio services market in advanced countries in 2008 by geographic region33
Figure 23: Unicasting
Figure 24: Multicasting
Figure 25: P2P broadcasting
Figure 26: Examples of new dedicated terminals
Figure 27: Media most-consumed on the Internet by French Web users
Figure 28: Percentage of French Web users who consume one medium on the Internet daily or nearly daily
Figure 29: Frequency of listening to Internet-specific linear radio services in France
Figure 30: Percentage of US Web users listened to the radio online during the previous week
Figure 31: UK Web users who listen to Internet radio
Figure 32: Percentage of UK Web users who listen to the radio while surfing the Internet, by age group
Figure 33: Radio listening by platform in the United Kingdom
Figure 34: Frequency of radio access by platform in the United Kingdom
Figure 35: Weekly online radio audience in the United States, by employment status
Figure 36: Online radio audience in the United States, February 2008
Figure 37: Broadcast radio audience in France
Figure 38: Online radio audience in France
Figure 39: Composition of weekly online radio audience in the United States
Figure 40: Profile of users of Internet-specific linear radio services in France
Figure 41: Modes of online radio consumption in France
Figure 42: Devices used for mobile online radio consumption in France
Figure 43: Online radio content consumed in France
Figure 44: Audio podcast consumption in the United States
Figure 45: Audience for audio podcasts in the United States, by most-used listening device
Figure 46: Web radio edition and distribution ecosystem
Figure 47: RTL2 3G video portal
Figure 48: Musiline portal
Figure 49: Last.fm widget
Figure 50: Podcast library search engine
Figure 51: Podcast playback on the iPhone
Figure 52: Hit parade of iTunes best-sellers
- AOL Radio
- NRJ Group
- Play.It (CBS)