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RAIN 8/11: Slow growth for broadcasters through 2014 as digital's power grows, VSS forecasts

Posted on: 08/11/2010


Private-equity firm Veronis Suhler Stevenson is predicting slow growth for broadcast and satellite radio through 2014, “as consumers begin listening to radio using new digital formats, satellite radio subscription prices rise, and online and mobile platforms post double-digit gains,” reports RadioWorld. Veronis Suhler Stevenson, a private-equity firm, yesterday released its respected annual Communications Industry Forecast, predicting revenue and trends in media through 2014.

VSS suggests that by 2014, consumers will spend more on digital media than on print for the first time. USA Today reports, according to the forecast, “the average person will spend a little more than $1,080 in 2014 to be connected, informed and amused, up 27.6% from last year.”

Broadcasters will increase their efforts on the digital front, VSS predicts, on platforms including HD Radio, Internet radio and wireless mobile. But the introduction of Internet radio into automobiles (and competition from pureplay webcasters) will make “improved sound quality, one of HD Radio’s biggest marketing points… a nonissue,” writes VSS.

The press release announcing the VSS Communications Industry Forecast 2004-2014 is here. Read more on it from RadioWorld here and here, and USA Today’s coverage here.


We’re a U.S.-based publication, but we try to keep an eye on new media and radio trends in other parts of the world, including the United Kingdom (e.g. we report RAJAR studies on digital and mobile radio use).

So, we found this MediaUK article interesting. It’s a run-down of the growing array of options a radio listener in the UK has to find audio content, including digital satellite, digital terrestrial television, cable, Internet radio, DAB Digital Radio, and (of course) AM/FM broadcasting. For each platform, MediaUK explains the pros/cons, listenership, sound quality, costs, ancillary features, and for what type of listener each platform is most beneficial.

After reading the piece, we’d recommend this entry in Jennifer Lane’s Audio4Cast, in which Bridge Ratings President and CEO David Van Dyke explains his views on the differences in Internet radio listening patterns in the UK and U.S.

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