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RAIN 8/16: Mobile audio advertising to reach $667 million by 2016, predicts Borrell

Posted on: 08/16/2011


A new Borrell Associates report projects mobile audio ad spending will reach $667 million by 2016 — up from $161 million in 2011. This growth will be fueled by local advertisers, says Borrell, and could be even greater if “radio puts more focus on mobile,” writes Inside Radio.

More than 50% of “Main Street businesses” surveyed by Borrell said they planned to advertise in some way on mobile devices this year. Overall, local mobile ad spending will be $800 million this year and Borrell predicts it will reach $18.2 billion by 2016 (“roughly the same outlay spent on radio today,” notes Inside Radio).

Up until now though, argues Borrell, broadcasters have missed opportunities on mobile devices and on the Internet in general. “Unlike other local media with large sales forces and intimate market knowledge, radio consistently underestimated the promise of the web,” writes Borrell VP Kip Cassino.

Borrell warns broadcasters that they are missing an opportunity, one that pureplay webcasters are capitalizing on already. Subscribe to Inside Radio here to read more.


Montreal-based Stingray Digital today launched its commercial-free, subscription-based streaming music service for mobile phones.

As Toronto’s The Globe and Mail reports, this development “represents the first time a number of music labels have worked together to simplify an agreement for digital music rights in this country.”

Uncertainty over streaming royalty obligations in Canada has discouraged many webcasters, including the industry-leading U.S.-based Pandora, from operating in the country.

Stingray, however, reportedly convinced labels (working together as Music Canada) and two smaller label groups to agree to a “fifth of a cent per play” ($0.002 CAD) (likely meaning “per performance”) royalty. For comparison, U.S. “pureplay” royalty rates ramp from $0.00102 USD (a little over a tenth of a cent) in 2011 to $0.00140 USD per performance. However, large webcasters will pay 25% of their total annual revenues instead, if that figure is larger (see our coverage here).

Graham Henderson is president of the major label trade association Music Canada (which represents Sony Music Canada, Universal Music Canada, Warner Music Canada and EMI Music Canada).

Henderson commented on the deal: “If we’re lucky, we may have broken a logjam here and we may see the introduction of a number of new services into the country, which will only stimulate the market for music in Canada… We’ve got to get a variety of legal services in the marketplace that people are aware of and comfortable with, that will wean them off of doing the wrong thing, which is taking music without compensating artists.”

The new Stingray Digital app brings 45 streaming audio channels to the iPhone, iPad, iPod Touch, and all Android-based mobile devices. Listeners can skip songs and purchase songs downloads from the iTunes store. The service is available to U.S. listeners as well as in Canada. Finally, the programming consists of (presumably) the same channels the company offers via various cable and satellite television services in Canada as Galaxie.

Read more from The Globe and Mail online here.


CBS Radio streams are no longer available through aggregator TuneIn Radio, reports AllAccess. A CBS spokesperson said “the split is due to licensing issues.”

Trying to tune in to a CBS Radio station through TuneIn Radio’s website redirects the user to the station’s stream on Radio.com (CBS Radio’s online platform). Tuning in to a CBS Radio station via TuneIn Radio’s iPhone app (pictured) results in an audio message stating, “this station is currently unavailable.”

This matches what happens when a user tries to listen to Clear Channel stations via TuneIn Radio’s website or mobile apps. Clear Channel stations are only available through its iHeartRadio platform.

Find AllAccess‘ coverage here.

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