RAIN 5/28: BIA/Kelsey predicts half a billion in online revenues for radio in 2010
REVISED OUTLOOK RECOMMENDS BROADCASTERS CONTINUE TO GROW “DIGITAL PROSPECTS”BIA/Kelsey has revised their forecast for radio revenues after high first-quarter earnings and, in part, because of “significant growth” in digital and mobile revenues. In fact, BIA/Kelsey now predicts that radio will earn $500 million in online revenues in 2010 and by 2014 that figure will rise to $800 million (according to a chart published by the Radio 2020 blog here). Radio’s online revenues, BIA/Kelsey predicts, will make up roughly 5% of radio’s total $15.7 billion revenues in 2014. Overall radio revenues will increase, predicts BIA/Kelsey, 3.7% from $13.7 billion in 2009 to $14.2 billion in 2010.
“In order for radio to maintain its position in the wider local media marketplace, it needs to continue to grow its broadcast revenues concurrent with its digital prospects,” said BIA/Kelsey VP Mark Fratrik. “Returning to revenues that were last seen by the radio industry in the early part of the decade will come from utilizing traditional over-the-air assets combined with mobile and other digital solutions.” Comments George Williams of Radio 2020: “The introduction of the iPad and similar tablet devices should cause an expansion of mobile use through the creation of their own niche in the digital ecosystem.” MediaPost also has additional coverage here.
TIME MAGAZINE FEATURES PANDORA IN EXPOSE ON RECOMMENDATION ENGINESWill recommendation services eventually “create a customized world for each of us, one that is ever so slightly childproofed, the sharp edges sanded off, and ever so slightly stifling, like recirculated air“? That’s the thought proposed by a new expose in Time Magazine, which covers the recommendation services provided by Amazon, Netflix, YouTube, TiVo and, perhaps most prominently, Pandora.
“Recommendation engines aren’t designed to give us what we want. They’re designed to give us what they think we want…as a result, they create a blockbuster culture,” the article argues (here). “It’s the backlash against the ‘long tail.’” Pandora founder Tim Westergren responds to such concerns: “By definition, we keep you in the same musical neighborhood you start in, so you could say that’s limiting. But even within a neighborhood, there is a ton of room for discovery. Forty-five percent of the people who use Pandora buy more music after they start, and only 1% buy less.” What do you think? Voice your opinion by commenting on today’s issue or on Facebook or Twitter!
LIVIO CUTS PRICE OF CAR INTERNET RADIO APPLivio has announced that its Car Internet Radio iPhone application has been discounted from $5 to $2 for Memorial Day weekend. The app, as we reported here, streams over 42,000 AM, FM, and Internet radio-only stations through a user-interface built to be used while driving. The app was named a Top 25 finalist in the 2010 International Consumer Electronics Show’s Mobile Apps Showdown. If the $5 price tag had been holding you back, now might be the time to try out Livio’s app — especially if you’ll be on the road this holiday weekend. AppScout.com has more info here.
SIRIUS XM APP LANDS FOR ANDROID DEVICESSirius XM has launched an application for Android mobile devices. The app tunes in to over 120 Sirius XM channels but of course requires a subscription. That said, new users who download the app can try Sirius XM for 7 days free. Find out more from Sirius XM here and from Engadget here.
PUBLISHER’S NOTE: RAIN returns on Tuesday, June 1. Happy Memorial Day Weekend!
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