Borrell Study Says Radio Is "Treading Water"
January 8, 2014

Borrell Associates has released an extensive new study, titled "The Future of Legacy Media:  With 5 Years of Digital Disruption Ahead, What Happens Next?" The chapter on radio is titled "treading water," though the study has a number of positive takeaways.

First off, Borrell says that "There’s no demand for vehicles without radios. As long as that’s the case – and as long as cars on the road have radios in their dashboards – AM and FM stations will be around." Citing Arbitron (now Nielsen Audio) data, the study notes that "there’s been little fluctuation in the number of radio listeners in the past 13 years. It has drifted downward by less than 4 percent. At the same time, however, radio ad spending has dropped by almost a third." Borrell says that this decline can mostly be attributed to the recession, though the data started trending downward in 2006, and current forecasts "show only minimal gains during the next five years."

The study cites "the burgeoning popularity of online radio, especially among younger listeners," as a factor in radio ad sales falling. Borrell says that "online radio penetration by services like Pandora and Apple reach almost a third of all adults under 30, and more than a quarter of all adults under 40. The market concentration has not been lost to advertisers. Pandora singlehandedly controls more than four-fifths of online radio listenership. Its ad revenue has doubled in the past two years, expected to reach a half-billion dollars by the end of 2013. It is now half the size of radio giant Cumulus, roughly the same size as Cox Radio and Radio One, and twice the size of Beasley, Emmis and Salem Communications."

Borrell predicts that "traditional radio ad spending will continue to tread water, remaining largely unchanged while growth moves online – especially among national advertisers. Detroit is already equipping some new cars with Pandora service, so even that industry sinecure may have been breached. Losses – where they occur – will be most felt in the larger metros, while suburban and rural areas will still depend on the local flavor of stations that have been good friends to their fathers and grandfathers."

However, the study concludes that radio isn't going anywhere as "Old habits die hard, and radio serves a useful purpose. Ask big-city commuters, and anyone whose community suffers a major weather tragedy, like Hurricane Sandy."




 
Breaking News
iHeartMedia Announces The Return Of The iHeartRadio Jingle Ball Tour
Alpha Media Portland Names Chris Stewart PD At KWEE
Shazam Tops 1 Billion Downloads
Katy Perry Renews ASCAP Agreement
September 28, 2016
YouTube Names Lyor Cohen Global Head of Music
iHeartMedia/Nashville Names Savannah Grimm MD For WRVW (107.5 The River)
CBS Corporation Announces $1.46 Billion Debt Financing In Connection With CBS Radio Spinoff
Eric Powers Debuts New Streaming Channel POWERS RADIO, Returns To Airwaves To Host Mornings
In Brief - September 28, 2016
September 27, 2016
Katy Perry Teams With Funny Or Die & iHeartMedia To Rock The Vote
WPLJ/New York Nighttime Stars Ralphie and Melony Torres Flip On-Air Shifts
Jacob Leshaa Promoted to Digital Program Director of Entercom San Francisco
September 26, 2016
Kim Guthrie Appointed President of Cox Media Group
Lori Bennett Joins Cumulus Grand Rapids As OM/PD
iHeartMusic Music Festival Rocked Las Vegas
KPLV-FM (93.1 The Party)/Las Vegas Flips To 93.1 The Mountain
KUDL (Star 106.5)/Sacramento To Recognize Residents' Service To Community
September 23, 2016
iHeartMedia Introduces On Demand Services iHeartRadio Plus & iHeartRadio All Access
2016 NAB Marconi Radio Award Winners Announced
September 22, 2016
Ray Nelson Joins Cumulus As VP/Market Manager, Huntsville, AL
Britney Spears Headlines An All-Star Lineup For B96/Chicago's Jingle Bash
Concord Music Group Appoints Tom "Grover" Biery SVP/Digital Marketing, Strategy and D2C
B98.5 & Melissa Carter Celebrate Atlanta Pride 2016
September 21, 2016
iHeartMedia Honolulu Unveils On-Air Lineup For 93.9 The Beat
Music News
It's Official: Lady Gaga Playing Super Bowl Halftime Show
Quick Hits: Halsey, Jay Z, Sia, Lollapalooza
The Weeknd Makes History "Starboy"
Quick Hits: Adele, Drake, Lumineers, Green Day
Drake's Views Back at #1 on Billboard 200
Louise Goffin plays Carnegie Hall with music legend Donovan
Metallica to Perform on The Howard Stern Show
The Weeknd Releases New Single with Daft Punk
FMQB Photo Pass: AC/DC
Beyoncé to Headline Charity Tidal X Concert
Quick Hits: The Weeknd, Metallica, Lady Gaga, Chance the Rapper & Kanye West, Tori Amos
Quick Hits: Prince, Mariah Carey, AC/DC
Five New Debuts in Billboard 200's Top Ten
Quick Hits: RHCP, Lady Gaga, Bon Jovi, Green Day
Quick Hits: Prince tribute concert, Coldplay, Billie Joe Armstrong
FMQB NOW

          Question Of
           The Week

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!