Exaget Week in Review: Internet radio streaming
Magnus Shaw in his latest blog talks about the current situation of internet only radio stations and the reasons behind their failure in acquiring larger audiences. Lack of scale, revenue and a prohibitive royalty cost structure to name but a few.
On the flip side music streamers such as Pandora, Spotify and Rdio have the scale and the revenue but they also have a high cost structure. Laura Sydell asks, ‘Can streaming services make money?’. ‘Pandora” has to pay 64% of its revenue as royalty and Spotify pays 70% of its revenue as licensing fees. The more we listen the more they pay but also the more ads they can target at us for ad revenue.
And there is the need to be reinvesting in the product and audience growth. This level of initial and on going investment is a big barrier to entry for many would be investors.
Drew Larner, the CEO of Rdio, thinks there’s a lot of money to be made. “With real scale, ” he says, “We will absolutely be profitable….wildly profitable.”
Moving on to a more technical note. Jonathan Milne, General Manage, Europe at Celtra, explains why the digital advertising ecosystem needs to re-tool and skill-up if we are to deliver a slick and interactive user experience.
Here’s this week’s round up:
Why internet radio has failed to make a big noise?
Internet-only broadcasting is certainly accessible. Almost anybody can be up and running via the internet in a few minutes. Great, right? Well, only up to a point – read the full article here
Can Streaming Services Make Money?
“It costs us essentially around $20 in licensing fees for every thousand hours that we play in music,” he says. “That means that we have to make $21 in revenue for every 1,000 hours to make a dollar.” – read the full article here
The imperative for HTML5 mobile & tablet advertising
With time spent on mobile and tablet devices due to surpass time spent with desktop devices during this year, it is vital for the digital advertising ecosystem to re-tool and skill-up for HTML5 advertising. The time to act is now – read full article here
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Exaget Team
@Exaget
The Growth of Online Radio and What it Means for You
September 7, 2013
The advent of smartphones and tablets has heralded a new age of online radio listeners, with apps like UTuneMe making it easy to access the most popular global radio stations from around the world. As more and more people tune in online, it seems like a smart decision to focus on targeting digital audiences with internet radio broadcasting to help make the most of your advertising.
According to Radio Joint Audience Research, the official body in charge of measuring radio audiences in the UK 52% of the nation are now tuning in to the radio using a digital platform, an increase of 15% from last year. 43% of 15-24 year olds, and 24% of adults have listened to the radio on their mobile phone, illustrating the growing trend in online radio. With such high percentages of listeners tuning in on their mobiles there is clearly a growing market for internet radio broadcasting.
With such a rapidly rising trend in the mobile radio market, it seems prudent to invest in internet radio broadcasting for your business. Here at Exaget we offer targeting techniques for you to make the most of your advertisements and reach the correct demographic of listeners.
Through our own survey, we have found that 44% of digital listeners don’t mind hearing advertisements and a further 25% of them don’t mind if they are relative to their interests. At Exaget we can help you optimise your advertising in order to reach your company’s target audience with internet radio broadcasting for the mobile radio market.
The renewal of radio in the digital market calls for a review on the ways a company tries to reach a target market, so utilise our amazing services to ensure that your advert is relevant and contextual to the audience you reach. With the many different services we have to offer, we can give you the tools to succeed in the new world of radio so contact us today.