Free newsfeeds and
newsletter trials!

Media & Entertainment:

Internet Music Radio 2001 - 2006: The Brands and the Beat Go On

Accustream imedia research
Market Study  May 2006

PDF Single User - GBP 947.50  

Table of Contents

A comprehensive analysis of Internet Music Radio, it's early evolution, decline in 2002 followed by a steady rise to a sophisticated media offering with over 300 million hours of listening done per month on the top ten sites, some 700,000+ average quarterly hour listeners (AQH) and 2.4 million subscribers to various online radio services.

The pace of Internet music radio growth has been steady since 2002 when the market retreated in the face of uncertainty over royalty rights payments, the ad recession, the general market recession and lack of venture or speculative capital.

Tuning hours for the top ten sites are forecast to reach 360 million hours in 2006, and there are currently over 700,000 average quarterly hour listeners to online stations, combining Arbitron and Webcast Metrics user data.

In addition, there were about 2.3 – 2.4 million subscribers to Internet music radio services at the beginning of 2006, which include those offered by Real Networks, AOL, Yahoo, MSN, Radioio, Live365.com and Virgin Radio.

Top line report findings and analysis:

-In 2002, with the exception of Clear Channel Worldwide, and several of the major sports leagues and a scattering of major media brands such as ABC and ESPN, most of the hours of usage were associated with Internet-only brands at the time such as Spinner.com, Radio@AOL.com, Live365, WarpRadio, Radio Free Virgin and the very popular Shoutcast platform which hosted sites like Wolf FM
-In 2005, again with the exception of a few over-the-air broadcast groups (i.e. Clear Channel and Susquehanna Broadcasting), Internet radio was once again dominated by brands that are native to the medium, including AOL, AOLs Shoutcast property, Real Networks’ Rhapsody streaming and download service, Live365.com, Chaincast Networks, Yahoo, Radioio, AccuRadio, and others
-Aggregate tuning hours (ATH) for the top ten sites and networks rose by 43.8% in 2005 per month, to 257.3 million hours
-ATH per month grew by 53.2% in 2003 compared to 2002, a year which saw significant contraction in the market due to the advertising slowdown and regulatory uncertainly with regard to copyright fees for re-broadcasting content
-Streaming media (subscription) music revenue rose from $49 million in 2003 to $237 million in 2005 and projected to surpass $340 million in 2006
-Growth rates for revenue were 163% in 2004, 84% in 2005 and an estimated 45% in 2006

Internet music radio is on course to deliver another solid growth year in 2006, with total listening hours forecast to rise by 39.5%, and average quarter hour listeners already north of 700,000 for 3rd party measured networks.

Total listening hours for the top ten sites rose by 43.8% in 2005 on a per month basis, to 257.3 million (compared to 178.9 million in '04).

Hours grew by 53.2% in 2003 compared to 2002, a year which saw significant contraction in the market due to an advertising and investment slowdown, coupled with regulatory uncertainly over copyright fees.

The report, Internet Music Radio 2001 – 2006: Brands and the Beat Go On, published by AccuStream iMedia Research also includes an analysis of pay streaming radio services, which have close to 2.4 million subscribers.

The report's sections are divided into years, with each year containing analysis of the market and segment's development, the top streaming music sites, trend data and historical comparisons.

Included is a section examining streaming music subscription services from AOL to Yahoo, with subscriber and revenue analysis.

Streaming Internet music radio revenue from subscriptions rose from $49 million in 2003 to $237 million in 2005 and is projected to surpass $340 million in 2006.

In 2005, similar to 2001 and 2002, brands own share. Unlike online video, however, over-the-air broadcast groups (i.e. Clear Channel and Susquehanna Broadcasting) inhabit an Internet music radio medium dominated by brands native to the environment, including AOL (AOL Radio, its MusicNow service and AOL's Shoutcast property), Real Networks' Rhapsody streaming and download service, Live365.com, Chaincast Networks, Yahoo Music Unlimited, Radioio, AccuRadio and MSN Radio.

Internet music radio is being built with brands, both in of terms sites and networks but also the artists themselves.

While online music services guide users in their search to discover new artists and music, and this differentiates the medium from linear or packaged counterparts, the vast majority of users migrate to what they already know and like; that leads to established brands and artists.

For full details, please email jeremyk@cmsinfo.com

Order Form

---

CMS, P&A House, Alma Road, Chesham, Bucks. HP5 3HB, UK
Tel:     +44 (0)1494 771734
Fax:   +44 (0)1494 778994
e-mail: jeremyk@cmsinfo.com
Please note: calls to and from CMS may be recorded for quality control and training purposes.

---

copyright © 2008 all rights reserved

For more information about us, visit CMSinfo.