Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Consumer survey data
- Advertising Creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Internet radio faces competing markets
- Increasing access to PCs and smartphones drives market
- Piracy in decline
- YouTube, a video site, leads for music streaming
- Music leaders Pandora and Rhapsody highly vulnerable
- On-demand sites fail to attract large numbers of paying subscribers
- Information, sampling and radio portals
- Innovators look to non-standard business models
- Limited advertising stands on search
- Traditional radio leads, followed by recommender and on-demand
- Asians, Hispanics central to market
Insights and Opportunities
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- Satellite radio and Netflix as models
- Dedicated handhelds
- MRAV: Moving inside the living room (and kitchen and bathroom…)
- Vertical integration
- Buy now, save later
Insights and Opportunities: Opening the Car Door
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- Massive amounts of time spent in-vehicle
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- Figure 1: Weekly vehicle participation, by age, July 2009
- Drivers with higher household incomes spend more time in their cars
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- Figure 2: Weekly vehicle participation, by household income, July 2009
- Competition well ahead in car installations
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- Figure 3: In-car entertainment installation, July 2009
- Satellite radio popular among those who have it
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- Figure 4: In-car entertainment frequency, July 2009
- Where satellite radio and MP3 goes, internet radio can follow
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- Figure 5: In-car entertainment attitudes, by gender, July 2009
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- Figure 6: In-car entertainment attitudes, by age, July 2009
- WiFi coming to many cars near you
- Singular domain will establish how automotive internet operates into future
Inspire Insights
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- No More Mainstream
- Developing indie music
- Sweepstakes for musicians offering gift experiences
- Crowdfunding
- Everything is Music
- Tracking Our Location: Music as augmented reality via GPS
- That’s (Home) Entertainment!
- Moving into the living room with concerts and videos
Competitive Context
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- Traditional and satellite radio in decline, but still hold keys to car
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- Figure 7: Radio daily usage, May 2003-June 2008
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- Figure 8: Satellite and broadcast usage in hours per person per week, 2003-07
- Figure 9: Weekly hours spent listening to audio, by medium, November 2008
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- Figure 10: Household ownership of satellite radio, June 2002-June 2009
- The MP3 collection
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- Figure 11: Content storage on PC, by age, November 2008
- Size of MP3 collections on the decline
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- Figure 12: Content storage on PC, by age, November 2009
- Collectors don’t want to stream
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- Figure 13: Attitudes towards music collecting, by age, June 2009
- High-income users may need a combo download/streaming model
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- Figure 14: Paid subscription to music collecting, by household income, June 2009
- Streaming subs compete with downloading subs
- Streaming YouTube audio via Muziic
- Streaming new music via Facebook
Market Drivers
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- Increasing access to PCs
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- Figure 15: Ownership of PCs and office use of PCs, June 2002-May 2003, May 2004-May 2005, May 2006-June 2007, November 2008-June 2009
- Smartphone uptake
- Downloads vs. physical discs
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- Figure 16: Number of CDs and music downloads purchased in last 12 months, January 2005-May 2005, January 2007-June 2007, November 2008-June 2009
- Diversity of musical interest
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- Figure 17: Music genres purchased in past year, April 2008-June 2009
- Piracy on the decline—good for labels, bad for internet radio
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- Figure 18: Number of free and paid song downloaded in last month, October 2008 and November 2009
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- Figure 19: Number of free and paid songs downloaded in last month, by age, November 2009
Leading Companies
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- YouTube more accessed for audio than music leader Pandora
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- Figure 20: Streaming music site or program visited in past week, November 2009
- Leading company usage positions static across age groups
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- Figure 21: Streaming music site or program visited in past week, by age, November 2009
- Pandora and YouTube as feeder sites
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- Figure 22: Streaming music site or program visited in past week, by site visited in last week, November 2009
- Round-up of recommender sites
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- Figure 23: Web usage and business models of top recommender services, October 2009*
- Pandora
- Last.fm
- Jango
- Grooveshark
- On-demand services
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- Figure 24: Web usage and business models of top on-demand streaming services, October 2009
- MySpace Music
- imeem
- Rhapsody
- Napster
- Zune Marketplace
- myplay.com
- Kazaa
- Information, sampling, and radio portals
- iTunes Radio
- Yahoo! Music
- AOL Music
- MSN Music
- playlist.com
Innovations and Innovators
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- Letting artists pay for airplay
- Streaming to the living room
- Google makes legal music easier to find on the web
- A la carte streaming
- Last.fm’s expansion into terrestrial radio
- Up and coming
Advertising and Promotion
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- Search engine advertising and partnership
- Going viral
- Site marketing
- Rockin’ the home page
- Par for the course
- Are we open for business or not?
- Rhapsody’s television spots
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- Figure 25: Rhapsody Green Day television ad, 2009
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- Figure 26: Rhapsody Rob Thomas television ad, 2009
- Figure 27: Rhapsody Colbie Caillat television ad, 2009
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- Figure 28: Rhapsody Reba McEntire television ad, 2009
- Figure 29: Rhapsody Jay-Z television ad, 2009
Usage
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- Terrestrial radio still king, even online
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- Figure 30: Type of internet radio used in last month, November 2009
- Different internet radio needs for those under, over 25
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- Figure 31: Type of internet radio used in last month, by age, November 2009
- Education equates to heightened usage of internet radio
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- Figure 32: Type of internet radio used in last month, by educational attainment, November 2009
- Average respondent logging 4.3 hours of usage per week
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- Figure 33: Hours spent with internet radio in past week, PC vs. cellphone, November 2009
Beyond Music
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- Potential in other arenas
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- Figure 34: Non-music programming listened to via internet radio, by gender, November 2009
- Beyond music: Age-based results
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- Figure 35: Non-music programming listened to via internet radio, by age, November 2009
- Educated respondents listen to a variety of content
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- Figure 36: Non-music programming listened to via internet radio, by educational attainment, November 2009
Subscriptions vs. Ad Revenue
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- Subscription models yet to catch on
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- Figure 37: Paid subscription to internet radio services, by age, November 2009
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- Figure 38: Paid subscription to internet radio services, by household income, November 2009
- Ads at least tolerated
- Men more receptive to internet radio ads
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- Figure 39: Attitudes towards advertising on internet radio, by gender, November 2009
- Under-35s don’t want to pay for music
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- Figure 40: Attitudes towards advertising on internet radio, by age, November 2009
Asian and Hispanic Central Demographics
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- Hispanics pay for music
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- Figure 41: Number of free and paid song downloads in the last month, by race/Hispanic origin, November 2009
- Majority of minorities streamed audio in the last month
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- Figure 42: Type of internet radio listened to in the last month, by race/Hispanic origin, June 2009
- Exclusivity a potential driver for Asians, Hispanics
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- Figure 43: Type of programming listened to via internet radio, by race/Hispanic origin, June 2009
- Asians, Hispanics notice ads
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- Figure 44: Attitudes towards advertising on internet radio, by race/Hispanic origin, June 2009
- Asians three times more likely to subscribe to Rhapsody, eMusic
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- Figure 45: Paid subscription to internet radio services, by race/Hispanic origin, June 2009
- Asians want it done for them
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- Figure 46: Attitudes towards internet radio services, by race/Hispanic origin June 2009
- Minorities looking to cloud options
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- Figure 47: Attitudes towards music collecting, by race/Hispanic origin, June 2009
- Hispanics listen to a wide variety of streaming sites
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- Figure 48: Streaming music site or program visited in past week, by race/Hispanic origin, November 2009
Cluster Analysis
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- Music Enthusiasts
- The Mainstream
- Ads? What ads?
- Characteristic tables
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- Figure 49: Internet radio clusters, November 2009
- Figure 50: Type of internet radio used in past month, by internet radio clusters, November 2009
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- Figure 51: Attitudes towards internet radio advertising, by internet radio clusters, November 2009
- Figure 52: Attitudes towards music collecting and internet radio, by internet radio clusters, November 2009
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- Figure 53: Free and paid downloads, by internet radio clusters, November 2009
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- Figure 54: Internet radio sites used in past week, by internet radio clusters, Month 2009
- Demographic tables
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- Figure 55: Internet radio clusters, by gender, November 2009
- Figure 56: Internet radio clusters, by age group, November 2009
- Figure 57: Internet radio clusters, by income group, November 2009
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- Figure 58: Internet radio clusters, by race/Hispanic origin, November 2009
- Cluster methodology
Custom Consumer Groups
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- Teens
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- Figure 59: Type of internet radio listened to in the last month, by gender and age among teens, November 2009
- Internet radio to reach teen boys
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- Figure 60: Attitudes towards advertising on internet radio, by gender and age among teens, November 2009
- Teens are collectors and streamers
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- Figure 61: Attitudes towards music collecting, by gender and age among teens, June 2009
- P2P music sharing prevalent among teens
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- Figure 62: Number of paid and free song downloads in the last month, by gender and age among teens, November 2009
Appendix: Other Useful Consumer Tables
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- CD and music download purchase by age
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- Figure 63: Number of CDs and downloads purchased in last 12 months, November 2008-June 2009
- Aversion to creating playlists limited
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- Figure 64: Attitudes towards internet radio services, by age, November 2009
- Income has limited impact on piracy
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- Figure 65: Number of song downloads purchased and downloaded for free in the last month, by household income, November 2009
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- Figure 66: Number of song downloads purchased and downloaded for free in last month, by gender, November 2009
- Internet radio sites used by household income
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- Figure 67: Streaming music site or program visited in past week, by household income, November 2009
- Satisfied with on-demand selection
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- Figure 68: Attitudes towards internet radio services, by age, November 2009
Appendix: Trade Associations
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