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Week ending July 25, 2009

Goldmedia - Number of online radios grows rapidly - July 23, 2009
from Katrin Penzel/Goldmedia

The number of German online radio stations has sharply risen in the past years. By April 2009, there were 1,914 online radios. By the end of 2009, the number will increase to approx. 2,200 – a five-fold increase in stations since 2006 (when there were around 450). Nearly four fifths of German online radio stations are available only on the internet. The others are live streams of FM radio stations (so called simulcast streams). Online radio presents significant opportunities for FM stations. They can extend their scope and obtain completely new target groups through specialised web offerings. By now, over 120 online channels from FM radio stations exist in Germany.

With the publication of “Webradio Monitor 2009”, the Bavarian regulatory authority for commercial broadcasting / BLM (http://www.blm.de) and Berlin strategy consultant Goldmedia (http://www.Goldmedia.de) present a comprehensive market overview of providers, use, scope, and ad revenue among German online radios. The study is based upon extensive primary data research, through surveys of all online radio providers in Germany, conducted from May to June of 2009.

Based upon a large, representative sample of German online radios, Goldmedia estimated that they had 7.5 million users per day at the end of 2008. Through massive growth of broadband internet and an increasing number of online radio offerings, the user level will climb to about 21 million by 2013. As this takes place, online radio will win increasing attractiveness for the ad industry. However, standardised performance data to confirm ad effectiveness and document the market situation is still missing.

The current scope of online radios varies significantly, demonstrating the growth potential of the online radio market. According to Goldmedia analyses, the streams of the local FM radio stations reach up to 8,000 users daily, and the state-wide broadcasters reach up to 125,000, depending on how well known they are. Highly successful online-only streams are accessed up to 500,000 times daily.

Based on provider responses, online radios are listened to for an average of 73 minutes per day. At 91 minutes, the simulcast streams of FM broadcasters have a distinctly longer use per day than online-only channels, which average 64 minutes. The online radio providers surveyed expect an average daily use of 147 minutes by 2012 and a stronger alignment of usage behaviour for online-only offers and for FM radio streams.

Stefan Sutor, Director of the Radio Department in the Division Programme of the BLM: “’Webradio Monitor 2009’ documents the significance online radio listening has already gained. Radio and internet are excellent complements. This is demonstrated by the growing access figures and increasing online radio offerings as well as by the numerous internet radio activities of the traditional radio broadcasters.”

Dr. Klaus Goldhammer, Managing Director of Goldmedia GmbH: “By now, online radio can be accessed anywhere with an internet connection: at home, at work, on one’s mobile phone, and in the car. Among the most striking trends in the internet radio market are better visualisation and personalisation. Channels like Last.fm or Putpat show the direction the online radio market is headed for the future.”

Marcel Piopiunik, study author and consultant of Goldmedia GmbH: “As an ad medium, online radio must be measured with hard numbers. The internet provides the possibility of measuring its exact scope. But up to now, there hasn’t been a uniform currency for internet radio scope that’s accepted in the market. As our research shows, the providers themselves are unsure about the appropriate performance data for online radio.”