Up, Up And Away For Internet Radio

Michael Hedges July 28, 2011 Follow on Twitter

Higher listening rates are encouraging to radio broadcasters. Almost everywhere more people are tuning in. Evidence is emerging that much of the increase is coming from the Web. Ad revenue is sure to follow.

Radio reaches four out of five (80.4%) people in Poland, about average among European countries. More than 24 million are tuning in to radio daily, according to the Radio Track survey from Millward Brown SMG / KRC for the first half 2011 in recently released top line figures (July 11). Radio in Poland reaches proportionately more young people, 83.9% of adults 25 to 39 years and 82% of 15 to 24 year olds compared with 73.1% of 60 to 75 year olds.

National channel RMF FM continues to hold a commanding lead in audience surveys. In the first half 2011 the full-service adult contemporary channel, owned by Bauer Media, posted a 25.38% market share, down from 27.74% one year on. Radio ZET, a national hit music channel owned by Lagardère, placed 2nd with 16.22%, down just a whistle from 16.33%. Ranking 3rd was public general interest channel Polskie Radio PR1 Jednyka with 11.86% market share down from 12.67% year on year.

The biggest market share gainer in the January through June survey was public channel PR3 Trójka, to 8.55% from 7.58% one year on. In the first quarter 2011 audience survey the somewhat eclectic music channel reached 8.8% market share, its highest ever. In the January through June survey in 2008 the channel had but a 5.8% market share. Once known for playing every conceivable musical form, Trójka’s programming has homogenized over recent months into largely jazz and rock with a dose of high opinionated show hosts. Last year Trójka’s director, Jacek Sobala, was fired for politicizing the channel. All Polish public radio channels carry significant political baggage.

Each of the remaining top ten channels in the national survey increased market share, at least a bit. Hit music channel Radio Eska posted 7.61% market share up from 6.94% one year on. The network of local public radio stations Audytotium rose slightly to 5.61% market share and 6th ranking in the national survey. Regional adult contemporary music channel Zlote Przeboje (literally Golden Hits) posted 2.85% market share from 2.60% one year on. Controversial religious channel Radio Maryja also gained.

Internet radio in Poland continues its dramatic rise. More than half of radio listeners (61%) tune in through the Web at least once a week, according to a separate related survey by Millward Brown SMG / KRC. The majority (67%) choose channels available over the airwaves, the rest finding music, news and entertainment from the increasing number of Web-only channels. All major radio broadcasters offer Web streaming. When asked, only 13% said they would be interested in commercial-free subscription radio.

Web radio listeners in Poland mostly listen at home (83%) rather than at work (28%), nearly half (49%) listening during the day. Unsurprisingly, 94% of Web radio listeners are simultaneously surfing the internet. The research company draws no conclusions about a relationship between increases in radio listening and internet radio.

By one measure, radio advertising for the first half of 2011 is up by nearly one-third over like period 2010. A Kantar Media audit of ad rates and placement prepared for Polish media portal Wirtualnemedia.pl (July 27) estimates ad revenue for broadcasters monitored, mostly national channels, in the period at PLN 1.47 billion, about €365 million. By contrast, television ad revenues haven’t changed, increasing 0.8% one year on to PLN 7.8 billion, about €2 billion according to Kantar Media estimates.

RMF FM remains the clear leader with first half estimated revenues of PLN 498 million, about €125 million, a 64.9% increase over like period one year on. Polish public broadcasting channels Jednyka and Trójka had even bigger increases, according to the Kantar Media estimates, 90.1% and 87.1%, respectively. Ad revenues for TOK FM, owned by Agora and with only a tiny market share nationally, rose 86.0%.

I have apologized to media visionary Kurt Hansen 8 thousand times for doubting his belief in internet radio. I am converted. (JMH)

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