Internet radio to boost growth of networked audio market
A new report from Futuresource Consulting reveals that the rise of connected devices and internet radio are laying the foundations for multi-room networked audio.
The report found that the digital music market in the USA now accounts for 35% of the country’s music revenues, with a subscription market worth nearly US$3 billion (85% derived from satellite radio).
The UK is also a significant market, where consumers spend almost twice as much on music per capita than the US and European average.
Futuresource says that with the rapid uptake of consumer laptops, notebooks and WiFi-enabled broadband, the market is “shaping up for a networked audio revolution”.
David Watkins, senior market analyst at Futuresource Consulting, said: “Networking solutions are on the brink of revitalising markets for home audio products.
“Consumers already own devices which can access internet music – PCs, personal media players and smartphones – though the unique selling point for embedded internet radio is convenience and immediacy. There’s no need to boot up a PC, you simply hit a button and you’re listening to your favourite music or talk show in an instant.”
A recent forecast from SNL Kagan predicted that online radio revenue in the US would grow 12% to $441 million this year.
SNL Kagan also predicted a 20% increase in 2010, to $530 million.
Elsewhere, ZenithOptimedia forecast that global radio advertising would take a 7.4% share of total global adspend in 2011, down from 7.7% this year.