Radio in the US is still the most popular format for listening to music, with a listener base of 194 million, despite a decline of 4% between March 2005 and 2004, according to a new study by marketing and communications firm, NPD Group.
The research showed 77.2 million people aged 13 of over listened to music stored on their computer, while 53.5 million listened to online radio and 46.1 million listened to free streaming music online.
A study from Arbitron and Edison Media Research examines the increasing popularity of internet radio and shows that the online audience is older than expected. The report found that nearly half of all online radio listeners are between the ages of 25 and 44, with more 45 to 54 year old internet listeners compared to the 18 to 24 group.
Consumers cite a number of reasons for listening to the radio online, claiming the media offers a larger variety of programmes and fewer commercials.
A report published at the end of last year by Borrell Associates predicts total US advertising attributed to online radio websites to rise by 56% each year, reaching $320 million by 2009 (see Internet Radio Advertising To Increase Tenfold by 2009).
It is projected that $30 million will be spent on banner adverts and $4.5 million on streaming audio advertisements across online radio web sites in 2004. A combined figure of almost $35 million, this equates to 0.3% of the $10.5 billion spent on internet advertising in 2004.
Earlier this year, analyst, Merrill Lynch, predicted a strong outlook for the US radio industry, showing radio stations trends to have improved by around 3% in quarter one of 2005 (see Strong Outlook For US Radio Industry).
Satellite radio is forecast to enjoy strong growth, with Forrester Research predicting the technology to reach more than 20.1 million US households by 2012, up form 4.5 million at the end of 2004 (see Satellite Radio To Reach Over 20.1 Million US Households By 2010).
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