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A recent survey in the US by TargetSpot, a digtal audio network, found an increase in tablet ownership of almost 87%, combined with a smartphone take-up increase of 22%.
As the world fast grabs hold of new gadgets to make their lives more connected, so our ways of delivering and receiving every day content is being reshaped. Radio is but one of these each day conceptions that are being delivered in a new and fresh way. It’s a conception that is quickly altering though, exceptionally in emergent markets like South Africa.
Let me ask you a question. When did you last listen somebody raving with regards to the new FM Radio they brought for home? Not not so long ago I am sure. Speakers that act as a docking station for galore new tech like a tablet or smart phone. But an FM receiver? Probably not.
The definition of “internet radio” must be evident but at the same time it’s more layered than a Tim Burton movie. Essentially we use it as an umbrella term for streaming music, voice and podcasting throughout the internet.
Popular segmentations of internet radio are broken down into pure on-demand streaming by way of specialized services (Spotify, Pandora and Last.fm for example), pre-recorecorded podcasts (which are not technically internet radio but standard sensing requires it be listed), conventional radio streamed online, parallel to the stations AM or FM broadcast and lastly, live presenter driven internet radio. This is specified as stations that are completely web based with no view to acquiring an FM or AM license (e-casting, iRadio and web radio come under the same definition).
The growth of this last format has been particularly strong over the last two years. While there is no reason for conventional terrestrial stations to get started re-looking their business model just yet, there is surely a growth in audience and conception that can not be ignored, both from an listener engagement point of view and as a viable new track for established radio advertisers.
Whilst buisnesses like Pandora and Spotify, two of the most successful versions of on-demand music streaming, carry on to assert larger audiences world wide, presenter driven streaming radio in Africa is quickly finding a ready audience.
On-demand models are principally software platforms that have access to an enormous catalogue of music. By asking you a potpourri of questions around music likes and dislikes, your answers are combined with a mass of algorithms to uncover your music “DNA”. The software then identifies further music selections for you based on what it believes you may like, with astounding results.
So why not replicate this format in an emergent markets context? It works and is a proven model.
There are two answers to this. Firstly, why re-invent an already conventional internet business at a big cost to replicate? And secondly but most importantly; is the current FM radio landscape genuinely the best we may do?
It’s an easy answer. No.
On-demand streaming will happen. The thing is streaming music alone doesn’t offer something very important. The humane element. And with that a choice. Commercial radio has become repetitive, dull and aimed more and more at the lowest mutual denominator in order to cast a wider net and assert more spectacular listenership figures. The listener is not the end target in this model, the client is.
High volume listenership in radio comes at a cost. Getting your message through means high repetition in a short space of time; and normally in the most pricey time bands. The rate card here smacks your advertsing budget. It’s highly swapped and highly cluttered air space. And while there may be a “million” listening, but how a good deal of just turned over as soon as your ad came on? In mercantile radio dedication is a button away. A button that is now in general located on your steering wheel for even more commodious channel hopping.
Research shows that internet radio comes with a much more inviolable sense of dedication (in our case an 88% return rate weekly), it carries less sensed advertizing and, inadvertently, it’s harder to plainly switch channels. Advertsing is more targeted, less interfering and as such gives rise to a more pleasant, less cluttered listening experience.
So why do we listen to mercantile radio if it’s so bad? Again two very good reasons. One, unless you have travelled and engaged other forms of good radio internationally, we perhaps recognise no better.
Secondly, choice. We have such a fixed choice of in-car amusement on the way to work because of a fixed and controlled radio spectrum in most countries. Put simply, we have no choice. We flip channels continuously. You must never need to touch the dial if that station was talking directly to you and your needs; sadly, they are attempting to satisfy everyone’s at once.
Commercial radio has become more or less of a walled-garden. It has to be in order to increase time expended listening (TSL) and retention. You are enticed by a bubbly and comical personality on your way to work. He or she plays a few new tunes, tells you to stay listening because such and such is giving away x and x prize shortly (your carrot to stay with them) and that if you listen later and SMS such and such to this number you will get dedication points — for a radio station?!
It’s one continuous carrot-dangling operation to give hope or courage to you to stay and be truehearted in order to satisfy the sales departments. Pavlov never had it so good.
Internet radio cannot compete at this stage on numbers. But it may compete on a number of important differentiators. Use of talent, content and music selection. It’s not regulated by authorities and it’s not formatted versus license requirements so we have room to play and entertain.
Imagine unleashing the actual natural abilities and qualities of South African DJ Gareth Cliff rather of the scaled down and diluted version that we get of him currently?
The argument is that by going back and creating listenable and engaging radio again you will give rise to an audience regardless. There is a proven hunger for it.
Internet radio is for a niche audience, but one that in most emergent markets, comes highly enabled and qualified. To listen to internet radio in this country you ought to have an internet connection or own a smartphone — something that might be usual in the USA but not in RSA. It’s a pre-qualified audience. They have to be competent to spend to listen. It’s an enabled audience that is littler but has an 88% return rate and has an intermediate TSL of two and a half hours.
I constantly preach the device driven track when it comes to in-car listening — the next step in online radio growth.
Entertainment while driving started with radio, then led to 8-Track and cassettes to CD’s and DVD’s. The next apparent iteration is internet driven entertainment. When you are no longer fixed to what is on your FM dial, the freedom becomes immediate.
Coupled with this selective information will only get quicker and for less and not other way around. Internet amusement schemes in cars won’t be applied just to entice the well heeled older generation. Cars in the lower cost segment, aimed at that youth, will inevitably commence using net enabled schemes as USP’s.
Worldwide the youth market listening to established radio is in decline in the 18 to 24 bracket. TargetSpot calculated that 42% of households that have wireless internet listen to internet radio. And why not? Younger generations are not buying FM Stero players, they are docking iPhones into speakers.
With uncapped broadband now very much the norm, such preconceived ideas of selective information cost, no longer limits the audience as far as a barrier to listening goes. To listen to a standard online radio station for 24 hours over a full month continuously would only use around 1.2 gigs of data.
Having helped start out an online radio station, I am more than satisfied there is a growing need and a growing demand for both the unformatted content and this way of delivering radio.
It’s not for the faint hearted but as far as proving conception the hard yards have been done and a future proven.
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