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Wednesday, October 18, 2017

Pandora Research: AM/FM Finding New Place In Audio Landscape


A study of American audio consumption by music streaming service Pandora has, as would be expected, talked up the growth of music streaming and podcasting, but has also acknowledged that traditional analog broadcast radio is still strong, but is "finding a new place in the audio landscape."

The report says:

America’s century-old mass medium is still alive, kicking, and serving throngs of listeners every day. Despite what some media pundits say about broadcast media, radio isn’t dead, it isn’t on life support, and isn’t even in the emergency room. But radio might benefit from a sober self-assessment of its role in a digitally disrupted media landscape.

Radio has prospered for so many decades because it’s free, easy to use, and there are tons of devices around. Until recently, it was the only way to enjoy music without having to invest in a record collection, or to hear news, sports and traffic information while on the go.

But AM/FM faces serious competition from personalized, digital alternatives. Waze and Google Maps, for example, offer real-time traffic updates on individual routes; listeners can choose the play-by-play team of their choice, even if it’s out-of-market; and Pandora leads the way in serving music that’s personalized for each listener.



As much as the radio industry loves to promote its wide reach, another critical metric, time spent listening, has been riding a steady decline. Daily time spent listening to AM/FM has fallen by 34% between 2007 and 2017.3, 20 Clearly, listeners are not using AM/FM for as long or as often as they did before.

Time spent listening to AM/FM will continue to fall as consumers take advantage of unlimited mobile data plans, acquire more digital media devices in homes and cars, and as radio’s most loyal demographic, Americans aged 50+, embrace the digital revolution. Persons aged 50-64 who have mobile devices are, for the first time in the past year, spending more time with mobile apps than they are listening to AM/FM radio.

The report says that use of smartphone apps has surged ahead of AM/FM radio usage, especially while driving. It also says that "commercial clutter" is the number one reason for the decline in radio time spent listening.


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