Study: Streaming Brands Underdeveloped

Consumers who use streaming audio are highly unaware of the options available to them and have relatively shallow perceptions of the options they are aware of. That is among the key findings of the 'Successful Audio Streaming Strategies' study released by Coleman Insights Tuesday and presented at the RAIN Summit East conference in Washington, DC. The low awareness levels and shallow perceptions found in the research lead Coleman Insights to conclude that streaming audio is a brand category that remains highly underdeveloped.

Specific major findings released by Coleman Insights Tuesday include:

•On average, consumers who regularly use streaming audio can name 1.6 streaming audio brands on an unaided basis. This compares to the six or seven brands consumers can usually name for mature brand categories.

•The streaming audio services offered by 'terrestrial' AM/FM broadcasters and Pandora are the only brands with meaningful awareness levels. Less than one in ten streaming audio users is aware of brands such as AOL Radio, Yahoo! Music Radio, Last FM and Slacker on an unaided basis.

•Streaming audio consumers are more than twice as likely to be aware of an 'Internet-only' streaming brand as the streaming services offered by a 'terrestrial' AM/FM radio station. Seventy-seven percent (77%) of these consumers can name an 'Internet-only' brand, while only 33% name a 'terrestrial' AM/FM radio station stream on an unaided basis.

•Users of streaming audio are much more likely to listen to 'Internet-only' streams than streams offered by 'terrestrial' AM/FM radio stations. Half of streaming audio consumers report listening to 'Internet-only' streams; 28% listen to the streams of 'terrestrial' AM/FM radio stations.

•Aggregated usage of 'terrestrial' AM/FM audio streams exceeds Pandora usage. Pandora's 22% usage level is six points lower than that of all AM/FM audio streams.

•Streaming audio consumers prefer listening to 'Internet-only' streams over other sources of audio, including over-the-air broadcasts of AM/FM radio stations. Only 15% of streaming audio consumers'and only 7% of 15- to 34-year-olds who use streaming audio'choose over-the-air broadcasts of AM/FM radio stations as their preferred source of audio.

•Pandora is the leading brand in the streaming audio space, but it is far from dominant. Only 28% of streaming audio consumers are aware of Pandora on an unaided basis and only 22% use it on a regular basis.

•Perceptions of 'terrestrial' AM/FM radio station streams are out-of-sync with the interests of streaming audio consumers. Consumers most strongly think of AM/FM radio station streams for personalities and local news and traffic information, as opposed to attributes like fast buffering, few commercials, music variety and personalization that they value most highly.

'These findings make clear many of the strategies that will result in success in the streaming audio space,' said Coleman Insights Vice President Sam Milkman, who delivered the presentation at RAIN Summit East. 'They demonstrate how brand building is of paramount importance, how brands need to focus on a singular position or benefit, how streaming audio providers need to rethink the unique benefits their services provide from the perspective of this new delivery form and how 'terrestrial' AM/FM broadcasters need to address the challenges they face with consumers who already use streaming audio.'

A full report containing the findings and recommendations from the 'Successful Audio Streaming Strategies' study is available for free download from the Coleman Insights.
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