Présentation donnée par Larry Rosin, Co-founder et Président de Edison Research, aux IV Rencontres Radio 2.0 Paris, le 13 octobre 2014 dans le prestigieux Studio 105 de la Maison de la Radio de Radio France. Info : www.RR20.fr Pour rester informé, suivez-nous sur : - Facebook : Radio 2.0 Paris - Twitter : @Radio_20 #rr20 - LinkedIn : Radio 2.0 Organisateurs : Nicolas Moulard / Actuonda, Xavier Filliol / Editions de l'Octet, Radio France, Ina Expert Partenaires : - Partenaires Platinum : Mediametrie, Limelight - Autres Partenaires : Music Story, Triton Digital, Targetspot, RCS, Spotify, Netia, Deezer, Kantar - Partenaires Média : La Lettre Pro de la Radio, RadioPub, Media +, Edition Multimedia, Satellinet, French Web - La Radio des Rencontres : Broadcast Associés, Radioline Avec le soutien du Ministère de la Culture et de la Communication, Geste, ESML, Syrol, Sacem, UDA-Union des Annonceurs, IRMA, Salon de la Radio, URTI Membres du Comité de Pilotage : Actuonda, Broadcast Associés, Deezer, Editions de l’Octet, Havas Media, INA, IndésRadio, irma, Kantar Media, Ministère de la Culture et de la Communication, MédiaMétrie, Orange, Radio France, Radioline, RFI, RTL, Sacem , Spotify Targetspot , Triton Digital, UDA-Union des Annonceurs, Warner Music France.

1. The Transformation
of USA Radio
Larry Rosin, Co-founder and President

3. In many ways, the best of times
• An explosion of options for the consumer
– AM/FM
–– HD Radio
– Podcasts
– Internet Radio (especially Pandora)
– Satellite Radio

4. For American Commercial Radio, the worst of times
• Significant losses in listening
• Mass firings of staff
• Flat (at best) revenues
• Uninspired content largely targeted to the
lowest education segments of America

5. Within AM/FM – the ‘non-commercial tier’ is healthy
• “Public Radio” has done a tremendous
job of ‘stealing’ the college educated
listener from commercial radio
– But Public Radio has stopped growing as
these same people move to new
technologies

6. Within AM/FM – the ‘non-commercial tier’ is healthy
• “Christian Radio thrives in non-commercial
radio
–And at times, in commercial radio

7. The modern history of American Radio starts with this guy:

9. Timeline:
• 1996 – President Clinton signs the “Cable Bill”
removing nearly all restrictions on radio station
ownership
• 1997-2001 Hundreds of sellers turn consolidators into
huge new national radio station businesses, funded by
massive debt
– Clear Channel
– CBS
– Cumulus
– Others

10. Timeline:
• 2000-2007
– Defying all predictions for growth which were the basis of the
consolidators’ financial plans – radio ‘flatlines’ in revenues
• Was it because of the consolidation?
– Many believe this to be the case
– Less inspiring programming
• Note – Public Radio grew massively during this period
– Less competition
– Increases in commercial time per hour
– Huge pullback in resources

11. Timeline:
• 2008-2009
– Financial crisis hits
– Radio revenues drop 35% nationally over these two years
– Bankruptcies and more consolidation
• 2010-Today
– Commercial AM/FM struggling to regain any of the lost
revenues
– Note: Radio continues to have ‘reach’ – declines are in TSL
• And a whole parallel movement happens

12. Broadcast Radio in a long term decline
Spring Quarter 1980-2012
17,9%
16,8%
16,2%
18,2%
18,0%
18,0%
17,7%
17,6%
17,7%
17,4%
17,3%
17,5%
17,2%
17,2%
16,7%
16,9%
16,3%
16,5%
15,7%
16,1%
15,1%
20,0%
19,0%
18,0%
17,0%
16,0%
AM/FM Listening
15,3%
14,6%
14,9%
14,2%
14,4%
14,0%
13,8%
13,2%
11,7% 11,2%
10,8%
10,4%
9,9%
15,0%
14,0%
13,0%
12,0%
11,0%
10,0%
9,0%

13. What has caused this diminishment in AM/FM listening?
• A parallel growth in alternative options
– Online Radio
–– Satellite Radio
– Podcasts

14. % Who Have Listened to Online Radio in Last Month Estimated
34%
39%
45%
124 Million
47%
Monthly Online Radio Audience
Approaching Half of Americans
© 2014 Edison Research and Triton Digital
17% 16% 15%
21% 20% 21%
27% 27%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Base: Total Population 12+
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

15. Three-Quarters of 12-24s and Half of
25-54s Listen to Online Radio Monthly
% By Age Group Who Have Listened to Online Radio in Last Month
75%
50%
© 2014 Edison Research and Triton Digital
21%
12-24 25-54 55+
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

16. 29%
33%
36%
Online Radio Reaches Estimated 94 Million Weekly
% Who Have Listened to Online Radio in Last Week
Estimated
94 Million
© 2014 Edison Research and Triton Digital
8% 8% 8%
12% 12% 13%
17% 17%
22%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Base: Total Population 12+
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

17. Just Under Two-Thirds of 12-24s Listen to Online Radio Weekly; More Than
One in Three Age 25-54
% By Age Group Who Have Listened to Online Radio in Last Week
64%
© 2014 Edison Research and Triton Digital
37%
13%
12-24 25-54 55+
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

18. Weekly Online Radio Listeners Report
More Time Spent Listening Every Year
8:02
9:17 9:46
11:56
13:19
Average Time Spent per Week With All Sources of Online Radio
(Hours:Minutes)
© 2014 Edison Research and Triton Digital
6:13 6:31
2008 2009 2010 2011 2012 2013 2014
Base: Weekly Online Radio Listeners
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

19. 21%
26%
Online Radio Listening in a Car Via
Cell Phone Continues Steady Increase to 26%
% of Cell Phone Owners Who Have Ever Listened to Online Radio in a Car by
Listening to the Stream From a Cell Phone Connected to a Car Audio System
© 2014 Edison Research and Triton Digital
6%
11%
17%
2010 2011 2012 2013 2014
Base: Own a Cell Phone
Online Radio = Listening to AM/FM radio stations online and/or listening to streamed audio content available only on the Internet

20. What is causing these leaps in Online Radio Listening?

21. Many brands of Online Radio with
Pandora the overwhelming leader
% Aware of…
28%
40%
48%
47%
70%
Pandora
iHeartRadio
iTunes Radio
Rhapsody
Spotify
© 2014 Edison Research and Triton Digital
14%
Base: Total Population 12+
5%
5%
3%
10%
8%
14%
24%
Google Play All Access
Slacker
Radio.com
TuneIn Radio
Last.fm
Rdio
Songza
Stitcher

22. Nearly 1/3rd of Americans listen to Pandora
% Age 12+ Who Listened in Last Month to…
9%
8%
31%
Pandora
iHeartRadio
iTunes Radio
© 2014 Edison Research and Triton Digital
3%
2%
2%
2%
6%
Spotify
Google Play All Access
Rhapsody
Slacker
TuneIn Radio
Brands lower than 2% Age 12+ not shown

23. Percent by Age Group Who Listened in Last Month to…
55%
Age 12-24
Age 25-54
© 2014 Edison Research and Triton Digital
Pandora 33% 11%
Age 55+
Brands lower than 6% Age 12+ not shown

24. About one-in-seven American Households
subscribes to Satellite Radio
“Do you currently subscribe to any services from Sirius XM?”
Yes
15%
No
85%

25. More than three-quarters of 18-34s have a smartphone
% of 12+ population with a smartphone
54%
66% 64%
54%
60%
75% 74%
69% 2012 2013
41%
27%
11%
51%
34%
17%
12-17 18-24 25-34 35-44 45-54 55-64 65+

26. Nearly half of smartphone owners have downloaded Pandora
% of smartphone owners who have downloaded app
9%
15%
47%
Pandora
iHeartRadio
AM/FM Station App
6%
4%
3%
2%
5%
Spotify
Aha Radio
Songza
SiriusXM
Radio.com App

27. But it is not just alternative forms of ‘Radio’ that are
squeezing down AM/FM listening
“Which one of these are you most likely to use first thing in the morning?”
Radio
30%
Television
39%
Internet
23%
Newspaper
8%

28. Owned Music
(CDs, Digital music files, etc.)
Share of Ear 20.3%
Americans’ Share of Time Spent
Listening to Audio Sources
Internet Radio/Music
(Pandora, Spotify, etc.)
11.6%
SiriusXM
7.7%
May 2014
AM/FM Radio
52.1%
TV Music Channels
(e.g. Music Choice)
Podcasts
1.7%
Other
1.5%
Source: Edison Research. Americans spend an average of 4 hours and 5 minutes each day consuming audio. This graph
represents the share of time spent with each. Based on a nationally representative sample of 2,096 Americans ages 13+
who completed a 24-hour audio listening diary, May 2014. For more information contact info@edisonresearch.com
5.2%

29. Bear in mind
• Every item I have showed would look much more
dramatic if I isolate 12-34 year olds
• Especially the loss in AM/FM listening

30. Items to consider:
• Avoid the defensive posture
– American Radio is constantly using the word ‘still’ in its
argument:
•• We ‘‘still’’ have cume
• We ‘still’ dominate the car
• Innovate in every way you can
– Part of what we have been seeing out here is entrepreneurs
exploiting American Radio’s inability to innovate because they
have to pay the bankers

31. Keep in mind
• Your new friend Larry knows pretty much everyone in
American Radio and many in the streaming space
• I’ll be happy to continue to make introductions to
anyone you want

33. IV Rencontres RADIO 2.0 Paris
‘Les nouvelles frontières de la radio 2.0’
13 Oct. 2014 @ Radio France
Partenaires Platinum
Nicolas Moulard
moulard@actuonda.com
Partenaires Gold La Radio des Rencontres
Xavier Filliol
xavier@octet.tv
Organisateurs