Commentary

The Internet Radio Phenomenon Delivers Buyers

The Internet Radio Phenomenon Delivers Buyers

The audience for radio broadcasting over the Internet has grown substantially in a very brief period of time. The phenomenon is similar to the rise of FM radio in the 1970s, says the 12th Arbitron/Edison Media Research Study of consumer use of Internet broadcasting. Key findings include:

- The estimated number of Americans who have used Internet broadcasts in the past month was 51 million people as of January 2004. Twenty-one percent of Americans say they have watched Internet audio or video in the past month, and 44% of Americans say they have tried Internet broadcasting at least once.

- In four years, the monthly Internet audio and video audience has doubled from 10% to 21% of all Americans, representing 51 million consumers. In January 2000, 10% of all Americans had watched Internet video or listened to Internet radio/audio in the last month. As of January 2004, 21% of all Americans watch or listen to Internet broadcasting monthly. Forty-two percent of the Internet audio audience say they have listened to Internet radio while shopping or researching a product/service online.

- Four in 10 Americans have tried Internet radio. Thirty-nine percent of Americans have ever listened to online broadcasts of over-the-air radio stations or stations available only on the Internet.

- In August 1998, only 18% of the entire population were even aware of Internet radio. As of January 2004, 16% of Americans say they have listened to Internet radio in the last month and 8% have listened in the past week. The monthly Internet radio audience represents approximately 38 million Americans, and the weekly audience represents nearly 19 million Americans.

- According to Arbitron, the vast majority of Internet radio is consumed during the workday. Since 2000, the average weekly time spent listening to Internet radio has averaged between five and six hours a week.

- The monthly Internet radio audience is eight times greater than that of the two satellite radio broadcasters combined. Currently, 2% of all Americans say they subscribe to either Sirius or XM, the nation's two satellite paid-subscription radio services.

- Fifty-two percent of monthly Internet broadcast consumers have purchased online in the last month versus only 28% for non monthly Internet broadcast consumers. Those who listen or watch Internet broadcasts also spend more money online. The monthly Internet broadcast audience spent an average of $720 in the last year compared to an average of $522 spent online among those who don't watch or listen online.

- Forty-two percent of Internet audio listeners say they have listened to Internet radio while researching a product or service online, while more than one-quarter of Internet audio listeners (27%) listen to Internet radio while shopping and purchasing online.

- Monthly Internet broadcast consumers are more likely to be male (60%) while those Internet users who do not regularly stream are more likely to be female (56%). One-third of all online American men regularly consume Internet audio and video. The overall Internet broadcast segment is 26% of those online, but delivers a high concentration of persons in the 12- to 34-year-old demographic.

- Fifty-four percent of monthly Internet broadcast consumers have at least a college degree versus 42% for those who do not regularly consume streaming media. Fifty percent of monthly Internet broadcast consumers have an annual household income of $50K+ compared to 38% for the rest of Internet users. Seventeen percent of Internet broadcast consumers have an annual household income of $100K+ versus 9% for the remaining Internet audience.

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