Online Radio, the perfectly designed business model
Prior of getting into any discussion the most important question is, “What are Online Radios and how helpful they are or can be?”
Online Radios, also known as web radios- is a technology introduced that transmits audio streaming over the internet to your Laptops, mobiles or computers. This technology of broadcasting audio with the help of data transmission is almost as similar to terrestrial radios. The only difference is the Web radios need internet to be accessed.
This article discusses about the Internet Radio and its growth as business model. Internet radio or we can say streaming services in past few years have successfully gained high consumer usage.
Senior Consultant, David Sidebottom, at Digital Media at FutureSource Consulting says,
“Over the last few months the music streaming companies and Internet Radios have emerged with extensive user bases. There are many attractions offered by these online radio services such as, accessible through any device that is connected to the internet, social sharing, playlists and personalisation, though competition is getting on its peak but there are radios (such as Dostiplace.com) that are offering free subscriptions and streaming for the listeners.”
According to a study ‘Living with Digital’, the percentage of listeners in USA and UK has not changed since 2009-2012, but the number of hours listening to the radio channels have increased almost 20 to 27%.
Sidebottom adds, “Many of the Internet Radios are designed and built with almost No-Ads or very low priced premium subscription. Many other charge up to 15$ a month and offer unlimited streams. But many other radios (dostiplace.com) do not charge anything for radio and streaming.” He further mentions, “Key driver for the internet radio usage is Mobile phones, Mobile phones accounts almost 50% of listening hours for the web radios, by using smartphone apps for the platforms like Android and iPhone. It is also studied that almost 70 percent of the listening hours take place outside the homes, for example, cars, or markets. Thus we can say that the growth of Smartphone usage and the devices that can be connected to the internet are creating sustainable future for the Web Radios.”
From 2013 to 2018 the growth rate of online radios has increased extremely well as shown in the graph below.
The graph above shows the growth in revenue of Online Radio industry. The graph states the increase in non-digital radio by 2.5% annually in the present period.
There are many issues yet to be resolved but still it is said that Online Radio market has a very successful future. The major drawback many companies facing is charging for the subscriptions and streaming. Many radio stations like Dostiplace.com are providing services for free. Thus the radio stations must overcome this scenario as more and more listeners are choosing to listen to the radio free as compared to paying for the streaming.