The number one digital advertising topic of 2016 is shaping up to be ad-blocking. It should be noted that most music streaming services rely primarily on audio ads which avoid the viewability problem of ad-blocking altogether. So if the audio is streamed, impressions are delivered. As a result, audio ads are less likely to be victims of ad-blocking technology.
The Financial Times reported over the weekend that Apple Music has reached 10 million subscribers. This trails what The Verge estimates is over 25 million Spotify subscribers, but represents impressive growth just six months after launch. It is interesting to consider the different user acquisition strategies used by the leading music streaming services.
With a new year upon us, Radio World interviewed CEO Pat Higbie on the future of Internet radio in 2016. As the Internet radio audience continues to grow, so will the interest of national advertisers. With a large amount of consumer attention and advertising revenue at stake, Higbie predicts competition will be fierce for both.
2015 was a big year for Internet radio and streaming services. Today’s focus is the 10 best articles on the industry over the past 12 months. See the full list below with entries from Music Industry Blog, Billboard, RAIN, Mark Ramsey Media, and more.
One word can be used to sum up Internet radio in 2015. Growth. Higher numbers for listenership and advertising drove competition between labels and publishers. And, if you look at the top XAPP blog posts of 2015, you’ll notice it all comes down to money.
Yesterday, the U.S. Copyright Royalty Board (CRB) raised royalty rates for Internet radio streams from 0.14 cents to 0.17 cents per song played. The 21% royalty increase takes effect in 2016. Future rates will rise annually between 2017-2020 based on the Consumer Price Index. Who is impacted by the rate change?
The Internet Radio Ad Load Report for Q3 2015 showed a small growth in advertisers, but a reduction in the frequency of the top advertisers. The spots are getting spread around among more advertisers. In Q3, Retail and the combined Media, Entertainment & Gaming (MEG) group were again the top two industries represented in Internet radio ads.
Music industry revenue has fallen consistently since peaking in 1999. Some would like to claim that streaming music services are a cause of the decline even though they arrived well after the downward trend was established. However, there is ample evidence to suggest the industry revenue would have declined in the absence of streaming music services.