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Saturday, August 20, 2005



Music Radio Stations Hard Hit by Personal Digital Music Revolution

ORADELL, N.J., June 7 /PRNewswire/ -- Music radio stations are facing
increasingly powerful competition from the modern music culture says a newly
published study by TechnoMetrica Market Intelligence. And what's more,
listener bases are changing, and not for the better.
"Listener bases appear to be shrinking," says Constantine Kambanis, an
analyst at TechnoMetrica. "Moreover, they may be losing some of their
financial value, with perhaps the most economically important listeners
leaving radio for the modern music experience."
According to Kambanis, the synergy between digital music formats, portable
digital music players, personal computers and the Internet has created better
and more alluring alternatives to traditional radio, forcing music radio to
either adapt or die.
"Part of the appeal of things like the Apple iPod and online music
services like iTunes and Napster is that the listener's music experience can
be completely customized. You just can't do that with traditional radio."
Comparing what he dubs the "modern music experience" to traditional music
radio programming, Kambanis says that downloading gives such music a certain
degree of ownership and permanence not found in radio. Beyond that, the
quickness and ease of downloading music and the absence of time-consuming and
irrelevant commercials diminishes the value proposition of music radio
According to the report, music radio will have to come to grips with the
fact that technology is fracturing the overarching listener base while
simultaneously personalizing consumer's interaction with pop culture.
"Technology is having a profound impact on music radio's mission
statement. It's forcing the advent of greater specialization and more
genre-specific content. The future of music radio probably lies in highly
targeted entertainment and in introducing new artists and music products into
highly specialized markets."
About the Report
This study surveyed a random sample of 1,002 adult American consumers on
their perceptions of various products and services as well as buying habits.
Beyond looking at the overarching modern music experience and its impact on
the music radio industry, the report examines ownership rates, demand for
portable digital music players, online music service subscriptions, trends in
PC usage for downloading music, downloading vs. buying music CDs, music
piracy, consumer familiarity with Sony's Walkman Phone, its market viability
and how it stacks up against Apple's iPod.
To request a Table of Contents and Abstract or to purchase the report,
please contact ckambanis@technometrica.com or call 800-328-8324.
SOURCE TechnoMetrica Market Intelligence

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