Competition from alternative mediums such as downloading, streaming, physical formats of music, and OTT services is one of the biggest challenges faced by the global radio market.
The growing mobile Internet penetration and growing popularity of smartphones is leading music listeners to opt for online streaming services. Moreover, the availability of freemium streaming services means that users can tune into their favorite track at no cost.
Below are the top three factors helping radio to gain an edge over the competition:
Low Cost
Most of the radio channels are free to listen to. Listeners just need a device to tune into a particular radio station. Moreover, the cost of device is also low. As the smartphone market is growing, radio applications are being integrated into the device. Apart from the subscription fee for a few premium radio stations and satellite radio subscriptions, there are no charges involved in listening to broadcast radio channels.
Live Updates
Another important factor that makes radio popular among listeners, especially people commuting by car, is the live updates provided by radio channels along with entertainment. Most of the radio channels provide live updates about the weather, traffic, sports events, breaking news, among others. This attracts more people, especially commuters, to the radio than other forms of music entertainment. Also, the 2014 FIFA World Cup was broadcast live on various radio channels. Such live events boost the number of radio listeners.
Bundled Services
Bundled services are increasingly being offered by vendors such as Pandora, which offer both online radio and streamed music services. Such bundled services give users the flexibility to choose music content. Listeners can either tune into live radio or can stream on-demand music. This trend is expected to have a positive impact on the market during the forecast period.
