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Streaming Radio, Curated Station and Track Play Music: Listening Hours and Revenue Analytics 2013 - 2016

  • July 2013
  • -
  • AccuStream Research

Summary

Table of Contents

Seaside, CA Streaming music radio, curated station and track play listening hours are spinning ahead at a 2013 growth rate of 47.5%, backed by monetization initiatives channeling $1.22 billion into the digital music ecosystem, according to a sector analytics report produced by AccuStream Research.

The report, Streaming Radio, Curated Station and Track Play Music: Listening Hours and Revenue Analytics 2013 - 2016, presents a multi-year analysis of listening by brand, platform, product offering, business model, subscriber count, available inventory by format, CPMs (national and local), sellout rates and corresponding revenue.

As listening hours have ramped, streaming and user-directed music services are scaling up ad sales operations and subscriber acquisition efforts aimed at closing the gap between rising audience demand--spurred on in large measure by mobile access--and revenue.

Hybrid offerings like Pandora, Spotify and Slacker are achieving success capturing advertising and subscription revenues. Subscription services, including RDIO and Rhapsody, host large libraries appealing to proactive listeners, and like their ad-supported counterparts, funnel significant licensing coin into record label treasuries.

In-house sales, rep firms, ad networks, ad trafficking platforms and RTBs are playing important roles in clearing media. Ad supported hours are projected to deliver 61.9% of sector revenue in 2013, with in-stream audio billings (paired with a display box) taking a 49.5% share of total media spend, weighted toward national buyers.

In-stream audio inventory allocated across desktop and mobile platforms grew at a CAGR of 37% (2003 – 2012). Exploitation of the audio avail is a priority for ad supported programmers. Pure-play Internet brands, in particular, are increasing their audio spot load, and corresponding in-stream inventory is forecast at a forward CAGR of 39% (2013 – 2016).

Total ad supported listening hours are projected to increase 79% in 2013 to 28.6 billion. In-stream audio is presently sold against 21.9 billion programming hours, including terrestrial broadcast extensions. Video billings frame 14.6% of total media spend. AOL’s Shoutcast platform is monetizing pre-roll video and display inventory.

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