FM/AM still first for music listening
Story by Inside Radio
Nearly four-in-ten (37%) of U.S. internet users listened to music on a streaming music service in the past three months. That’s a 27% increase over the past year, according to the research company NPD Group. Yet even with all that digital music consumption, three-quarters said they still listened to FM/AM radio.
“You still have to say this is the dominant by far source of how people are listening to music, and the good news for radio is we’re not even including talk radio in this,” NPD analyst Russ Crupnick says. NPD bases its findings on quarterly surveys of more than 4,000 people age 13 and older. The latest results are based on the quarter that ended June 30. The firm’s research finds FM/AM listening slipped 3% compared to a year ago but he points out its used by more than twice as many people as internet radio and nearly twice as many who listen to CDs.
“AM/FM may be a little more immune than some of the other options, like listening to CDs which has taken much more of a hit,” Crupnick says. He thinks the real challenge for over-the-air radio will be when the penetration rate for digital dashboards climbs higher, pointing out its research finds that a high number of Pandora users are already connecting while in the car.
NPD says that since 2009 the percentage of Pandora users who also listened to AM/FM radio declined 10%. It was a slightly steeper 12% drop among younger demos. The number of Pandora users who reported listening to CDs fell by 16% in the past year. Crupnick expects the trend to continue as consumers become more comfortable with ownership defined as a playlist, rather than as a physical CD or MP3. His message to broadcasters is don’t panic.
“From a consumer perspective radio’s still relevant,” Crupnick says. That’s because NPD’s research finds that Americans — old and young, music fans and casual listeners — overwhelmingly agree AM/FM radio is still the best way to learn about the music that’s out there. “If the sky is falling, it’s falling very slowly,” he says.
Nearly four-in-ten (37%) of U.S. internet users listened to music on a streaming music service in the past three months. That’s a 27% increase over the past year, according to the research company NPD Group. Yet even with all that digital music consumption, three-quarters said they still listened to FM/AM radio.
“You still have to say this is the dominant by far source of how people are listening to music, and the good news for radio is we’re not even including talk radio in this,” NPD analyst Russ Crupnick says. NPD bases its findings on quarterly surveys of more than 4,000 people age 13 and older. The latest results are based on the quarter that ended June 30. The firm’s research finds FM/AM listening slipped 3% compared to a year ago but he points out its used by more than twice as many people as internet radio and nearly twice as many who listen to CDs.
“AM/FM may be a little more immune than some of the other options, like listening to CDs which has taken much more of a hit,” Crupnick says. He thinks the real challenge for over-the-air radio will be when the penetration rate for digital dashboards climbs higher, pointing out its research finds that a high number of Pandora users are already connecting while in the car.
NPD says that since 2009 the percentage of Pandora users who also listened to AM/FM radio declined 10%. It was a slightly steeper 12% drop among younger demos. The number of Pandora users who reported listening to CDs fell by 16% in the past year. Crupnick expects the trend to continue as consumers become more comfortable with ownership defined as a playlist, rather than as a physical CD or MP3. His message to broadcasters is don’t panic.
“From a consumer perspective radio’s still relevant,” Crupnick says. That’s because NPD’s research finds that Americans — old and young, music fans and casual listeners — overwhelmingly agree AM/FM radio is still the best way to learn about the music that’s out there. “If the sky is falling, it’s falling very slowly,” he says.
posted by Kirk Tanter at
11/09/2012 10:26:00 am
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