The Infinite Dial Study: Radio’s Digital Platforms Online, Satellite, HD Radio & Podcasting.

The proliferation of digital broadcast platforms such as Internet radio, satellite radio, HD and podcasting is a testament to the popularity of radio programming. The Infinite Dial: Radio’s Digital Platforms, a new study by Arbitron Inc. and Edison Media Research, explores this expansion of the radio market and its implications for advertisers and media planners.

Growth of Internet Radio

Internet radio is growing rapidly. The monthly audience age 12+ now tops an estimated 52 million; an increase from an estimated 37 million people in 2005. The weekly Internet radio audience also increased 50 percent over the past year, with 12 percent of the U.S. population age 12+ (an estimated 30 million) having listened to Internet radio in the past week, up from 8 percent in 2005.

Advertiser highlights: Online radio reaches nearly one in five (19 percent) persons per week age 18-34 and 15 percent of persons 25-54. Weekly Online radio listeners are 36 percent more likely than the average consumer to live in a household with an annual income of more than $100,000.

Satellite Radio

In 2006, awareness of XM and Sirius satellite radio has reached equal levels of 61 percent awareness each among those age 12 and older. Nearly one in five non-subscribers to satellite radio say they are “very” or “somewhat” likely to subscribe to satellite radio in the next 12 months.

Advertiser highlights: Twenty-seven percent of satellite radio subscribers live in households with an annual income of more than $100,000, nearly double the percentage of all households (14 percent).

Podcasting

When asked to define podcasting in their own words, there was some confusion among respondents regarding the differences among podcasting, Internet broadcasting and downloadable music. When read a definition, eleven percent of Americans say they have ever listened to an audio podcast.

Advertising highlights: Podcasting attracts a youthful audience: one out of five who have ever listened to an audio podcast are 12-17 years old, and more than half (53 percent) are under the age of 35.

HD Radio

More than one-third of Americans say they are “very” or “somewhat” interested in HD Radio; more than 40 percent of satellite subscribers say they are interested in HD Radio as well.

More than one-third of those who said they were interested in HD Radio say they would be likely to purchase an HD Radio receiver at a $100 price point, and 58 percent of those interested say they would be likely to purchase at $50.

AM/FM Radio

While there has been tremendous growth in usage of radio’s new digital platforms, AM/FM radio does not appear to be losing Time Spent Listening (TSL). Daily radio TSL is 2 hours 45 minutes for the average consumer, compared with 2 hours 48 minutes among those who listen to digital radio (have listened to Internet radio in the past month or subscribe to satellite radio or have ever listened to an audio podcast).

Seventy-seven percent of Americans say they expect to listen to AM/FM radio as much as they do now despite increasing advancements in technology. The same holds true for Internet radio listeners (77%) and those who have tried audio podcasting (73%). Satellite radio subscribers showed slightly less dedication to traditional broadcasting, with 64 percent saying they plan to continue listening to the same amount of AM/FM radio.

“Consumers are quickly embracing radio’s digital platforms and this new research reveals that these advertising vehicles are becoming increasingly viable,” said Bill Rose, senior vice president, marketing, Arbitron.

“Our research shows that regardless of the platform consumers see all these options as merely being new forms of ‘radio’” said Larry Rosin, President, Edison Media Research. “This report provides crucial measurement on the development of radio as it is consumed in new and different ways.”

How This Study Was Conducted

The findings reported here are based on a January 13 – February 12, 2006 telephone survey of 1,925 people who were interviewed to investigate Americans’ use of various forms of traditional, online and satellite media. Respondents age 12 and older were chosen at random from a national sample of Arbitron’s Fall 2005 survey diary keepers. In certain geographic areas (representing five percent of the national population), a sample of Arbitron diarykeepers was not available for the survey, and a supplemental sample was interviewed through random digit dialing.

To view study CLICK below (Adobe Acrobat Reader required):

http://www.arbitron.com/downloads/digital_radio_study.pdf