September 4, 2017:Pandora still setting sights on AM/FM ad budgets

Pandora still setting sights on AM/FM ad budgets

When ad-supported music-streaming services attract criticism from rightsholders, one of the arguments – see our piece earlier today on YouTube’s Robert Kyncl for example – is that there is plenty more money to be unlocked from advertising.

And one of the regularly-cited sources of that money is broadcast radio, with advertising spending that could be about to go digital, and (particularly in the US) with historic beef over the lack of performance royalties paid for music.

Pandora’s Glenn Peoples has returned to the theme in his latest blog post, suggesting that “as listening shifts online, broadcast radio’s advertising, worth $15 to $17 billion annually, is a gold mine for ad-supported streaming services like Pandora… an excellent growth opportunity for any streaming service looking for listening hours and advertising revenue”.

Peoples notes that the US radio market alone is worth $15bn-$17bn annually, with the average American listening to two hours of AM/FM radio a day, compared to 36 minutes of streaming audio.

“Streaming isn’t a zero-sum game. Streaming hours aren’t the only goal. AM/FM listening hours are the larger goal,” writes Peoples.

“Digital services might be competing against one another, but at the same time, they’re fighting for the listening hours of heavily entrenched, AM/FM companies… The more consumers see streaming as a replacement for broadcast radio, and the better the listening experiences, the more revenue and listening time will shift from the older technology to the newer one.”

Stuart Dredge
READ MORE: Data News
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