In a presentation called Miles Different: In-Car Audio, Edison Research President Larry Rosin told Radio Show attendees that the automobile is as important as ever for the audio space and radio is still king in that space. And, he says it will be for quite some time. “The car environment changes slowly as only a single-digit portion of the stock changes each year. And even among those who drive newer cars most of their time goes to AM/FM Radio.”
Edison’s new research determined that the car is the top location for audio listening and consumers have many more options for audio in cars. And, when people have more options they use more options. So who gets hurt the most when their are more options. “Obviously AM/FM gets hurt the most by more options,” according to Rosin, “because it has all the listening to give. As the overwhelmingly dominant source of listening in the car, it kind of has to be that way.”
He also says the agent of change is SiriusXM. But why? “Any number of reasons, including the fact that it’s a good product, it serves some clear consumer needs that ‘terrestrial’ radio doesn’t or can’t, and… because it’s radio. It’s familiar – stations, formats, presets etc. To consumers it is an extra ‘band’ of radio stations that one can pay for if one feels the value is there.”
The report shows that traffic reports as we know them are doomed. That is not surprising in the age of apps like Waze and other similar apps.
Rosin concluded that we are just at the dawn of change and that, so far, radio is keeping up with that change. “Radio companies now are showing that they understand the need to offer all the things that consumers might want in the car, not just AM and FM. So, interactive streaming is available from iHeart and most all the companies are now invested in podcasts in some fashion.”
Check out Rosin’s full PowerPoint presentation HERE.
And it’s a good thing, too, that radio still has an area where there is still some heavier useage.
But it’s no reason for a victory lap or beer and pizza that, by the way, comes out of the staff party fund.