As Edison Research continues to roll out updated findings from their Q2 2023 Share of Ear data, traditional, satellite, and streaming radio is getting a wake-up call. For the first time in history, on-demand audio content has surpassed linear audio consumption in the US.
As of Q2 2023, 50.3% of daily audio consumption for those aged 13+ is through on-demand platforms, while 49.7% is through linear platforms such as over-the-air radio, satellite radio, and streaming radio services.
This marks a considerable shift from just seven and a half years ago, when the margin between linear and on-demand listening was 38 percentage points. The steady decline in the margin and eventual surpassing of linear consumption by on-demand is attributed to the growth of podcast listening and the widespread habit of choosing specific songs or playlists, rather than relying on radio or linear streams.
Edison’s report does emphasize the point that linear listening is not heading to extinction, as some people will still always prefer this format, and even on-demand listeners engage in some linear content. However, the trend favoring on-demand audio is expected to continue well into the future.
Study after study tells us that radio is perceived as a companion by many people. Unfortunately, too many radio stations are doing the equivalent of “phubbing,” ignoring their local listeners with too much generic content that simply isn’t companionable. Radio’s strength was always its timeliness and connection to local listeners. We’ve seen that erode badly for decades. Too many corporations are driven by a “profit now” motive with little or no regard for the long-term health of the enterprise or the medium. If radio isn’t offering more than a streaming service with interminable blocks of advertising, you can expect more erosion of both listeners and revenue.
On Thu, Aug 24, 2023 at 5:48 AM Brian Walker wrote:
I hope Brian J. Walker will forgive me for stealing his line . . but
“..For the cost of one CD per month, and not even a hot new artist CD, people can have unlimited access to a vast array of music of all genres. For no money, you can have the same access with limited, short commercial announcements. You can make your own playlists or an algorithm will suggest music based on your listening patterns. So, how’s that affecting linear sources like radio, satellite, “curated” streaming services and other linear audio delivery?”
Linear broadcasters have to admit that their (our) world is permanently changed by the “on demand” information. I would suggest that “on demand” consumers are different from “linear” media users. Curated media-where you turn it on and they basically do the rest-requires less effort than on-demand. Filling time with incessant, irrelevant material in the middle of linear programming is driving listeners to the on demand world in part.
The other part? Just the reality that people have more choices. Admit it. They will migrate to the BETTER choices. Each has it’s benefit, each has its liabilities. This information shouldn’t be a doomsday reminder. It should be a wakeup call that we ALL need to get the act together and start looking at what we know is wrong – and fix it.
More importantly, if you don’t already have ALL of your linear audio in stream format — and many stations do not — then you might as well just shut down now, because you’ve already doomed yourself.