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Internet Radio vs AM & FM Radio

I was talking to a good friend of mine that is a very well know On Air Personality in San Diego at a major station and he is saying Internet Radio is the next big thing in radio broadcasting. What are your thoughts about that? Is AM & FM radio losing its punch with Internet Radio and new technology?
The reason why I am asking is that I have a new Internet Radio Station here in Southern California that I just launched a few weeks back and yes I still have a lot of work to do on it but, its going.
 
Once they get internet radio in the dashboards of cars, there will be a seismic paradigm shift in local radio, particularly AM radio. May even do in satellite radio too. Why listen to homogenized lowest common denominator radio, when hundreds (if not thousands) of stations exist and you can choose among them to hear exactly what you want?

The good news for AM and FM radio stations is that day is not today, tomorrow, or any time in the near future. The bad news is it is coming someday. And you never know when someday will actually come, but it is always sooner than you expect. Just ask Robin B. at KFI.
 
Internet radio can make tiny audiences meaningful with worldwide coverage. Take me, for example, I love Hawaiian music. Obviously no mainland station could make it with such a format but a few do in the islands, I listen to them at will. Its a small market to be sure but by the time you cover the world with it, there have to be some numbers, there are Hawaiian fans from Fukuoka to Stuttgart. No classical in your area over the air? No problem, tune it in on the interwebs. As long as big capital costs don't interfere there's no reason why internet radio can't reach more and more niche audiences around the world.
 
Internet radio can make tiny audiences meaningful with worldwide coverage. Take me, for example, I love Hawaiian music. Obviously no mainland station could make it with such a format but a few do in the islands, I listen to them at will. Its a small market to be sure but by the time you cover the world with it, there have to be some numbers, there are Hawaiian fans from Fukuoka to Stuttgart. No classical in your area over the air? No problem, tune it in on the interwebs. As long as big capital costs don't interfere there's no reason why internet radio can't reach more and more niche audiences around the world.

What you are saying is true, but what about all that competition? When there are 2,718 other Hawaiian music Internet stations competing against you, where do you fit in?
 
I guess it becomes like a micro econ 101 problem then, with competition eliminating marginal operations until a number of competitors that can still allow for an adequate profit is reached. Internet radio comes a lot closer to the ideal of capitalism with a lot of competitors than radio or TV ever did with large investment and technical and legal issues.
 
Once they get internet radio in the dashboards of cars, there will be a seismic paradigm shift in local radio, particularly AM radio. May even do in satellite radio too. Why listen to homogenized lowest common denominator radio, when hundreds (if not thousands) of stations exist and you can choose among them to hear exactly what you want?

The good news for AM and FM radio stations is that day is not today, tomorrow, or any time in the near future. The bad news is it is coming someday. And you never know when someday will actually come, but it is always sooner than you expect. Just ask Robin B. at KFI.

Several problems:

1. The average car on the road today is over 10 years old, and not many people are in a rush to buy new ones. It'll take close to 15 years for all the 2014 and earlier cars to be junked, assuming that all 2015 and later cars have internet radio (unlikely). 2029 is a long ways away.

2. Internet radio in the car is not free. Verizon, T-Mobile, and the other cellphone companies charge a pretty penny for 4G services. The days of unlimited data plans are gone, and even they weren't free (mine from Verizon is $30 a month, and that was just reduced from unlimited data to 2 Gb per month).

3. 4G service is not available everywhere, and probably will never be fully available in rural areas. Even where it's available, dropouts can and do occur.

4. With thousands of stations available online, but a limited number of presets (who needs to store more than 100 stations, if that many?), setting it up will be problematic. There will probably be a smartphone/tablet/PC app for that. TuneIn has favorites now, but it's a bit clumsy on my smartphone, and will be more-so on an in-dash internet radio with limited display space.
 
Thinking about it, because of the low entry barriers its a lot easier to be creative, to take a chance. If Hawaiian music fails, move on to Gregorian Chants or hymns or reggae. Beiber was discovered on the internet, there's gold out there waiting to be discovered. If radio had been as monopolistic in the '50's as it is now, I wonder if somebody as novel as Presley would have gotten any exposure.
 
He does have commercial appeal and success. I recall a lot of people not being sold on Presley when he was starting out, either.

I think technology will make it possible to tune any internet station you want in your car or anywhere else, "Channel 605" and there it will be.
 
Not in California, but saw this thread pop up. Interestingly enough, I'm just dabbling in streaming Internet radio in my car via my phone. Personally, I think it'll be people who don't have the format they want or the right mix of music in their cities that may jump on the Internet bandwagon quicker. It doesn't take a brand new car with a dashboard. All's it really takes is a radio with aux in (preferable), an FM transmitter or even one of those old fashioned cassette accessories to turn your phone into a vast resource for music around the globe.

Where I live, Greenville, SC, there's only one station that I really like -- an alternative station, X98.5. Unfortunately, that station is said to be going away very shortly either via a flip or a sale to another company (and it's only on a transmitter not a full signal).

That made me start thinking about what the heck I'm going to listen to besides my own downloaded songs. I always thought Internet radio in the car was cost prohibitive because of how much data it would stream. But a little research and I was surprised, an average stream supposedly can get you about 70 hours worth under a 2GB data plan (and I have a 3GB plan). Yes, the sound isn't as good as a high powered station, but it's certainly good enough for someone like myself who wants the kind of music they can't get locally via radio. Since I already am paying for a data plan for my iPhone, why not? I don't have to bother with another added cost of Satellite radio. And I've actually been tracking my download amounts and I think it's actually even lower than what I found from my research and may provide well over 100 hours with 2 GB. That's plenty for someone like me that won't listen more than 2 hours a day at the very most.

And as far as ease? Personally, I think Clear Channel really did something right when they came out with iHeart Radio. It's free and you can get pretty much any format available -- even some with little to no commercials -- and the app is quite simple to use. So here's where it gets interesting. With actual radio companies, like CC, jumping in the game now, it could actually save radio.

If it ever got to the point where it was prevalent all around the country, I have no idea how ratings would be tracked, but I'm sure Clear Channel does, indeed, track it for iHeart. So sales -- particularly of nationwide ads -- still could be possible to keep radio going.

Just some thoughts I had on the issue. I found an Alternative station sponsored by Supercuts that plays a great mix of both both current alt hits and a lot of indie groups I had never heard of. There may be a single 30 second commercial once or twice an hour. How can you beat something like that?

I do think Internet radio will catch on. It's catching on rapidly with built in apps on dashboards in new cars. So I don't see the threat going away. But corporate radio, if they're smart, can try to capitalize on it.
 
Thinking about it, because of the low entry barriers its a lot easier to be creative, to take a chance. If Hawaiian music fails, move on to Gregorian Chants or hymns or reggae. Beiber was discovered on the internet, there's gold out there waiting to be discovered. If radio had been as monopolistic in the '50's as it is now, I wonder if somebody as novel as Presley would have gotten any exposure.

I understand your point, but the point I'm trying to make is that over time, the available audience will be diluted more and more. Expectations (especially for the major corporations) will have to be lowered dramatically. Using TV as an example, back in Presley's day there were, what, 3 TV networks? Each one had an enormous share of the audience. Then along came satellite delivery of cable content and the audience share erosion began. It has also affected radio in a similar way, with first AM having the audience to divide among a small number of staions, and then along came FM and the pie slices got smaller.

I don't know what the logical conclusion of all of this is, but maybe someday everyone will have an Internet station with one or two listeners, who in turn will have a station of their own with one or two listening. Expectations will have to be lowered. I personally don't see where profit can be made with such a model. Maybe there is a way, but I don't see it. Going back to TV as an example, I wonder how many people watch channel 244, even with nationwide coverage? They certainly don't have the shares that CBS had back in Presley's day, and the situation will likely get worse. As someone once said of cable TV: "There are 500 channels with nothing on"...and advances in technology have made this happen.

Another growing trend that broadcasters will have to adapt to is the need for people to demand what they want to hear, not what you to play for them. That may be a key to your future success if you can figure out a way to deliver Hawaiian music titles that are selected by your listeners, and the capability of providing multiple listeners different songs they demand simultaneously.

Anyway, good luck in your venture!
 
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