Paragon study on radio listening

[OldiesCat]

Great news:

Wednesday, July 13, 2005

Study: Despite New-Media Growth, Radio Still Strong

Consumer awareness and use of such new entertainment options as satellite radio, digital music players, Internet radio and podcasting is on the rise, but a new study released yesterday by Paragon Media Research says that all that new media isn't putting a dent in radio listening.

The Paragon data — the first installment of a three-part series based on a study of 400 people ages 15-64 — shows that radio's reach is still overwhelming. When asked, "Do you subscribe to/listen to/make [various services]?" a full 97% said they listen to radio, compared to 52% for those who listen to Internet radio, 38% who burn CDs and 20% who have MP3 players. The survey also found that a full 82% of respondents have heard of satellite radio and 80% are aware of MP3 players. Seventy-six percent have heard of Internet radio, and 33% are aware that podcasting is out there.

Paragon CEO Mike Henry said, "The awareness levels of satellite radio, MP3 players and Internet radio are high. However, the actual listening level of radio, at 97% of the population, far exceeds listening to Internet radio, MP3 players, satellite radio and all other new-media listening options."

The study also looked into the growth potential for alternative media, and Henry says, "The new media that holds the most potential for future new listening is Internet radio, at 28%. followed by MP3 players, at 22%, and then satellite radio, at 17%."

 

[JerryStevens]

Paragon changes its tune

That study reads like a press release. Perhaps it was. I thought it was odd that the study touts a 97% radio reach when more recent reach figures are around 94%. Then I found this older Paragon Study that uses the 94% reach figure. They're telling us reach went up?

I also found it odd that the article touts reach and makes no mention at all about TSL which is where the real battle lies.

I'm bullish on radio's ability to meet the challenge but I am concerned about the head-in-the-sand approach to new technology.

These are two <u>very</u> different studies from Paragon.
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------------------Excerpts. Full link follows. --------------------------

Radio’s Alarming Decline In Time Spent Listening--Revisited

By: Larry Johnson, Paragon Media Strategies

President/North American Radio

The medium of radio is experiencing precipitous declines in Time Spent Listening (TSL). TSL to radio declined 15% within a 10 year period from Spring 1993 to Spring 2003. Within the past 6 years (1998 to 2004) TSL is down 10% overall and down 15% among 12-24 year olds. The declines are based on Arbitron’s Persons Using Radio (PUR) figures. PUR is, “The total amount of listening to radio for a particular demo/daypart/geography.”

It’s curious that we don’t hear much about these historically unprecedented declines in time spent with radio. It’s as if the radio industry is in denial.

The drop in TSL poses a problem for radio revenues when stations try to sell to ad buyers who use a cost per thousand or cost per point criterion. I wrote about this decline in 2001. The decline continues, yet there still is no uniform industry-wide acknowledgement of radio’s undeniable TSL slippage.

Ninety-four percent of the American population 12 years old or older listen to radio in the average week. This 94% circulation (Cume) figure is healthy and lines up with historical figures. Cume is down a mere 1½% over the past six years. So people are still using radio, but they’re spending less time with the medium. Particularly ominous is that radio may be killing off the golden goose: The next generation of radio listeners, the 12-24 year olds, is spending much less time with radio.

If this habit pattern continues as these listeners become age 25+, radio could be in for even more profound troubles. CDs & iPods: As much as I’d like to condemn the soulless radio that the consolidated corporations have served up in recent years to drive up bottom line profits, it would be a disservice not to acknowledge new technologies. By new technologies, I mean CDs and Ipods, not internet or satellite radio.

The CD and iPod phenomena is a fact of life. Radio has been handed an undisputable handicap that is not likely to go away. Radio has gone from garnering the majority of people’s time listening to recorded music to being a minority source in listening to music. In-home TSL has declined 16% since 1998 compared to the 10% overall decline. It’s interesting to note that at-work, historically a bedrock for radio TSL, listening has slipped 15% over the past 6 years. This decline in at-work listening goes all the way up to age 44.

Radio

For radio the challenge should be clear and it should be acknowledged. What can radio do to make the medium as attractive as possible? Radio remains popular for the convenience and companionship it avails while people are in their cars. Car TSL has been steady over the last 6 years; however, in-car TSL has declined 5% among Adults 18-34 during that time period. Full report here <font color=red>Adobe Acrobat Required</font>


Great news:
>
> Wednesday, July 13, 2005
>
> Study: Despite New-Media Growth, Radio Still Strong
>
> Consumer awareness and use of such new entertainment options
> as satellite radio, digital music players, Internet radio
> and podcasting is on the rise, but a new study released
> yesterday by Paragon Media Research says that all that new
> media isn't putting a dent in radio listening.
>
> The Paragon data — the first installment of a three-part
> series based on a study of 400 people ages 15-64 — shows
> that radio's reach is still overwhelming. When asked, "Do
> you subscribe to/listen to/make [various services]?" a full
> 97% said they listen to radio, compared to 52% for those who
> listen to Internet radio, 38% who burn CDs and 20% who have
> MP3 players. The survey also found that a full 82% of
> respondents have heard of satellite radio and 80% are aware
> of MP3 players. Seventy-six percent have heard of Internet
> radio, and 33% are aware that podcasting is out there.
>
> Paragon CEO Mike Henry said, "The awareness levels of
> satellite radio, MP3 players and Internet radio are high.
> However, the actual listening level of radio, at 97% of the
> population, far exceeds listening to Internet radio, MP3
> players, satellite radio and all other new-media listening
> options."
>
> The study also looked into the growth potential for
> alternative media, and Henry says, "The new media that holds
> the most potential for future new listening is Internet
> radio, at 28%. followed by MP3 players, at 22%, and then
> satellite radio, at 17%."
>
<P ID="signature">______________
Jerry

"Everyone is entitled to his own opinion, but not his own facts" - late Senator Daniel Patrick Moynihan</P>