Radio: the next-gen Internet experience

With a high per capita income and education, a strong technology infrastructure and a current Internet penetration rate pegged as high as 50%, it is safe to say Canada has embraced the Internet. Rated as the second most wired country in the world just behind the U.S. by The Conference Board of Canada, with 2001 Internet Ad revenues forecasted to reach $148 million, an increase of 35% over 2000, the Canadian Internet marketplace provides excellent opportunity for content and service providers to reach the over 14 million Canadians who currently have access to the Internet. In many ways Internet radio can be seen as the next-generation Web experience. Compelling content has long been seen as the most viable way of building audience by industry experts, but the passive and interactive nature of the medium make it exceptionally attractive from both a user and advertiser’s point of view. As an Internet radio broadcaster, Iceberg Media.com uses the passive and interactive capabilities of the medium to provide audiences with content that is compelling and which extends beyond anything that traditional radio can offer. Streaming music and entertainment content, Iceberg provides its users with an emotionally engaging online experience that is cost effective, does not require high bandwidth, and can be easily accessed from any computer with an Internet connection. And the streaming media audience is growing substantially bigger! According to the latest industry report from Arbitron/Edison Media Research (Internet VII, July 2001), more than one-third of all Americans (78 million) aged 12 and older can now be classified as regular streaming media users. Fifty-two percent of online Americans reported watching or listening to streaming media, up significantly since last year. Canadians are listening too! According to a recent Omnitel study conducted by Thompson Lightstone, 26% of adult Internet users in Canada regularly stream music online. Streaming audiences are among the most valuable of online groups. Not only are they wired and savvy, they typically seek dynamic web content, are very responsive to advertising and rate music as one of their top choices for content. For music in particular, the year 2000 saw a dramatic shift in its delivery and distribution: Napster’s free music-sharing model made a dramatic impact while it lasted, and the major record labels recently teamed together to form their own subscription offerings. In addition, thousands of U.S. radio stations had to pull down their streams due to controversies over AFTRA talent fees and potential RIAA fees. These developments have not stopped the demand for streaming however. Consumer acceptance and use of streaming media continues to grow at a rapid pace as evidenced by the growth in streaming hours reported by Measurecast and Arbitron so far this year. Internet radio broadcasters like Iceberg are now competing with traditional radio for listening hours. For the first time ever, the amount of time consumers spend listening to Internet-only audio now equals the amount of time consumers listen to radio station’s online each month. Further to that, listening to Internet-only stations has tripled since July,1999 (Arbitron/Edison Media Research: Internet Study VII). Most Internet radio listeners cite the fact that online radio stations feature music they can’t find anywhere else as their main reason for logging on and listening. They also like the fact that Internet-only stations are free; they do not base their programming according to music charts; they often feature additional information regarding artists, chances to win free merchandise, concert tickets and more. Essentially, Internet radio provides a listening experience with an interactive component such as interactive games, contests and web casts of top industry artists. The experience also encompasses more than music: It’s a reflection of an audience’s lifestyle, preferences, a snapshot if you will of their own personality. From an advertiser’s perspective, Internet radio provides an ideal platform to target specific audience groups. Narrow and deep niche programming attracts specific listening communities. Iceberg’s dance and electronic channel, 1Groove.com, for example, features a wide variety of trance, house, electronic and dance music, aimed directly to its 18-29 audience. In addition to reaching passionate, electronic enthusiasts, 1Groove.com attracts underground trendsetters, well orientated to club circuits, who constantly search for fresh new sounds, looks and scenes. Iceberg then sells advertising spots and a variety of other inventory that combine both a passive and interactive experience. As a senior media planner from a large multinational agency once put it: "This is radio, and more." Looking forward, with bandwidth costs declining and access poised to move to non-computer based devices such as PDAs, cell phones and media processors, audience size will continue to grow and revenues will keep step. Looking back at the genesis of the DJ and Rock radio, it is worthwhile remembering that for entire generations, listening to the radio was the primary means of finding out about new music. Despite the plethora of music and music services online, Internet radio has a more important role today than ever in helping people cut through the clutter and connect to the music they want now and tomorrow. Ted Boyd is the president and COO of Toronto-based Iceberg Media.com Inc.

Radio: the next-gen Internet experience

News | 09/20/2001 4:00 am EDT

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