Uncertain future for radio prompts Corus to move radio stations to MySpace

Corus Entertainment Inc. has inked an agreement with MySpace Canada that will deliver Corus’s 50-plus radio stations to the popular networking site via a new web portal ( www.MySpace.com/radio). The move is designed to offset a drop in advertising revenues that shows no sign of reversing anytime soon. The Montreal technology company StreamTheWorld developed the software, which allows users to incorporate Corus radio streams into their MySpace pages. Both companies are also launching a contest in May to promote the partnership. Dubbed “Found on MySpace,” it incorporates “Explore Music,” the syndicated radio program helmed by new-rock expert Alan Cross. The contest will give MySpace users the chance to vote on select independent bands featured on MySpace Radio. The bands with the most votes will then be featured on Explore Music. With assets that include specialty channels, over-the-air television stations and radio stations, Corus is no stranger to creating multiple platforms for its content. The company already streams its radio stations online via station-specific web pages. According to David Huszar, VP and general manager, interactive for Corus’s radio division, the MySpace deal is a step in the same direction. “It’s all about convenience for our audience. You could just listen from our web site, but there’s added ability here.” For one thing, it’s easier to showcase independent music acts online than over the air. MySpace has become a de facto radio station already – known as one of the best places to find new music. “Commercial radio has to stay within the hits, because it’s tied into a model driven by listenership,” says Dave Stevens, MySpace Canada general manager. What’s more, radio’s airwave days might be waning. “People aren’t buying FM receivers anymore,” Huszar says. “There are so many communities and devices nowadays, and we’ve got to be there.” In addition, radio and television advertising revenues have plummeted across the board due to the global recession. According to media services agency ZenithOptimedia, radio stations attracted 8% of advertisers in 2007. That number is projected to drop to just 7.5% by the end of 2009, with further declines of 7.2% projected for 2011. According to the Corus’s Q2 financial results from early April, combined radio and TV revenues increased merely 1% year over year. Radio revenues alone were down 6%, and radio profits declined 31%. Radio advertising dipped, especially in the home-products, telecom and financial services categories, although advertising among retail and automotive companies actually increased. To capitalize on the highlights, Corus is focusing on local retail and automotive campaigns, specifically encouraging people to shop locally and buy cars to support the economy. Meanwhile, the Internet now reaches more 18 to 34 year-olds each week than radio does, says the Interactive Advertising Board of Canada (IAB Canada) in an assessment of syndicated media research studies. And Internet radio advertising is expected to grow nearly 30% this year, according to ZenithOptimedia. The current downward ad trend drives broadcasters to seek new opportunities online. Huszar says Corus is already seeing the wisdom of its web ways. Visitor traffic on the company’s station sites has increased nearly 40% recently. Complementary research from NPD Group Inc. indicates a shift in the way people – and teenagers particularly – access music. In a poll, researchers discovered that teens acquired 19% less music in 2008 compared to 2007 across all platforms, including CDs, paid downloads, and file-sharing. But usage of online listening sources and satellite radio increased 18%. MySpace Radio will incorporate its own poll to collect people’s new music votes. For now, the web page displays a poll asking people how they currently find new music. Perhaps no surprise, at deadline most people (49%) said they find new music through MySpace; 28% voted for the radio, 13% voted for friends, 6% pointed to blogs, and 3% said concerts. Huszar says Corus might work even more closely with MySpace in the future, perhaps streaming talk-radio content through MySpace Radio. “We’ll see how it evolves.” Will Corus ever completely walk away from the airwaves? “It’s not like we haven’t wondered if that day would come,” Huszar says, adding that online sound quality would have to improve somewhat to provide as high a fidelity as FM, and for the sake of portability, “Wi-Fi would have to be a lot more ubiquitous. I couldn’t see it happening for a long time.” Stefan Dubowski is a freelance writer in Ottawa. You can reach him via sdubowski@rogers.com.

Uncertain future for radio prompts Corus to move radio stations to MySpace

Broadcast | April 22, 2009

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