Number of online radios in Germany
Mobile phones and social media give online radio a boost in Germany: 3,100 stations and counting
Berlin, September 1, 2011. The number of radio and audio services on the Internet continues to grow. In 2011, there were already about 3,100 online radio stations in Germany – approximately 400 more than in 2010.
Mobile usage options and social media are increasingly important for the online radio market. The share of online radio use via smartphones is already at 12%. Nearly two-thirds of all online radio providers consider a social media strategy essential.
With the publication of Web Radio Monitor 2011, the Bavarian Regulatory Authority for Commercial Broadcasting – BLM (http://www.blm.de) and Berlin strategy consultant Goldmedia (http://www.Goldmedia.com) present a comprehensive market overview of providers, use, scope, and ad revenue among German online radios for the third time. The study is based upon extensive primary data research, collected via a survey of all online radio providers in Germany, conducted from May to June of 2011.
Online radio services
The world of online radio is a diverse one. Most online radio stations are broadcast exclusively on the Internet – there are 2,600 so-called online-only stations, making up 84% of online stations. About 340 live FM radio streams, so-called simulcast streams, and about 150 online FM sub-brands were also included in Web Radio Monitor 2011. Their shares are 11% and 5%, respectively. In addition, nine personalized and user-generated-content services are also active in Germany, such as Last.fm, Aupeo!, laut.fm, and a range of online radio aggregators, such as radio.de, phonostar.de, and surfmusik.de. The aggregators are becoming increasingly important for the small, Internet-only radio stations.
The online radio market in Germany has grown an average of 47% per year since 2006. Growth from 2010 to 2011 has been significantly lower, at 14%, indicating consolidation of the market. In addition, a significant number of stations continue to enter the market, while a significant number also go off the air. In both 2009 and 2010, nearly 650 online radio stations were cancelled. The bulk of these stations were Internet only, but they did also include several FM stations“ online sub-brands.
Number of users and distribution channels
Daily traffic figures collected in Web Radio Monitor 2011 show increasing user interest. In April 2010, an average of 7,800 streams were launched per station per day, with a 14% increase to 8,904 hits by April 2011. The stations“ viewer levels vary widely: 90% of views are generated by only 5% of the services. Particularly successful online-only services reach daily traffic of about 500,000 streams, making their listener levels comparable to those of smaller FM stations.
The main factors that have contributed to growth are increased use via mobile and smart phones, more hits via social networks, and increased use via online radio aggregators. According to surveyed providers, 72% of users were still accessing online radios via the open Internet in 2010, but this share had dropped to 68% in 2011.
As use via the open Internet decreased, access via other distribution channels increased correspondingly. Hits generated by aggregators like radio.de have risen from 12.6% in 2010 to 13.2% in 2011. Hits via social media sites have risen from 9.5% in 2010 to 13% in 2011. According to providers, around 16% of online radio hits could come from social media sites as early as 2013.
About 60% of all providers said that a social media strategy is essential for communication and for an online radio station“s image. But radio providers still don“t see social networks playing a more essential role as a broadcasting platform. This will change in the future, as indicated by plans to integrate streaming provider Spotify on Facebook and the first online radio station on StudiVZ, RauteMusik. It was mainly FM stations that reported plans to launch more radio players on Facebook in Web Radio Monitor 2011.
Mobile use currently accounts for 12% of total usage, with several providers already reporting shares as high as 50%. At 72%, a clear majority of stations see strong potential in mobile for broadening the scope of their audiences. Providers expect the share of mobile use to increase to at least 50% by 2015. Growth drivers include new LTE technology (the successor to UMTS technology), lower streaming costs, growth in the number of smartphone users, and more cars with mobile Internet capabilities.
Apps are also important for online radio stations – about 31% of all online radio services can be accessed on a mobile phone app (up two percentage points compared to 2010). Of FM radio stations, which includes simulcast streams and online sub-brands, 77% offer an app (up from 70% in 2011). Of the online-only stations, just under 29% offer an app (a three-percentage-point increase over 2010).
Since 1998, Goldmedia has provided national and international clients with high-quality consulting and research services in the fields of media, entertainment and telecommunications. Goldmedia offers: in-depth analyses of markets and competitors; forecasts and strategic consulting services; the implementation of new business models; and consulting for restructuring whole companies, including M&A processes in the field of corporate finance. Goldmedia Group: Goldmedia GmbH Media Consulting & Research, Goldmedia Sales & Services GmbH, Goldmedia Custom Research GmbH, Goldmedia Political & Staff Advising GmbH, and Goldmedia Innovation GmbH. The company’s head office is in Berlin, Germany.
Dr. Katrin Penzel
Oranienburger Str. 27
Dr. Katrin Penzel
Oranienburger Str. 27