With the introduction of services like Spotify and Apple Music, the radio industry seems to be struggling. After all, with such a competition, the truth is that according to the RIAA, more than 22 million Americans paid for a streaming-music service in 2016. Even though this may not seem such a big number, the truth is that just 5 years ago, it was less than 5 million Americans.
Even though this is a statistic that isn’t much a surprise for anyone, the reality is that an important barrier was crossed when just a year ago, adults with ages ranging between 18 and 24 years said they spent more time listening to streaming music than listening to the traditional radio.
While the fact that new ways to get digital music have been increasing – just think about the many different companies offering this kind of service, the truth is that advertisers are also paying less for having their commercials on the radio.
When we look at these statistics and numbers, only one thing comes to our mind – radio will soon be gone. Even the stock prices of different radio stations have been dropping in the last years. However, according to PricewaterhouseCoopers, this may not be entirely true. They are predicting that the radio sector revenue should increase between 2016 and 2010 from $21.8 billion to $23.8 million. While the numbers of digital music subscribers keep increasing month after month, the truth is that radio is still the most popular medium in the United States.
With Pandora out for sale, this may also mean that a powerful radio company like SiriusXM may go ahead and buy the streaming music company. But this is not all. Many different radio stations are also trying to reinvent their businesses. Some are even launching different subscriptions for on-demand services and they are making using of the new technologies by having their own mobile apps. The ages of their target audience are also becoming larger, with some radio companies offering subscriptions that are aimed at children. Others are organizing live events as well.
The truth is that there are many people who think radio doesn’t have a chance in the streaming and digital era we live in, we just keep seeing more and more radio companies adapting to the new world and offering different services. The truth is that radio should only disappear if companies decide to do nothing. However, this is the exact opposite that we have been seeing.