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More internet radio figures

Posted on Sunday, October 25th, 2009 at 1:55pm. #

Closeup of the Kerbango screen

I was taken aside by an important person in the radio industry about three months ago. “Now, James,” he said, “you really must stop wanting everyone to listening to radio over the internet.” He started telling me about portability, and cost of receivers, internet connections, etc, before I stopped him. I believe no such thing.

Others claim I’ve a rabidly anti-internet radio position – preferring DAB to internet.

I’ve repeatedly said that I actually don’t care how people listen. I’m more concerned with whether they listen at all. And to ensure people listen, you need to make radio available on multiple platforms.

Recently I mentioned RAJAR research that internet radio listening is just 2.2%, and called that figure “tiny”. This rankled with someone, who gave arguments about RAJAR not including, in their main survey, on-demand services, personalised radio and podcasts; and a question of whether non-subscribers and international radio are measured. It’s a well-worn argument, so it’s a worthwhile exercise to work out what the ‘real’ figures might be.

On-demand at the BBC accounts for 26% of online radio listening (according to Mark Friend in a speech at the Radio Festival); and if you were to optimistically assume that every other radio service also runs on-demand listening to the same degree (they don’t), that might give you an extra 0.6% of total radio listening.

RAJAR’s separate research on platforms shows that 3.9 million people claim to have (ever) listened to personalised radio like last.fm and Spotify. That’s only 23% of the 16.9 million people who’ve (ever) listened to internet radio as a whole; and assuming people listen to last.fm or Spotify the same length as traditional radio – probably not very realistic – that might be another 0.5% of listening.

RAJAR also measure podcasts in this research. The typical podcast listener, they say, listens to just over an hour a week; and there are 7.8 million podcast listeners. That’s 8 million hours, then, to podcasts, compared to over 1 billion hours of radio listening a week – or, if you like it better that way, 0.7% of total radio listening.

RAJAR does measure non-subscribers or internet-only radio stations. It’s there, under ‘other listening’, in the main RAJAR figures. “Other” accounts for 2.7% of total radio listening – which could be FM listening to pirates or community stations, just as much as it could be internet listening. Taking a 50% share of this for internet radio would be optimistic, though would add 1.4% to total internet radio listening.

So, even if you did agree that RAJAR “misses” much internet radio listening, it’s interesting to note that adding these perceived “misses” gives you a wildly optimistic 5.4% of total radio listening over the internet; still considerably lower than DAB (13.1%), and not much higher than listening over the TV (3.3%). I’d still maintain that 5.4% is tiny.

Now.

There’s another way to check our figures, of course; and that’s to use actual published figures for internet radio listening, rather than rely on RAJAR’s research.

RAJAR claims that ‘all BBC’ has 561,706,000 total listening hours of live radio per week; and if RAJAR is correct, listening to live internet radio is 2.2% of total hours. That should be 12,357,532 weekly online hours.

The BBC’s site says that in August 2009, people listened to live BBC radio for 18,470,176 total hours online. That figure’s monthly; a weekly equivalent (by simply dividing by 31 and multiplying by 7) is 4,170,684 total hours. Which isn’t 2.2% of all listening. It’s actually 0.7%.

Which begs two questions…

1. Is the BBC significantly underperforming the industry as a whole online? It accounts for 54% of all radio listening, so does that mean that commercial radio has 6% of all their radio listening online? (Perhaps this is true – Absolute appears to have 10%, according to their recently published online figures).

2. Are the internet radio industry significantly over-estimating exactly how many people are listening through the internet?

I don’t know the answer; and given my track record in increasing quality and reach of internet radio stations, I’m quite interested in what the deal is here.

3 comments

James Cridland
commenting at October 25th, 2009 at 3:19pm

I also realise that the online figures are global in nature, not restricted to the UK. Since the 2.2% figure relates to the UK only, that would assume that the reported internet radio figures now appear even lower.

David
commenting at October 25th, 2009 at 4:03pm

Also, don’t forget that RAJAR is sampling the number of people listening whereas the BBC figures are for the number of streams. If two people are listening to the same online stream for an hour then RAJAR will count that as two hours and the BBC will count that as one.

I would imagine that most online listening is 1 listener:1 stream with people sat in front of their computers but as internet radios are becoming more prevalent it would seem viable that several people could be listening to one radio set in the corner of the room.

Briantist
commenting at October 27th, 2009 at 11:37am

It does seem quite reasonable that it would be option (1) as the BBC Radio stations are most easily accessed for most people via a broadcast radio because the technology had been around for so long.

I’m not quite sure why we can’t have industry-wide precise and accurate live metrics for online radio listening, it would be quite feasible.

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