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Thursday, April 19, 2007

Study Shows Healthy Competition

April 19, 2007

Some interesting survey results from Arbitron. It seems to indicate a very healthy and competitive landscape:

Digital Platforms Continue to Extend Radio Beyond the AM/FM Dial, According to the Latest Arbitron/Edison Media Research Study

Listening to AM/FM radio stays strong despite growing use of digital audio platforms;

Weekly Online Radio listening audience remains steady in past year;

iPods/other portable MP3 players are the fastest expanding digital audio platform;

Increased awareness in HD Radio has not yet translated into high interest

NEW YORK; April 19, 2007 – According to the latest study by Arbitron (NYSE: ARB) and Edison Media Research, The Infinite Dial 2007: Radio's Digital Platforms, consumers are continuing to explore radio in all its digital platforms -- Online Radio, Satellite Radio, HD Radio® , and audio podcasting -- while maintaining a broad use of AM/FM radio.
Key findings from The Infinite Dial 2007: Radio's Digital Platforms:

Ø AM/FM radio continues to have a big impact on people's lives. The study asked consumers to rate the impact different digital audio platforms has on their lives. Nearly one in five (19 percent) consumers said radio has a big impact on their lives; ranking second only to mobile phones (35 percent) as the audio platform/device that has the biggest impact on the lives of its users.

Ø Those who listen to digital radio platforms do not spend less time listening to AM/FM radio. Among all persons 12 and older who participated in the study, the average time spent listening per day to AM/FM radio was 2 hours, 37 minutes compared with 2 hours, 45 minutes a day among those who use radio's newer digital platforms (listened to online radio in the last month, or subscribe to satellite radio, or have ever listened to an audio podcast).

Ø The weekly Internet radio audience remains steady over the past year at an estimated 29 million. Eleven percent of the U.S. population age 12 and older have listened to Internet radio in the past week; 16 percent of persons age 18-34 and 14 percent of persons 18-49 have done so.

Ø iPod/Portable MP3 player ownership continues to rise. Thirty percent of Americans age 12 and older own an iPod or other brand of portable MP3 player; this figure has risen from 22 percent in 2006 and 14 percent in 2005. More than half (54 percent) of those age 12-17 own a digital audio player.

Ø Fewer than 10 percent report less time with over-the-air radio specifically due to time spent with their iPod/portable MP3 player. Seventy percent of Americans age 12 and older do not own an iPod/portable MP3 player, and an additional 15 percent report the device has had no impact on radio listening. Nine percent say they are listening less to over-the-air radio due to time spent with their iPod/portable MP3 player.

Ø Awareness of HD Radio nearly doubled in the past year, but that has not yet translated into high interest. In January 2007, 26 percent said they had heard or read about HD Radio recently, compared to 14 percent in January 2006; however, only 6 percent said they were "very" interested in HD Radio.

Ø While awareness of podcasting is up significantly, usage of audio podcasting is only up slightly. Awareness of podcasting has jumped from 22 percent in 2006 to 37 percent in 2007. In that time, those having ever listened to an audio podcast have risen from 11 percent to 13 percent.

"Broadcasters should promote the vitality of over-the-air radio," said Bill Rose, senior vice president, Marketing, Arbitron Inc. "On a weekly basis, AM/FM radio is used by the overwhelming majority of Americans, and it continues to have a big impact on the lives of consumers. In addition, the widely held perception that people who use new digital platforms listen less to over-the-air radio is false. In fact, users of digital radio platforms spend just as much time listening to over-the-air radio as the average consumer."

"Consumers have shown increasing interest in and usage of radio's digital platforms over the years," said Joe Lenski, executive vice president, Edison Media Research. "Advertisers who start early will gain invaluable insight into refining their advertising business practices, resulting in a more effective use of these newer digital audio platforms."

This study, as well as previous studies, may be downloaded free of charge via the Arbitron and Edison Media Research Web sites at www.arbitron.com and www.edisonresearch.com.
How the Study Was Conducted

A total of 1,855 people were interviewed to investigate Americans' use of various forms of traditional, online and satellite media. From January 17 to February 18, 2007, telephone interviews were conducted with respondents age 12 and older chosen at random from a national sample of Arbitron's Fall 2006 survey diarykeepers. In certain geographic areas (representing four percent of the national population), a sample of Arbitron diarykeepers was not available for the survey, and a supplemental sample was interviewed through random digit dialing.

About Arbitron
Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving the media – radio, television, cable, online radio and out-of-home – as well as advertisers and advertising agencies in the United States and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. The company has developed the Portable People MeterTM, a new technology for media and marketing research.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland. Arbitron has approximately 1,900 employees; its executive offices are located in New York City.

Through its Scarborough Research joint venture with The Nielsen Company, Arbitron provides additional media and marketing research services to the broadcast television, newspaper and online industries.

About Edison Media Research
Edison Media Research conducts survey research and provides strategic information to radio stations, television stations, newspapers, cable networks, record labels, Internet companies and other media organizations. Edison Media Research works with many of the largest American radio ownership groups, including Entercom, ABC Radio, CBS Radio, Bonneville and Westwood One; and also conducts strategic and perceptual research for a broad array of companies including Time Warner, Google, Yahoo!, Sony Music, Princeton University, Northwestern University, Universal Music Group, Time Life Music and the Voice of America. Edison Media Research also conducts research for successful radio stations in South America, Africa, Asia, Canada and Europe. Edison Media Research also conducts all exit polls and election projections for the six major news organizations: ABC, CBS, CNN, FOX, and the Associated Press.
All of Edison Media Research's industry studies can be found on the company's Web site at www.edisonresearch.com and can be downloaded free of charge.

4/19/2007 10:49:00 PM


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