Friday, July 16, 2010

The Radio industry and Online Radio - Part 2

In the previous article (The Future of the Radio Industry) we mentioned that the radio industry, with the arrival of the Internet will go through a process of Amazonization, and as a matter of fact, this process has already started but… What needs to happen to the radio industry so that Online radio completely takes over terrestrial radio and changes the game for good?


My simple answer is: Widespread broadband Internet Connection on cars


Internet Radio already has overtaken much of terrestrial radio market in offices and houses. According to eMarketer, the trend is clear:



Sure you can buy an Radio with Internet connection, but the reality is that we use a PC or a Lap Top to connect to Internet, and where we have a computer available we’ll have Internet Radio available. But what about your car? You usually don’t have a computer running on your car, and if you had it, you can’t use it while driving. So far, there’s no widespread technology that connects cars to Internet, either through a device that comes with the car or through a cell phone, plugin antenna, etc.

The answer is until cars come with standard equipment to connect its traditional radio to Internet, and this hasn’t happened yet. In urban areas of developed countries, nobody listens to radio at home anymore; the only place where it still holds is on cars.

Of course, Car audio equipment with Internet connection will be as common in 5 – 10 years as GPS’s are today. When this happens, that’s the moment that the radio industry will be changed for good. That’s the moment when a little town radio station will compete against the next “Amazon’s” of radio, online radios that will only exist to continually learn from your music taste and give YOU exactly what you want to hear.


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