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The Future of Radio

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THE FUTURE OF RADIO A PRESENTATION TO: Central Canada Broadcast Engineers Jeff Detweiler September 2019 © 2019 XPERI © 2019 Xperi Canada THE FUTURE OF RADIO ITS BEEN LIKE GOING FROM PLAYING PLAIN OLD CHECKERS . The Challenges Competing stations Satellite radio © 2019 Xperi Canada THE FUTURE OF RADIO . TO PLAYING CHESS . The Challenges Competing stations Satellite radio iPods / MP3 players Smartphones © 2019 Xperi Canada THE FUTURE OF RADIO MARKETINGITS BEEN. LIKE .AND . TO GOING PROMOTINGPLAYING. FROMTO 3PLAYING-D YOURPLAYINGCHESS CHESSRADIO! PLAIN STATION. .OLD CHECKERS HAS CHANGED . The Challenges Competing stations Satellite radio iPods / MP3 players Smartphones Cloud-based streaming Internet “radio” Podcasts © 2019 Xperi Canada AM / FM RADIO – 2 THE REACH MEDIUM © 2019 XPERI © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM 255 MILLION AMERICANS 12+ (92%) LISTENING TO RADIO EACH WEEK* 66% 75% 75% 34% 25% 23% In-Home Out-of-Home In-Home Out-of-Home In-Home Out-of-Home 94% 95% 92% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34) * RADAR 133, 2018; M-SU 6 AM-Mid; Nielsen NRD, Spring 2018, M-SU 6 AM-Mid; Nielsen Comparable Metrics Report Q2 2017 © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM 27.3 MILLION CANADIANS 12+ (85%) LISTENING TO RADIO EACH WEEK* 76% 55% 71% 45% 29% 24% In-Home Out-of-Home In-Home Out-of-Home In-Home Out-of-Home 92% 91% 80% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34) * Numeris Total Canada, Fall 2017 Radio Diary Survey. Note: Fall 2016 ORD introduced. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM DIFFERENCES IN U.S. AND CANADIAN LISTENING LEVELS LISTENING TO RADIO EACH WEEK* In the U.S. In the U.S. In the U.S. 94% 95% 92% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 – 70) (Ages 35 – 54) (Ages 18 – 34) In Canada In Canada In Canada 92% 91% 80% of Boomers reached weekly by radio of Gen X’ers reached weekly by radio of Millennials reached weekly by radio (Ages 55 - 70) (Ages 35 – 54) (Ages 18 – 34) Difference Difference Difference -2% -4% -12% * Numeris and Nielsen as previously noted. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM NUMERIS CANADA WEEKLY RADIO REACH (%), ADULTS 12+ LISTENING TO RADIO EACH WEEK* 90.7% 90.5% 89.4% 89.5% 88.5% 88.1% 88.3% 86.9% 85.8% 85.1% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Through December 2018. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM INTERNATIONAL RADIO REACH (%), ADULTS 12+ LISTENING TO RADIO EACH WEEK* 97.2% 95.0% 94.5% 92.0% 92.0% 89.3% 88.7% 85.1% GfK GfK RAM Wave 2 Survey 3 2016 2018 Nielsen Kansallinen Médiamétrie Numeris Peninsular Surveyed Audio Today Radiotutkimus Panel Radio RAJAR Q4 Fall 2018 Malaysia only EBU 2015 stations only 2018 2018 2016 / 2017 2018 0500-0100 Persons 10+ Persons 12+ Persons 10+ Persons 12+ Persons 9+ Persons 13+ Persons 15+ Persons 12+ Malaysia Austria Australia U.S. Finland France UK Canada Through December 2018. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM U.S. RADIO – STABLE AUDIENCES; RISING REVENUE Annual Revenue (in billions US $) $17.7b $17.8b $17.2b $17.5b $17.6b $16.3b $16.5b $16.7b $20.97b Canadian Weekly Reach 93.0% 92.1% 91.4% 91.7% 91.1% 92.9% 92.6% 92.3% 0.7% decline in 8 years 2011 2012 2013 2014 2015 2016 2017 2018 Sources: Ratings - Nielsen Audio Today; Revenue - Statistia / Kagan. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM UK RADIO – STABLE AUDIENCES; RISING REVENUE Annual Revenue (in millions UK £) £713.6m £679.1m $1.15b £645.8m £612.8m Canadian £575.4m £532.5m £552.7m £536.8m Weekly Reach 89.8% 89.8% 90.9% 89.4% 90.0% 90.1% 89.7% 88.5% 1.5% decline in 8 years 2011 2012 2013 2014 2015 2016 2017 2018 Sources: Ratings - RAJAR - All Radio, Q4; Revenue - Radiocentre. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM AUSTRALIA RADIO – STABLE AUDIENCES; RISING REVENUE Annual Revenue (in millions AU $) $909.3m $884.7m $866.3m $820.7m $762.0m Canadian $692.2m $706.7m $662.4m $677.0m Weekly Reach 86.0% 85.0% 84.0% 84.0% 83.0% 83.0% 82.0% 82.0% 3.6% decline in 8 years 2011 2012 2013 2014 2015 2016 2017 2018 Sources: Ratings - McNair yellowSquares National Listener Survey; Revenue - Entertainment & Media Outlook - PwC Australia. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM CANADA RADIO – FALLING AUDIENCES; FALLING REVENUE Annual Revenue (in billions CA $) $1.61b $1.62b $1.62b $1.61b $1.60b $1.55b $1.52b $1.51b Weekly Reach 89.4% 89.5% 88.5% 88.1% 88.3% 86.9% 85.8% 85.1% 4.9% decline in 8 years 2011 2012 2013 2014 2015 2016 2017 2018 Sources: Ratings - Numeris Radio Diary, Fall Surveys. Note: Fall 2016 ORD introduced. Revenue: CRTC. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM Canadian radio weekly reach % has declined almost 6% since 2009 Audience delivery grew slightly (1.5%) due to population growth Reach declines are greatest among younger demographics Only adults 45+ show usage levels above 90% weekly reach Every demographic suffered a decline in reach in the last 10 years HD Radio offers a way to help stem the decline in audience Done properly, adding radio channels can increase overall usage © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM RADIO REMAINS BY FAR THE DOMINANT MEDIUM IN THE CAR © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM FOCUS ON U.S. AUDIO LISTENING AM / FM RADIO LISTENING & TOTAL STREAMING (ALL DEVICES) For every 1 minute spent with streaming audio, 188.63 Billion Average Weekly 14 minutes Minutes Of Total Use are spent with AM / FM Radio 13.43 Billion Average Weekly Minutes Of Total Use Total Streaming (All Devices) AM/FM Radio Listening Nielsen Comparable Metrics Report Q1 2017. Vertical scale compressed to fit all categories onto one chart. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM FOCUS ON U.S. AUDIO LISTENING AM/FM RADIO LISTENING & STREAMING BY DEVICE 188.63 Billion For every 1 minute For every 1 minute For every 1 minute spent with spent with spent with computer audio, tablet audio, smartphone audio, 124 minutes 77 minutes 20 minutes are spent with are spent with are spent with AM/FM Radio AM/FM Radio AM/FM Radio 9.47 Billion 1.52 Billion 2.44 Billion Average Weekly Minutes Of Total Use Computer Audio Tablet Audio Smartphone Audio AM/FM Radio Listening Nielsen Comparable Metrics Report Q1 2017. Vertical scale compressed to fit all categories onto one chart. © 2019 Xperi Canada AM / FM RADIO – THE REACH MEDIUM A brief history lesson to add perspective on radio’s durability . * In 1969, it was estimated 95% of the U.S. population 12+ used radio weekly ** In 2019, it was Eachestimated 92% ofof thethese U.S. population disruptive 12+ used radio weekly In the past 50technologiesIs years, it U.S.any radio’s wonderreach has only was declined that going 3% despite every . .to The advent ofnewbe portable the audioaudio cassette“radio playerssource (“Walkman”)killer” wants / portable . MP3. players; The addition of hundreds of new TV channels via cable and satellite; New audio. pay . servicesYetto call such50 as satelliteyearsitself radio; “radio”? on, radio is The stillrise of smartphones used and by Bluetooth virtually connectivity; everyone. The ability for live streaming from the cloud; The growth in music apps like Pandora, Spotify, iTunes etc. *Arbitron Nationwide Report Spring 1969. **Nielsen NRD Database Spring 2019. © 2019 Xperi Canada HD RADIO CONSUMER 4 SATISFACTION © 2019 XPERI © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION OVERALL CONSUMER SATISFACTION WITH THE TECHNOLOGY Virtually all (98%) HD Radio Technology users surveyed are satisfied with their Completely Satisfied 55% HD Radio Technology experience Among HD Radio Very Satisfied 36% Technology users, 91% of listeners said they are “completely” or 98% are satisfied “very” satisfied Somewhat Satisfied 7% 55% indicated they are “completely satisfied” with the HD Radio Experience Somewhat 1% Dissatisfied Those under 40 years old and heavy users (listen to radio >15 hours a week) have the Very Dissatisfied 1% highest satisfaction with HD Radio Technology Survey conducted June 2014 by RDA Group among 1,022 consumers who purchased or leased a new 2011 to 2015 model year vehicle. © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION This is your station in analog . © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION This is your station in digital . © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION This is your station in digital . © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION This is your station in digital . © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION The moral of this story? With all the media choices now available to the consumer, HD Radio metadata & images can help level the playing field. © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION Artist & Advertiser Experience images ENHANCED ADS Ad imagery appears on in-vehicle INCREASE displays while the driver hears the ad IMPACT on the radio © 2019 Xperi Canada HD RADIO CONSUMER SATISFACTION Lift in main message recall from enhanced ads with Artist & Advertiser Experience All audiences Males Females Millennials Generation X Baby Boomers Income Frequent (18-34) (35-54) (55+) $100K+ Shoppers IN-VEHICLE DISPLAYS LIFT MESSAGE RECALL 8% 6% 9% 12% 3% 9% 9% 7% FOR ADS Lift Lift Lift Lift Lift Lift Lift Lift Improve Main Message Recall A home improvement retailer How a Home Improvement Boosted its message recall retailer lifted message lift by 12% among millennials recall across key demos Nielsen Custom Advertising Effectiveness Report - August 2016.
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    Before the Federal Communications Commission Washington, D.C. 20554 ) In the Matter of ) ) Digital Audio Broadcasting Systems ) MM Docket No. 99-325 And Their Impact on the Terrestrial ) Radio Broadcast Service. ) ) ) REPLY STATEMENT As an experienced broadcast radio enthusiast, I, Kevin M. Tekel, hereby submit my support for Mr. John Pavlica, Jr.'s Motion to Dismiss the Commission's Report and Order, as adopted October 10, 2002, which currently allows the preliminary use of In-Band, On-Channel (IBOC) digital audio broadcasting (also known by the marketing name "HD Radio") on the AM and FM radio bands. For over a decade, various attempts have been made at designing and implementing an IBOC system for the U.S. radio airwaves, but these attempts have been unsuccessful due to numerous flaws, and iBiquity's current IBOC system is no different. As currently designed and authorized, IBOC is an inherently flawed system that has the potential to cause great harm to the viability, effectiveness, and long-term success of existing analog AM and FM radio broadcasting services. IBOC is a proprietary system Currently, there is only one proponent of an IBOC system whose design has been submitted, studied, and approved -- that of iBiquity Digital Corporation (iBiquity). This is an unprecedented case of the use of a proprietary broadcasting system. Virtually all other enhancements to broadcasting services that have been introduced over the years have been borne out of competition between the designs of various proponents: AM Stereo, FM Stereo, color television, multi-channel television sound, and most recently, High Definition television (HDTV). Since the merger of USA Digital Radio, Inc.
  • Sands the REPORT

    Sands the REPORT

    OCTOBER 16, 2014 THE Sands REPORT UNIFYING THE ALT COMMUNITY “Call-out” is Out: The looks nothing like it did five years ago, let alone thirty years ago! Changing Face of Research Oh man. My space is limited! hen it comes to music research, OK. In the interest of brevity, it’s a maze out there. As we saw I’ll focus on three attributes— last week, radio has an abun- multi-methodological sampling, dance of sources to assess a online data collection, and record’s success. Tweets. Band new measurements. Warren Kurtzman likes on Facebook. Streaming stats. Sales. W Good. Tell me about sampling. But what about the more traditional forms... As consumer tastes and adoption of technology have like call-out? This time we check in with evolved, we’ve determined that there’s no single “right” Coleman Insights President/Chief Operating way to recruit consumers to participate in music Officer Warren Kurtzmanı to find out more research. Some segments of the population are best about the current state of record research. reached through calls to their mobile phones, some are best reached online, and some respond to the tradi- tional landline telephone recruitment techniques our Warren, is there anything new in traditional re- industry has used for years. At Coleman Insights, we use search like call-out or auditorium tests? Or are all three techniques in appropriate proportions based things done just as they have been the past 30 years? on the target audience we’re trying to recruit. It’s more You could probably write a whole article on what’s complicated