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The Future of Radio

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The Future of Radio 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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