Mixed signals: While online radio will grow considerably, on-demand streaming music services remain a threat

The Internet Radio Broadcasting industry has grown rapidly over the past five years as consumers have become increasingly enamored with the use of internet-based services to deliver entertainment. Over the five years to 2017, rapidly improved cellular connectivity has enabled users to stream more content than ever before. Additionally, the dramatic increase in the number of mobile internet connections has contributed to surging industry revenue, as consumers rely on their mobile phones to access the internet, and, in turn, music and industry services. However, despite strong revenue growth, many companies operate at a consistent loss, as they seek to establish user bases and contend with alternate forms of discretionary entertainment and music streaming...purchase to read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 12-17
32.0%
Forecast Growth 17-22
Profit
Employment
11,305
Businesses
3,705

Industry Threats & Opportunities

  • Rapidly improved cellular connectivity has enabled users to stream more content than ever before
  • Pandora has retained the plurality of internet radio traffic and revenue
  • Rising consumer disposable income will increase consumer willingness to pay for discretionary entertainment
  • Industry Report - Industry Locations Chapter

    The geographic distribution of listeners of internet radio broadcasting is highly correlated with the distribution of the US population; however, business locations tend to fall more in line with software and internet-based industries. As a result, the regions with the highest demand for internet radio broadcasting may not house the highest volume of industry companies. For example, the Southeast is the most populous region in the country, at 25.7% of the population, but is only expected to account for 18.0% of industry establishments. Conversely, the West is home to 31.3% of the establishments, while accounting for only 17.3% of the population. Cal...purchase to read more.

    Additional Insights for the Internet Radio Broadcasting Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Internet Radio Broadcasting Industry are

  • Ability to quickly adopt new technology
  • Attractive product presentation
  • Must have licenses
  • IBISWorld analysts also discuss how external factors such as Number of broadband connections and Number of mobile internet connections in the Internet Radio Broadcasting industry impact industry performance..

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    What's in this report

    What is the Internet Radio Broadcasting Industry?

    Industry operators provide online streaming media distribution, including music and other audio programming. This industry only includes operators that control music recommendation and noninteractive internet radio platforms and generate revenue through subscription and advertising. This industry does not include subscription-based, on-demand online music streaming services.

    Industry Products
  • Hip hop and R&B
  • Rock
  • Pop
  • Country
  • Latin
  • Other (including music, news and sports)
  • Industry Activities
  • Digital provision of music
  • Digital provision of other audio programming
  • Music curation and recommendation services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of broadband connections
  • Number of mobile internet connections
  • Total advertising expenditure
  • Per capita disposable income

  • Current Performance
  • Mobile devices drive growth
  • Pandora dominates
  • Profit struggles
  • Chart: Revenue Growth

  • Industry Outlook
  • Mobile content growth
  • Moderate profit growth
  • Table: Internet Radio Broadcasting Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Internet Radio Broadcasting Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Advertising Agencies
  • Consumers

  • Key Selling Industries
  • Independent Label Music Production
  • Internet Service Providers
  • Law Firms
  • Major Label Music Production
  • Musical Groups & Artists

  • Products & Services
  • Other (including music, news and sports)
  • Hip hop and R&B
  • Rock
  • Pop
  • Country
  • Latin
  • Chart: Internet Radio Broadcasting Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • 45 to 54 years of age
  • 35 to 44 years of age
  • 25 to 34 years of age
  • 55 to 64 years of age
  • 65 years of age and older
  • Under 24 years of age
  • Chart: Major Market Segmentation for the Internet Radio Broadcasting Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Marketing
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Internet Radio Broadcasting

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Internet Radio Broadcasting Industry

  • Industry Globalization
    Pandora Media Inc., iHeartMedia Inc.,
  • Table: Pandora Media Inc. - financial performance
  • Table: iHeartMedia Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Internet Radio Broadcasting Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Internet Radio Broadcasting Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Number of mobile internet connections (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Banner Advertising
  • Online advertising where text or images are embedded into a web page and are linked to more information.
  • Blanket License
  • Music and other sound recording licenses provided by performing rights organizations to an entire library of recordings.
  • Performance Rights Organization
  • Performance rights organizations are used as an intermediary between artists and their record labels, and users of recordings for supplying licenses.
  • Streaming Media
  • Multimedia that is simultaneously being delivered by the provider and received by the user. Files begin playing before the entire file is transferred.
  • What Our Customers Say

    Why buy this report?

    The Internet Radio Broadcasting industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Internet Radio Broadcasting:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Internet Radio Broadcasting market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Internet Radio Broadcasting, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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