The first chart compares the number of songs streamed online to the number played across traditional airwaves in the US, specifically between the dates of January 3rd and May 1st of this year. The second weights those plays against the total audience for each play/spin. The data was compiled by Nielsen, and presented at the NARM conference in Los Angeles on Wednesday.



Comments Closed
@rockstarlabs Thursday, May 12, 2011
Digital is exciting, and the targeting is better when marketing online which always gives you more bang for your buck, but you cannot deny the power of the airwaves.

@buzzbishop Friday, May 13, 2011
Buzz Bishop
if a song is streamed on the internet does it make a sound?

@fnjacobs Friday, May 13, 2011
Fred Jacobs
Whoa!

@midwestmusic Friday, May 13, 2011
Midwest Music Found
Interesting ..

@MusicalUrbanism Friday, May 13, 2011
Musical Urbanism
Adorno still matters

@StrangeLandBand Friday, May 13, 2011
Strange Land
yes, but traditional radio still has its gatekeepers

Chris K. Friday, May 13, 2011
Strange Land yes, but traditional radio still has its gatekeepers
Anyone who does a radio show online or onair is a gatekeeper ;) Anyone who blogs a review is a gatekeeper ;)

WILL Friday, May 13, 2011
LONG LIVE GATEKEEPERS!!!!!!

alex777 Friday, May 13, 2011
Interesting
I love the layout on your blog and will be back to read more in the future!

Radio Friday, May 13, 2011
Good luck getting anything on the radio that isn't corporate schlock that's padded with payola.

magnus Friday, May 13, 2011
That's why you should give Community and campus radio a try.

J ReD Monday, May 16, 2011
And how do you propose we do this when the university staions are being pulled from the air all the time? SAVE KUSF!!!

@ttahtinen Friday, May 13, 2011
Very interesting indeed. I've never doubted the power of radio. Although as @rockstarlabs mentioned, every online track is played on demand and most likely listened to, which enables more effective targeting and fan engagement. Luckily, one does not overrule the other.

Chris K. Friday, May 13, 2011
every online track is played on demand and most likely listened to, which enables more effective targeting and fan engagement. Luckily, one does not overrule the other.
Not true. Even on Pandora not every song is played on demand ... what would be the point? Live365 has over 7000 Internet based streaming stations ... don't recall any of them offereing on demand content ... in fact, on demand is a no-no where it comes to performance royalties.

@Bemuso Friday, May 13, 2011
Bemuso
Interesting chart, but only shocking for would-be-mainstreamers when you think about it.

BK Friday, May 13, 2011
Radio is a pretty magical medium. I'm not talking about commercial music radio as a business, I'm just talking about the science of hearing a song (or anything) over the airwaves. It's pretty cool. Check out this wiki article on Community Radio http://en.wikipedia.org/wiki/Community_radio, or the Independent Radio Club site here for some real DIY ish: http://www.ircradio.org/. Plus, radio is freer and more accessible than Internet for many poorer families. Many of us take the Internet and net accessibility for granted. According to this site http://www.internetworldstats.com/stats.htm less than 29% of the entire world's population has access to the Internet. Many more have radio access. Yes, distribution/reach is much more difficult via traditional radio broadcast, but it also has the ability to be more unique from region to region (again, commercial radio notwithstanding).

BK Friday, May 13, 2011
My point is that radio as a medium is not a problem. What people do with it can ebb and flow from cool to uncool, same as the Internet.

@paulgreenberg Friday, May 13, 2011
Paul Greenberg
Wow...

@jjan Friday, May 13, 2011
jan
Matraquage! Lady gaga represente 90% de la radio a elle toute seule

mmraw Friday, May 13, 2011
Need more information to make real sense of this, because it doesn't make any with these out-of-context stats. What streams are they including? All streams, from all sources? If so, then the stats definitely don't make sense at all. Someone, please enlighten here, as I don't think this tells the whole story.

brushy Friday, May 13, 2011
i agree with you. i think its a big fat juicy pie chart that means nothing really, based on the info provided. probably supporting info was provided at the conference and this post has put it out there out out of context.

@elmorse Friday, May 13, 2011
Eric Morse
If you need pie charts to explain how radio makes hits and the Web is the great musical democractizer, here are some...

mmraw Friday, May 13, 2011
Does this take into account mp3/iphone/ipod listening? or listening from personal playlists? youtube listening? just raw streams? just curious as to what sources were accounted for. obvious that trad radio is not diverse, though. and...even so...in general, a "hit" just ain't what it used to be, Bieber and GaGa aside.

alexandra Friday, May 13, 2011
Technically, this covers 'non-interactive' streams, which excludes personal playlists, and on-demand listening through platforms like Rhapsody, and VEVO. We thought using on-demand would be a little too 'apples-to-oranges' to use a tired phrase, and a lot of on-demand is difficult to accurately measure.
- alexandra

@YannaBeau Friday, May 13, 2011
Iyana G
Indeed...

Karen Allen Friday, May 13, 2011
I think they mean "song plays", not "songs played." I don't think playing 51M songs on terrestrial radio is mathematically possible with their narrow playlists and repitition of songs. There sure aren't billions of songs being played on the internet.

presnikoff Friday, May 13, 2011
@Karen
I see your point, this could be getting construed as the number of unique songs being played. But the intent was to refer to the number of times any song is played - even if that is the same song played thousands of times (which actually describes traditional radio).
Does that clarify? Or, should I update the language in your opinion?
/pr

Rekha Friday, May 13, 2011
This reminds me of the enduring success of outdoor advertising, particularly billboards, in the internet age. Billboards and broadcast radio have less-fragmented audiences.

tippysdemise Friday, May 13, 2011
People listen to broadcast radio in their cars because for most of us, there are still few alternatives.

dan54 Friday, May 13, 2011
OK... I just woke up and not totally on my game here but I fail to understand how Traditional Radio has an audience of 280 billion, when there's less than 7 billion people on the planet.

presnikoff Friday, May 13, 2011
@dan54
I see your confusion, let me try to clarify. Of course, the world population is nowhere near 280 billion, but this measures the aggregated audience across all songs played. So, every song has an audience attached, and those are cumulative in this data.
Does that clarify?
/pr

GD Saturday, May 14, 2011
I don't really think this is a very useful way of framing it. Rather than talk about aggregate audience why don't you just frame it in a # of impressions and # of unique listeners. From there we can get to a CPM / CPC rate.
Also, by my math 51,000,000 spins in Q1 comes out to roughly 1,200 stations. Does that sound right?
I also think the point about unique songs is relevant from the artist point of view.

Econ Sunday, May 15, 2011
It is the exact proper way of framing it. Perhaps the better word for it would be "impressions" rather than "people" but the concept is the exact one used by advertisers and royalty collectors.

GD Sunday, May 15, 2011
It would be nice to know the ad revenue for the industry for this period so we could get a CPM number that we can compare to online CPM rates.
If we're just going to talk about audience and not ad revenue than it is relevant to note that Muzak claims to reach 100 million people per day. So I guess Muzak still matters as much as the whole radio industry does.

@rekha6 Friday, May 13, 2011
rekha6
The enduring power of traditional radio, visualized...

@CameronTilbury Friday, May 13, 2011
Cameron Tilbury
Okay...these are US figures but it does show some pretty important numbers for getting radio airplay.

@ninenorthlp Friday, May 13, 2011
Larry Pareigis
Another reason why Nine North Records Turnpike Music are needed now more than ever

The Insider Friday, May 13, 2011
To PR's and Karen's earlier points, theses graphs depict cumlative #of plays and #streams and their respective listening audiences. Nielsen's intent here (they do own radio tracking service BDS) is to show that despite the promise online radio, brings to the table, traditional radio is still the dominant player.
If it is assumed that all legal/legislation issues were sorted and content owners were indeed paid sound performance royalties for traditional airplay at rates comperable to online rates, here's a very rough projection of revenue estimates;
Traditional Airplay - 51,000,000 X 0.0014 = $71,400
Online Streaming - 4,700,000,000 x 0.0014 = $6,580,000
While these figues are very loose assumptions, a couple of other insights from these graphs:
1-Potential Revenue derived from Airplay vs. Revenue derived from their respective audiences are just as related as they are distinct.
2-More audience = potentially more opportunities for monetization from said audience (both directly and indirectly).
3-With traditional and online airplay, there's gold in both types of audiences and listening experiences.

Econ Sunday, May 15, 2011
From my perspective the graphs prove the royalty rates for streaming are far too high.

aaccardo Friday, May 13, 2011
Bob Lefsetz needs to read this...

@xaiki Friday, May 13, 2011
Niv Sardi
las radios siguen importando !

@IAmDanCohen Friday, May 13, 2011
Dan Cohen
Amazing

@northcountyrock Friday, May 13, 2011
Mitch Conrad
Radio still matters people!

@NeoThierry Friday, May 13, 2011
Thierry Voyer
A bien garder en tête

@BoomerLifeMedia Friday, May 13, 2011
Bryan Durr
The power of the "Over The Air Broadcasting" still cannot be denied.

@mthyvold Friday, May 13, 2011
Magnus Thyvold
Does anyone listen to radio any more? You bet they do!

@TheSwedishModel Friday, May 13, 2011
Jonas Edvinsson
Compelling evidence!
Lots online
No listeners

dpet613 Saturday, May 14, 2011
I'm not surprised by these statistics at all. Despite the naysaying I've always believed in the power of radio, terrestrial or satellite. I agree with the comments that digital is much more targeted, but radio reaches the masses instantly (despite most terrestrial being awful and repetitive) and offers much more variety at once (satellite...big fan). I love discovering new music online, but it requires more of my time and effort so instead I end up curious & heavily influenced by what my favorite dj's are playing.

@makno Sunday, May 15, 2011
Philippe Astor
Very Interesting !

@OrpheusMedia Monday, May 16, 2011
Orpheus Media
Stunning visualization from Nielsen data...

William Hochberg Monday, May 16, 2011
What do they mean radio has 250billion audience? Does this include Extraterrestrials? There's only about 6 billion earthlings.

presnikoff Monday, May 16, 2011
Technically, the better term would be 'impressions,' meaning total number of times a song is actually heard. Add it all up and you arrive at the 260 bln. So, the physical number of people responsible for those impressions is much lower.
/pr

@d_e_v Monday, May 16, 2011
dev sherlock
Awesome (sad) graphic.

@nathanjones Tuesday, May 17, 2011
Nathan Jones
Long live the gatekeepers

@VakseenLLC Tuesday, May 17, 2011
Vakseen LLC
Traditional radio still matters...

@RockstarIntern Tuesday, May 17, 2011
Katie Reilly
Does traditional radio matter? I think you could argue either way based on this

@indabamusic Friday, May 20, 2011
indabamusic
Looks like traditional radio still makes a big impact!

soniquarium muzika Friday, May 27, 2011
This is simple, most "Crap" is played on Traditional Radio. The old saying goes, mass are the asses, hence them tune into Traditional Radio. Traditional Radio is a non-event in my professional world as a Electronic Music Artist. Only one show, on traditional Radio do I even send in my work, BBC Radio 1 with Pete Tong.
Streaming Radio is far more forward thinking and willing to take risk outside the "Payola" world of Traditional Cheesy Jocks on Traditional Radio.
Of course, there are exceptions to the rules and like BBC radio One, there are some stations in the US that do not follow the rest of the herd. However, they are few and far between.

@FishbowlRecords Monday, May 30, 2011
Ryan Chavez
Industry Update: Radio does matter!

@papinburgos Wednesday, June 01, 2011
Rubén Burgos, Jr.
Beloit needs a radio station. All Beloit. All the time.

webwebster Monday, June 13, 2011
Reasons why this is unimportant: Sampling of audience on radio has been notoriously misrepresented. We're just now learning that such radio gods as Limbaugh and company don't have half the audience they have claimed. If talk's audience is inflated, surely the music group is as well. Second point: what is the connection between # of spins and # of purchases? Major label sales are way down, yet we see that the number of spins per song - the top 40 or what have you - is up or stable. Radio is a captive medium. People listen in the car when there is nothing better to do, or they listen in the background as a kind of brown noise or room tone. Streaming spins connote an active listenership, in most cases (I'm not considering Pandora or other such services here) where listeners seek out bands and have to select songs to play. Those active listeners are much more likely to buy songs and thus support the artists (and companies). These are my beliefs, which the patterns seem to bear out. Someone please point out where my reasoning is flawed or my grasp of the facts is faulty.

webwebster Monday, June 13, 2011
btw: I don't believe for a minute that the monthly audience for traditional radio is 280,000,000. Even if those aren't unique listeners, that number is vastly inflated by Nielsen

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