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Will AOL Radio Cause The End Of FM Radio?
Online radio services such as AOL Radio, Pandora, Slacker and Last.fm have become rather popular recently and are even accessible on many mobile cordless products like mobile phones. Does this mean the end of conventional radio stations? I will look at the influence of online radio on the radio landscape.
I appears that local radio stations are on their way to become extinct. They are being threatened by the advance of online and satellite radio. These competing services commonly offer hundreds of music and entertainment channels. A number of the channels are even commercial-free. The internet has enabled access to a practically infinite number of online radio channels.
While traditionally local radio has been the only truly mobile radio, online radio services such as Pandora are now available on wireless audio transmitter and portable products such as mobile phones.
AOL Radio provides over 200 music channels as well as 150 national CBS radio stations because it employs CBS radio as its platform. Listeners can also create their own customized radio stations at the CBS radio "play.it" website and save each track for playback on an iPod by employing 3-rd party software iGetMusic.
Pandora and other online radio services have equally begun to offer customized music. The user can enter music-related information such as artist, track or album name. These channels will then choose tracks which are similar to the information entered. Other services, on the other hand, fail to offer fully customized music channels.
Is the end of local radio near? The rise of competition from satellite and online radio has started to take away listeners from local radio stations. Conventional radio appears to have a hard time to halt this trend. Specifically niche broadcasters have found online radio very practical. The main cause is the low broadcasting expense of online radio compared with terrestrial radio. One more reason is the problem acquiring frequency space licenses from the FCC. On the other hand, increasing royalty charges have made the life of online broadcasters more difficult recently.
The large number of available stations is a big advantage for online radio listeners. Still, this is a problem for online broadcasters. This large number of stations is diluting the number of listeners. Consequently streaming radio broadcasters have found it difficult to be profitable. At the same time, however, there is less pressure to insert commercials due to the lower expenses of broadcasting compared with traditional stations. This has made online radio content more interesting than terrestrial radio.
However, local radio has one big advantage over satellite and online radio. That is local content such as local news and events. Furthermore, local radio is now improving the audio quality by using digital broadcast technologies versus traditional FM broadcasts which has been a big benefit of online radio to date. The big factors that will ultimately determine the destiny of each technology are content and convenience. Online radio and conventional radio each have their own niche regarding offering unique content and both offer high mobility and convenience so there will probably be no clear winner.
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