Radio Companies’ Efforts in Internet Radio Showing Results

Since a year ago, the audience for Internet radio has increased at a 2.2% rate compounded monthly.
So say JP Morgan analysts John Blackledge and Aaron Chew. They report a 29% increase in October compared to the same month last year and they believe the number of unique visitors on Internet radio sites was 53.4 million last month.
“Both the terrestrial radio operators and the Internet radio operators experienced 1%–2% sequential declines in unique visitors in September 2006. Though this was the fifth month in a row of sequential declines for total unique visitors this masks significant year-over-year growth,” they wrote. “In fact, unique visitors to the terrestrial radio operators’ sites increased 96% year-over-year in October, while unique visitors to the Internet radio operators’ sites grew 11% during the same time frame.”
Terrestrial radio companies’ share of Internet radio’s unique visitors increased to 32.5% in October, up from 21.5% a year ago. “Increased investment by the radio operators has been driving gains in unique visitors in 2006, as well as gains in Internet advertising revenue, although Internet revenue still represents less than 5% of total revenue.”
CBS Radio grew the unique visitors to its Web sites 6% from September to October, while Clear Channel experienced about a 5% decline. “Collectively, both operators captured more than 19% of total unique visitors to Internet radio in October 2006,” JP Morgan found.