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Study Sees ‘Bright Future’ for Radio Online

Analysts expect almost 5% of radio revenue to be from online by 2013

U.S. radio’s online revenue will grow by double digits in 2009.

So believes SNL Kagan, which sees a “bright future for radio station online revenue growth” as radio broadcasters, seeking to replace lost revenue elsewhere, turn more to streaming and mobile applications.

It also thinks that, by 2013, online revenue will represent 4.7% of the industry’s revenue, up from 2.7% this year and 0.1% six years ago.

“According to updated projections from SNL Kagan, radio online revenues are expected to grow by double digits in 2009 to $441 million by year-end, up 12% from $394 million annually in 2008,” the company stated.

“Looking forward, SNL Kagan projects an annual online revenue growth rate of 20% in 2010 to $530 million. As the market matures, growth is expected to level off through 2013, rising to $827 million, or 4.7%, of total radio revenues by the end of the five-year period. That compares to 2% in 2008 and a projected 2.7% of total radio revenues in 2009.”

An analyst with the company, Justin Nielson, said whereas before, radio broadcasters “seemed resistant to embrace new technologies,” now with a dropoff in traditional revenue, they are more open to it, “improving their Web sites and embracing online streaming and mobile apps to drive their local base to their multiple platforms.”