Since 2010, Edison Research has been asking the question of consumers, “Have you ever listened to Internet radio in a car by listening to the stream from a cell phone that you have connected to a car audio system?” The number grew by 9% from 26% to 35% between 2014 and 2015. Does this question measure consumer interest or is it a proxy for availability of Bluetooth and other connectivity in the car?
This past fall there were a lot of comments in the media about Internet radio’s two preeminent revenue models: subscription and ad-supported. Recent data from Strategy Analytics and reported by RAIN News suggests that advertising is the present and future of Internet radio listenership.
Given Ms. Swift’s very public disagreement about royalties and other articles about small checks that some artists receive, many are left with the impression that music streaming services are unfairly benefiting from musicians’ work. Industry data emerged last week suggesting record labels are the real beneficiaries.