Harker: Streaming Out to Crush Radio?
March 2, 2012 at 3:54 AM (PT)
In their latest post on their Radio Insights blog, HARKER REASEARCH's RICHARD HARKER and GLENDA SHRADER BOS turn their attention to a recent ADWEEK magazine cover "with its smashed radio and bent antenna has all the earmarks of another hatchet job on radio. The screaming title 'Is Streaming Music Out to Crush Radio Advertising?' appears just one more example of the 'radio is dead' meme that dogs broadcast radio."
Surprisingly, the article turns outto be less anti-radio than the cover suggests. HARKER notes "the story by ERIN GRIFFITH is one of the more balanced looks at the battle between broadcast radio and its digital competitors. While most writers gush unfettered excitement over Internet radio’s future, GRIFFITH captures the painful reality: (Streaming services) pay a hefty rate each time a song is played. The services will never outgrow their costs, an unfortunate arrangement commentators have dubbed a 'suicide pact.'"
So what's ahead for net radio? HARKER feels "online radio's very survival depends on stealing ad dollars from its traditional counterpart, and it needs to do it fast."
Read the full post here.