Triton's Mike Agovino: Canâ€™t We All Just Get Along?
June 20, 2011 at 3:53 AM (PT)
TRITON MEDIA GROUP COO MIKE AGOVINO discusses the relationship between radio and records in a column for TECHCRUNCH. In it, he writes, "Not long ago the music Industry was raking in $40 billion a year in sales. Today it sits at around $15 billion. Radio, once a $20 billion industry, is hanging on at a respectable $17 billion but faces significant challenges from a combination of new competitors pursuing its audience and advertising revenue while the overall trend toward digital advertising continues to divert budgets away from traditional media.
I believe in radioâ€™s future but only if radio makes an aggressive online play and that play can not be made without the music industry helping to build that future instead of holding onto the past.
"No matter what you believe, one thing is for certain; radio faces more competition for audience than ever before. Just the number of phone conversations occurring in the car each day would logically have to put a dent in time spent with radio.
"As we move forward the challenges will only intensify as marketplace disruptors make their presence felt. Personalized music services like SLACKER and PANDORA have been aggressively building audiences online over the past 18 months. With PANDORA's IPO this week, it now has a fresh influx of cash to keep investing in expanding its service. In just the past few weeks AMAZON, APPLE and GOOGLE have entered the equation announcing cloud-based music services. They join a crowd that already includes the likes of RHAPSODY, RDIO and SPOTIFY, which is rumored to be announcing a big deal with FACEBOOK. Business plans for these companies clearly identify the battlefield as the mobile device and automobile. For years those of us in radio have referred to the car as a 'radio with wheels.'
AGOVINO sums up, "I believe in radio’s future but only if radio makes an aggressive online play and that play can not be made without the music industry helping to build that future instead of holding onto the past."
Read the full post here.