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Lecture 8 - Mobile Radio Propagation
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Mobile Radio
Will AOL Radio Cause The Extinction Of Local Radio?
Online radio services including AOL Radio, Pandora, Slacker and Last.fm have become rather popular lately and are even accessible on various mobile wireless devices such as mobile phones. I will look at the influence of online radio on traditional radio broadcasters to see if this means the end of local radio stations.
Local radio stations do appear to have a difficult time these days. Satellite radio has been cutting the market share of previous radio stations severely in the past few years by providing mobility, a large number of commercial-free music channels in addition to news and entertainment channels. The internet has enabled access to a virtually unlimited number of online radio stations.
A lot of online radio services such as Pandora are now accessible on portable products like cell phones and other wireless audio products via appropriate apps. This adds mobility to online radio which has still been the trump card of local radio stations.
AOL Radio utilizes CBS radio as its broadcasting platform. It comes with in excess of 200 music channels. Additionally it provides access to more than 150 local CBS radio stations. Listeners can also create their own customized radio stations at the CBS radio "play.it" website and save each track for playback on an iPod by utilizing 3-rd party software iGetMusic.
Users can also create customized radio on other online music services by entering the artist and album names and these services will play songs based on that information. Up to now, however, competing music services have fallen short to offer similarly fully customized radio channels.
Are traditional radio stations destined to become extinct by the constant reduction of market share due to online radio? Particularly niche broadcasters have found online radio very valuable. The main reason is the low broadcasting expense of online radio in comparison with terrestrial radio. An additional reason is the problem acquiring frequency space licenses from the FCC. However, increasing royalty fees have made the life of online broadcasters more difficult recently.
As the diversity of stations is a benefit to listeners, it is at the same time diluting market share and online radio broadcasters are finding it difficult to draw a reasonably big number of listeners and be lucrative. At the same time, however, there is less pressure to insert commercials due to the lower costs of broadcasting in comparison with traditional stations. This has made online radio content more appealing than terrestrial radio.
Local programming such as news and local events, nonetheless, will remain one of the big benefits of local radio. Moreover, local radio is now improving the audio quality by using digital broadcast technologies versus conventional FM broadcasts which has been a big plus of online radio thus far. Content and mobility will be crucial in determining the fate of online and local radio. Online radio provides a large number of choices while local radio excels by supplying local content. Both online and local broadcasts offer great mobility. For that reason it is difficult to predict a clear winner in this radio battle.
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