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Mobile Radio
Will AOL Radio Cause The End Of FM Radio?
AOL Radio, Pandora, Slacker and Last.fm are some of the online radio services that have become popular these last few years. Many of these are also accessible on portable products such as mobile phones. I will take a look at the impact of online radio on conventional radio broadcasters to determine if this means the end of local radio stations.
Local radio would seem to be having a hard time in today's radio landscape with competing satellite and online radio providers taking away listeners by supplying commercial-free music and entertainment. There is virtually an indefinite number of online radio channels available.
Pandora along with other online radio services have become accessible on wireless audio transmitter and portable products by installing the appropriate app. This raises convenience and mobility of online radio. Mobility has thus far been the largest benefit of local radio.
AOL Radio which boasts 200 plus music channels of 25 genres makes use of CBS radio as its underlying platform. It also offers access to 150 national CBS radio stations. The underlying CBS radio platform "play.it" also allows listeners to create their own customized music channels. This is done by entering the names of albums, tracks or artists. The tracks played on each music channels can also be stored on an iPod for later playback by using 3-rd party tool iGetMusic.
Pandora and other online radio providers have in the same way begun to offer customized music. The user can enter music-related information such as artist, track or album name. These channels will then choose tracks which are similar to the information entered. Other services, on the other hand, fail to offer fully customized music channels.
Does online radio mean the extinction of local radio? The growing number of alternatives clearly is going to shrink the market share of conventional radio broadcasters. In particular niche broadcasters have found online radio very valuable. The main reason is the low broadcasting expense of online radio in comparison with terrestrial radio. Another cause is the problem acquiring frequency space licenses from the FCC. On the other hand, rising royalty charges have made the life of online broadcasters more difficult lately.
While 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 tough to draw a moderately large number of listeners and be lucrative. At the same time, however, there is less pressure to insert commercials because of the lower expenses of broadcasting in comparison with conventional stations. This has made online radio content more interesting than terrestrial radio.
One big benefit of local stations however is local content like news or current events. One drawback of local radio has been the inferior audio quality of FM broadcasts. On the other hand, that is being remedied by the recent launch of digital radio broadcasts such as HD radio. It is difficult to predict a clear winner in the battle between online and local radio as both offer their own exclusive content and high mobility which are the key factors that will determine the destiny of each service.
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