SNL Kagan on "The Future of Online Radio Revenue"

On July 21, 2010, SNL Kagan hosted a webinar to discuss "The Future of Online Radio Revenue."
Here are some interesting findings from the webinar:
Digital radio ad revenue (including internet, mobile, and interactive) is growing quickly, but is still a small percentage of total radio revenues. However, streaming and mobile applications are essential for continual growth.
The per-performance fee for larger pure-play webcasters is 0.097 cents per streamed song in 2010 and climbs to 0.14 cents per song in 2015.
Radio’s digital revenue will double, from $552 million this year to $1 billion in 2015. That would make it account for 5.3% of radio's total revenue, up from 3.2% this year.

Mobile is a big driver and viewed as “the next big thing” by online broadcasters. Smartphone owners - now 120 million strong - are expected to reach 221 million by 2015. “The advent of mobile has grown the industry and transformed the business model,” said SNL Kagan associate director Robin Flynn. Advertisers are paying a premium for targeted in-stream audio ads.


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