April 1 , 2010

Consumers of audio over the last five years have changed the way they use audio-listening devices whether it is an AM/FM radio or their cellphone or smartphone. Technology is rapidly and continually impacting all of these devices. Bridge Ratings has updated it's 2007 study which showed usage trending among the top five most-used devices among our sample of 1956 persons ages 12+.

The study was conducted between January 4, 2010 and March 14, 2010 through a random address-based telephone interviewing process. 20% of the households contacted were cell-phone-only (CPO).

AM/FM Radio

Confirming attrition in the amount of time-spent listening to AM/FM radio, this new Bridge Ratings study shows that overall, the entire sample is listening less...18 hours per week compared to 22 hours when this study was conducted in 2005.

Demographically, here is shown the severity of attrition among all demographics, but primarily among teens and 18-24 year olds. However, for the first time the three-survey trend shows a reduction is evident in time-spent-listening among adults 25-54.

The above charts for Terrestrial Radio do not include listening to simulcast radio streaming on the internet or other devices. While this study reflects that time-spent-listening to traditional radio is down two hours per week overall, approximately 44 minutes of that time is recovered through listening to traditional radio streams.

While traditional radio's time-spent may have fallen in recent years in the face of additional technologies, our panel of traditional radio users has increased their listening of AM/FM simulcast streams on the Internet and intends to spend more time in the future using other digital listening solutions including cell phones.

It is important to note that traditional radio - especially since 2008 - has expanded its distribution of its programming content to other technologies off-setting some of the time-spent-listening attrition.

Internet Streaming

Streaming audio via the Internet has become a family past-time as shown in previous studies conducted by Bridge Ratings. This chart graphically displays the five-year trend for all participants.

Per our Internet Streaming study that was released on February 1, 2010, there are two distinct users of Internet radio: those who spend most of their time listening to pure-play or Internet only radio stations and (2) those who spend most of their time listening to simulcast streams of traditional AM/FM radio.

More than 60 million people each week listen to radio over the Internet.

• 84% (50 million) of this group regularly listens for at least five minutes to AM/FM simulcast streams in a typical week.
• 62% (38 million) of the total streaming group regularly listens for at least five minutes listening to Internet-only streams.
• 77 million Americans will listen to Internet radio streams (on both computers and mobile devices) by January 1, 2015.
• Based on interviews which measured satisfaction and fatigue levels, we are projecting that by that date the percentage listening to AM/FM simulcast streams will fall to 81% while those listening to Internet-only radio streams will increase to 72%.
• The percentage of streaming listeners for AM/FM simulcasts and Internet-only will reach parity by the end of 2016 (77%).

Weekly time-spent-listening to audio via the Internet has increased ten-percent since 2005 with all age groups on average now spending over eleven hours a week listening to streaming audio which includes pure play Internet radio, AM/FM simulcast streaming and other audio streams.

Demographically, it is interesting to note that teens had been trending up and we would've expected this group to continue its upward trend. However, streaming audio while still a past-time for teens is giving first signs that the trend-setting demographic of 12-17 year olds are spending more time listening via their cell phones, the technology of choice among this demographic.

Adults 55+ had the greatest increase in Internet streaming usage. This may be more a function of the 34% of Americans identified as "late adopters" to technology.

Podcasts

While podcasting has shown promise with its total audience growth over the last ten years now approaching 30 million, time spent with podcasting remains under one-hour per week.

In a study completed in late 2009 for one of our clients, Bridge Ratings determined that the majority of podcast producers over the last five years have learned more about what podcast audiences want which are shorter programs, in general. Podcasts of thirty to sixty minutes have shown to have fewer listeners with the Bridge study showing the 'sweet spot' for podcasts now stands between seven and 12 minutes in length.

Nonetheless, the average podcast consumer in this new study listens to approximately three (3) podcasts per week with total time spent with podcasts now at just over thirty minutes per week.

All age groups have extended their podcast consumption since the last version of this study in 2007 with time-spent-listening growth larger among older listeners: 40% growth among adults 25-54 and 100% among those 55+ whose passion levels for podcasts rank first among all demographics. This is likely a function of their recent discovery of the technology and its variety.

MP3 Players

Ever since mass use of MP3 players around 2000 and subsequent with the growth jolt with the release of Apple's iPod device in 2001, MP3 players have penetrated the American psyche. All age groups find a reason to have one and with an expanding number of device owners, MP3 players are now in the hands of over 280 million consumers and they continue to be heavily used.

Our overall panel spends just over 11 hours a week listening to audio via their MP3 players, up 7% from our 2007 study.

Heaviest use and increase continues to be among teens who now spend around 20 hours per week or over two hours during a typical weekday and more than 2.5 hours per day on weekends.

MP3 consumption is slowing among 18-54 year olds.

Cellphones/Smart Phones

The device creating all the disruption in this study is clearly the cell phone/smart phone which is the device which clearly has the greatest market penetration growth over the last five years.

The total sample of 1956 users are now spending an average of 4 hours per week listening to audio content via a device whose primary service is supposed to phone calls. With the advent of smart phones like the iPhone and Android and 'service' mobile phones such as the Blackberry, these devices have multiple uses and entertainment ranks as the most-often used service among all users we interviewed.

Interestingly, teens are not the greatest consumers of audio via their phones, 18-24 year olds maintain their lead in this consumption category with an average 5 hours a week listening. The slower-to-adopt to technology 55+ age group with this report is showing increasing use of mobile phones for audio entertainment.

Every category in this device class clearly has been the beneficiary of attrition in other devices discussed in this study. Multitasking also has a bearing on increased usage across several of the devices included here.

Satellite Radio

Overall time-spent-listening for satellite radio has been fairly consistent over the course of four similar Bridge Ratings studies with this current analysis showing an average of 8.3 hours per week spent by our sample of satellite subscribers.

The highest consumption still comes from the 25-54 year old group, but there has been growth in this report among all age groups except in teens.

Ten years ago, this report would not have been needed. Today, with so many options facing consumers interested in audio entertainment, it is more clear from this study how traditional radio's time spent listening is being siphoned off.

Time-spent-listening projections for the next two years will be published shortly. Which of these devices will see continued double-digit growth? Internet Streaming is anticipated to add another 11-12% more listening by 2013.

For additional information, please contact Dave Van Dyke at Bridge Ratings: dvd@bridgeratings.com or 888.790.1102.

Study conducted January 4 - March 14, 2010
Sample: 1956 persons 12+  Error: +/- 2.2%