AOL Radio - The End Of Local Radio?
Online radio services such as AOL Radio, Pandora, Slacker and Last.fm have become rather popular lately and are even available on various mobile wireless devices such as mobile phones. I will take a look at the influence of online radio on traditional radio broadcasters to learn if this means the end of local radio stations.
Local radio stations do seem to have a difficult time nowadays. Satellite radio has been cutting the market share of traditional 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. In particular, online radio has turn out to be fairly popular by providing a nearly unlimited amount of radio channels.
Pandora in addition to other online radio providers have become available on wireless audio transmitter and portable devices by installing the appropriate app. This increases convenience and mobility of online radio. Mobility has up to now been the main benefit of local radio.
AOL Radio uses CBS radio as its broadcasting platform. It comes with more than 200 music channels. In addition it provides access to over 150 local 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.
Other online music services have followed suit and are providing similar customized music. Pandora and Last.fm allow listeners to enter the name of an artist and then play music by randomly choosing titles by these artist in addition to other titles which are similar in genre or character. However, most online radio broadcasters lack the ability to create fully customized radio stations such as the “play.it” platform.
Are conventional radio stations destined to become extinct by the constant decrease of market share due to online radio? Online radio is especially useful for niche broadcasters who have been unable to broadcast due to the high expense and licensing of frequency space.
Online radio broadcasters have found it hard to be lucrative. The major reason is the gigantic number of competiting channels which is diluting listeners. The lower cost of online radio at the same time enables making of more interesting content than local radio by serving niche markets and inserting less commercials.
Local programming such as news and local events, however, will remain one of the big benefits of local radio. Up to now the poor audio quality of FM radio has been a big disadvantage. On the other hand, latest digital radio broadcasts are set to enhance the audio quality. One of these technologies is HD radio. Content and mobility will be vital in determining the fate of online and local radio. Online radio offers a large number of choices while local radio excels by providing local content. Both online and local broadcasts offer great mobility. Therefore it is hard to predict a clear winner in this radio battle.
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