Heavy users of Pandora don't listen to the service at the expense of broadcast radio, according to findings from NuVoodoo Media Services. Also, radio beats Pandora when it comes to "music satisfaction," especially among rock music fans. "We've known for years that most people don't want to program their own music ... They want to pick something that works for them and enjoy it," said NuVoodoo President Carolyn Gilbert.
The year is off to a good start for local TV stations in terms of ad sales, with the automotive sector strong across the country, according to Sue Johenning, Initiative's executive vice president and director of local broadcast. But other categories are also doing well, Johenning says: "This could be a reflection of the recovery happening more than it did last year. ... The feeling out there is that things are definitely getting better."
The music industry in 2012 generated just more than $1 billion in revenue, or 15% of its total, from Pandora, Spotify, YouTube and other streaming sources, according to Recording Industry Association of America figures. Some 45% of the digital revenue, or $462 million, came from licensing fees for Internet, satellite and cable radio through SoundExchange. Meanwhile, CD-vinyl revenue was off by 18.5% to $2.58 billion, and downloads totaled $3.02 billion.
Broadcast radio still has its place at the center of the dashboard, especially in vehicles manufactured by General Motors, Ford and Chrysler. "While we are excited about the possibilities of Internet radio services and other emerging services, we understand that AM/FM radio is still a significant source of news and entertainment. In fact, it is an expected feature," said Phil Abram, chief infotainment officer for GM.
Rep. Ed Markey, D-Mass., chairman of the House Subcommittee on Telecommunications and the Internet, has introduced legislation requiring
satellite radio receivers with AM/FM access to be capable of receiving HD Radio programming. Co-sponsors of the "Radio All Digital Channel Receiver Act" include Reps. Greg Walden, R-Ore., Lee Terry, R-Neb., Charlie Gonzalez, D-Texas, Joe Wilson, R-S.C. and Dan Burton, R-Ind.