What do consumers want?

A recent (June 2007) Arbitron tabulation of diary entries from several dozen markets revealed an unsettling fact: The audiences listening to simulcast streams of AM/FM stations via the Internet are surprisingly low -- comprising less than 1% of the averge market's total radio listening quarter-hours.

Of course, this is reported listening, not actual listening, which might be somewhat higher. But still, let's assume this number is largely, with a certain margin of error, true.

So, what does that tell us?

(1) We know from other sources (comScore Arbitron Online Radio Ratings, Ando Media's Webcast Metrics ratings, etc.) that total Internet radio listening apparently comprises 4% to 5% (or more) of all U.S. radio listening. (Satellite radio comprises another 3.5% of all U.S. radio listening, according to a different Arbitron report.) That means that listening to AM/FM streams comprises a very small percentage of all listening to Internet radio... which means that the vast majority of Internet radio listening is to the Internet-only channels.

(2) Why would that be? Perhaps because listening to a AM/FM station via the Internet does not add any value to the radio listening experience. The consumer isn't getting a different format than they can get on the AM/FM band, or a tighter or deeper playlist, or more songs per hour (except in the rare case where a broadcaster fills their terrestrial spot break with bonus songs), or any type of interactivity or customization or personalization.

More to follow...