Online radio such as AOL Radio, Slacker, Pandora and Last.fm have gained popularity lately. In addition, many wireless devices such as mobile phones support these platforms. Are local radio stations doomed? I will take a closer look at online radio to try to answer this question. In particular I will examine the impact of online radio on local broadcasters.
I appears that local radio stations are on their way to become extinct. They are being threatened by the advance of online and satellite radio. These competing services typically offer hundreds of music and entertainment channels. Some of the channels are even commercial-free. The internet has enabled access to a virtually unlimited number of online radio channels.
Pandora and other online radio services have become available of wireless audio devices by installing the appropriate app. This increases convenience and mobility of online radio. Mobility has thus far been the biggest advantage of local radio.
AOL Radio uses CBS radio as its broadcasting platform. It comes with over 200 music channels. In addition it offers access to more than 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.
Pandora and other online radio services have similarly started to offer customize music. The user can enter music-related information such as artist, track or album name. These channels will then select tracks which are similar to the information entered. Thus far, however, competing music services have fallen short from offering similarly fully customized radio channels.
Does online radio mean the end of local radio? The growing number of options clearly is going to shrink the market share of traditional radio broadcasters. Online radio is particular useful for niche broadcasters who have been unable to broadcast due to the high cost and licensing of frequency space.
Online radio broadcasters have found it difficult to be profitable. The main reason is the huge number of competing channels which is diluting listeners. The lower cost of online radio at the same time allows creation of more appealing content than local radio by serving niche markets and inserting fewer commercials.
Local programming such as news and local events, however, will remain one of the big advantages of local radio. Thus far the poor audio quality of FM radio has been a big drawback. However, new digital radio broadcasts are set to improve the audio quality. One of these technologies is HD radio. Content and mobility will be crucial in determining the fate of online and local radio. Online radio offers a large number of choices while local radio excels by supplying local content. Both online and local broadcasts offer great mobility. Therefore it is hard to predict a clear winner in this radio battle.
I appears that local radio stations are on their way to become extinct. They are being threatened by the advance of online and satellite radio. These competing services typically offer hundreds of music and entertainment channels. Some of the channels are even commercial-free. The internet has enabled access to a virtually unlimited number of online radio channels.
Pandora and other online radio services have become available of wireless audio devices by installing the appropriate app. This increases convenience and mobility of online radio. Mobility has thus far been the biggest advantage of local radio.
AOL Radio uses CBS radio as its broadcasting platform. It comes with over 200 music channels. In addition it offers access to more than 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.
Pandora and other online radio services have similarly started to offer customize music. The user can enter music-related information such as artist, track or album name. These channels will then select tracks which are similar to the information entered. Thus far, however, competing music services have fallen short from offering similarly fully customized radio channels.
Does online radio mean the end of local radio? The growing number of options clearly is going to shrink the market share of traditional radio broadcasters. Online radio is particular useful for niche broadcasters who have been unable to broadcast due to the high cost and licensing of frequency space.
Online radio broadcasters have found it difficult to be profitable. The main reason is the huge number of competing channels which is diluting listeners. The lower cost of online radio at the same time allows creation of more appealing content than local radio by serving niche markets and inserting fewer commercials.
Local programming such as news and local events, however, will remain one of the big advantages of local radio. Thus far the poor audio quality of FM radio has been a big drawback. However, new digital radio broadcasts are set to improve the audio quality. One of these technologies is HD radio. Content and mobility will be crucial in determining the fate of online and local radio. Online radio offers a large number of choices while local radio excels by supplying 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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You can find additional details regarding AOL Radio and wireless audio products at Amphony's website.
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