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The future of Global Radio – key insights from PWC

Posted by radio On September - 18 - 2014 ADD COMMENTS

Total radio revenue will surpass US$50bn in 2018, but growth will slow as music streaming continues to pose challenges. Total radio revenue will reach US$50.7bn by 2018, rising from US$44.5bn in 2013. Nevertheless, it will be a market under pressure from streaming music — a movement that could have repercussions for radio’s digital future. Annual growth is expected to slow from 3.0% in 2016 to 2.3% in 2018.

 

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The US leads the way, despite China’s gains. Although China’s total radio revenue will be more than 50% higher in 2018 than in 2013, the country will still only account for 6% of global radio revenue by 2018. The US, by contrast, will account for 44% of global radio revenue, with Germany in second place with 9%.

 

 

Free music has implications for radio advertising revenue. Radio advertising revenue will reach US$39.1bn by 2018, rising at a CAGR of 2.8%. Yet broadcasters are at risk from music streaming providers as services launch free-to-consumer mobile offerings and compete directly for radio advertising dollars.

 

 

In-car convergence will impact upon the ‘heartland’ of radio. In-car interactive dashboards are enabling music streaming apps to make their presence felt. This development threatens to take radio listening time away from both traditional and satellite radio.

 

 

The innovators of digital radio are under threat. There are few success stories in digital radio, with the market’s technology transition path unclear. Analogue technology remains the global listening choice, while the inroads made by music streaming apps create an uncertain future for digital.

 

 

The ‘tyranny of choice’: how broadcasters can forge a path through the competition. The prospect of music catalogues running to 30mn tracks can be dizzying for the consumer. Curation is the answer and radio broadcasters have the opportunity to capitalise, thus minimising competitor disruption.

 

 

 

For more on this visit www.pwc.com

 

[Source: PWC]

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MSG Afrika launches media sales house

Posted by radio On September - 5 - 2014 ADD COMMENTS

The MSG Afrika Group umbrella is spreading across the media spectrum like a house on fire after it unleashed its new player – MSG Group Sales, a media sales house. This move is predictably going to send tongues wagging and is likely to shake the industry in an unexplainable way.

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The launch of MSG Group Sales is essentially an internalization of media sales. This function has been outsourced from Mediamark which is owned by Kagiso Media and Lagardere Radio International (LARI). Kagiso Media has a large commercial radio footprint in South Africa, a factor which presumably came with a natural conflict of interest element for Mediamark.

 

The sparkling new media sales house has now officially taken over as the new sales house of Power 98.7FM and Capricorn FM starting 1 September.

 

“We have a very specific vision of how we want to take our brands to market and feel that this is a good time to do it within the group. Mediamark has been instrumental in helping us launch Power 98.7 to the advertising trade and given us an excellent base to build on for both stations,” MSG Afrika’s CEO, Given Mkhari was quoted.

 

The media sales group is headed by the experienced Msizi Mazibuko who was previously the Business Unit Manager at SABC Radio Sales before joining Power FM as Head of Marketing.

 

In a statement that was released by the group, it was announced that Mediamark, the incumbent media sales house owned by Kagiso Media and Lari will no longer be selling advertising solutions on behalf of Power FM and Capricorn FM.

 

The statement added that Mediamark will continue to consolidate and grow its existing portfolio of multi channelled advertising solutions in the months to come. Mediamark currently represents the following radio brands: Jacaranda FM, East Coast Radio and Smile 90.4FM.

 

On February 3, the Independent Communications Authority of SA (ICASA) awarded an Eastern Cape licence to Histoprox and a Free State licence to Histotrim which are both majority owned by MSG.

 

The MSG is a wholly owned subsidiary of MSG Afrika Investment Holdings, a diversified Media and Communications Group owned by Given Mkhari, Simphiwe Mdlalose, Andile Khumalo and with Investec Banking Limited as a strategic minority partner.

The groups other major investments include The Jupiter Drawing Room, Curious Pictures, Dialogue Group Holdings and Sonovision studios. It is also a key strategic partner and content provider to Super 5 Media.

 

The Mkhari led consortium has emerged with a renewed media transformation ticket amidst rising despondency towards earlier transformation promises.

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News Radio 24/7

Posted by radio On October - 24 - 2012 ADD COMMENTS

By Helen Phushela

All-news radio is a form of a 24hour News radio station.  Unlike television which caters for the eye, radio writes for the ear, where producers and show compilers need to create an image in the listeners mind. 24Hour radio news broadcast would require most, if not all to adapt and make longer than 15minute news bulletins. This form of 24hour news has already been introduced in the United States where they have all round radio news stations. In South Africa we have what is called Talk/News radio stations. Talk Radio 702 and Cape talk, SAfm etc. all these stations play music to an extent.

A 24hour radio news station might sound like a good idea, if all is taken into account.  Graveyard shifts would be re-runs of day time heated debates about current affairs. With political developing stories daily, the station would have the leverage of breaking news. Writing for the ear would prove to be a challenge as people need to visualise the scene or the situation that is described by the reporter. In journalism broadcast jargon this would be referred to as “Say what you see”.  The reporter solely relies on good written scripts to pass the message to the listener.

Pro’s of radio as a medium

Radio is the second oldest form of media; it is usually overlapped by television capabilities. Radio is still the largest mobile medium, which allows people to interact with hosts.Cell phones and online radio station archives allow for the public to take radio with them everywhere they go. With the Digital Terrestrial age, radio will also experience change. Radio stations such as Metro Fm will use the same frequency country wide. This influences frequency distribution thus making room for a 24hour radio news channel.

Con’s of 24hour radio station

Radio as a medium has been compromised in its traditional form, instead of it being dominant with people choosing to use it as a news source people now use the internet. 24Hour radio news station will have to compete with Graveyard shift DJs who already have a fan base. With the new nature of station hopping, the content of the station would have to cater to everyone. “Strike while the iron is hot” motto will not apply to the station programming, 7pm breaking news will be stale at 10pm. As other news channels would have exhausted all the story angles.

Radio capitalises on current affairs and breaking news, as a short written medium.  A 24hour news radio station would only appeal to a certain segment of the audience and with the changing news consumption patterns, a 24 hour news radio channel would need to break news constantly in order to compete with the internet. For a 24hour news radio station to survive it must never be news starved, to guarantee success and increased listenership

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