The industry will continue to grow rapidly, albeit at a decelerated rate
New York, NY (PRWEB) January 08, 2015
The Internet Radio Broadcasting industry has grown rapidly over the past five years as consumers have become increasingly enamored with the use of internet-based services to deliver entertainment. In the five years to 2014, the number of internet connections has increased and faster broadband speeds are also allowing users to stream more content than ever before. According to IBISWorld Industry Analyst Jeremy Edwards, “The dramatic increase in the number of mobile internet connections has surged industry revenue forward as consumers rely on their mobile phones to access the internet.” As a result, consumers are increasingly accessing music and internet radio stations from their mobile devices rather than desktop devices and can access industry services at all times. Furthermore, the industry has benefited from increased advertising expenditure as corporate profit margins improve and rising per capita disposable income due to improved employment conditions. Consequently, sales in the industry's largest two revenue streams, advertising and premium subscription accounts, have increased over the five-year period. Overall, industry revenue is projected to grow over the five years to 2014.
However, despite strong revenue growth, industry companies continue to operate at a loss on average. Over the five-year period, companies have focused on acquiring a large range of content and developing a large user base, which will then ensure greater profitability in the future. Nonetheless, due to strong investment from private equity firms and other investors, the number of industry operators continues to grow as companies seek to capture a large share of the market while it is still relatively young.
Over the next five years, the industry is expected to continue to grow rapidly, albeit at a decelerated rate as consumer internet access becomes saturated. “However, consumer preferences will continue to trend toward online formats such as internet radio broadcasting and, therefore, revenue is forecast to expand over the five years to 2019,” says Edwards. Competition is also expected to become fiercer over the next five years as other commercial streaming services, such as Spotify, grows and capture a larger part of the market through offering on-demand music services, which are not included in this industry.
For more information, visit IBISWorld’s Internet Radio Broadcasting in the US industry report page.
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IBISWorld industry Report Key Topics
The Internet Radio Broadcasting industry provides internet radio broadcast, including music and other media programs. This industry only includes operators that control noninteractive internet radio platforms and generate revenue through subscription and advertising. Small independent radio channels that do not generate revenue are excluded. On-demand online music streaming services are also excluded.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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