“In 2009, Internet radio may not just reinvigorate the medium of radio. It may reinvent it.” This prediction comes from the consulting firm Deloitte, which has published annual reports on upcoming media trends for the last eight years.
If the report is correct, 2009 will see much more widespread adoption of WiFi enabled internet radio sets (like the one pictured above). These sets, which retail for about $200, are designed to connect to digital radio signals from around the world via the internet.
“It’s the future of radio,” Alex Bowden, a salesman at Bay and Bloor Radio in downtown Toronto, said to The Financial Post. He said the store has seen an uptick in sales of the devices, especially over Christmas, as prices have gone down.
Deloitte sees this as a major opportunity for radio broadcasters.
There are about 2.5 billion analog radio sets in the world, and conventional radio broadcasts will continue to serve those listeners for the next few years, but the internet has 1.5 billion users, two-thirds of which have broadband. Serving the internet market properly could lead to substantial numbers of new listeners both from people listening at work on computers and from these new digital radio sets.
Digital radio also has the advantage over satellite radio in that the sets usually don’t require subscriptions. Currently only about a quarter of the worlds 44,000 radio stations broadcast online but that will likely increase as digital radio sets become more popular.
Not everyone agrees on the potential for internet radio though. David Bray, a radio industry analyst, told the The Financial Post, it was “wildly improbable,” that internet radio would led to widespread shift. He said it’s too early to tell if most consumers would spend a couple hundred dollars on new sets.
The Deloitte report concludes that although digital radio represents a big opportunity for broadcasters, they need to make the station easy to search and find by building electronic program guides and recommendation engines. Broadcasters also need to ensure that ensure that their content is listing on the large aggregators site like RadioTower. Finally there are still issues that need to be resolved about music royalties.
What do you think? Will internet radio change the face of the medium, or will it another internet related innovation that doesn’t live up to its promise?
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| Digital Radio | Posted at 11:31 am (23 Jan 2009) |



The CBC’s Toronto broadcast centre will host an interesting panel Wednesday on the future of news. It’ll explore how technology — such as citizen journalism and Web 2.0 tools — can be used by the media to provide greater public service to citizens and communities.
CBC is getting closer to providing live digital TV and digital radio broadcasts to cell phones.
















