edison research american youth study radios future

8/6/2019 Edison Research American Youth Study Radios Future

1/50

Radio's Future II:The 2010 American Youth Study

Sponsored by:


2/50

Recommendations to Radio from the2000 "American Youth Study"

Send stations after these demos or watch

them fade awayCo-opt Internet audio or lose it

Just like Cable TV to Broadcast

Explore co-branded side channelsConsider industry advertising

a la "Got Milk"

Recruit young people -- we can't just dependon them showing up any longer


3/50

How the 2010 Survey Was Conducted:

A sequel to Edison Research's survey from 2000,

"Radio's Future: Today's 12 to 24 year-olds"1533 interviews nationwide

875 interviews age 12-24 (demo)

888 interviews age 22-34 (cohort)Online survey of respondents ages 12 to 34

employing "KnowledgePanel" from Knowledge

NetworksInterviews conducted 9/8 - 9/13, 2010

Data matched to national age and sex demographics


4/50

What you will see today:

The impact of an incredible decade ofmedia transformation

The extraordinary resilience of radio

And -- the challenges radio faces


5/50

27%37%

27%

6%

3%

"Which best describes your spending over the past twelve months on

discretionary expenses, such as entertainment, recreation, or leisure items?"

Have significantly

cut back

Have cut back a little

Have not changed spending ondiscretionary expenses

Spending a little more

Spending significantly more

Base: Age 12-24

Remember the halcyon days of theInternet Bubble leading into 2000?

They aren't here anymore


6/50

The Cell Phone:

The most influentialdriver of changed habits


7/50

Yes

81%

No

19%

2000: 12-24s 2010: 12-24s

Yes

29%

No

71%

"Do you have your own cell phone?"

The cell phone goes fromsomewhat rare device to must-have

among 12-24s in ten years time


8/50

Yes

43%

No

52%

Don't know

5%

"Is your cell phone also a smart phone?

(It has advanced capabilities beyond a typical mobile phone such as the ability to send and receive

email, access the Internet, listen to audio and watch video, and download apps)"

Base: Age 12-24 and have own cell phone

More than four-in-ten 12-24swho carry cell phones say

theirs is a 'Smart Phone'


9/50

"Do you ever (item) on your cell phone?"

92

51

50

45

40

37

18

16

0 20 40 60 80 100% ever doing each activity

Send or receive text messages

Browse the Internet

Play games

Use social networking sites such asFacebook or Twitter

Listen to music you havetransferred/downloaded onto the phone

Watch video

Listen to Internet-only radio

such as Pandora

Listen to the stream of any

FM or AM radio stations

Base: Age 12-24 and have own cell phone

12-24 year old cell users engage in abroad variety of behaviors on phones;'Radio' streams narrowly trail Pandora


10/50

"Do you have your own...?"

81

56

46

35

7

3

2

0 20 40 60 80 100

% owning device

Laptop computer

Apple iPod

Portable MP3 player

other than Apple iPod

Apple iPhone

Apple iPad

Portable hand-held book readersuch as Amazon Kindle

Cell phone

Base: Age 12-24

Today's 12-24s own a broadvariety of devices -- most of

which did not even exist in 2000


11/50

Radio:

Good News and Bad News


12/50

hours:minutes

"In the last 24 hours, approximately how much time did you spend...?"

0

0

0

0

0

0

0

On the Internet

Watching television

Listening to the radio

Playing video games

Talking on the telephone

Reading magazines

Reading newspapers

2000: 12-24s

0:59

2:37

1:44

0:24

0:17

2:43

0:42

In 2000, 12-24s self-reported one hourper day on Internet; 2:43 on radio


13/50

hours:minutes

"In the last 24 hours, approximately how much time did you spend...?"

3

3

1

1

1

0

0

On the Internet

Watching television


Playing video games


Reading magazines

Reading newspapers

2000: 12-24s

2010: 12-24s

2:52

1:24

0:08

2:47

0:11

1:10

1:04

0:59

2:37

1:44

0:24

0:17

2:43

0:42

Ten years later, teens and youngadults report nearly three hours perday on Internet and much less radio


14/50

"Compared to one year ago, are you spending more, less or the same amount of time...?"

2

2

7

16

4

22

27

40

12

14

35

22

30

23

23

17

17

28

36

44

43

35

45

45

46

33

40

48

18

27

19

28

10

10

9

20

On the Internet

Watching television


Playing video games


Reading magazines

Reading newspapers

Going to concerts

Going to movies

0 20 40 60 80 100

LessMore SameDon't Know/

NA

Base: Age 12-24

Radio is one of only three options with a'net more' among 12-24s; along withInternet and surprisingly, telephone


15/50

Almost every day

4%

Regularly, but not daily

10%

Sometimes28%

Almost never

58%

"How often do you read a printed newspaper?"

Base: Age 12-24

If 'Schadenfreude' helps:Hey, you could be working in

the Newspaper Industry!


16/50

38

45

42

39

46

45

40

27

51

46

31

23

18

17

16

14

88

90

72

62

65

62

56

42

0 20 40 60 80 100

% finding out about new music from (item)


Friends

YouTube

Music video channels

Music featured on television shows

Appearances by artists on television

Social networking Web sites

Internet radio stations like

Pandora, Last.fm or Yahoo Music

page 1

Base: Age 12-24

Frequently Sometimes"How often do you learnabout new music by...?"

Radio remains the leading sourcefor learning about new music


17/50

22

26

34

27

32

23

18

11

11

10

9

8

8

3

34

36

43

36

40

31

20

0 20 40 60 80 100

% finding out about new music from (item)Base: Age 12-24

Frequently Sometimes

Looking through friends libraries

using Limewire or a similar service

Recommendations from online musicstores like iTunes or Amazon.com

Songs featured in video games

Streaming AM/FM radio stations online

Concerts or other live performances

Web sites/blogs thatdiscuss new music

Music magazines such as

Rolling Stone, Spin or Vibe

page 2

"How often do you learn

about new music by...?"

Radio streams are referencedby more than one-third of 12-24s

as a source for new music


18/50

5

8

10

11

10

17

21

31

15

20

24

31

37

36

40

37

53

52

49

45

33

37

31

25

27

20

17

13

20

9

8

8

0 20 40 60 80 100

You listen to AM/FM radio in order tohear your favorite songs

You listen to AM/FM radio in order

to learn about new songs

You listen to AM/FM radio in order to find outwhat the popular songs are

You only ever listen to AM/FM radio in the car

You enjoy hearing personalities and

DJs along with the music

You regularly use AM/FM radio for news updates

Agree

Strongly

You listen to AM/FM radio in order to find outabout things going on in your community

You regularly listen to talk radio/sports talk

radio hosts on AM/FM radio

Base: Age 12-24 and ever listen to AM/FM radio

Agree Disagree

Disagree

Strongly

"Do you agree or disagree...?"

Radio's strengths: Hits, New Music,to know what's popular; and a

majority do want personality


19/50

None64%

One15%

Two9%

Three or more12%

"Approximately how many concerts have you attended in the last year?"

None43%

One

20%

Two13%

Three or more24%

Mean: 0.9 concerts attendedMean: 2.1 concerts attended

2000: 12-24s 2010: 12-24s

Also the concert industry -- onceseen as the great hope of music --

has been whacked by the economy


20/50

From friends, family or coworkers43%

Heard on AM/FM radio station

17%

Social network site

10%Music artist/group Web site

8%Ticket Web site

7%Email from the concert venue3%

AM/FM radio station Web site

1%

Other

4%

Don't know

7%

"Of those concerts you attended, where did you most often first hear about them?"

Base: Age 12-24 and have attended at least one concert in last year

Radio tops social media assource for concert information

2 2 l f h i l


21/50

Average number of music CDs

purchased in last 12 months

"Approximately how many music CDs have you bought in the last 12 months --

that is, the physical or packaged disk?"

11.3

3.4

11.3

4.3

2000: 12-24s

2010: 12-24s

2000: 12-24s

2010: 22-34s

12-24s report vastly fewer physicalCDs purchased; even the 'cohort'

members have dropped by 62%


22/50

785 770

680655 667

615 595

500

427380

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0

100

200

300

400

500

600

700

800

900

1000

Digital album salesPhysical album sales

Album sales in millionsSource: Soundscan

Soundscan, tracking all ages, showsthe dramatic drops in album sales

With th d t f d i ' t '


23/50

Yes

65%

No

35%

2000: 12-24s 2010: 12-24s

Yes

31%

No

69%

"Have you ever downloaded MP3s or other digital music files from the Internet?"

With the advent of devices, 'stores'and broadband, way more

12-24s now download music

M f


24/50

"How often do you obtain music by...?"

16

12

9

8

6

5

4

3

6

7

4

4

4

3

2

2

23

19

13

12

10

8

6

5

0 10 20 30

Purchasing digital music files

online from iTunes

Downloading for free from peer-to-peer or

BitTorrent apps like Limewire

Receiving digital music files from a friend viae-mail/IM/Internet/sharing a flash drive

Downloading music for free from an

artist/record label Web site

Downloading music for free

from an MP3 blog

Downloading files online fr. music sub. services

w/ monthly fee for unlimited downloads

Once per weekor more

Once per month or more(but less than once per week)

Purchasing through a direct link from an onlinemusic service such as Pandora or Shazam

Purchasing digital music files

online from Amazon.com

Base: Age 12-24

Many of our youngrespondents were happy to

report their 'illegal' downloads

I th l t d d R di h l t it


25/50

% saying "yes"

"In the morning, do you regularly...?"

49

42

42

41

8

62

38

16

74

29

Listen to music other than the radio

Watch TV

Use the Internet

Listen to the radio

Read a newspaper

0 20 40 60 80 100

2000: 12-24s

2010: 12-24s

In the last decade, Radio has lost itsedge as the most prevalent activity

in the morning for young people

Radio remains the top choice for


26/50

% saying "yes"

"In the morning, do you regularly...?"

35

45

47

53

14

62

38

16

74

29

Listen to music other than the radio

Watch TV

Use the Internet

Listen to the radio

Read a newspaper

0 20 40 60 80 100

2000: 12-24s

2010: 22-34s

Radio remains the top choice for22-34s, but Internet and TV have

nearly eliminated the gap


27/50

Watch TV

24%

Listen to radio

22%

Read newspaper

2%

Music other than radio

18%

Use Internet21%None/Don't know

14%

"Which do you do most in the morning?"

2000: 12-24s

Watch TV

18%

Listen to radio

44%

Read newspaper

6%


21%Use Internet

4%

None/Don't know

6%

2010: 12-24s

Television has passed Radio as the

'most used' in the morning among 12-24s

Over ten years this cohort still


28/50

Watch TV

25%

Listen to radio

29%

Read newspaper

3%Music other than radio

9%

Use Internet

23%None/Don't know

11%

"Which do you do most in the morning?"

2010: 22-34s

Watch TV

18%

Listen to radio

44%

Read newspaper

6%


21%Use Internet

4%

None/Don't know

6%

2000: 12-24s

Over ten years, this cohort stilluses Radio most in the mornings

but Internet and TV grow

Biggest reason they don't listen


29/50

74

73

62

45

39

75

74

63

47

25

0 20 40 60 80 100

2000: 12-24s

2010: 12-24s

AM/FM radio stations play too many commercials

"Do you not listen to AM/FM radio more because...?"

% saying "yes" this is a reason they

do not listen to AM/FM radio more

You would rather listen to your own music instead,such as on your iPod/mp3 player or CDs*

*2000 wording: "CDs and cassettes"

page 1

AM/FM radio stations have too much talk

You prefer to watch television instead

You prefer to play video games instead

Biggest reason they don t listenmore hasn't changed one bit:

Too Many Commercials

Interestingly today's 12 24s are less


30/50

37

36

30

26

16

43

51

44

0 20 40 60 80 100

2000: 12-24s

2010: 12-24s

You dont hear the music you like on AM/FM radio

"Do you not listen to AM/FM radio more because...?"

You just dont think to listen to

AM/FM radio more often

page 2

You dont have enough time to listen

You prefer Internet-only radio such as Pandora

DJs and personalities that you

like are no longer on the air

% saying "yes" this is a reason they

do not listen to AM/FM radio more

Interestingly, today s 12-24s are lesslikely to say that they aren't hearing

the music they like on the radio

In these job-challenged days --


31/50

64

60

59

36

25

66

71

31

29

0 20 40 60 80 100

2000: 12-24s

2010: 12-24s

The radio stations in your local area

do a good job of playing all the

kinds of music you want to hear

Being a radio station DJ seems like

it would be a really cool job

% agreeing with statement

You would be very disappointed if the AM/FM radiostations you listen to no longer existed

In the future, no one your age will

listen to the radio because

everything will be on the Internet

In the future, no one your age

will watch television because

everything will be on the Internet

In these job-challenged days --why do so few young people think

Radio DJ sounds like a cool job?

They like us, theyreally ike us!


32/50

Social Networking:

An Entire New Form

of Media Emerges

Three-quarters of 12-24s use


33/50

8

4

16

28

17

61

17

2

2

18

3

8

18

19

8

12

55

4

MySpace

Facebook

Twitter

0 20 40 60 80 100

Unfamiliar

Actively

Use

Occasionally

Use

Haveacct./profile,

do not use

Hadacct./profile,

deleted it

Familiarwith, but

never used

Base: Age 12-24

Three-quarters of 12-24s useFacebook at least occasionally;

MySpace struggles


34/50

"Compared to one year ago, are you spending more, less or the same amount of time using...?"

9

3

14

59

17

34

22

30

28

10

51

24

MySpace

Facebook

Twitter

0 20 40 60 80 100

LessMore SameDon'tKnow

Base: Age 12-24 and have ever used (social network)

Facebook appears unstoppable

Communication between listener


35/50

22

8

8

7

2

Phone

Text message

Facebook

Email

Twitter

0 10 20 30 40

"Have you ever communicated with an AM/FM radio station or one of its DJs or personalities by...?

% saying "yes"

Communication between listenerand radio station via modern

means is still in development stage


36/50

Music Trends:

Some things change;

One thing stays exactly

the same

Top 40 is ascendent in the


37/50

"Think about the radio station you listen to most. What type of music does it play?"

22

18

108 8 8

5 4

1 1

23

10

20

6

12

5

2

8

3

1

Hip-Ho

pan

dRa

p

Top40

HitM

usic

Alte

rnative

Rock

Country

R&B

ClassicR

ock

Cont

.Christia

n

H

ardRo

ck/Hea

vyMetal

SoftRo

ck

Classic

al0

10

20

30

2000: 12-24s 2010: 12-24s

Top 40 is ascendent in thelast decade while both

Contemporary Rock formats are halved

Today's 22-34s have grown


38/50

"Think about the radio station you listen to most. What type of music does it play?"

13

16

12 119

75

32 3

23

10

20

6

12

5

2

8

3

1

Hip-Ho

pan

dRa

p

Top40

HitMu

sic

Alte

rnativeR

ock

Country

R&B

Clas

sicR

ock

Cont

.Christia

n

HardRo

ck/Heavy

Metal

SoftRo

ck

Clas

sical

0

10

20

30

2000: 12-24s 2010: 22-34s

Today s 22 34s have grownaway from Rap and Rock; into

Top 40, Country and Christian

What are your five favorite


39/50

2000 2010

1. Eminem 1. Eminem

2. 'N Sync 2. Lady Gaga

3. Limp Bizkit 3. Lil Wayne

4. Britney Spears 4. Taylor Swift5. Korn 5. Drake

6. Backstreet Boys 6. Rihanna

7. DMX 7. Beatles

8. Dr. Dre 8. Katy Perry

9. Metallica 9. T.I.

10. Blink-182 10. Green Day

at a e you e a o temusical artists or group?

(most mentions)

Base: Age 12-24


40/50

The Big Threat:


41/50

Yes

33%

No

67%

"Have you ever listened to the Internet-only radio station called Pandora?"

Base: Age 12-24

One-in-three 12-24s have tried Pandora

Pandora has a self-reported 13%


42/50

8

5

20

1311

6

Last Month Last Week0

10

20

30

40

AM/FM online streams Pandora Other Internet-only streams (not Pandora)

% listening to each type of online radioBase: Age 12-24

pweekly cume, more than all other

Internet and AM/FM streams combined

Pandora's most 'non-radio' aspects


43/50

55

52

46

46

42

39

29

8

0 20 40 60 80

You like the ability to create radio stationsbased on your favorite songs or artists

You like the ability to skip songs

Pandora is easy to use

Pandora seems to play a wider selection ofsongs than AM/FM radio stations

Pandora has fewer commercials

than AM/FM radio

Pandora learns about your personal music tastesand continues to adapt the music it selects

Pandora has no personalities or DJs

Pandora would be better if it had personalities orDJs who talk about the music

Base: Age 12-24 and ever listen to Pandora

"Do you agree or disagree you

listen to Pandora because...?"

% agreeing "strongly"

p(create stations and skip songs)

are its most 'killer apps'


44/50

Our Next Steps:

Radio Innovations

One-third of 12-24s say that putting


45/50

Listen a lot more

11%

Listen a little more

23%

No effect35%

Do not have cell phone

19%

Don't know

12%

"If your cell phone had an FM radio tuner, would it lead you to listen to FM radio a lot more than you donow, a little more than you do now or would it have no effect on your radio listening?"

Base: Age 12-24

an FM tuner on their cell phones

would lead to more listening


46/50

Very interested

28%

Somewhat interested

39%

Not very interested

23%Not at all interested

3%

Don't know

7%

"Suppose the vehicle you are in the most had a radio with the ability to pause, rewind

and fast forward live AM/FM broadcasts, similar to a television DVR.

It would also be able to record AM/FM shows on demand.

How interested would you be in your vehicle having a radio with these features?"

Base: Age 12-24

There is significant interest in a

Radio TiVo type of radio application

Today's 12-24s are only slightly morelik l h i i d R di S i i


47/50

% saying "yes"

42

46

42

61

2000: 12-24s

2010: 12-24s

2000: 12-24s

2010: 22-34s

0 20 40 60 80 100

"Have you ever visited a radio station's Web site?"

likely to have visited a Radio Station site;

the 'cohort' does show increased usage

After all these years and all the radioi l l f i t 12 24


48/50

Yes

42%

No

58%

"Have you ever heard of HD Radio?"

Base: Age 12-24

commercials, only four-in-ten 12-24s

have even heard of HD Radio

R d ti t R di f th


49/50

Recommendations to Radio from the

2010 "American Youth Study"

Send morestations after these demos or

watch them fade away -- the consumer andthe advertisers stillsee radio as a youthmedium -- why don't the owners?

Claim Internet audio or lose itIt can't just be your over-the-air productMust be a font of innovation -- learn from what isdriving Pandora

Find ways to work together as an industryStandardization and co-ordination can createmultiplier effects

Recruit young people -- Radio's biggestchallenges are HR challenges


50/50

edison research american youth study radios future

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