The other day I was doing my presentation on how video services are changing in the face of the web. You can find that presentation onli Slideshare. After my presentation, one of my co-workers came up to me and pointed out www.iheartradio.com, launched in June. I had not checked it out, but the past couple of days I've been poking around the technology. I find it somewhat interesting on a lot of levels, but I'd be surprised to see it take off to great success, but success maybe not what I would think (traditionally).
Why I find it interesting?
- I find radio to be a local medium/media channel. Radio for the most part is so largely homogenized on a national level that local personalities are the driving force. To this end, were I out of town, I would log on to listen to local news/information on the web. I think this serves as a great loyalty model for transient consumers location (think office or out of town listeners).
- Clear Channel, radio giant, is finally at least taking steps to figure out the web. I commend then for at least finally making an attempt to monetize the library of stations and material they stream. I do find value in aggregation of the stations.
- This might be largely a long tail model. They already are serving the content over the air. Why not simply add on-line to their packages? They already have advertisers, but a hard time showing numbers. This helps solve that business problem. Thus, I think that providing an additional channel is increasing consumer value and FINALLY being able to provide some sort of real metric is innovation in the world of radio.
- Along with the long tail model of getting a users here/there, they can do affiliate models with iTunes purchases and search marketing. I don't think this is the main source of revenue, but incremental revenue here can help fund the effort. Again, it's not like they are creating a new technology. They are simply re-channeling what they are already doing.
- They have both iPhone and Blackberry device support. Personalization in terms of location shift is important to consumers. In fact, most of the blog posts that I found were about getting the technology working on their mobile phones.
- They are using this as a platform to help facilitate HD radio knowledge. While I do know about HD radio, I can't fathom a reason to actually subscribe to HD radio--great education platform. If they can transition user behavior, that could be labeled a success.
- I believe there is a direct link between the revised streaming model that Pandora helped facilitate (statutory) and their roll out of iheartradio.com. I believe they probably had this plan for a while, but was sitting on a it a bit until that legislation passed.
Points of uncertainty
- If you drive people to web for radio, I think it will actually help other radio services, like Pandora or Grooveshark, more than anyone else. Although I think that IHR is great for local content, if I'm searching out music content, I'll expect more of a customized radio/content approach.
- In my last fifteen active years using the web, I can only recall twice looking for a radio station on the web (WFNX) and trying to listen to the Reds on the radio. I can listen to WFNX now, but the last time I tried to listen to the Reds on the web, it simply did not work or required a subscription model. Listening to ballgames on AM radio is nostalgic and very Cincinnati to me. WFNX is still awesome.
- HD radio, not sure about overall penetration yet. In my circle of techies and early adopters, I just don't that many people that actually use it. However, as I mentioned here, if they begin to transition the user behavior of users, perhaps people may consider HD service.
In my personal life, I help out with some local organizations and I help purchase radio media. So I see the potential as an advertiser (we get great results from radio, but hard to measure) and applaud the foray into the space. Whether or not it changes user behavior or not, I don't know. Although I do love this as a loyalty strategy, I'm in a bit of wait and see mode. However, I think change is good at any level. It's still too early to tell.
Are you listening to web radio? If so, what technologies are you using? Comment below.
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