Streamies First Accessed Webcasting Within The Last Year.

Most “streamies” – those who have watched or listened to streaming media online – first experienced Internet webcasting in the last 12 months according to a new study by Arbitron Inc.and Edison Media Research.

The study, “Internet VII: The Internet & Streaming: What Consumers Want Next” finds that 56 percent of audio streamies and 49 percent of video streamies say they first began tuning to Internet audio and video in the past year.

“While the growth of the webcast audience is remarkable, the fact that most streamies first tuned in within the last year indicates that webcasting is still in its infancy,” said Bill Rose, vice president and general manager, Arbitron Webcast Services. “Therefore, the industry needs to advertise and promote its benefits to lure those consumers who have not yet tuned in and to spur greater use of the medium by those who already have.”

From July 2000 to July 2001, the number of U.S. consumers, age 12 and older, who have accessed streaming media rose from 67 million (30 percent of Americans) to 78 million (34 percent). Overall, 67 million reported having ever accessed audio streaming and 41 million reported accessing video streaming at least once in the past year.

The study also finds more than one quarter (27 percent) of audio streamies would be very interested in paying a small subscription fee to listen to songs or albums from their favorite artists. Both video and audio streamies are very interested in online concerts. Almost a quarter (24 percent) of audio streamies and one-fifth (19 percent) of video streamies say they are willing to pay a small fee for online concerts. Consumers also show substantial interest in subscribing to various types of sports content. In the last month, 18 percent of streamies who listen online said they are “very interested” or “somewhat interested” in paying a small fee to listen to Major League Baseball(R) games on the Internet.

“This study reinforces that consumers believe advertising is a fair trade for free online content,” said Larry Rosin, president, Edison Media Research. “Now we also see evidence that supports streaming subscription models. Consumers show significant interest in paying a small fee for unique and compelling streamed content, just as they have shown their willingness to pay for premium channels and pay-per-view events on cable.”

The study also reports consumer preferences for “program your own” channels versus pre-programmed audio channels. Almost half (44 percent) of audio streamies prefer a “program your own” channel that asks them to indicate the artists they enjoy and plays music according to their indicated taste. Another 46 percent prefer a pre-programmed channel that plays the music they enjoy but does not ask the consumer for their artist preferences. Younger listeners find the “program your own” Internet audio channels more appealing with 59 percent of teens and 52 percent of 18- to 24- year olds choosing the “program your own” channel versus the pre-programmed option.

According to the study, online listeners are equally split between their preferences for audio channels that play continuous music without disc jockeys and audio channels that have online personalities. Nearly half (47 percent) prefer the “no DJ” format and another 46 percent prefer programming “with a DJ.”

However, age makes a difference in the consumer’s preference for channels “with a DJ.” More than half (53 percent) of streamies 12- to 24-years old prefer channels that have personalities to announce songs and provide information and entertainment versus only 41 percent among streamies over the age of 25.

Additional findings from the Internet VII study include:

— Asked which activities they are spending less time with due to the time they spend online, Americans say they are spending less time with both TV and print. One-third (33 percent) said they are watching less television due to the time they spend on the Internet, followed by 25 percent of magazine readers 23 percent of newspaper readers. In addition, 16 percent said they are listening to radio less because of the time they spend on the Internet.

— Two-thirds of those who encountered a discontinued radio station webcast say that they are “very” or “somewhat” upset
that the radio station they listen to online stopped streaming. Among those who listened to audio on the Internet in the last week, and did not encounter stations that have stopped webcasting, however, 71 percent say they would search
for other types of Internet audio if the radio stations they listen to online were no longer available.

— Nearly 8 out of 10 audio streamies indicate that they would listen more if they had the ability to get on-demand
programming and if it were easier to find the types of content they are looking for. Nearly three-quarters (XX percent) of
audio streamies say they would listen more if they were able to listen on a device that is as easy to use as a regular
radio.

Download the Internet VII study CLICK below (Adobe Acrobat reader required):

http://www.arbitron.com/downloads/internet7.pdf

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