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Spotify poaches radio revenues

Spotify poaches radio revenues

Published: 16 Nov 2010 11:22 GMT+01:00
Updated: 16 Nov 2010 11:22 GMT+01:00

Media investment grew in October by 26 percent, according to Sweden's Media Bureau's (Sveriges Mediebyråer's) members compared with last year.

However, the market for advertising-funded radio only increased by 7.5 percent in the same period. From January to October, the total increase in media investment in the radio market was only 11 percent significantly worse than the overall market.

"The decline of the radio has two main explanations. Radio was the category that relatively weathered the recession best last year. A consequence is that its recovery will not be as strong as a percentage," Håkan Gustafsson, CEO of Carat Scandinavia, which conducted the survey on behalf of the organisation, said in a statement on Tuesday.

In addition, the sharp increase in the use of so-called smartphones has also contributed to an increase in listening to podcasts. This in turn has led to a rise in listeners to national broadcaster Sveriges Radio (SR) as a whole because it has the largest selection of podcast programmes in Sweden.

"At the same time, we clearly see that commercial radio is starting to lose listeners to the internet [through services] such as Spotify. This applies both to the proportion of listeners and share of advertising money," added Gustafsson.

The categories that increased the most in terms of media investments were television, cinemas and local press. Total investments from January to October rose 18 percent from last year, while the total brought in in September was 1.3 billion kronor ($190 million).

Cinemas had a good month as well, growing 35 percent compared with 2009. For the year up to October, media investment in cinema has increased 24 percent, ahead of the entire market.

Television growth also continued with media investment growth of 44 percent compared with the previous year.

"October's positive development for television may be partially explained by a seasonal effect since there were comparatively low results in September," Sveriges Mediebyråer CEO Staffan Slörner said in a statement.

Vivian Tse (vivian.tse@thelocal.se)

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Your comments about this article

13:30 November 16, 2010 by roch
The radio stations here are DIRE. I travel a lot throughout the day and always have the radio on in the car. I am constantly switching between stations as the same tracks are always playing over and over and over again. Sometimes I feel so frustrated, especially after a long day and I want to listen to something... just not the same old shite rolled out every day all day.

Swedish radio stations need more variety and maybe a rule that a song is not played again within a two hour time frame!!!!!!

I have spotify and I love it. I do not listen to the radio at home (for the above reasons) but I will search through Spotify, discovering new bands I like and listening to old favourites.

When radio stations stop treating their potential audience as 13-17 year olds then maybe people will tune in again.

More variety please!!!!!!
13:53 November 16, 2010 by Rishonim
This is good news.. Die radio-fokker, die! I also drive 1000Kilometres round trip each weekend and the radio is so pitiful. Even more annoying are those high pitched voiced DJ girls. I am so happy the radio is coming to an end. Now, if only Spotify would get its act together and sign on steady artist so they can stay in your play list more than a month. Each time a go to my playlist it seems all the cool songs have been removed for some strange reason. And this is with a premium subscription. The next ones to go should be video rental stores (except Casablanca on Sveavägen 88) with those ridiculous late fee charges.
08:00 November 17, 2010 by J Jack
Radio is a cast system in the music world. It only favors the industry and songwriters who don't have big deals never get heard. We shouldn't be bothered to see it finally change forced by creative alternatives. I have Sirius & XM satelite radio in my car but can't receive it in Europe because all the dishes are pointing somewhere else ... you guessed it, the good ol' USA. Spotify is not poaching, It's just filling the gap of the missing Sat stations ... and a good thing too!
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