• Sweden edition
 
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

The radio is losing ground in the advertising market to digital broadcasters such as Spotify, according to a Swedish media industry organisation.

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)

Don't miss...X
Left Right

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!
Today's headlines
Police seeking missing Swede in London
Sofie Marie Jansson, who is currently missing in London. Photo: Metropolitan Police

Police seeking missing Swede in London

British police have issued a plea for tips in the search to find Swedish national Sofie Marie Jansson who hasn't been seen for almost a week. READ () »

University applications rocket to record high

University applications rocket to record high

Swedish universities continue to draw vast amounts of applicants with the number of prospective students seeking a third level education increasing for the seventh year in a row. READ () »

Man jailed in US over Lars Vilks murder plot
Swedish artist Lars Vilks pictured in New York in 2012. Photo: Linus Sundahl-Djerf/TT

Man jailed in US over Lars Vilks murder plot

American authorities have sentenced a 20-year-old accomplice of 'Jihad Jane' to five years in prison for an attempted terror plot to kill Swedish artist Lars Vilks, after getting involved with the murder plans when he was a teenager. READ () »

Sweden scraps 'new start zones' after EU input
Integration Minister Erik Ullenhag visits a school in Tensta, one of the neighbourhoods mentioned when he and his colleagues first floated the new start zone proposal. File: TT

Sweden scraps 'new start zones' after EU input

Sweden has abandoned a plan to ease taxes for small companies in blighted areas after the European Commission challenged its legality. READ () »

'Easter eggs an invitation to spread germs'
A typical Swedish Easter egg. Photo: Jessica Gow/TT

'Easter eggs an invitation to spread germs'

A Swedish microbiologist has warned that traditional Swedish Easter eggs laden with candy are an open invitation to the spread of bacteria and viruses. "Is this really a good idea?" he asked. READ () »

Jammed truck snarls Stockholm rush hour
Photo: Anders Wiklund/TT

Jammed truck snarls Stockholm rush hour

PICTURES: A truck got wedged inside a tunnel in central Stockholm on Thursday, with authorities concerned the accident may have damaged cables in the tunnel's ceiling. READ () »

Kids in Victorian garb mark Swedish Easter
A Swedish Easter witch holding daffodils. File photo: TT

Kids in Victorian garb mark Swedish Easter

In India, I'd notice Easter only from the traffic jam outside the churches, but here witches, egg hunts, and feathers mark the Christian holiday. The Local's Deepti Vashisht brings you the various shades of Swedish Easter. READ () »

Swedish MP ordered chemtrail probe
Chemtrails?: Shutterstock.

Swedish MP ordered chemtrail probe

A Swedish MP who launched an official government investigation into the existence of chemtrails tells The Local why he thinks Swedes deserve the truth, even if it may leave some conspiracy theorists unsatisfied. READ () »

PM pleads ignorance of Vattenfall's Nuon bid
Fredrik Reinfeldt answers the constitutional affairs committee's questions. Photo: TT

PM pleads ignorance of Vattenfall's Nuon bid

Sweden's prime minister on Thursday said Vattenfall itself, not its owners the Swedish state, had responsibility for the loss-making Nuon deal. READ () »

'Kockums submarine raid may be illegal': lawyer
Photo: TT

'Kockums submarine raid may be illegal': lawyer

A Swedish lawyer says the Swedish military may have broken the law when it raided the Malmö premises of German defence giant Thyssen Krupp. READ () »

RECEIVE OUR NEWSLETTER AND ALERTS
Society
Swedish supermarket Ica pulls contested Easter commercial off air
Kungahuset
Society
Swedish royals set baptism date for princess
finest.se
Gallery
People-watching April 16
Politics
Who's the prime minister's heir?
Alfie Atkins
Society
Are children's books the key to families integrating in Sweden?
National
'Sweden Dem protests cater to party's martyr image'
National
'Swedish research grants were fantastic, but now it's like Australia'
Society
Only in Sweden: The ten problems you'd never encounter elsewhere
National
Swedes stopped to take my picture, but didn't look me in the eyes
Business & Money
A swipe of the hand replaced cash and cards in Lund
YouTube
Features
Video: Oliver Gee finds out how to embrace The Swedish Hug
TT
National
Abba duo hints at reunion
Advertisement:
Private
National
Flash mobs hug it out across Sweden
Finest.se
Gallery
People-watching April 11-13
TT
Politics
Swedes to give six-hour workday a go
TT
Society
Aussie choir member wows Abba in Sweden
YouTube
Society
Stockholm magic a surprise YouTube hit
Fastighetsbyrån
Society
Gallery: The Local's Property of the Week
Private
Society
Swedes find 200-year-old gravestone in living room
Stockholm School of Economics
Sponsored Article
Why a bachelor's degree is no longer enough
Deepti Vashisht
Features
Deepti Vashisht dissects the magic of Sweden's personal ID number
Shutterstock
Society
Ten signs you've been in Sweden too long
Society
Jimi Fritze heard every word when doctors discussed taking his organs
Society
A Swedish farmer explains why the new bestiality ban is 'pointless'
ESL
Sponsored Article
Learning Swedish the easy way
Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Blog Update: The Diplomatic Dispatch

28 October 15:16

The Green Growth Group Summit »

"Today on the 28 October in Brussels, a large group of key EU Ministers and business people, including UK Secretary of State for Energy and Climate Change Edward Davey, and Swedish Environment Minister Lena Ek, will meet to discuss green growth. They all have a stake in resolving a challenge which, although it is crucial..." READ »

771
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com