WHAT PANDORA MEANS FOR RADIO
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1 WHAT PANDORA MEANS FOR RADIO Summary Report November 2012
2 Introduction This summary report contains the results of a survey of American online adults conducted by Vision Critical between September 26 and October 1, Commissioned by the Canadian Association of Radio Broadcasters, this survey is an adjunct to a larger Canadian study exploring the role and relevance of radio in today s fast-changing media landscape. The purpose of this U.S. survey was to better understand the impact of Pandora on broadcast radio in in the U.S. in advance of Pandora s anticipated launch in Canada within the next few years. Specific objectives included: The impact of Pandora on tuning to broadcast radio; and The role, if any, that broadcast radio still plays among Pandora listeners. 2
3 Methodology Online survey conducted via computers, tablets and smartphones using Vision Critical s Sparq survey platform Sample: 1,017 American adults; of these, 323 identified themselves as Pandora users (used an Internet-only audio service in the past month; and at least sometimes use Pandora) Sample was randomly selected from Vision Critical s online research panel of 150,000+ Americans, Springboard America* Final results weighted to reflect the population distribution of the U.S. * Note: The results presented here reflect the perceptions and reported behavior of engaged online consumers on the Springboard America panel. Their use of online technology can be considered one step ahead of the general public a relevant sample for providing forward-looking insights to the radio industry. Springboard America was recently used by Vision Critical s public affairs division, Angus Reid Public Opinion, to successfully predict results in the most recent U.S. election, earning the firm s polls a top ranking from Nate Silver s fivethirtyeight.com and the dailykos.com. 3
4 More than 4-in-10 online adults report listening to Internet-only audio services in the past month 42 % Base: American online adults, aged 18+, Headphones from The Noun Project 4
5 Pandora is, by far, the most widely listened to Internet audio service, followed by iheart Radio 85% -among past month listeners to Internet-only audio- % say ever listen % say listen weekly % say listen daily 63% 36% 45% 27% 16% 35% 34% 19% 20% 11% 12% 27% 23% 16% 19% 13% 11% 7% 9% 7% Base: American online adults, aged 18+, listened to Internet audio service in past month B7b. How often, if ever, do you listen to each of these Internet-only audio services? 5
6 Pandora listeners skew towards Millennials and Gen X % 42% % 39% Say listen to Pandora daily % 21% Say listen to Pandora weekly % 6% 5% 13% Base: American online adults, aged 18+ B7b. How often, if ever, do you listen to each of these Internet-only audio services? 6
7 Men and women are equally likely to report listening to Pandora. Men 16% 27% Say listen to Pandora daily Say listen to Pandora weekly 14% Women 25% Base: American online adults, aged 18+ B7b. How often, if ever, do you listen to each of these Internet-only audio services? 7
8 Pandora shows robust growth more than 1/3 of its audience say they started listening in the past year. When current listeners say they started listening to Pandora 3+ years ago 21% In past year 36% 2 - <3 years ago 18% 1 - <2 years ago 25% Base: American online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora B7c. How long have you been listening to Pandora? 8
9 Pandora listeners report spending more time with AM/FM radio than non-pandora listeners do. Average reported tuning to AM/FM 19.1 hours/week 12.7 hours/week Don't listen to Pandora Pandora listeners Base: American online adults, aged 18+ B5a. On a typical weekday, how much time would you say you spend listening to AM/FM radio? B5b. And what about on the weekend? How much time would you say you spend on a typical weekend day listening to AM/FM radio? 9
10 Overall, Pandora users report spending more time listening to AM/FM now than they did 2 years ago. Reported change in listening to broadcast radio over past 2 years 22 % Less Time 24 % More Time Net Change + 2% Base: American online adults, aged 18+ who listen to Pandora B2. Thinking back over the past two years, would you say you are doing more or less of the following listening to AM/FM radio Clock designed by Dmitry Baranovskiy from The Noun Project 10
11 Tenured and recent Pandora listeners spend about the same amount of time listening to AM/FM radio. Average reported tuning to AM/FM 18.4 hours/week 19.7 hours/week Listened to Pandora <2 years Listened to Pandora 2+ years Base: American online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora B5a. On a typical weekday, how much time would you say you spend B5b. And what about on the weekend? How much time would you say you spend on a typical weekend day 11
12 Pandora listeners are music fans, who devour music across all platforms. % report listening daily AM/FM radio 55% 65% cassettes/ cds 19% 36% Listen to Pandora Don't listen to Pandora ipod/mp3s 12% 46% 27% 9% Base: American online adults, aged 18+ B1. How often, if ever, do you normally read, see, hear or access the following media sources? Cassette designed by Mathies Janssen, CD & ipod from The Noun Project 12
13 Laptop/desktop computers are Pandora listeners most common access point to Internet radio. % Reported listening to Internet-only audio in the past month on each platform desktop/ laptop 67% mobile phone/ smartphone 39% Tablet 14% Base: American online adults, aged 18+ B6. Thinking of the past month, have you listened to the following on these devices? Laptop designed by Sam Ahmed, Smartphone designed by George Agpoon, Tablet designed by Megan Hillman from The Noun Project 13
14 Pandora listeners are also much more likely than non- Pandora listeners to access AM/FM on digital devices. % Reported listening to AM/FM radio in the past month on each platform desktop/ laptop 12% 31% Pandora listeners mobile phone/ smartphone 3% 16% Don't listen to Pandora Tablet 8% 1% Base: American online adults, aged 18+ B6. Thinking of the past month, have you listened to the following on these devices? [AM/FM radio stations] Laptop designed by Sam Ahmed, Smartphone designed by George Agpoon, Tablet designed by Megan Hillman from The Noun Project 14
15 Most Pandora listeners continue to see AM/FM radio as playing an important role in their life. Totally indispensible Important part of my life Sometimes useful Couldn't care less about it Importance placed on Pandora by Pandora listeners 14% 38% 44% 4% Importance placed on AM/FM by Pandora listeners 15% 37% 39% 9% Base: American online adults, aged 18+; listen to AM/FM radio; listen to Pandora C1a. Which of these statements best describes how you personally feel about each of the following? 15
16 Why Pandora listeners still place value on AM/FM radio: Personal touch personalities that entertain / banter from real people / interactive / talk radio / call on the phone to have them play a favorite song / giveaways and contests It helps me feel engaged knowing someone normal just like me is speaking their opinion for everyone to hear. (19 year-old male) Local and live info local events, news, and businesses / local news/sports / local advertising road conditions / weather alerts / keeps me in touch with the world / breaking news and traffic / always current / updates about contests, concerts, etc. / live news as happens Honestly, the commercials how I hear about concerts and events going on, things I'd like to do with my friends. (21 year-old female) Music discovery/curation mix of music that you might not have picked out / new music, random music / hit music that keeps me current More up to date and gives you information on the newest music and what people are starting to like. (18 year-old female) variety of song and genre choices / diversity of music / variety of old and new music Easy/convenient easily accessible whether you're in your home or car / easy to use while driving listen in the car without worrying about making any technology work...just switch the button on / anywhere anytime without logging in / don t need to use the data plan on my phone / don't have to worry about battery charges Base: American online adults, aged 18+ who listened to Internet-only audio in past month & listen to Pandora C2. Given all the other audio alternatives that are now available, what are those things about AM or FM radio that set it apart and give it the greatest value to you personally? 16
17 Pandora listeners give AM/FM radio an edge over Internet radio for convenience and feeling connected... % of Pandora listeners associating each audio medium with each attribute 65% Easy 38% 59% 55% 63% Convenient 35% 61% 53% AM/FM Radio Internet audio Satellite radio ipod/mp3 52% Helps me feel connected 33% 39% 22% Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated C3a b. Which of the following words or phrases, if any, do you associate with each of these? 17
18 but, while most still listen, Pandora fans are also more likely to see AM/FM radio as boring and tiresome. % of Pandora listeners associating each audio medium with each attribute 44% Get tired of it after a while Boring 7% 6% 9% 15% 16% 24% 20% AM/FM Radio Internet audio Satellite radio ipod/mp3 Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated C3a b. Which of the following words or phrases, if any, do you associate with each of these? 18
19 How Pandora Listeners See the Role that AM/FM Radio Plays in the Audio Landscape This chart shows, based on proximity, those attributes with which each audio medium is most uniquely associated among Pandora listeners e.g., AM/FM radio is most uniquely associated with being convenient, easy, helps me feel connected, boring and get tired of it after a while. Relaxing INTERNET AUDIO Fun SERVICES Energizing Interesting Offers me something I can t get elsewhere Helps me discover music I haven t heard before SATELLITE RADIO Personal IPOD/MP3 Puts me in a good mood Convenient For people like me Easy Makes me feel connected AM/FM RADIO Get tired of it after a while Boring Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated C3a b. Which of the following words or phrases, if any, do you associate with each of these? 19
20 Summary & Implications The findings indicate that AM/FM radio and Pandora can co-exist. At least among the current pool of Pandora listeners, it s not a zero-sum game. Pandora is not replacing AM/FM tuning, it s additive just another way music fans can indulge their passion for music. AM/FM radio still plays a unique role among Pandora listeners. AM/FM is easy and convenient. But, more important, broadcast radio offers a personal connection they don t get from Pandora or other audio alternatives. Among the implications for broadcast radio: Pandora and similar services are not the end of radio, but rather an opportunity for broadcast radio companies to expand their footprint. Like earlier technological challenges to radio (TV, 8-tracks, the Walkman, CDs), the robust growth of Pandora shifts the landscape, re-defining the role that broadcast radio plays. Broadcast radio can best stay relevant by focusing on the personal connections and live and local content that other audio alternatives can t deliver. 20
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