Radio and streaming audiences are slowly converging over time, with overlap between the two increasing. While streaming growth continues, radio listening is experiencing only gradual declines. Younger audiences are more likely to use streaming services, while radio retains most older listeners. However, streaming has not replaced radio for music discovery or as a core listening experience for most consumers. The transition between the two will likely be gradual and generational as younger listeners replace older audiences.

1. MIDiA Research
Mark Mulligan
October 2018
Radio and
Streaming –
Learning to Live
Together
http://midiaresearch.com

2. [Ad supported] allows us to
reach much, much deeper
into the market.
“Gustav Söderström, Spotify

3. To me it’s creepy when I look at
something and all of a sudden
it’s chasing me all the way
across the web. I don’t like that
“
Tim Cook, Apple

4. 69%
64% 65% 64% 63%
73% 72%
70%
63% 65% 65% 64%
74% 73%
68%
64% 62% 63% 62%
72% 70%
68%
65% 62% 60% 61%
72% 73%
71%
73%
69%
67%
64%
75% 74%
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Weighted Average US UK Australia Canada
Radio Audiences Are Experiencing Cyclical But Slow Decline
%ofallconsumers
Radio Audience Penetration, Q4 2016 To Q2 2018, US, UK, Canada, Australia
Source: MIDiA Research Brand Tracker , US, Canada, Australia and UK n = 4,000

5. 34%
31%
34% 34%
32%
38%
41%
37% 33% 37% 38%
35%
41%
45%
25%
27% 25%
23%
25%
32% 33%
24% 25% 22%
22%
24%
32% 32%
27% 27% 26% 26% 25%
31%
33%
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
Weighted Average US UK Australia Canada
Streaming Audio is Growing, But Steadily Not Dramatically
%ofallconsumers
Streaming Music Audience Penetration, Q4 2016 To Q2 2018, US, UK, Canada, Australia
Source: MIDiA Research Brand Tracker , US, Canada, Australia and UK n = 4,000

6. %ofagegroup
RADIO AND STREAMING PENETRATION
%ofradiolisteners
The Gap Between Radio and Streaming is Narrowing, and Overlap is
Increasing Too, Which Means Radio’s Unique Audience is Lessening
Listen to radio
Stream music
40%
37% 38% 38% 37%
40%
45%
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
% RADIO LISTENERS THAT ARE ALSO STREAMERS
Streaming Music and Radio Listening Penetration and Overlap, Q4 2016 to Q2 2018, US, UK, Australia and Canada
Source: MIDiA Research Brand Tracker, US, UK, Australia and Canada n = 4,000
69%
64% 65% 64% 63%
73% 72%
34%
31%
34% 34% 32%
38%
41%
Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018
35%
31%

7. 5%
9%
20%
17%
19%
30%
16-19 20-24 25-34 35-44 45-54 55+
Radio Audiences Have the Scale But Are Getting Older While
Streaming Audiences are Much Younger
RADIO AUDIENCE AGE DISTRIBUTION STREAMING AUDIENCE AGE DISTRIBUTION
10%
16%
28%
19%
14%
14%
Radio and Streaming Audience Age Distribution, Q2 2018, US, UK, Canada, Australia
Source: MIDiA Research Brand Tracker, US, UK, Australia and Canada n = 4,000
72%
penetration
41%
penetration

8. Streaming Is A Major Part Of Most (But Not All) UK Radio Stations
Source: MIDiA Research Brand Tracker (02/18), UK only n = 1,000
Streaming Music Overlap With Selected UK Radio Stations, Q2 2018, UK
BBC RADIO 1 BBC RADIO 2 CAPITAL FM
7%
7%
16%
17%
19%
38%
44%
76%
Deezer
Google Play Music
Amazon Prime
Music
Apple Music
Soundcloud
Spotify
YouTube (For
Music Videos)
YouTube
4%
5%
6%
7%
12%
26%
35%
43%
Mixcloud
Google Play
Music
Soundcloud
Apple Music
Amazon Prime
Music
Spotify
YouTube (For
Music Videos)
YouTube
5%
7%
12%
13%
15%
42%
52%
71%
Amazon Music
Unlimited
Google Play Music
Soundcloud
Apple Music
Amazon Prime
Music
Spotify
YouTube (For
Music Videos)
YouTube
8%
10%
14%
16%
23%
35%
45%
74%
Amazon Music
Unlimited
Amazon Prime
Music
Deezer
Soundcloud
Apple Music
Spotify
YouTube (For Music
Videos)
YouTube
KISS
51% stream for free 35% stream for free 53% stream for free 47% stream for free

9. Streaming is Not Impacting Regular Radio Listeners’ Radio Listening
More than Overall Consumers
Consumers Response to Statement that they are Listening to Less Radio Because of Streaming, Q1 2018
% segment
16%
15%
33%
18%
18%
29%
27%
25%
22%
15%
17%
9%
24%
24%
7%
All consumers
Monthly radio listeners that stream
Streamers
Source: MIDiA Research Consumer Survey Q1 2018, US, Canada, Mexico, Brazil, Japan, Sweden,
Germany, UK, Australia, n = 7,758

10. YouTube is Fast Challenging Radio for Music Discovery, But Audio
Streaming Still Lags far Behind
Main Ways in Which Consumers Discover Music, Q1 2018
% consumers
13%
4%
5%
8%
8%
22%
26%
27%
29%
51%
52%
I don't discover much new music
Podcasts
Other
Magazines / newspapers
Blogs / websites
Streaming music services like Spotify
Personal recommendations
Via social media
Hearing songs on TV shows, movies or games
YouTube / Vevo
Radio
Source: MIDiA Research Consumer Survey Q1 2018, US, Canada, Mexico, Brazil, Japan, Sweden,
Germany, UK, Australia, n = 7,758
In the UK, radio still has
a big lead: 51% to
YouTube’s 35%, with
streaming on 21%

11. CONCLUSIONS
• Streaming is winning over younger audiences
• Radio is holding onto older audiences
• The high degree of audience overlap means that
transitions are not binary
• Streaming is not yet delivering on the core use vase for
radio for most consumers
• Radio has a disruption buffer to help it get its house in
order
• The real shift will be generational

12. Sign up to our free weekly research digest:
http://midiaresearch.com/blog
Contact: Mark Mulligan
Phone: +44 (0) 780 11 66 712
Email: mark@midiaresearch.com
Blog: http://musicindustryblog.wordpress.com
Twitter: @mark_mulligan