Value of radio declined by 10.6% in 2020, as podcasts continue to boom [report]
A new report on Australia’s media and entertainment sector has found that the value of radio declined by 10.6 % in 2020 due to the pandemic.
Commissioned by consulting giants PwC, the Media and Entertainment Outlook found that the total value of the radio segment sits at $1.4 billion, with the 10.6% decline being largely attributed to a loss in traditional radio advertising revenue.
The report acknowledged that while terrestrial radio and digital audio broadcasting (DAB) is expected to make a recovery once audiences return to predictable daytime patterns, it is not anticipated the sector will return to 2019 levels within the next four years.
PwC also noted that while metropolitan stations witnessed a decline in revenue, regional radio largely maintained its market share throughout 2020, with talkback radio also growing to dominate radio listenership once surveying resumed in September 2020.
Streaming, on the other hand, is predicted to continue to see a compound annual growth rate (CAGR) of 12% to 2025 based on midpoint forecasting scenarios, with the boom in alternative mediums such as podcasting and music streaming services leading the way.
Throughout the report, PwC also noted the significant maturity of the podcasting sector, highlighting the launch of Southern Cross Austereo’s (SCA) LiSTNR app, ABC’s Listen and Acast as being key to the medium’s continued popularity.
The report also claimed that the number of monthly podcast listeners reached 25% of the population in 2020 – up from 17% in 2017 – and marked an increase in terrestrial radio and catch-up podcasts, with 101.3 million out of 420 million podcast downloads measured by Triton being affiliated with a radio show.
“The audio market has continued to evolve, with the segment now covering a range of products that consumers use to access audio services,” the report said.
“The traditional stronghold of terrestrial radio is now fully complemented by streaming, podcast, and catch-up services.
“What was once referred to simply as ‘radio’ may now be better referred to as ‘audio’ as the competition for share of people’s time listening to content intensifies.”