Digital Lifescapes

Will consumers pay for online news and entertainment they now receive at no cost? In its latest market study, Nielsen asked more than 27,000 consumers across 52 countries, and the answer is maybe they will, maybe they won't. As expected, the vast majority (85 percent) prefer that free (advertiser or sponsor supported) content remain that way. Online content for which consumers are most likely to pay -- or have already paid -- are those they normally pay for offline, including theatrical movies, music, games and select videos such as current television shows. Consumers are least likely to pay for content that is essentially homegrown online, often by other consumers. These include social communities, podcasts, consumer-generated videos and blogs. In between are an array of news formats -- newspapers, magazines, Internet-only news sources and radio news and talk shows -- created by professionals, relatively expensive to produce and, in the case of newspapers and magazines, commonly ...

According to eMarketer , the U.S. terrestrial radio industry is in deep financially trouble. Many of the country's largest national broadcasters are on the verge of bankruptcy, and the Radio Advertising Bureau (RAB) announced that Q1 2009 was the worst quarter in its history. eMarketer predicts the radio industry will see double-digit losses in advertising spending this year alone, with terrestrial radio bringing in $14.5 billion in ad revenues in 2009, a drop of 18 percent from 2008 levels. No surprise, when you consider that car dealers have been the primary commercial radio advertiser. In contrast, the Internet radio (audio streaming) industry are positioning themselves to take advantage of the shift in advertising spend. Even in this tough economy, Internet radio is growing ad revenues year over year and is one of the fastest-growing online media categories. Attractive demographics (affluent listeners) and a connected audience will prove increasingly appealing to advertisers a...