AM/FM radio remains the dominant audio platform in the car, fresh research shows. But a competing audio platform is nipping at its heels. No, it's not streaming audio; it's actually something with a somewhat longer legacy.
New Share of Ear data from Edison Research that drills down into in-car listening shows that 78% of those who listen to audio in the car spend at least some of that time with AM/FM radio. Owned music, such as CDs and digital audio files, came in a distant second at 17%. But right behind is SiriusXM Radio, which, since its introduction in 2001, has grown to capture a 15% share of in-car listening, followed by streaming audio at 5%. The latter includes broadcast radio streams and pureplays. Podcasts are consumed in the car by just 1% of Americans.
"Despite the increasing number of audio options, AM/FM radio still has the wheel," Nicole Beniamini, director of research at Edison, said Tuesday at the RAIN Summit in Nashville. "It's free, convenient and a lifelong habit."
But in-car listening to AM/FM is challenged by new options, such as the growing number of new and used cars that come with satellite radio receivers and free trial offers to entice would-be subscribers. "That seems to be snatching some [broadcast radio] listeners," Beniamini said.
Slicing in-car audio consumption by another metric, Edison found that 71% of Time Spent Listening in the car goes to broadcast radio, followed by 15% for SiriusXM, 10% to owned music and 3% with streaming audio. Though the streaming audio number is relatively small, the amount of time spent with it in the car among 13-34-year-olds is triple that of 35-54-year-olds.
And although broadcast radio remains the most used in-car platform across all demos, the new Edison data shows generational differences. Younger audiences are more likely to listen to MP3 files and streaming audio than older demos.
There are also listening variations based on the age of the car. While AM/FM retains the top share regardless of the car's vintage, those with model years 2011 and newer listen less. AM/FM drops from 84% among those with model years 2010 or earlier to 70% for newer cars while SiriusXM grows to 25%. Similarly, TSL is also affected by the age of the car. Those with older vehicles spend 77% of their in-car audio time with AM/FM, compared to 61% for people with newer vehicles.
With all the talk about the threat of new platforms in the connected car, why isn't streaming's share of ear larger? Edison chalks it up to slow-moving in-car audio technology. Only in the past several years have automakers developed ways to connect a smartphone with a car stereo and even today those options are limited and clunky. Among those who say they have listened to online radio in their car, 62% did so by plugging the phone into a car's auxiliary jack, 42% via a Bluetooth connection and 8% by hooking up directly through an in-dash infotainment system. But that 8% number is the one to watch, Beniamini said.
Indeed, Edison's research shows the percentage of cars equipped with high-tech infotainment systems is consistently rising—doubling in the past three years. In 2013 only 6% of car owners had them. The numbers have since grown to 8% in 2014, 10% in 2015 and 12% in 2016. And now Apple CarPlay and Android Auto are adding new display interfaces to car systems that attempt to mirror the smartphone experience in a safety-conscious way.
"While streaming audio has changed the landscape at work and at home it still hasn't yet managed to revolutionize the in car-space," Beniamini said. "To date, streaming audio has not provided the ease of use and convenient experience that AM/FM and SiriusXM do. Users want to get in the car, press a button and start listening. Streaming audio will lag behind in the car until the technology is more developed and widely distributed."
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