Streaming radio listeners have words of caution to music services, including Radio, that have designs on converting them from FREE to PAID SUBSCRIBER: “Not so fast.” Kelly Music Research (KMR) surveyed 500 people aged 17 to 59 years old in large, medium and small markets nationwide about their behavior and preference for streaming music services. They asked about some of the big streaming players who offer FREE and PAID services. They also included AM/FM radio in the array of topics. Not only did most say “no thanks” to the idea of paying for their current free streams, verbatim comments show that many were infuriated by the hypothetical scenario suggesting that AM/FM Radio might one day ask for a subscription fee.
FREE still rules…Fewer than 8% of survey respondents reported using the PAID versions of Pandora, Spotify or SoundCloud. Advertiser supported FREE is still preferred among those who have embraced streaming. Pandora leads the pack among streamers with 64% saying they have used some form of the service. The number jumps to 75% of the younger 17-34 demographic. Spotify was the service more likely to earn paid users with 4.6%, followed by Pandora’s paid version with 2.4%.
If FREE were no longer an option, few said they would ante up. Assuming there are other services out there that remain free, the vast majority would rather switch than pay. Only 12% say they would pay for their favorite stream if it were no longer free. Younger streamers are the most willing to pay: 22% of 17-24, 16% of 25-34, 11% of 35-44, and 8% of 45-59. The remainder would refuse to pay and just find a free service. Also, Men are more likely to pay (14.2%) than Women (10.5%).
AM/FM Radio Usage…They are still listening to AM/FM. Interestingly, only 1.6% of the sample says they never listen to AM/FM. However, significant numbers now only listen to radio while in the car. While 98% report they still listen to traditional radio, 40.4% say the only place they listen to AM or FM radio stations is in the car. Among the younger 17-34 year olds, about 50% tune in to AM/FM only in the car.
Would you pay for AM/FM? Similar to the question about being forced to pay for their favorite free streaming service, the survey also proposed the notion of being forced to pay to listen to AM/FM radio. Only 9.7% said they would pay to listen to their favorite AM/FM station. Compare this to 12% who say they’d pay for their favorite stream choice.
Verbatim Comments…Often the most interesting reading in surveys is responses to open-ended comments. These comments are optional, so not everyone adds a comment. Typically, those who are most moved by the subject or are passionate about an issue feel compelled to say something extra. It’s important to remember each comment is only one person’s opinion. As you read through the comments, you will see themes surface. It is these common threads that can lead to real answers, assumptions, or more questions.
