Terrestrial radio underestimates internet radio at its peril

Research recently released by CRA shows that time spent listening to digital radio is well ahead of that listened to on the internet – for now. While DAB+ radio will be in cars soon, it seems that internet radio will be available along with it. According to an article in electronicsfeed.com, “Global sales of automobiles with Internet radio capability are set to rise by a factor of more than 30 during the next eight years, leading a wave of in-vehicle apps that will be integrated into car electronics systems in the coming years.”  

But if it’s just a question of ‘platform,’ Australian metro licensed stations are all available on the net too and should, with their localised and relevant programming, continue to dominate against foreign upstarts. Right?

But what about local upstarts? Plenty have started up in the past and failed, including Bigfatradio, Doug Mulray’s Telstra funded, The Basement and World Audio, among others. All of them were attracted by the idea of setting up a radio station without having to buy a license for $150 million or so. But they were ahead of their time.

At the same time (about a decade ago) that these stations were starting online, Gerry Harvey, arguably the smartest guy in the retailing room, became a pioneer in etailing. But he too was soon defeated, declaring that online shopping was never going to take off. Now, in 2011, as while the bricks and mortar retail sector is in sharp decline, Gerry’s eating his words and rushing to re-establish an online presence for Harvey Norman.

Sure, comparing retail to radio is like comparing apples to bananas.

But the question remains, has internet radio’s time come?

If so, what’s the potential damage it could inflict on  radio as we know it?