The changing face of car radio acma rad comms conference - anthony gherghetta

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The changing face of car radio Australian Spring 2013 Anthony Gherghetta Mobile Strategist RadComms Conference 2013

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Anthony Ghergetta from The App Studio in Melbourne spoke at Radcomms this morning on the changing face of car radio. Speaking of the increasing competition for the 'car dashboard', Anthony said: "For the first time, broadcast radio is about to be challenged for its prime position on the car dashboard. The two-knob car radio experience is well and truly over. In the United States this has already happened. Ten years ago terrestrial radio was disrupted by satellite radio and, more recently, it’s the online music radio services such as Spotify and Pandora. Audio access to the car is no longer governed by a broadcast license, the auto manufacturers themselves are now the gatekeepers. And its not just new radio or new music services that existing broadcasters should be worried about. There is nothing stopping AFL media from teaming up with Telstra, their current media partner, to create an in-car application to broadcast game-day matches in competition to, or at the expense of, traditional broadcast radio. Radio has to adapt."

Transcript of The changing face of car radio acma rad comms conference - anthony gherghetta

Page 1: The changing face of car radio   acma rad comms conference - anthony gherghetta

The changing face ofcar radio

Australian Spring 2013

Anthony GherghettaMobile Strategist

RadCommsConference 2013

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Who listens to the radio?

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Car 34%

Home 48%

Work 16%

Other 2%

Radio listening by placeall people, 10+

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Car 45%

Home 25%

Work 28%

Other 2%

Radio listening by placeall people, 18-39

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The weekly commuteTime in car

Average time in the car during the five day work commute:

5 ½ hours

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The daily commuteAverage commuting time

AverageCommutingTime(car)

Adelaide 29minutes

Brisbane 29minutes

Melbourne 32minutes

Perth 27minutes

Sydney 35minutes

Average 32minutes

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The daily commuteMethod of commuting

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The daily commutePeak travel periods

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The connected car

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The connected carNew connected cars

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Forecast sales of connected vehicles in Australia as a percentage of new car sales

Percentage of Connected Vehicles Sold in Australia

Source: IH Automotive Insights 2012

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The connected carCars are getting older

Cars are getting older

Average age of Australian vehicles

1971: 6.8 years2012: 10 years

Source: ABS

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The connected carTotal market penetration

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Forecast market penetration of connected vehicles in Australia

Percentage of Connected Vehicles in Australia

Mainstream Saturationaround 2034 (~ 20 years)

Initial adoption period

Source: IH Automotive Insights 2012

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The fact of life for radio

While every other content player has everything to gain by accessing the car dashboard, only radio has everything to lose.

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Broadcasters should be adding more Internet to radio, not simply more radio to Internet.

Mark Ramsey

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Music RadioApps

• Personalised for each listener

• Can skip content

• Learns the listeners preferences over time

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BroadcastRadio Apps

• Same content at the same time for every listener

• Can’t skip content, can’t customise

• No feedback loop – does not learn the listeners preferences over time

• Adds very little value over the existing AM/FM/DAB stream

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Ask your audience if they’d rather skip a song on their favourite radio station or switch to a different station that isn’t their favourite.

Mark Ramsey

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Case Study:ABC Local Radio Melbourne

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Case Study:ABC Local Radio Melbourne

6am 7:45am 8:00am 8:30am

Red Symonds News AM Jon Faine

My Commute

What I currently listen to:

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Case Study:ABC Local Radio Melbourne

Traffic News Red Symonds

38 minute commute

What I would like to listen to:

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What is live?

‘Live radio’ is a hallmark of dated analogue technology.

Unless its breaking news or sport, ‘live’ adds no value.

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The App Studio

Developing next generation radio platforms

new products to ingest, store, manage and distribute radio content to the car and mobile devices

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Mobile network congestion

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Mobile network congestionPunt Road - Richmond

Punt Road:40,000 cars per day

Richmond Station: +300,000 passengers each weekday

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Thank you

Anthony Gherghetta

Mobile Development StrategistThe App Studio