Radio industry apps have growth potential

Radio app uptake accelerates as 30% of listeners joined in the last year, driven by demand for free local content.

David Kennedy · Venture Insights18 April 2024Period: CY233 min read

6.5 million↑

Adults using radio industry apps (2023)

30%↑

Radio app listeners who started in the last 12 months (FY23)

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Abstract

This report analyses the accelerating uptake of radio industry apps in Australia, which reached 30% population penetration in 2023. While music streaming apps maintain a higher overall penetration at 60%, radio apps are growing significantly faster, with nearly 30% of current users starting within the last 12 months. The brief explores how tighter household budgets and the appeal of local content are driving listeners toward ad-supported digital audio platforms, creating significant headroom for revenue growth.

Key Takeaways

Radio industry apps reached 30% population penetration in 2023, trailing music streaming's 60% but growing at a faster rate.
Approximately 6.5 million Australian adults used radio apps in 2023, while 13.0 million used music streaming services.
Radio app growth is in an early stage, with nearly 30% of users having started within the last 12-month period.

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Frequently Asked Questions

Radio apps are currently outpacing music streaming in terms of growth rate, with nearly 30% of the 6.5 million current users adopting the technology within the last 12 months. While music streaming maintains a higher total penetration of 60%, the radio sector's 30% penetration represents a rapidly expanding market with significant untapped headroom.

iHeartRadio and LiSTNR are the primary market leaders with 11% and 7% population penetration respectively. These domestic and industry-specific platforms are successfully carving out a niche despite the 46% penetration held by global incumbent Spotify.

The market reached $258 million in digital audio advertising revenue during CY23, providing a substantial foundation for further monetization. This revenue stream is supported by a highly engaged audience that averages 1.74 apps per user, offering multiple touchpoints for advertisers.

Radio app users demonstrate higher multi-platform engagement than music streaming users, averaging 1.74 apps compared to 1.54 for music. This behavior suggests a competitive landscape where users seek diverse content across multiple provider interfaces rather than settling on a single ecosystem.

Abstract

Key Takeaways

Frequently Asked Questions

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