Streaming music service providers eyeing the auto market
TweetFollow Us on Twitter

Streaming music service providers eyeing the auto market

In recent years, streaming music services have shown that there is a market for personalized radio and on-demand subscription based services, listening via PCs and laptops and particularly via smartphones. Now these companies are turning their attention to the car and are seeking ways to offer their services to motorists, moving into territory the traditional radio stations have held sacred for decades.

"FM broadcasting still dominates in-car listening today, but it is likely that this will gradually diminish in favor of streamed radio and music services as an increasing number of cars become connected," says Gareth Owen, principal analyst at ABI Research (http://www.abiresearch.com). "This trend is already happening in some markets such as the United States. "It is now clear that digital radio via DAB/DAB+ and HD Radio is unlikely to ever become as widespread as FM on a global or even regional basis, and so car OEMs will need to include FM receivers in their infotainment products for many years to come."

ABI Research forecasts that the global shipments of streaming music enabled automotive infotainment systems will exceed 66 million by the end of 2019 which represents around 93% of all connected car infotainment shipments. Nevertheless, streaming services still face a number of significant challenges if they are to ever turn a profit.

In the automotive sector, the biggest challenge is that of platform fragmentation. There are many different solutions available from car OEMs [original equipment manufacturers] and Tier-1 suppliers which means that today streaming music providers need to make their apps compatible with a dozen or so different in-car infotainment platforms. A key advantage of streaming music services is that they can offer targeted advertising services for which advertisers will pay a premium fee.

"Some players such as Harman’s Aha Radio are already testing location-based advertising and Pandora recently started to run 15 and 30 second car-specific audio ads across all vehicle brands and automotive devices which have the Pandora app pre-installed," adds Owen. "This means that advertisers can run car-specific campaigns, targeting listeners who are typically the most engaged with what is being broadcast."

 
AAPL
$116.47
Apple Inc.
+0.16
GOOG
$537.50
Google Inc.
+2.67
MSFT
$47.98
Microsoft Corpora
-0.72
MacNews Search:
Community Search:

Latest Forum Discussions

See All
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Ubisoft Gives Everyone Two New Ways to E...
Ubisoft Gives Everyone Two New Ways to Earn In-Game Stuff for Far Cry 4 Posted by Jessica Fisher on November 21st, 2014 [ permalink ] | Read more »
Golfinity – Tips, Tricks, Strategies, an...
Dig this: Would you like to know what we thought of being an infinite golfer? Check out our Golfinity review! Golfinity offers unlimited ways to test your skills at golf. Here are a few ways to make sure your score doesn’t get too high and your spirits don’t get too low.   Considering Perspective is Crucial | Read more »
Dark Hearts, The Sequel to Haunting Meli...
Dark Hearts, The Sequel to Haunting Melissa, is Available Now Posted by Jessica Fisher on November 21st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Meowza! Toyze Brings Talking Tom to Life...
Meowza! | Read more »
Square Enix Announces New Tactical RPG f...
Square Enix Announces New Tactical RPG for Mobile, Heavenstrike Rivals. Posted by Jessica Fisher on November 21st, 2014 [ permalink ] With their epic stories and gorgeous graphics, | Read more »
Quest for Revenge (Games)
Quest for Revenge 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: The great Kingdom of the west has fallen. The gods ignore the prayers of the desperate. A dark warlord has extinguished the last remaining princes of the land and there are no more heroes who can stand against the armies... | Read more »
Threadz is a New Writing Adventure for Y...
Threadz is a New Writing Adventure for You and Your Friends Posted by Jessica Fisher on November 21st, 2014 [ permalink ] In the tradition of round-robin storytelling, | Read more »
SteelSeries Stratus XL Hardware Review
Made by: SteelSeries Price: $59.99 Hardware/iOS Integration Rating: 4 out of 5 stars Usability Rating: 4.5 out of 5 stars Reuse Value Rating: 4.25 out of 5 stars Build Quality Rating: 4.5 out of 5 stars Overall Rating: 4.31 out of 5 stars | Read more »
ACDSee (Photography)
ACDSee 1.0.0 Device: iOS iPhone Category: Photography Price: $1.99, Version: 1.0.0 (iTunes) Description: Capture, perfect, and share your photos with ACDSee. The ACDSee iPhone app combines an innovative camera, a powerful photo editor, and a convenient collage maker with all the tools you need for a great mobile photography... | Read more »
ProTube for YouTube (Entertainment)
ProTube for YouTube 2.0.2 Device: iOS Universal Category: Entertainment Price: $1.99, Version: 2.0.2 (iTunes) Description: ProTube is the ultimate, fully featured YouTube app. With it's highly polished design, ProTube offers ad-free video with selectable playback quality, audio only playback, background playback and adjustable... | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.