The document summarizes the findings of the Web Radio Monitor 2014 study on online audio services in Germany. It was commissioned by the Bavarian Regulatory Authority for Commercial Broadcasting and the Bundesverband Digitale Wirtschaft. The study tracked 2,021 online audio providers in Germany in 2014 and found strong growth in services like user-generated radio and music streaming platforms. It also found that mobile usage of online audio is increasing, expected to reach 44% by 2016, and that the online audio advertising market in Germany is forecast to double from 2013 to 2015, reaching €137 million.

1. Web Radio Monitor 2014
Online Audio Services
in Germany
December, 2014
Goldmedia GmbH Strategy Consulting
Prof. Dr. Klaus Goldhammer | Mathias Birkel
Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany
Phone: +4930-246 266-0 | Info[at]Goldmedia.de
www.Goldmedia.com
1

2. Vertraulich/Confidential, © Goldmedia 2
Web Radio Monitor 2014:
Objectives, methodology and market definition
Study/client:
 Commissioned by
the Bavarian Regulatory
Authority for Commercial
Broadcasting (BLM) and running since 2009
 First cooperation
with the Bundesverband
Digitale Wirtschaft (BVDW) in 2014
Objectives:
 Overview of the German online audio market
 Quantification of the development in Germany
 Market and Potential analysis
 Estimations of current trends
Methodology:
 Primary research by performing both online and
offline surveys with several German online audio
providers
 15 expert interviews with industry representatives
 Detailed secondary data analysis
 Prognoses: Top-down/bottom-up methodology
The study examined online radio offerings that met
the following criteria:
 IP-based distribution
(via browser or music player)
 Linear audio stream(s) with a
focus on music and/or information
 Germany-based provision of
service via own website
 Compliance with relevant law
and regulations (i.e. legal notice)
 Web radios, music platforms, radio aggregators,
user-generated radios and personal radio stations
included
 Download platforms and podcasts not included
Client/objectives/methodology Market definition
Source: Web Radio Monitor 2014
Study commissioned by and

3. Vertraulich/Confidential, © Goldmedia 3
Overview 2014: Online audio services
Seven forms of online audio services were examined
(download platforms excluded)
Source: Web Radio Monitor 2014
Examples:
ServicestrackedbyWebRadioMonitor
Online-only webradios
 One-to-one streaming of classic radio programmes, which can
be received via FM or DAB+
Online radio/FM/DAB+
(simulcast)
 Additional web radio streams of the classic FM brands, which
are exclusively broadcast via Internet and mostly focus on one
music genre
Online radio/FM/DAB+
subbrands
 Mostly subscription-based music platforms through which the
users can unrestrictedly use a music database at any time and
create playlists
 Often with radio function as well
Music platforms
(music-on-demand)
 Listening behaviour is recorded and analysed
 Based on the data, a personalised offering is calculated by
algorithms or manual editing
Personal radio
 Users create playlists or radio stations which other users can
accessUser-generated radio
 No original content
 Bundling of several online radio services on a common
surface/platform
 Content-related clustering for better user orientation
Radio aggregators
 Music shopping portals on which the users can listen to extracts
of their searched songsDownload platforms
 Radio programmes exclusively produced for the Internet, which
are only broadcast online
 Mostly specialised radio programmes with a particular music
genre or other orientation

4. Vertraulich/Confidential, © Goldmedia 4
Overview 2014: German online audio services
2,021 online audio providers were tracked
Source: Web Radio Monitor 2014
Examples:
ServicestrackedbyWebRadioMonitor
Online-only webradios
 256 providersOnline radio/FM/DAB+
(simulcast)
 28 providersOnline radio/FM/DAB+
subbrands
 16 providers
Music platforms
(music-on-demand)
 3 providersPersonal radio
 2 providersUser-generated radio
 5 providersRadio aggregators
 1,711 providers

5. Vertraulich/Confidential, © Goldmedia 5
Strong growth of online audio services, especially
in the category of UG radio and streaming platforms
Number of online audio offerings in Germany 2006-2014
 Consolidation of traditional web radios (-7% compared to 2013); however, high growth of other online
audio offerings (+68%); total growth of the offerings at +37% in 2014
 Web radio streams include online-only, FM simulcasts and online sub-brands of traditional FM stations
 User-generated radio streams and editorially created playlists of music platforms:
rapid development of music streaming platforms resulting from the GEMA tariff enacted in 2012
Details
Source: Web Radio Monitor 2014, Medienanstalten, Goldmedia analysis, CAGR: Compound Annual Growth Rate
450 521
1,600 1,914 2,681 3,055 3,005 2,851 2,670200
400
630
950 1,870
4,050
6,800
450 521
1,800
2,314
3,311
4,005
4,875
6,901
9,470
2006 2007 2008 2009 2010 2011 2012 2013 2014
User generated Radio-Streams und
redaktionell erstellte Playlists
Webradio-Streams
User-generated radio streams and
editorially created playlists
Web radio streams

6. Vertraulich/Confidential, © Goldmedia
39% 26%
6% 4%
12% 10%
5% 6%
27%
35%6%
9%
5%
9%
Juni 2014 Juni 2016
Autoradio
Mobile
Website
Mobile App
Smart-TV
WLAN-Radio
Sonstiges
PC oder
Laptop
6
Distribution of usage across devices in June 2014 vs. June 2016 & relative growth of shares
Outlook: Mobile consumption grows up to 44%
by 2016. Car radios growth skyrockets: +72%
Source: Web Radio Monitor 2014, Basis: Online audio offerings, n=558
44%
mobile
Car radio
June 2014 June 2016
website
Mobile app
Smart TV
WLAN radio
33%
Other
PC/laptop

7. Vertraulich/Confidential, © Goldmedia 7
Positive mindset: 71% of the providers are either
satisfied or very satisfied with the number of hits
Source: Web Radio Monitor 2014, Basis: Online audio providers with ad-based offerings, n=138
Picture: © Kirill Kedrinski - Fotolia.com
German online audio providers’ perception regarding the number of hits to their site,
June 2014
71%
Rather
satisfied
57%
Very
satisfied
14%
Very dissatisfied
2%
Rather
dissatisfied 8%
Neutral
18%

8. Vertraulich/Confidential, © Goldmedia
51
72
105
13
19
32
65
91
137
2013 2014 2015
Mobile Audio
Online Audio
8
 Online audio ad market includes
the different kinds of web radios
(FM/DAB+ simulcast, online-only)
as well as aggregators, music
streaming services etc.
 It also Includes the ad forms
“online/mobile audio”, but no
pure display ads, sponsorings or
any other kinds of advertising
 Frame of survey: Ad revenues and
expectations of the providers as
well as industry experts: Many
providers expect a high growth,
esp. from 2014 to 2015
 Key drivers: Stronger profession-
nalization, better understanding
and demand on agency side,
effects of reach measurement
Forecast: Gross online audio advertising
revenues rise to EUR 137 million in Germany by 2015
Development of the German ad market
for online audio until 2015 (gross), in million EUR Key assumptions
≙ 9% radio*
≙ 5% online*
Source: Goldmedia analysis, Web Radio Monitor 2014, CAGR = Compound Annual Growth Rate
*Relation to gross advertising revenues of EUR 1,59 billion (radio) resp. EUR 2,96 billion (online) in 2013 according to Nielsen Media Research
Mobile audio
Online audio

9. Vertraulich/Confidential, © Goldmedia
Source: Web Radio Monitor 2014, Basis: Online audio providers with ad-based offerings, n=138
Pictures: Screenshot radioszene.de, screenshot detektor.fm
9
Increasing uptake of networking technology in the living room:
Smart TVs gain in importance for online audio offerings
Totally
agree:
23%
Rather
agree:
29%Neutral:
18%
Do rather
not agree:
29%
Do not
agree at
all: 2%
Online audio providers’ views concerning the role of Smart TVs in GER, June 2014
52%
“Internet-capable Smart TV devices play a growing role for the usage
of online audio offerings.“

10. Vertraulich/Confidential, © Goldmedia 10
Industry considers in-car streaming to be
the key driver for usage of online audio offerings
Totally
agree:
53%
Rather
agree:
16%
Neutral:
12%
Do rather
not agree:
16%
Do not
agree at
all: 2%
Online audio providers’ views concerning in-car audio streaming in GER, June 2014
69%
“In-car audio streaming will significantly increase the user numbers
within the next 3 years.“
Source: Web Radio Monitor 2014, Basis: Online audio providers with ad-based offerings, n=138
Picture: screenshot gsma.com

11. Vertraulich/Confidential, © Goldmedia 11
Web Radio Monitor 2014
Executive summary (1)
Source: Goldmedia analysis, Web Radio Monitor 2014
MARKET
STRUCTURE
TECHNOLOGICAL
FRAMEWORK
USAGE
 2,021 online audio providers in Germany (June 2014)
 Online audio offerings include web radios, music platforms,
radio aggregators, user-generated radios and personal radios
 Long tail: >90% of the offerings with only one audio stream;
10% of the providers considered to be commercially relevant
 60% of the providers say technological restrictions are no
longer a key factor: Growing availability of broadband
 The mobile sector is expanding the most: LTE considered
to be the key driver by two thirds of all audio providers
 More than 30 million Germans aged over 10 years (42%)
use web radio: +9% compared to 2013 (source: ma Radio II)
 Positive mindset: 71% of commercial radio
providers satisfied with their user numbers
 In 2014, one third of hits came from mobile devices – growth
of mobile will rise to 44% by 2016

12. Vertraulich/Confidential, © Goldmedia
Web Radio Monitor 2014
12
Executive summary (2)
Source: Goldmedia analysis, Web Radio Monitor 2014
EMPLOYMENT
AD MARKET
OUTLOOK
 On average, the responding online audio
providers have 16 employees – mostly freelancers
 According to providers, this number will significantly
increase in 2015 by 31%
 Compared to 2013, providers expect
advertising revenues to double by 2015
 Online audio gross advertising revenues
expected to rise to EUR 137 million by 2015
 Continuous strong market growth due to increasing
professionalization, better understanding of and
demand on the agency side as well as positive
effects of standardized reach measurement
 69% consider in-car entertainment systems and 52%
Smart TV to be further important market drivers

13. Web Radio Monitor 2014
Goldmedia GmbH Strategy Consulting
Prof. Dr. Klaus Goldhammer | MBA Mathias Birkel M.A.
Oranienburger Str. 27 | 10117 Berlin-Mitte | Germany | Phone: +4930-246 266-0 | Fax -66 | Info[at]Goldmedia.de | www.Goldmedia.com
Picture: © Maksim Kostenko - Fotolia.com