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

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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."

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

  1. 1. The changing face of car radio Australian Spring 2013 Anthony Gherghetta Mobile Strategist RadComms Conference 2013
  2. 2. Who listens to the radio?
  3. 3. Car 34% Home 48% Work 16% Other 2% Radio listening by place all people, 10+
  4. 4. Car 45% Home 25% Work 28% Other 2% Radio listening by place all people, 18-39
  5. 5. The weekly commute Time in car Average time in the car during the five day work commute: 5 ½ hours
  6. 6. The daily commute Average commuting time Average Commuting Time (car) Adelaide 29 minutes Brisbane 29 minutes Melbourne 32 minutes Perth 27 minutes Sydney 35 minutes Average 32 minutes
  7. 7. The daily commute Method of commuting
  8. 8. The daily commute Peak travel periods
  9. 9. The connected car
  10. 10. The connected car New connected cars 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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
  11. 11. The connected car Cars are getting older Cars are getting older Average age of Australian vehicles 1971: 6.8 years 2012: 10 years Source: ABS
  12. 12. The connected car Total market penetration 0% 20% 40% 60% 80% 100% 120% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Forecast market penetration of connected vehicles in Australia Percentage of Connected Vehicles in Australia Mainstream Saturation around 2034 (~ 20 years) Initial adoption period Source: IH Automotive Insights 2012
  13. 13. 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.
  14. 14. Broadcasters should be adding more Internet to radio, not simply more radio to Internet. Mark Ramsey
  15. 15. Music Radio Apps • Personalised for each listener • Can skip content • Learns the listeners preferences over time
  16. 16. Broadcast Radio 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
  17. 17. 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
  18. 18. Case Study: ABC Local Radio Melbourne
  19. 19. 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:
  20. 20. Case Study: ABC Local Radio Melbourne Traffic News Red Symonds 38 minute commute What I would like to listen to:
  21. 21. What is live? ‘Live radio’ is a hallmark of dated analogue technology. Unless its breaking news or sport, ‘live’ adds no value.
  22. 22. The App Studio Developing next generation radio platforms new products to ingest, store, manage and distribute radio content to the car and mobile devices
  23. 23. Mobile network congestion
  24. 24. Mobile network congestion Punt Road - Richmond Punt Road: 40,000 cars per day Richmond Station: +300,000 passengers each weekday
  25. 25. Thank you Anthony Gherghetta Mobile Development Strategist The App Studio

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