Internet Radio Broadcasting in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: June 2024
NAICS OD5987Revenue
$3.3bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
19,535
Businesses
2,830
Wages
$X.Xbn
Internet Radio Broadcasting in the US industry analysis
The Internet Radio Broadcasting industry's main revenue comes from online advertising from existing over-the-air radio stations and recommendation-based streaming platforms like Pandora. The industry doesn't include on-demand services like Spotify that let users select their music. Over the past five years, these platforms have become major competitors and have siphoned money and listeners away from the industry. The pandemic exacerbated this as consumers spent their money elsewhere while trapped indoors. With more people staying home, funds were redirected towards essential goods, streaming services and more interactive forms of home entertainment, causing a dip in advertising revenues for internet radio platforms reliant on commercial sponsors. Internet Radio Broadcasting industry revenue has inched downward at a CAGR of 0.6% over the past five years and is expected to total $3.5 billion in 2024 when revenue will jump by an estimated 2.6%.
Trends and Insights
- Broadcasters are challenged by music streaming services like Spotify and Apple Music, which have significantly diminished the demand for internet radio over the past five years. This shift has caused a notable decline in traditional radio listenership and ad revenue.
- Working consumers offer high demand as they often have high disposable incomes, encouraging frequent spending on ad-free and subscription sales. Their purchasing power makes them a highly attractive target market for businesses aiming to maximize sales and profitability.
- High-skilled labor is crucial to internet radio broadcasting operations, making the West Coast and especially California a key talent hub. This region offers a rich pool of tech-savvy professionals essential for innovation and maintaining competitive services.
- Top management strategizes for long-term sustainability amid rising competition from streaming giants. Prioritizing exclusive content, user experience and technological advancements will be critical to remaining relevant and profitable in this evolving market.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.6 % over the past five years, to reach an estimated $3.3bn in 2024.
Trends and Insights
Growing popularity of mobile devices and smart speakers
- The rise in smartphone usage and the proliferation of smart speakers, like Amazon Echo and Google Home, have significantly impacted the Internet Radio Broadcasting industry. These devices provide convenient ways for listeners to access internet radio stations, driving more traffic to these platforms.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Content specialization will be key
- The industry is becoming more saturated as it ages and because of shifting consumer preferences, the presence of substitutes will continue to threaten internet radio broadcasting.
Biggest companies in the Internet Radio Broadcasting in the US
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Sirius Xm Radio Inc. | 1,318.7 | 292.8 | 22.2 | |
Iheartmedia, Inc. | 1,082.9 | 90.1 | 8.3 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Terrestrial radio station online advertising, Online-only station advertising and Subscriptions. Terrestrial radio station online advertising is the largest segment of the Internet Radio Broadcasting in the US.
Trends and Insights
Demand for terrestrial radio station online advertising remains on top
- The largest service offering in the Internet Radio Broadcasting industry is online terrestrial radio station advertising. Terrestrial stations' dominance stems from the deep-rooted affiliation they have cultivated over decades in traditional broadcasting.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Independent Label Music Production in the US
- Major Label Music Production in the US
- Music Publishing in the US
- Internet Publishing and Broadcasting in the US
International industries
- Radio Broadcasting in Canada
- Radio Broadcasting in Australia
- Radio Broadcasting in the UK
- TV & Radio Broadcasting in China
Table of Contents
About this industry
Industry definition
Industry operators provide online streaming media distribution, including music and other audio programming. This industry only includes operators that control music recommendation and noninteractive internet radio platforms and generate revenue through subscription and advertising. This industry does not include subscription-based, on-demand online music streaming services.
What's included in this industry?
Terrestrial radio station online advertisingOnline-only station advertisingSubscriptionsCompanies
Sirius Xm Radio Inc.Iheartmedia, Inc.Purchase this report to view all 2 major companies in this industry.
Related Terms
STREAMING MEDIABANNER ADVERTISINGBLANKET LICENSEPERFORMANCE RIGHTS ORGANIZATIONIndustry Code
NAICS 51913 - Internet Radio Broadcasting in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Broadcasters are challenged by music streaming services like Spotify and Apple Music, which have significantly diminished the demand for internet radio over the past five year...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Working consumers offer high demand as they often have high disposable incomes, encouraging frequent spending on ad-free and subscription sales. Their purchasing power makes ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
High-skilled labor is crucial to internet radio broadcasting operations, making the West Coast and especially California a key talent hub. This region offers a rich pool of t...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Top management strategizes for long-term sustainability amid rising competition from streaming giants. Prioritizing exclusive content, user experience and technological advan...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Niche internet radio broadcasters provide specialized content tailored to specific interests and communities. These platforms offer unique genres, themes and discussions, cat...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Sirius Xm Radio Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Iheartmedia, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Sirius Xm Radio Inc., and factors influencing its performance in the industry
- Description and key data for Iheartmedia, Inc., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
With more mobile phones having internet connections, consumers can easily access internet radio broadcasting, leading to increased subscriptions. This accessibility allows us...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
The Pandora acquisition resulted in higher-than-average purchase costs, with SiriusXM paying over one-half of its revenue. This substantial investment aims to strengthen Siri...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Internet Radio Broadcasting in the US industry in United States in 2024?
The market size of the Internet Radio Broadcasting in the US industry in United States is $3.3bn in 2024.
How many businesses are there in the Internet Radio Broadcasting in the US industry in 2024?
There are 2,830 businesses in the Internet Radio Broadcasting in the US industry in United States, which has grown at a CAGR of 1.5 % between 2019 and 2024.
Has the Internet Radio Broadcasting in the US industry in United States grown or declined over the past 5 years?
The market size of the Internet Radio Broadcasting in the US industry in United States has been declining at a CAGR of 1.6 % between 2019 and 2024.
What is the forecast growth of the Internet Radio Broadcasting in the US industry in United States over the next 5 years?
Over the next five years, the Internet Radio Broadcasting in the US industry in United States is expected to grow.
What are the biggest companies in the Internet Radio Broadcasting in the US market in United States?
The biggest companies operating in the Internet Radio Broadcasting market in United States are Sirius Xm Radio Inc. and Iheartmedia, Inc.
What does the Internet Radio Broadcasting in the US in United States include?
Terrestrial radio station online advertising and Online-only station advertising are part of the Internet Radio Broadcasting in the US industry.
Which companies have the highest market share in the Internet Radio Broadcasting in the US in United States?
The company holding the most market share in United States is Sirius Xm Radio Inc..
How competitive is the Internet Radio Broadcasting in the US industry in United States?
The level of competition is high and increasing in the Internet Radio Broadcasting in the US industry in United States.
