Calif. – Listening to online and
mobile music services is expected to grow by 15% this year, to 8.3 billion
hours, and are forecast to expand another 22% in 2011, according to a report
from market research firm AccuStream Research.
The report noted consolidation
in the industry last year — such as the merging of Yahoo Radio and AOL Radio
into CBS Radio — that had the effect of decreasing the amount of monetizable
inventory by 5%.
However, ad-supported listening hours are forecast to improve
by 20% this year, as "inventory sellout rates continue to rise, royalty
rates slightly more favorable to smaller operators are reset and mobile
platforms achieve greater scale."
The report notes that audio and video ad
sales made up around 50% of total media spend against Internet radio in 2009,
generating market value of $168 million to $190 million.
Meanwhile, ad spending on mobile
music services is expected to reach $6.7 million this year.