More people are listen to Internet Radio from personal computers
In the previous part of the series, we discussed the changing preference of consumers towards Internet Radio from the traditional way of purchasing individual songs and listening to “Over-the-Air” AM/FM radio. We discussed that while Pandora (P) is the leading player in the Internet Radio market, Apple (AAPL), Google (GOOGL), Samsung (SSNLF), and Amazon (AMZN) are some of the upcoming players in this market.
According to the previously mentioned report from Edison Research, 78% of the people listen to Internet Radio from their personal computers (or PCs)—desktops and laptops. 70% of people listen to Internet Radio from Smartphones and only 45% listen to Internet Radio from Tablets. Let’s try and find out why more people use PCs to listen to Internet Radio despite the structural decline that we are seeing in the PC market.
Smartphone market is about 4x that of the PC market
According to a report from Gartner and the previous chart, the PC market could decline from 296 million in 2013 to 277 million in 2014. The tablet market could show strong growth by increasing from 195 million in 2013 to 271 million in 2014. Smartphone sales will increase from one billion to 1.2 billion during the same time period. Despite smartphone market being about 4x that of the PC market, the Edison Research report claims that more people listen to Internet Radio from PCs.
Internet connectivity could be the reason for more Internet Radio usage on PCs
Many people rely on Wi-Fi connectivity at home or the office to connect to the internet. People tend to use PCs at home or in the workplace, which is possibly why they connect to Internet Radio more often. Generally people are on the move when they’re carrying smartphones or tablets. Also, many people don’t prefer to have a separate 3G or 4G data connection to connect to the internet on these devices because of the cost involved. Even if they subscribe for data connection, internet connectivity could be an issue at subways or at remote areas. Connectivity issues discourage them from using their smartphones and tablets for Internet Radio.