WebProNews

Online music radio and track play listening hours increased 37.6 percent to 6.67 billion in 2008, while in-stream audio sold against ad -supported cumulative hours rose by 46.1 percent to $74 million over the 12 month period, according to a report by AccuStream iMedia Research.

The report, "Online Music Spins and Media Spend: 2003 - 2012," found that AOL's Shoutcast platform remains the most popular destination for online music, accounting for 52.5 percent of total time spent listening, followed by Clear Channel sites with 7.8 percent.

Shoutcast cumulative music hours grew from 47 percent in 2008 compared to 27.9 percent for music listening hours supported by ads, up from 10.6 percent growth in 2007, a year revised royalty guidelines were put into place.

Paul Palumbo

An analysis of ad-supported music listening found Clear Channel to be the market leader, with a 16.5 percent share, followed by AOL Radio with 13.2 percent share. The two major radio subscription services have a combined 6.7 percent share.

Ad-supported music hours as a percentage of total online listening has decreased each year since 2005, making up 44.2 percent in 2008; a trend expected to continue.

Sell-out rates improved in 2008 to an estimated 45 percent, up from 35 percent in 2007, and are forecast to reach 50 percent in 2009. Webcasters are allocating anywhere from 6 - 9 avails per listening hour, and CPMs range from $3 - $10+ for in-stream audio, $20 for video.

An analysis of the online music royalty structure adopted in 2007 suggest that by taking the average estimated hourly listeners of 341,509 (based on 2.9 billion hours), and applying licensing rates equally across site s generating $84 million in 2008 media sales, that about $40 million would be owed to rights organizations, or 48.3 percent of the gross.

"Online music programmers are passionate about radio, and adapting their businesses to an inspired yet challenging marketplace. In 2009 their focus is on running lean, efficient operations, capping international streams while pitching local, regional and national avails," said Paul A. Palumbo, research director, AccuStream Research.