The Market Evolution of Audio Services and its Implications on the French-language Radio Market

March 2012

 

Staff Paper Policy Development and Research (PDR)

 

Disclaimer:

This paper is intended to stimulate discussion and critical comment within the CRTC, as well as outside the Commission. The analyses and conclusions in this report are those of the author and do not necessarily reflect the views of other Commission staff, or the Commission itself.


Table of Contents

Introduction

Adapting to change and innovation are not new to the radio industry. Since radio’s inception, its broadcast and business models have been challenged by changing media trends. Radio has adapted to accommodate the introduction of television, recorded music, and piracy; now, it must adapt to new media broadcasting.

The wide-spread availability and adoption of broadband has created some significant shifts within the media industry. New products and services are changing the way in which Canadians consume and interact with media.

The Internet enables Canadians to consume and share content largely without borders. This opportunity does not come without challenges. Canadians can access, via the Internet, a plethora of content; regulated and unregulated, legal and pirated, Canadian and foreign. The challenge of maintaining a Canadian broadcasting system, which maintains and enhances our national identity and cultural sovereignty, in light of the external shifts caused by increased connectivity is becoming increasingly challenging for regulators and industry stakeholders alike.

Online audio services are available to Canadians offering them an alternative way to listen and interact with music. While the services may not be identical to those of commercial radio, the simple fact that audiences may reallocate their time and spend less time with commercial radio can pose challenges for the radio market.

This reallocation of time could have implications for the radio industry, as well as the Canadian music industry. Advertising revenues account for the bulk of a radio station’s revenue stream, and they are closely tied to audience tuning hours. Should radio tuning hours decline, advertisers may opt for other forms of advertising based on the price per consumer reached; particularly if targeted advertising is possible. This would subsequently reduce the amount of revenues earned by the commercial radio industry.

The commercial radio industry supports the Canadian music industry in two ways: through contributions towards Canadian Content Development (CCD) which is calculated as a proportion of commercial radio revenues, and through air-time of artists’ workFootnote 1.

Since contributions towards CCD are directly linked to commercial radio revenues, the decline in contributions will be directly proportional, and easy to calculate. Air-time of artists’ music, on the other hand, is less predictable and transparent. Currently, commercial radio stations are subject to certain conditions of licence which specify how much French-language programming needs to be aired, and/or how much Canadian programming needs to be aired.

The Canadian music industry and radio broadcasters have different viewpoints regarding the feasibility of these conditions of licence and the impact of these requirements on radio revenues. Some areas of disagreement surround the quantity of Canadian content available, and the degree to which this content can attract audiences compared to other non-Canadian “hits”. The French-language radio market, however, is particularly unique. It faces these same issues and questions surrounding quantity and attractiveness of content; however, it faces additional challenges stemming from a smaller French-language market, due to population size; as well as competition from English-language stations due to the popularity of English music. Should commercial radio revenues decline, there is a possibility that commercial radio stations will ask for regulatory relief. This could potentially result in less Canadian content being played, and French content could be disproportionately affected. 

Should online radio prove to be a competitor, the existing radio model could be further challenged.  Thus, the substitutability of online offerings for commercial radio is of concern to broadcasters, the music industry, and regulators alike. Understanding how consumers choose to consume and interact with online-audio services will shed some light on the challenges and opportunities facing the industry. Also important is how Canadian content is presented and offered online, as this will indicate whether this will be a significant alternative source of revenue to support the Canadian music industry and artists.

Substitutability of Services

Most of the early-adoption and early service offerings for online radio/music was in the United States, however, the phenomenon of Internet radio is coming to Canada. There are already a number of services available to Canadians; many of which originate from the United States and are not tied to a Canadian radio undertaking. These online services fall under the New Media Exemption orderFootnote 2 and, therefore, are not subject to conditions of licence which define contribution and programming requirements. To understand how this media trend may challenge the achievement of the objectives of the Broadcasting Act (S.C. 1991, c.11), we need to understand how this new trend will be embraced by Canadians as well as the opportunities and challenges the audio-market may face.

The commercial radio industry has showed its resiliency over the years. Music has always been available to consumers through means other than radio. However, radio has weathered these storms as it has many features that are appealing to consumers: it is free, devices are affordable and ubiquitous, it is easy to access content, content is local and hence more likely to be relevant, and there are usually a variety of stations available.

Taking into consideration commercial radio’s qualities, and those of online audio services, statistics suggest that they are not perfect substitutes. While online audio services gain popularity, commercial radio tuning hours has remained relatively stableFootnote 3. In other words, online audio services are not completely replacing commercial radio. Nor are these services perfect complements, as listening to one appears to lead to a slight reduction in the consumption of the other.  What we observe, is that there is likely to be certain degree of substitutability as well complementarity in the use of these services.  

For two products to be price-constraining substitutes, not only is it not required that all consumers switch from one service to the other, it is also not necessary for a particular consumer to switch all her broadcast consumption from one service to another. It may be the case that a consumer will continue to allocate some of her consumption to traditional services but not as much as before a particular new service was available. [L.Csorgo and I. Munro, 2011]Footnote 4

Some consumers may listen less to commercial radio and fill that time with online audio services. That would constitute substitution. However, other consumers may listen online, when they never listened to radio before. For example, there has been an increasing trend of online listening during work hoursFootnote 5, to both online streams linked to local radio stations as well as those that are not. It may be the case that consumers who did not listen to radio at work previously, may now listen to audio online. This constitutes a certain degree of complementarity.

The number of listening hours that shift from commercial radio to online audio services depends on a number of factors. One of the challenges of determining the magnitude and direction of this shift surrounds the fact that each individual consumer is different and that each consumer will have varying degrees of substitutability. Another challenge is that we cannot assume that any or all declines in tuning hours to commercial radio are immediately attributable to online audio services.

Currently, there is little indication that the overall time spent listening to radio is declining significantly due to alternative media consumption. The CRTC’s communications Monitoring Report shows that the national average weekly hours tuned per capita remained relatively unchanged at 17.6 hours in 2010 versus 17.7 hours in 2009Footnote 6. This represents roughly a 6 minute decline in national average weekly tuning, reflecting year-over-year stability in audience tuning. If we look at the longer term, we see that average weekly hours tuned per capita for all persons aged 12 and over declined by one hour from 2006 to 2010, or from 18.6 to 17.6 hoursFootnote 6.

However, there has been some evidence of gradual erosion in time spent listening to radio within particular age groups. If we look at the 18-24 age group, their average weekly per capita tuning hours have slowly declined from 14.1 hours per week in 2006 to 11.9 hours per week in 2010Footnote 6. Similarly, the 25-34 age group has also showed a slow decline from 18.3 hours per week in 2006 to 15.8 hours per week in 2010Footnote 6. This shows that over the span of 4 years the average weekly hours tuned by these age groups has declined by 2.2 hours and 2.5 hours respectively. This could signal the trend of gradual erosion in radio tuning hours within certain demographic groups who are more prone to adopting other forms of media consumption. This could also signal a change in demographic lifestyle habits from one generation to the next. 

These audience tuning trends however, have not translated into lower revenues or profits for the commercial radio industry; particularly for commercial FM stations which are more comparable to online audio services due to the predominance of music formats. From 2009-2010, revenues for English FM services grew 3%, in line with their 4 year CAGRFootnote 7 of 3%, while French FM services grew 6%, which is above their 4 year CAGR of 4%Footnote 8. Commercial AM/FM radio’s aggregate revenues grew by 2.9% from 2009 to 2010, above their 4 year CAGR of 2.3%Footnote 9. Commercial AM/FM radio also reported a 9.9% increase in PBIT over that same period6. This reveals that despite fluctuations in revenues and profitability due to the economic environment, commercial radio stations are performing well overall and are still able to attract revenues.

CONSUMER CHOICE

When looking at the possible factors which influence consumers in their music-consumption decision, it is evident that the decision-making process involves multiple choices which result in consumers customizing their music consumption experience to match their needs.  Consumers may have a different consumption mix, consisting of more than one service offering, depending on their daily habits.

Some key choices consumers make in their decision to consume audio content:

  1. Location – Where would the consumer like to listen to music – in the car, at home, at the office, or on the go?
  2. Convenience – Which service delivery method and device is most convenient and practical for this location?
  3. Relevance – Is the programming relevant to the listener? Is there a sufficient level of local content and is it relevant to the listener, their community and their interests?
  4. Technical Quality of Service – Which service or delivery method offers an acceptable level of quality for the consumer? i.e. Are there numerous impediments which affect the consumer’s perceived quality of listening? This could include the frequency or duration of advertisements, signal interference, or time required for buffering.
  5. Affordability – What is the cost to the consumer to accessing this service, and is the consumer willing to pay this amount? This includes both fees for the service itself, any fees for additional bandwidth, and any investment in devices needed to access the service.
  6. Quantity – Does this service offer a sufficient amount (duration) of music? i.e. is listening limited in any way? This is more applicable to online services where there may be a limited amount of free listening available, or the consumer may be restricted due to bandwidth caps.
  7. Variety – Does this service offer a reasonable amount of programming variety for the consumer?
  8. Tastes & Preferences – Does this service match the consumer’s tastes and preferences to ensure that the consumer is satisfied while listening to the service?

Depending on the consumer and their habits, their consumption mix may vary based on their personal perception of substitutability. Certain factors facilitate the possible substitution of online audio services for commercial radio. Three of these facilitators are: identical inputs, availability of broadband, and devicesFootnote 10.

FACILITATORS

Identical InputsFootnote 11

Within the audio-works market, unlike audio-visual works, the associated rights and licensing for content pose few prohibitive barriers as it is rare to have exclusive distribution rights of a certain audio work. Also, there are few challenges concerning exhibition windows. These challenges may exist for special broadcasts such as concerts for example; however, those instances are unique and external to the discussion at hand. 

Since the primary input for music formats consists of music works which are accessible to anyone who undertakes the process of clearing the associated rights: reproduction rights to make content available in the library, and communication rights each time a song is broadcastFootnote 12; the quality of the input used by various parties does not vary. Nor are the inputs mutually-exclusive, meaning that the use of a song by one audio service does not prevent another audio service from using that same song at the same time. Therefore, it is possible for all music services to access the same inputs, though not necessarily at the same costFootnote 13.

Availability of Broadband

In 2010, ninety-six percent of Canadian households could access broadband speeds of 1.5Mbps or faster through various technologies, excluding HSPAFootnote 14.

Residential Broadband Availability
(excluding satellite)
2009 2010
National 95% 96%
Urban 100% 100%
Rural 84% 85%
National including HSPA+ N/A 98%

*Source: CRTC Communications Monitoring Report 2011. Section 5.3 Overview

There were roughly 10 million mobile broadband subscribers, which represents roughly 39% of all wireless subscribersFootnote 15. Services over 3G and HSPA+ networks were available 98% and 97% of the Canadian population respectivelyFootnote 16. These figures indicate that Canadians can have access to the Internet, at home or on the go, on any device of their choice, at speeds capable of streaming high-quality audio services.

Mobile Broadband
  Number of
subscribers
(millions)
Percentage
of all
subscribers
Standard mobile broadband 9.1 35%
Dedicated mobile 0.9 4%
Total mobile broadband 10.0 39%

*Source: CRTC Communications Monitoring Report 2011. Table 5.5.7 Mobile Broadband

Availability (% of Households)
Platform 2006 2007 2008 2009 2010
Mobile Broadband  
3G/3G equivalent N/A 78 91 96 98
HSPA+ N/A N/A N/A N/A 97

*Source: CRTC Communications Monitoring Report 2011. Table 5.3.4 Key telecommunications availability indicators

With these improved speeds and connections we have seen the evolution of delivery methods. Music can be easily downloaded or streamed instantaneously, as data transfer rates permit Internet users to do this while simultaneously surfing the Internet. Cloud computing offers the promise that consumers, and businesses alike, can easily and affordably store music in the cloud for future access from any connected device. The cloud also makes it easier for multiple users to share content. The combination of cloud computing, and the improved speed and ease of data transfers, has led to the development of new audio services and has changed the way in which audiences store, and interact, with music.

These enabling technologies reduce the barriers to consumer adoption of audio streaming services. They may increase the degree of substitutability of online audio services for commercial radio as access to online audio services becomes easier. However, at the audio service-provider level, there still exists different types of efficiencies between point-to-point technology versus point-to-multipoint technology. These different efficiencies may render one platform more suited for certain activities than others, and may lead to continued differentiation between the two platforms.

Devices

Where previously well-defined markets relied on distinct technological specifications, the lines that defined those markets are quickly beginning to blur. We increasingly see each device or method of delivery slowly encroaching into what was considered the “typical” domain of the other device or method of delivery.

Commercial radio can now be streamed online and accessed via PC or connected device. Mobile phones often come with built in FM tuners which expands the reach of commercial radio to commuters who don’t drive. Commercial radio is also working towards expanding its reach through in-car devices such as HD Radio and Connected-FM. HD Radio, which uses digital radio technology, enhances the commercial radio model by enabling the capacity to add radio station offerings, and other enhanced features such as adding text information. The HD radio brand has introduced receivers for in-car and mobile consumption. HD radio has also successfully negotiated automotive partnerships for factory pre-installation of its devices in cars in the United States, but the service is not yet available in Canada. Connected-FM, still nascent in its development, is a new software-level supplement to terrestrial radio. Connected-FM aims to expand the reach of terrestrial radio by seamlessly connecting to a radio station’s online stream as soon as the car drives out of reach; thus enabling listeners to stay tuned to their favourite radio station regardless of their physical location. Connected-FM would also enable other interactive enhanced features such as text information linked to the radio station, as well as alternative advertising opportunities for the radio station, and more accurate data-collection concerning audiences.

Online radio can better access the home through portable connected devices that can be docked to a station which connects the device to the sound system in the home. Online radio is also starting to enter cars through auxiliary-audio jacks or Bluetooth systems that connect Internet-ready devices to the car stereo system.

Satellite radio, originally confined to branded satellite radio receivers, can now reach audiences through connected devices with its online offering. Reducing the consumer’s initial investment, in branded satellite radio receivers, facilitates the possible adoption of satellite radio.

These changes in consumer electronics, combined with trends in increasing connectivity will continue blurring the lines. Developments in city-wide Wi-Fi, along with improving access-point technology which will enable seamless handoffs at speeds that will allow for audio streaming during daily commutes, will render online listening more economical than relying on mobile data plans.

While there are still some clear competitive advantages for certain service delivery models within certain domains, the boundaries are becoming less clear as device prices fall and their capabilities improve. What this implies is that audio services need to carve out their target audience and create a loyal listener base. This is done at many levels. Competition though product differentiation has become increasingly layered and complex, with audience targeting depending not only on the content contained in the audio stream, but also the device the content is consumed on, the delivery model, as well as the business/revenue model.

DIFFERENTIATORS

Content

Commercial radio stations have always competed amongst themselves via differentiation of content. Radio stations differentiate themselves from their neighbouring stations on the dial by targeting different segments of the market by focusing on specific demographic and by adopting a certain format that will appeal to that targeted demographic. On-air contests, radio personalities and other station-specific initiatives provide further product differentiation by building a relationship with the listener, and enhancing listener-loyalty. By targeting a certain demographic group, radio stations are better able to attract advertising dollars as they can reach a targeted segment of consumers.

Online audio services – not tied to commercial terrestrial radio services – have limited local news, weather, sports, or traffic updates. A limited number of these online audio services employ on-air personalities to build relationships with listeners and hence offer a different level of interaction with the listener. For the moment, this is one distinguishing feature of commercial radio which may help it to maintain its segment of listeners.
 
Online audio services, however, are quickly integrating other features such as socializing via Twitter and Facebook; and links to information pages such as Wikipedia; to increase their level of relevance to the user and to increase the level of interaction. This, however, can also be offered by commercial broadcasters through their online service offering should they wish to introduce those ancillary services.

Devices

A new generation of connected, audio-enabled, devices is facilitating the substitutability of online alternatives for commercial radio. By making devices easily accessible through strategic partnerships, service providers have attempted to gain market advantage over their competitors.

Each audio-service provider needs to strive to make their service available to consumers on every platform and device that they want to listen to music on. Audio service providers also need to ensure that these devices are practical and do not represent a substantial investment for the consumer. While investment in a platform may retain customers and prevent them from migrating to another service once they have bought into it, it could potentially hinder new customers from buying into the ecosystem. This particular consumption decision has been diverted, in some ways, by strategic partnerships which pre-determine the outcome for consumers.

Automotive partnerships are coveted in the radio industry as in-car listening represents approximately one-third of radio listeningFootnote 17. Having a certain service available in-car, particularly if it has been factory pre-installed, facilitates consumer adoption. Satellite radio and HD radio have negotiated such partnerships and have thus given themselves a competitive edge. The competition for automotive partnerships, and in-car listening, will get even more intense with the introduction of internet-ready cars. Brands such as PandoraFootnote 18, which has already negotiated 23 automotive partnershipsFootnote 19, are vying to pre-install branded internet-ready stereos in cars. Adding broadband connectivity to cars, via SIM cards, will add another layer of complexity, and technical capability, to automobiles. In time, listeners will likely have the option of listening to some, or all, of these options in the car without any additional investment in devices. The length of time needed for advanced in-car devices to achieve substantial market share, and hence to have the potential to substantially shift in-car listening, is hard to predict considering the average lifespan of a car is just over 13 yearsFootnote 20. This implies that the automobile, and its audio device, will circulate within the automobile market for roughly 13 years. While the competition for automotive partnerships intensifies, AM/FM radio still currently remains the dominant source of audio content in-carFootnote 21.

 
Delivery & Revenue Model

Commercial radio has always been ad-supported and free to the consumer. This will be difficult to change, so long as commercial radio is transmitted over-the-air. HD radio broadcasting has been introduced as a way for the commercial radio market to offer more stations and improved quality of service. Connected-FM will aim to provide audiences with the option to expand their local radio station’s reach by automatically streaming their preset FM station should they drive out of range of the over-the-air signal.  

Since online audio services are not constrained by limited availability of frequencies, there are multiple service offerings using different delivery models and revenue models. Through various scans of the online audio services there were clear distinctions between: non-interactive and semi-interactive streaming models vs. on-demand streaming models. Each model targets different user preferences.

Non-interactive and semi-interactive streaming models imitate the commercial radio model whereby songs are played in continuum. Users can either select a pre-existing genre channel or they can fine-tune their own stations by entering the name of an artist they like. They will then be provided with a radio stream that closely follows the genre of music of the artist they have selected. They cannot, however, play an entire album by the artist on-demand nor can they control the playlist in its entirety. Some online streaming services, such as Jango.com allow users to rate the songs played by giving them a “thumbs up” or a “thumbs down”. Listeners can then specify whether they would like to hear the song or artist more often, or to exclude them from their personalized station. Some online semi-interactive streaming services, such as Slacker.com offer these options at a premium.

Non-interactive and semi-interactive streaming models target listeners who are looking for a radio-like experience whereby song selections are made for them; hence providing the possibility of discovering new music. Current subscription models, if they exist, for non/semi-interactive streaming services generally follow one of two models: tiered based on level of user-control over the playlist, or tiered based on the amount of content the user can access.

To supplement their revenue stream, non/semi-interactive streaming services typically partner with online distributors such as TuneCore.com, or offer these distribution services themselves, to create an online music ecosystem. Independent artists pay online distributors such as TuneCore an annual fee for the distribution of their content. Artists can specify the manner in which they wish to distribute their content. They can select, for example, online distribution via streaming services, digital sales, or ringtones etc. The distributor then partners with various online music streaming services and online music stores, such as iTunes, to ensure playtime and sales opportunities. 

On-demand streaming models, however, closely imitate a listener’s interaction with their own personal content library. Services such as GroovesharkFootnote 22, Rara, and Deezer allow listeners to browse content libraries by artist, select albums or songs that they would like to listen to, and then, these songs or albums would be placed in a playlist for the listener. Under this model, the listener is completely in control of their playlist. Should the listener wish to discover new songs, they can select to listen to a playlist created by other listeners who share similar tastes in music.

On-demand streaming models available in Canada currently follow the all-you-can-stream subscription model whereby, for a monthly fee, users gain access to the full repertoire of music available to the site. Companies like Rdio are marketing their service in a way that encourages users to shift from paying to own content to paying for access to contentFootnote 23. Additional benefits are also often offered with upgraded subscription tiers.

Some services follow a hybrid model whereby they offer users both semi-interactive streaming services as well as on-demand options. Services like Slacker try to offer users the full experience.

The advantage of having these different models available to the connected consumer is that it offers consumers more choice. More choice in the manner in which they consume their music, in the level of control over their listening experience, and how they would like to pay for this experience. Given all these choices available to consumers, if they choose to consume audio media online, the question then becomes can they find and access Canadian content?

Canadian content

The second discussion point is the level of Canadian content available online. This will help identify the challenges and opportunities facing the Canadian music industry. Since the discussion at the Colloque sur la musique vocale de langue française is focused primarily on the French-Quebec market, and the challenges surrounding the viability of existing conditions of license involving French-language content, the focus of this section is on the predominance of French-Canadian music online.

While current conditions of license refer to French-language programming, not restricted to French-Canadian music, the concern of this paper surrounds the radio industry’s capacity to continue its support for Canadian recording artists. Thus, the following section will aim to study the predominance of French-Canadian content online.

Currently, there is no industry-wide measurement or reporting mechanism for the quantity of Canadian programming content found, and consumed, onlineFootnote 24. Consequently, to roughly illustrate the availability of French-Canadian content, and how this content was presented, staff at the CRTC undertook a quick scan of online offerings. Staff completed a quick survey where respondents were asked to name 10 French-Canadian artists that immediately came to mind. This was intended to simulate possible Internet searches. From the aggregate list of artists, a test group of 50 randomly selected French-Canadian artistsFootnote 25 was used to examine and compare the content offerings of various online audio services available to CanadiansFootnote 26. Both streaming services and digital download stores were studied. Researchers looked for:

  1. Availability of the artists’ work in the various content libraries
  2. If this content was easy to find, or if it was clearly marked as Canadian or French-Canadian.

1.  Availability of the artists’ work in the various content libraries

Seven audio services available to Canadians were tested against the list of 50 French-Canadian artists. Staff verified the number of artists whose works were available in the content library. Staff defined “works” to consist of audio recordings, excluding compilations or any collaborations exceeding 2 artists:

  Number of artists in library (of 50) % of selected artists in library
Grooveshark 50 100%
Rdio 39 78%
Last.fm 34 68%
Slacker 24 48%
AccuRadio 14 28%
Iceberg Radio* 14 28%
Jango 7 14%

*Icebergradio.com is owned and operated by Astral Media Inc., but the site itself is powered by AccuRadio.com. This is why the results for AccuRadio and Iceberg Radio are identical.

Three online digital music stores available to Canadians were tested against the same list of 50 French-Canadian artists. Here, staff verified the number of artists whose albums were available for download:

  Number of artists in library (of 50) – full album % of selected artists in library – full album
iTunes 48 96%
Amazon mp3 26 52%
eMusic 21 42%

For both streaming services and digital music stores, the available library of works by the artists varied from service to service. The legality of these some of these services, however, is under question. Grooveshark, for instance, has been subject to multiple lawsuits and was subsequently removed from the Android Market. The issues revolved around claims of pirated music in their library. The first lawsuit, which was later settled, was with EMI. However, this agreement that was settled in 2009, evolved into a subsequent lawsuit in January 2012Footnote 27. A separate lawsuit, filed by Universal Music GroupFootnote 28 in November 2011 is still pending. 

2. If this content was easy to find, or if it was clearly marked as Canadian or French-Canadian.

While French-language content is easy to identify, simply by virtue of listening to the lyrics; identifying whether the content was Canadian or not required more work for the user. Most of the streaming services show artist biographies while the artist’s song is being played. Reading these biographies is typically the only means of distinguishing whether the artist is Canadian or not. The exception is AccuRadio, and hence Iceberg Radio – which is powered by AccuRadio. They are semi-interactive streaming services where listeners can choose to listen to one of many pre-set channel offerings. They offer channels dedicated to Canadian artists. Channels such as: Pop: English and French, Canadian, Maple Leaf citizens, and Rock: English and French.  They also have dedicated French-language channels such as: French Pop and Femmes. iTunes’ online radio lineup contains many French-language stations, which are easily identifiable as the radio station descriptions are written in the language of  the broadcast program. The country of origin, however, is not always readily identifiable.The remaining services examined did not offer dedicated channels for either Canadian music or French-language music at the time the study was completed.

Implications

In the online space, where there are numerous choices for consumers; artists strive to make their content available across a number service offerings. The ease in which their content can be found, and how their content is promoted are crucial for sales.

When audiences listen to commercial radio, there is no clear label suggesting whether an artist is Canadian or not, and this knowledge is only imparted with audiences if the on-air personality decides to mention it. This is much like many of the online services. In fact, it may actually prove easier to mark content as Canadian online than it is on-the-air. While Canadian content may be present online, there exists no mandated requirement to play this content; leaving the choice of listening up to the listener.

Success Factors

Adoption of these online audio services may challenge the current commercial radio model. The extent of their success and impact on commercial radio depends on many variables – many of which are still moving and changing all the time. The online audio market is still developing and evolving. It can be expected that new methods aimed to increase consumer adoption and to improve the long-term viability of business models will emerge.  

Adoption

Currently, there are few statistics publicly available on Canadian usage patterns for online-audio services. Measurement is done by each service for its own marketing purposes, but an industry-wide standard for reporting has yet to be developed. AccuRadio, for instance, reports that its audience is approximately 60/40 male/female and almost equally divided between the 25-34, 35-44, and 45-54 age groups, with an average age of 41. AccuRadio currently reaches over 400,000 unique listeners per month, and up to 1,000,000 unique listeners per month during the Christmas season. AccuRadio also reports that Internet radio’s “prime time” is on weekdays during business hours, during which time there are up to 14,000 simultaneous listeners.Footnote 29 Grooveshark reports 30 million monthly unique visitors worldwide, who account for 600 million minutes of streaming each monthFootnote 30. This translates to roughly 2.3 million hours of listening per weekFootnote 31 for its worldwide audienceFootnote 32. For comparison, 10 Montreal French-market PPM stations, combined, averaged more than 28.5 million hours of tuning per weekFootnote 33. While Canadian-specific statistics for online audio listening are not yet available, companies such as Rara and Deezer consider it worthwhile to enter the Canadian market, and have announced the launch of their services in Canada. This is a good indication that there is Canadian demand for these services.

Looking at the Quebec market, CEFRIO recently completed a survey which reports that 63.9% of adults 18 years and older; who use their smartphone, tablet, or portable media player to access the Internet; either watched videos, web series, or listened to Internet radioFootnote 34.  This is particularly true for the 25-34 age group, where this number is 77.2%. For the francophone market, Media Technology Monitor (MTM) reports that in 2010 twenty-eight percent of the 4000 francophones surveyed, from various provinces, stream audio from the InternetFootnote 35. This breaks down to 13% of francophones surveyed stream AM/FM radio and 15% stream music only14.  The average weekly hours spent listening to streamed audio for the average francophone is 5.3 hours14. The reports also reveal that there is increasing adoption of smartphones in Quebec, and amongst francophones, which may signal the potential for Quebec audiences to adopt services such as Internet radio.

Consumer Considerations

Bandwidth usage by individual consumers has been increasing over the years. This is largely due to the increasing number of bandwidth-intensive services available. However, at the same time, Canadian consumers are becoming increasingly aware of price considerations such as data rates and bandwidth caps. This could affect their choices in media consumption.

To better understand the data usage patterns of consumers using online streaming audio services, staff at the CRTC measured the amount of bandwidth consumed when listening to online audio applications. When accessed through a web browser; it was estimated that roughly 64-112 MB (0.06-0.1 GB) of data was consumed for each hour of music playedFootnote 36. Variations could exist due to the amount and format of advertisements found on the website, or differences in the quality of the audio stream.

Online audio service providers are aware of consumers’ hesitation to consume mobile data, due to cost constraints. To make their service offerings more attractive to mobile listeners, many have launched apps for smartphones, as well as mobile browsers that require less bandwidth to run. Some services, such as Slacker radio also offer their subscribers an option to cache radio stations. This means that a listener can have their radio station temporarily downloaded to their mobile device, while they are at home or while they have access to Wi-Fi, which would allow this radio station to be available for them to listen to when they are not connected to a data service.

Thus, bandwidth considerations, along with other potential obstacles, such as consumer hesitation and ease of use of electronic payments, are likely to be less important moving forward.

Business Model

Some of these services are free and use advertising as a means to subsidize the costs associated with running the service, similar to terrestrial radio. Some of these services also use partnerships with online distribution companies as a means to supplement their revenues. Others offer subscription services, which are often tiered, based on the number of additional features offered to subscribers: features such as access to more extensive content libraries, or increased control or personalization in the users’ listening experience. For example, listeners can skip songs that they do not like, or they can repeat songs that they do. Other features include song lyrics, the ability to listen offline, or the ability to avoid audio or banner advertisements.  Subscription models are similar to pay-audio services like Galaxie or satellite radio in that the user pays for certain conveniences such as no advertisements, or for access to niche or premium content. While many online audio services offer free options, while promoting their subscription offerings, the long-term ability for these services to be sustainable on advertising dollars alone is unknown.

The parallel to this would be traditional radio’s capacity to earn advertising revenue for their online offerings. According to PricewaterhouseCoopers’ Global entertainment and media outlook 2011-2015 (June 2011), terrestrial radio broadcasters are trying to increase their number of listeners through online radio. By streaming their programs online, station operators can widen their reach beyond their signal area and increase their potential to sell to national advertisers. Radio stations are also using their websites to generate new sources of revenue, notably banner ads and to develop a more personal connection with their listeners than is possible through radio alone.  In Canada, some radio broadcasters have experimented with apps. However, PricewaterhouseCoopers does not expect the use of new media to add significant revenues in the near future. Pricewaterhouse Coopers predicts that online radio will account for only a small portion of total radio advertisingFootnote 37.

One important operating expense for online audio services is licence fees. Copyright legislation, including its associated tariffs, is a very complex area that is currently subject to modernization. This creates uncertainty for the industry, as new tariffs moving forward are not yet known. Clarification of definitions is also within the purview of the proposed amendments, and a quick glance at some of the associated tariffs highlights why definitions are important. For example, existing SOCAN tariffs differ based on the method of service delivery. The evolution, and convergence, of these service delivery models could potentially challenge existing definitions. A more detailed look at the associated SOCAN and Re:Sound tariffsFootnote 38 is included in appendix 1, however, it is important to note that these tariffs have expired, and new tariffs, once determined, will be applied retroactively.

Conclusion

While there has been a steady rate of adoption in online services, the impacts of this on commercial radio have not yet been evident. The CRTC’s Communications Monitoring Report reveals that commercial radio’s audience tuning hours has remained relatively stable. Commercial radio revenues have also remained relatively stable, despite some fluctuations which can be largely attributed to downturns in the economy. The commercial radio industry continues to fulfill its responsibilities as set out in the Canadian Broadcasting ActFootnote 39.

Moving forward, audiences may show increased, progressive adoption of these online audio services; however, commercial radio is still proving to be adaptive while continuing to respond to the needs of their listener base. Radio will continue to be free, convenient, and locally relevant; helping it to adapt to the changing environment. Any shifts that may occur in the radio market due to online audio services are expected to be progressive, which points to the importance of continued monitoring of these trends as more Canada-specific information becomes available.

APPENDIX 1: Licence feesFootnote 40

*Note: The tariffs referred to in this paper are for a defined period. New tariffs moving forward may be different from the ones mentioned below.

Commercial Radio (monthly fee)
SOCAN’s repertoire is broadcast…

Traditional platform

SOCAN Tariff 1A

Internet – other uses of music (Commercial radio)

SOCAN Tariff 22B
less than 20% of broadcast time 1.5% of music station’s advertising revenues (1.5% of the station’s Internet-related revenues) x (ratio of audio page impressions to all page impressions*)
more than 20% of broadcast time 3.2% on its first $1.25 million of annual revenues and 4.4% on annual revenues in excess of $1.25 million (4.2% of the station’s Internet-related revenues) x (ratio of audio page impressions to all page impressions*)

* If this ratio is supplied. If it is not supplied, a rate of 0.5 is used.

Re:Sound Tariff No. 8 – Simulcasting
Simulcasts and Podcasts of Radio Station Signals

12% of the gross revenues earned by the owner and operator of the site or service, with a minimum annual fee of $500 per channel up to a maximum of $50,000 annually.

$60 per month for not-for-profit services

Online Music Services

SOCAN Tariff 22A

Audio Websites ordinarily accessed to listen to audio-only contentFootnote 41.

Fee = A x B x [1 – (C x D)]

Audio websites (streaming)
Paid yearly
Calculation for (A)
If the SOCAN repertoire is 20% or less 1.5% of the site’s Internet-related revenues $60 per month for not-for-profit services
If the SOCAN repertoire is 20-80% 4.2% of the site’s Internet-related revenues
If the SOCAN repertoire is 80% or more 5.3% of the site’s Internet-related revenues

Where (B) is the ratio of audio page impressions (excluding audio-visual page impressions) to all page impressions (including audio-visual page impressions), if that ratio is provided to SOCAN and 0.5 if not.

Where (C) is 0.95 for a Canadian site and 1 for any other site

Where (D) is the ratio of non-Canadian page impressions to all page impressions, if that ratio is provided to SOCAN; and if not, 0 for a Canadian site and 0.9 for any other site. This is subject to a minimum fee of $28 per year if the combined SOCAN repertoire used on the site is 20% or less, and $100 if the combined use is 80% or more.

Permanent Downloads – Quarterly fee of 3.1% of the amount paid by the consumer.
Minimum fee of 1.5 cents per file in a bundle that contains 13 files or more; and 2.1 cents per file in all other cases.

Limited Downloads – Monthly fee of 5.7% of the amounts paid by subscriber.
Minimum fee of 54.8 cents per month, per subscriber if portable limited downloads are allowed
Minimum fee of 35.9 cents per month, per subscriber if no portable limited downloads are allowed

On-Demand Streams – Monthly fee of 6.8% of the amounts paid by subscriber
Minimum fee of 43.3 cents per month, per subscriber

Re:Sound Tariff No. 8

Re:Sound Tariff No. 8 – Webcasting
Non-Interactive Webcasts

12% of the gross revenues earned by the owner and operator of the site or service, with a minimum annual fee of $500 per channel up to a maximum of $50,000 annually.

$60 per month for not-for-profit sites or services

APPENDIX 2: List of Services Available in Canada

(Non-exhaustive)

AccuRadio

Grooveshark

Jango

Last.fm

rdio

APPENDIX 3: List of French-Canadian artists selected

APPENDIX 4: Quebec radio stations available for online streaming

Source: Université Laval. Last accessed: February 2, 2012. Last updated: February 2, 2012

  1. La première Chaîne en direct sur Radio-Canada, Chicoutimi, Matane, Montréal, Québec, Rimouski, Sept-Îles (FM Stéréo) 
  2. CBC Radio One, chaîne anglophone canadienne (Québec, Montréal) 
  3. CBFX FM 100.7, Espace musique de Montréal sur Radio-Canada 
  4. CBME CBC Radio FM 88.5, Montréal, anglais 
  5. CBC Radio 2, Your National Music Network, anglais 
  6. CBF FM 95.1, Montréal, La première Chaîne en direct sur Radio-Canada
  7. CBF FM 101.1, Sherbrooke, La première Chaîne Radio-Canada en Estrie 
  8. CBGA FM 102.1, Matane, La première Chaîne Radio-Canada de l'Est-du-Québec 
  9. CBJ FM 93.7, Chicoutimi, La première Chaîne radio canada Saguenay Lac St-Jean 
  10. CBM Radio Montréal FM 93.5, anglais 
  11. CBSI FM 98.1, Première chaine de Radio-Canada à Sept-Îles 
  12. CBV FM 106.3, Première chaine de Radio-Canada à Québec 
  13. CBVE FM 104.7, Station locale de CBC à Québec en anglais 
  14. CFAK FM 88.3, Radio campus Sherbrooke 
  15. CFAV Boomer 1570 AM, Montréal 
  16. CFBS FM 89.9, Blanc-Sablon 
  17. CFDA FM 101.9, Passion Rock, Victoriaville 
  18. CFEI Boom FM 106.5, St-Hyacinthe 
  19. CFEL FM 102.1, Montmagny 
  20. CFGL FM 105.3, Montréal 
  21. CFIC FM 105.1, Hot Country, LISTUGUJ (anglais) 
  22. CFID FM 103,7, Acton Vale
  23. CFIM 92.7, îles de La Madeleine  
  24. CFIN FM 100.5, Bellechasse et Les Etchemins
  25. CFIX 96.9, RockDétente, Chicoutimi 
  26. CFJO 97.3 ou O97.3 Victoriaville, Canada. 
  27. CFLM 1240 AM - 104.7 sur le cable, La Tuque
  28. CFLO FM 101.9 et 104.7, Radio des Hautes-Laurentides (Mont-Tremblant/Mont-Laurier)
  29. CFLX FM 95.7, Estrie
  30. CFGE FM 93.7, Rythme FM, Sherbrooke 
  31. CFGL FM 105.3, Rythme FM, Montréal 
  32. CFMB Anglais, Montréal 
  33. CFMV FM 96.3, Chandler, Gaspésie, Réseau de l'information du Grand Littoral 
  34. CFND FM 101.9, Radio scolaire, Saint-Jérôme
  35. CFNJ FM 99.1, Centre et Sud de Lanaudière 
  36. CFOI-FM 104.1, Québec (religion) 
  37. CFOM FM 102.9, Québec, Radio Flash-Back 
  38. CFOR FM 99.3 Pur Rock, Maniwaki 
  39. CFOU FM 89.1, Trois-Rivières 
  40. CFUT FM 99.1, Radio de Shawinigan 
  41. CFVD FM 95.3, Dégelis au Témiscouata dans le Bas-St-Laurent 
  42. CFVM FM 99.1, RockDétente, Amqui 
  43. CFQR FM 92.5, Lite Rock Montréal
  44. CFRL FM 102.5, Radio Légende, Nostalgie des années Yéyé, Victoriaville
  45. CFXM FM 104.9, Granby 
  46. CFYX FM 93 , Rimouski 
  47. CFZZ Boom FM 104.1, St-Jean sur Richelieu 
  48. CHAA FM 103.3, Longueuil
  49. CHAI FM 101.9, Châteauguay
  50. CHEF FM 99.3, Radio communautaire, Matagami 
  51. CHEQ FM 101.3, Ste-Marie de Beauce
  52. CHEY FM 94.5, RockDétente Mauricie, Canada 
  53. CHGA FM 97.3, Maniwaki 
  54. CHGM FM 99.3, Gaspé 
  55. CHGO FM 95.7, RadioX, Rouyn-Noranda 
  56. CHHO FM La Source (ch2o), Louiseville
  57. CHIC FM 88.7, Rouyn-Noranda 
  58. CHIK FM 98.9, Québec, Radio Énergie, Français, Québec 
  59. CHIP FM 101.7, La voix du Pontiac, Fort-Coulonge 
  60. CHJM FM 99.7, Saint-Georges 
  61. CHLM FM 90.7, Rouyn-Noranda, Première chaine de Radio-Canada en Abitibi 
  62. CHLT FM 104.5, Sherbrooke, Info exact 
  63. CHME FM 94.9, Haute-Côte-Nord 
  64. CHMP FM 98.5, Le FM parlé, Montréal 
  65. CHNC FM 107.1, Rock, Classique, Country, New Carlisle 
  66. CHOA FM 96,5, Abitibi 
  67. CHOC FM 104.9, Saint-Rémi 
  68. CHOI FM 98.1, Radio X, Français, Québec 
  69. CHOM FM Rock 97.7, Montréal (Anglais) 
  70. CHOQ FM, Montréal, UQAM (Université du Québec à Montréal) 
  71. CHOU AM 1450, Radio Moyen-Orient, Montréal 
  72. CHOW FM 105.3, Amos 
  73. CHOX 97.5, La Pocatière 
  74. CHRC Info 800 AM, Ste-Foy 
  75. CHRD FM 105.3, Radio Drummondville 
  76. CHUK FM 107.3, Mashteuiatsh 
  77. CHUN FM 98.3, Radio Country, Rouyn-Noranda 
  78. CHUO FM 89.1, Ottawa 
  79. CHXX Radio X2 FM 100.9, La Radio X, Québec 
  80. CHYZ 94.3, Alternative, Sainte-Foy, Université Laval 
  81. CIAU FM 103.1, Radisson-Québec, radio communautaire 
  82. CIAX FM 98.3, Radio communautaire de Windsor et Région
  83. CIBL FM 101.5, Montréal 
  84. CIBM FM 107, Rivière du loup 
  85. CIEL FM 103.7, Rivière du Loup
  86. CIEU FM 94.9 et 106.1, Baie des Chaleurs en Gaspésie 
  87. CIGB FM 102.3, RadioNRJ, Mauricie 
  88. CIGN FM 96.7, Coaticook, radio communautaire 
  89. CIHO FM 96.3, Charlevoix 
  90. CIHW FM 100.3, Radio communautaire amérindienne située sur le Territoire Wendat (Huron) de Wendake, adjacent à la ville de Québec 
  91. CIKI FM 98.7, Rimouski 
  92. CILE  FM 95.1, Havre-Saint-Pierre 
  93. CIMB  FM 95.1, Pessamit 
  94. CIME  FM 103.9, St Jérome 
  95. CIMF  FM 94.9, RockDétente en Outaouais, station Rouge FM 
  96. CINQ  FM 102.3, Montréal 
  97. CION  FM 90.9, Radio Galilée à Québec, Beauce, Saguenay 
  98. CIPC  FM 99.1, Port-Cartier (Côte-Nord) Est-du-Québec 
  99. CIQI  FM 90.3, Montmagny 
  100. CIRA FM 91.3, Radio Ville-Marie, Montréal, religion 
  101. CISM FM 89.3, Université de Montréal, variété 
  102. CITÉ RockDétente FM 102.7, Estrie 
  103. CITÉ RockDétente FM 107.3, Montréal 
  104. CITF RockDétente 107.5, Québec 
  105. CITK  FM 98.9, Opitcirock 
  106. CJAN FM 99.3, Asbestos 
  107. CJBR FM 89.1, Rimouski, La première Chaîne en direct sur Radio-Canada
  108. CJDM FM 92.1 , Drummondville 
  109. CJEB FM 100.1, Rythme FM, Trois-Rivières 
  110. CJEC FM 91.9, Rythme FM,Québec 
  111. CJIT FM 106.7, Lac-Mégantic 
  112. CJLA FM 96.9, Planète Lov, Lachute 
  113. CJLO AM 1690, Montréal
  114. CJMC FM 100.3, Ste-Anne des Monts, Gaspésie, Réseau de l'information du Grand Littoral 
  115. CJMD FM 96.9, Lévis 
  116. CJMD Radio, Web radio, Montréal 
  117. CJMF FM 93.3, station du groupe Cogéco, Sainte-Foy 
  118. CJML FM 103.5, Radio du Grand Lanaudière, Joliette 
  119. CJMM FM 99.1, RadioNRJ, Rouyn-Noranda 
  120. CJMV FM 102.7, RadioNRJ, Valdor 
  121. CJMQ FM 88.9, Radio universitaire, Lennoxville 
  122. CJNG FM 89.7, Radio touristique de Québec (anglais) 
  123. CJOI RockDétente 102.9, Rimouski 
  124. CJPX FM 99.5, Radio-Classique, Montréal 
  125. CJVD FM 101.1, Le nouveau FM de Vaudreuil-Soulanges 
  126. CJRD FM 88.9, Radio Drummond, Dummondville 
  127. CJRG FM 94.5, Radio Gaspésie 
  128. CJRM FM 97.3, Radio Labrador 
  129. CJRS Radio, Montréal
  130. CJSO FM 101.7, Bas-Richelieu 
  131. CJSQ FM 92.7, Radio-Classique, Québec 
  132. CKAC 730, Radio pour la circulation de Montréal 
  133. CKAG FM 100.1, Pikogan, région Rouyn-Noranda 
  134. CKAJ FM 92.5, Saguenay-Lac-St-Jean 
  135. CKAU FM, Montaignaise, Communautaire, Sept-Îles 
  136. CKBN FM 90.5, La Voix de la Rive-Sud, Radio régionale de Bécancour et Nicolet Yamaska 
  137. CKCN 94.1, Sept-Îles 
  138. CKGS 105.5, La Baie 
  139. CKJF FM 90.3, Radio touristique de Québec 
  140. CKIA FM 88.3, Radio Basse-Ville, Québec 
  141. CKIN FM 106.3, Montréal 
  142. CKGD FM 105.1, Montréal, anglais 
  143. CKGM AM 99.0, Team 990, Montréal, anglais 
  144. CKLD FM 105.5, Thetford 
  145. CKLX FM 91.9, Planète Jazz, Montréal 
  146. CKMF FM 94.3, Radio Énergie, Montréal 
  147. CKMN FM 96.5, Rimouski 
  148. CKOD FM 103, Radio du Suroît, Valleyfield 
  149. CKOI FM 96.9, Montréal 
  150. CKOI FM 106.9, Mauricie 
  151. CKOI 107.7 FM, Generation Rock, Sherbrooke 
  152. CKRA FM 106.9, Schefferville
  153. CKRB FM 103.5, COOL FM, Saint-Georges, Beauce 
  154. CKRK FM 103.7, kahnawake, anglais 
  155. CKRL FM 89.1, Québec 
  156. CKRS FM 98.3, Jonquière 
  157. CKTF FM 104.1, Outaouais 
  158. CKUT FM 90.3, Radio Montréal 
  159. CKVL FM 100.1, Radio communautaire de LaSalle 
  160. CKVL.CA, Télé-Radio Internet 
  161. CKXO FM 93.5, Chibougamau 
  162. CKYK FM 95.7, Radio X, Alma, Lac St-Jean 
  163. CKYQ Français, Bois-Francs/Érable 
  164. CKZM AM 1650, le son gospel du Québec  
  165. CNV 24/7, Radio Internet, Montréal
  166. Clic Rock Radio, Sherbrooke 
  167. CLASS Radio, FM 103.5, Jonquière 
  168. CPAM AM 1610, Radio Haïti de Montréal
  169. CRKA FM 106.9, Radio Schefferville 
  170. BeatMedia FM 91.1, Radio Internet, Montréal
  171. CHIL 365, Musique de type « Danse Top 40 »
  172. CMOI Radio, Montréal 
  173. Dan Radio Sports, Radio Internet de Sports au Lac-Saint-Jean
  174. Francophonie Express, Montréal 
  175. Gaspésielive.com, Radio de la Gaspésie
  176. GayRadioBec, Radio Internet, Montréal 
  177. GYSMO.Net RadioNet FM 101, Radio Internet, Montréal (anglais) 
  178. InBeatRadio.com, Le Beat Du Nightlife montréalais, meilleurs hits des années 90 
  179. Kixx-net.com, Montréal
  180. La Radio à Fred, FredRadio
  181. Musik2musik, La maison de disques québécoise, Montréal 
  182. Nexus Radio, Québec 
  183. Québec Radio DuBon et DuCon, Sherbrooke 
  184. Québec Radio , Radio souverainiste québécoise
  185. Radioactif.com, 6 stations de Radio diffusées en format RA, Media Player et MP3 (WinAmp) 
  186. Radio 2040, Radio Trafic, auteur Gaby Drolet, Québec 
  187. Radio ADN, Auteur Marco Payeur 
  188. Radio Bleue, Webradio de promotions touristiques dédiées au Saguenay Lac Saint-Jean 
  189. Radio Canada Internationale, RCI (français, anglais, espagnole ...)
  190. Radio CSDM, Commission Scolaire de Montréal 
  191. Radio Fiat+/-Lux, Québec Planétaire 
  192. Radio GayRadioBEC.COM, Radio gay au Québec sur Internet de langue française 
  193. Radio Haïtienne de Montréal, Web Radio
  194. Radio Internet en Mauricie, Planète Caribou 
  195. Radio Montana Qc, Radio WEB country de Montréal 
  196. RadioPaconet.com, Montréal 
  197. Radio Patriote, Hip Hop Québécois 
  198. Radio Québec.biz, Radio BIZZZZZZ (heavy metal) 
  199. Radio Québec Country, Radio Country du Québec 
  200. Radio RIAQ, Réseau d'information des aînés du Québec
  201. Radio Rock Drummonville, Web Radio 
  202. Radio Shock, Web Radio 
  203. Radio Sphère, Web Radio 
  204. Radio Thetford, SURF WEB RADIO 
  205. Radio UQAT, Radio Étudiante de l’UQAT (Abitibi-Témiscamingue)
  206. Radio Voyagesarabais, Radio Voyage 
  207. Radio Web Détente
  208. Radio Web VPJC, Web Radio (musique Gospel contemporaine) 
  209. Radio Jazz Plus, Web Radio 
  210. Radium FM, Humour 
  211. Réel-Radio-FM, Radio Campus Gatineau, Outaouais
  212. The BOSS Radio, Webradio Sherbrooke 
  213. TRUCK STOP QUEBEC, Référence pour le camionneur du Québec
  214. Uturn Radio, Sherbrooke 
  215. Wildside Radio Network, Montréal - Mega Mixx Radio (anglais)
  216. Wildside Radio Network, Montréal - Solid Rock Radio (anglais)
  217. Wildside Radio Network, Montréal - Country Crossroads (anglais)
  218. Wildside Radio Network, Montréal - Block Party Radio (R&B & Hip Hop, anglais)
  219. XLTRAX, Musique en ligne, DJ'S et vidéos
  220. Zone Ados 
  221. Zone Radio-Canada

Appendix 5: Application Bandwidth Measurement

To test how much data various audio-streaming applications consume, staff at the CRTC accessed the following sites using a web browser and allowed the following applications to run, streaming music constantly, for 1 hour. The data consumption levels are tabled below:

Application Megabytes per 1 hour of streaming
Download Upload Total
Grooveshark 110 2 112
Jango 62.7 1.06 63.76
Slacker 62.2 2.06 64.26

Results may vary if these sites are accessed through a mobile application or a mobile browser.

Works Referenced

Canada. CRTC. Communications Monitoring Report, 2011. CRTC Website.

Canada. CRTC. “Navigating Convergence II: Charting Canadian Communications change
and Regulatory Implications
”. CRTC Website. August 2011.

Canada. Department of Justice. Broadcasting Act (S.C. 1991, c. 11).  Department of Justice Website. December 15, 2009. Last accessed : Februray 15, 2012.

CEFRIO. “Mobilité: le telephone intelligent en croissance au Québec”. NetTendances 2011,  Volume 2 – Numéro 3. Last accessed : January 30, 2012.

Csorgo, Lilla and Ian Munro. “Market Definition Issues for Audio and Audio-Visual Distribution Products and Services in a Digital Environment”. CRTC Website. February 15, 2011.

Krashinsky, Susan. “Will streaming replace owning music?” The Globe and Mail Online. December 30, 2011. Last accessed: February 17, 2012.

McMillan, Graeme. “Now Grooveshark is Being Sued by EMI Music”. Time Techland Online. January 6, 2012. Last accessed: February 1, 2012.

Media Technology Monitor (MTM). “Technologies audio personelles 2010 – Analyse du marché de langue française”.

Music Canada. “Licensing Digital Music in Canada”. January 2012.

Nakate, Shashank. “Car Life Expectancy”. Buzzle.com. Last updated: December 10, 2011. Last accessed: February 17, 2012.

Pandora Investor Relations. News Release: January 9, 2012.

Pricewaterhouse Coopers. Global Entertainment and Media Outlook 2011-2015. June 2011.

Sandoval, Greg. “Lawsuit claims Grooveshark workers posted 100,000 pirated songs”. CNET News Online. November 18, 2011. Last accessed: February 16, 2012.

Vaillancourt, Richard. Université Laval. “Quels sont les stations de radio du Québec disponibles sur Internet?” Informatique et multimédia Internet Website. Last accessed: February 2, 2012. Last updated: February 2, 2012.

VisionCritical. “Radio on the Move: Wave 2 Report”. September 2011.

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