Internet Radio invades your car

Jan 13, 2009 by Paul White



I have predicted this day for years.  2009 will be the year the radio world is turned upside down.  The monopoly that many broadcast stations enjoyed for years will be coming to an end.  Internet radio has been around for over 10 years.  However the only way to listen to it was via your computer over your home's internet connection.  Or if you have a cell phone with a data plan, you could stream internet radio to your phone.

Broadcast radio used to have the monopoly on the market.  But this market has been chipped away by Ipods, and portable MP3 Players.  Of course the downfall is to listen to music on an Ipod you have to take the time to load your Ipod up with tunes.  ( not exactly on demand ).  The last remaining market where Broadcast radio still had a majority was Car based listeners.  2009 will be the year this all changes.

Even though this is not the first head unit to feature an internet radio tuner, it is definately one of the more affordable ones.  Blaupunkt is not known to be a high end brand like Sony, or Kenwood.  But for under $400 to get all these features is a great deal.

How does Car based internet radio work?

Basically you need a cell phone with an unlimted dataplan.  Anyone with an Iphone or smartphone most likely already has this.  The data plans cost between $6 on Tmobile to over $20 with ATT.  You also need a cell phone that supports BlueTooth.  Once your Head unit has made a connection with your cell phone over bluetooth, it can then use your phone's data connection to connect to thousands of internet radio stations.  Many of which have no advertising.  So as long as you are within cell phone range, you can play internet radio in your car.

When can we expect it?

The first headunits will be coming out in the 2nd half of 2009.  with the feature available in OEM headunits starting in 2010. 

How will this impact the Radio Business?

Even though the effects will not be overnight.  Over time the following will most likely happen.

1. Sirius and XM satalite radio will go bankrupt.
2. The number of in car listeners for FM and AM stations will decrease.

What should we do?

If your station still doesn't provide content over internet radio now would be a good time to start.  If your station is playing the same Brittany Spears song 6 x an hour, you might want to rethink this.  Your ability to survive and keep listeners will depend on your DJ's ability to keep your listeners engaged.

Remember internet radio is nothing new.  Some Techies have been listening to internet radio in their cars for years, but when mainstream companies start to produce head units that make it so easy even your grandpa can use it, that is when a market shift will occur.  2009 will be a year of change.
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