Monday, March 5, 2012 - 11:40am
Australia may soon be a new marketplace for customizable Internet radio services, according to a new report from Morgan Stanley. The firm recommends existing broadcasters launch their own personalizable offerings in the meantime.
Morgan Stanley's report predicts that "personalized Internet Radio services, such as Pandora, will enter this market [Australia] at some point over the next 2-3 years." Such a new entrant will capture 2-3% of the nation's market within 3 years of launch, according to the report.
Australia already has access to on-demand streamers like Spotify, Rdio and the Omnifone-backed Rara.com.
Morgan Stanley goes on to forecast that the largest Australian media group Southern Cross Media (SXL) may be hurt by the launch of Pandora or similar services. However, SXL also "has the strongest platform from which to launch its own personalized Internet radio business and to gain a first mover advantage over new entrants," writes The Register.
"We believe it’s only a matter of time before the Internet has a negative impact on traditional radio listenership," Morgan Stanley's report states. "And thereafter radio asset values in Australia too."
The Register has more coverage here.