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Listeners, Conversion Rates, and $$$


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Guest streamingnewbie

Hello everyone.

 

Okay, so I am a "numbers guy", and feeling very impatient as an entrepreneur that hasn't "gone live" yet.

 

In broad terms...

 

1.) If you have an Internet radio station that plays some genre of "mainstream" music (e.g. Rock, Pop, Country), how many listeners per day do you think you would need to be able to turn a healthy profit from your radio station?

 

(The assumption is that you are making money purely from advertising - since I don't think people will easily pay for a subscription service unless you are like Spotify or whatever?!)

 

 

2.) What kind of "conversion rate" do you think you could get from a decent Internet radio station?

 

Would 1,000 listeners a day convert to anything of value?

 

Would you need 10,000 listeners per day?

 

Maybe more?

 

 

3.) If you were a radio station (either Terrestrial + Internet or pure Internet) in a mid-sized market (i.e. 100,000 - 500,000 people), how much traffic do those radio station need to stay in business?

 

One crude way that I try and figure out how much revenue a business makes is based on their headcount. For example, there is a ma-and-pa pizzeria that I'm going to shortly that has 3 workers including the owner. So if each of them make Minimum Wage (~ US$15/hour), then that would mean they need to sell roughly $100,000/year in pizzas just to cover labor costs and NOT including rent, utilities, and the actual ingredients.

 

That seems like a lot of money, but when you think of it in those terms, it makes sense.

 

So even some "dumpy" terrestrial radio station in a town of 30,000 people still has to make a sizeable amount of revenue - not profits per se - just to employee a staff of say 5-6.

 

At any rate, some of the Internet radio stations I have seen online are getting like 10-15 concurrent listeners, so I consider those "hobbyists".

 

I'm curious what it would take to become a "real" Internet radio station and make a living off of it.

 

Any real-world experience on this or at least some decent projections??? :\

 

Thanks!!

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  • 2 weeks later...

Your enthusiasm is admirable, but I'm afraid you were misinformed. :)

 

Internet radio is a hobby--not a business. You will spend money on playout software, streaming bandwidth and copyright royalties. But you will receive nothing in return because advertisers are not interested in Internet radio. 99.9% of the guys running Internet radio stations subsidize them out of their own pockets because they enjoy the hobby.

 

If you enjoy sharing your music with a couple of hundred like-minded enthusiasts--and don't mind paying for the privelege--then go for it. Otherwise, don't waste your time. ;)

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Guest streamingnewbie
Your enthusiasm is admirable, but I'm afraid you were misinformed. :)

 

Internet radio is a hobby--not a business. You will spend money on playout software, streaming bandwidth and copyright royalties. But you will receive nothing in return because advertisers are not interested in Internet radio. 99.9% of the guys running Internet radio stations subsidize them out of their own pockets because they enjoy the hobby.

 

If you enjoy sharing your music with a couple of hundred like-minded enthusiasts--and don't mind paying for the privelege--then go for it. Otherwise, don't waste your time. ;)

 

Interesting reply.

 

If Internet radio is a "hobby" then how do Internet radio stations exist?

 

I know of a handful of stations that seem to have very professional setups and presumably fairly large listenerships - although I believe most of them have both a terrestrial and Internet component.

 

But in addition, how do you explain iHeart radio stations that are purely Internet based?

 

Clearly *some* people are able to make money off of it...

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Clearly *some* people are able to make money off of it...

 

Yes but they're generally backed the HILT with investors with LOTS of Money to be able to achieve this.

 

I thought I could make money from internet radio when I first inquired about creating a station 20 years ago.

 

Sadly I realised quite quickly there was no way on this planet i was going to achieve a huge listener base let alone actually make any Moolah from it...

 

So ever since its been a hobby. You might struggle to get advertisers. Thats possibly your BIGGEST hurdle.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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I am a "numbers guy", and feeling very impatient as an entrepreneur that hasn't "gone live" yet.

 

If you're going to be an Internet radio entrepreneur then it's time you did your homework. Contact some prospective advertisers

in your area and ask if they'd be interested in buying ads on your new Internet radio station once it's up and running.

 

Then report back here with the results...

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Guest streamingnewbie
Yes but they're generally backed the HILT with investors with LOTS of Money to be able to achieve this.

 

I thought I could make money from internet radio when I first inquired about creating a station 20 years ago.

 

Sadly I realised quite quickly there was no way on this planet i was going to achieve a huge listener base let alone actually make any Moolah from it...

 

So ever since its been a hobby. You might struggle to get advertisers. Thats possibly your BIGGEST hurdle.

 

I don't deny your experiences or struggles, but I find what you all are saying so depressing.

 

Is this yet another thing that I have to add to my "Things Which Cannot Be Fixed" list? (e.g. Trump presidency, Climate Change, Coronavirus, etc)

 

From where I stand, the reason why the world is falling apart is that everyone is giving up and accepting our eventual demise.

 

Where is the spirit of "we can do nearly anything if we try hard enough"?

 

I just read a long piece in the New York Times about Neil Young.

 

If people like Neil Young or Jimi Hendrix or Janis Joplin had just accepted the status quo, think of all the brilliant music this world would be missing?!

 

One thing I will say is that it is very hard to sell anything creative or brilliant when 95% of Americans' brains are dead like zombies. It does seem like why it's hard to sell things is because no one gives a sh*t anymore...

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Guest streamingnewbie

If you're going to be an Internet radio entrepreneur then it's time you did your homework. Contact some prospective advertisers

in your area and ask if they'd be interested in buying ads on your new Internet radio station once it's up and running.

 

Then report back here with the results...

 

I am interested in buidling my own Internet radio station so that I can use it as an advertising and promotions "platform" for my startup business.

 

So, yes, I have 100% buy-in from my lone advertiser.

 

But can/will my startup business succeed on it's own? I don't know...

 

Would having an Internet radio station which I could use as yet another way to promote my startup business work and translate into success for my startup business? I don't know...

 

First challenge is to get my startup business online and see how it goes.

 

But it never hurts to think several steps ahead and research the Internet radio idea as well...

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Right now there are 87,591 stations listed on shoutcast its a dog eat dog world and only the successful stations will make money out of it BUT its like a needle in a Haystack.

 

You can give it your best shot but if it isn't working in 6 months have a rethink

 

Don't go with Shoutcast they rarely pay people for the ads they carry on their stations.

 

Advertising on an Internet only radio stream only works if the products being advertised have Universal appeal (i.e: To everyone in every country) otherwise the advertising fails.

 

I'm trying not to be negative I'm trying to point out the pitfalls & there are no end of them when it comes to online radio you're up against the Might of Apple, Amazon, Spotify etc which have dented Internet radio listening figures..

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie

Right now there are 87,591 stations listed on shoutcast its a dog eat dog world and only the successful stations will make money out of it BUT its like a needle in a Haystack.

 

Out of those 87,591 stations, how do people promote their stations?

 

If someone expects that an Internet user will go to Shoutcast and search through all of those stations to find your station that will likely lead to 10 listeners in a best case scenario.

 

Doesn't anyone promote their stations using traditional means? For example websites with good SEO, billboards, promotions in local areas, TV ads, etc?

 

 

You can give it your best shot but if it isn't working in 6 months have a rethink

 

True.

 

 

Don't go with Shoutcast they rarely pay people for the ads they carry on their stations.

 

As mentioned my business would be the advertiser...

 

 

 

Advertising on an Internet only radio stream only works if the products being advertised have Universal appeal (i.e: To everyone in every country) otherwise the advertising fails.

 

Yes, what I am selling applies globally, although I am only going to seel to people in the U.S.

 

 

I'm trying not to be negative I'm trying to point out the pitfalls & there are no end of them when it comes to online radio you're up against the Might of Apple, Amazon, Spotify etc which have dented Internet radio listening figures..

 

Are listeners that dull that all they want is a music store and playlists vs a real radio station? (The under 30 crowd is probably too stupid to even know what a radio station is...)

 

And doesn't it piss people off enough to want to try and topple APple and Spotify, or do people like "Big Brother" taking care of them?

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Are listeners that dull that all they want is a music store and playlists vs a real radio station? (The under 30 crowd is probably too stupid to even know what a radio station is...)

 

By revenue figures for Spotify ec... it would appear so. they want the music they want when they want it it seems. Internet radio traditionally is in decline.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie
By revenue figures for Spotify ec... it would appear so. they want the music they want when they want it it seems. Internet radio traditionally is in decline.

 

A "playlist" isn't "radio" nor "Internet radio".

 

Apparently nobody cares how Apple and Spotify and even iHeart Radio are destroying a key part of human culture.

 

I wonder how many people here secretly listen to their Spotify accounts...

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I use Spotify quite often as it goes. You'd be amazed how much music i discover from people tweeting what they are listening to... My oldies collection is ever growing because of the suggestions I see.

 

This is the problem you have; you can't always compete against people making playlists or even stations on Spotify. Yes there are so called radio stations on there too.

 

Streaming music services have been chipping away at Internet radio listener counts since they first emerged And there ain't a FAT LOT YOU CAN DO ABOUT IT..

 

Lots of stations have gone under this past few years because of licensing problems.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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What I'm trying to point out to you is that Internet radio isn't the get rich quick scheme you are looking for.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie

I use Spotify quite often as it goes. You'd be amazed how much music i discover from people tweeting what they are listening to... My oldies collection is ever growing because of the suggestions I see.

 

So you are part of "them"...

 

 

This is the problem you have; you can't always compete against people making playlists or even stations on Spotify. Yes there are so called radio stations on there too.

 

Streaming music services have been chipping away at Internet radio listener counts since they first emerged And there ain't a FAT LOT YOU CAN DO ABOUT IT..

 

Lots of stations have gone under this past few years because of licensing problems.

 

Then why bother creating your own Internet radio station? (Especially if YOU are a Spotify fan?!)

 

And what is the purpose of this forum really?

 

If even half of the people on here feel like you do about Spotify, then why bother with Internet radio at all?

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Guest streamingnewbie
What I'm trying to point out to you is that Internet radio isn't the get rich quick scheme you are looking for.

 

I never said anything about getting "rich".

 

I never said anything about getting anything "quick".

 

In fact, I'm still not sure anyone here even understands what I am trying to accomplish - although I thought I spelled it out above and in other threads?

 

It all seems so helpless to me how everyone is giving up on things and just accepting "that is just how the world is..."

 

When did people become so depressed and without hope?

 

Amazon, Apple, Google, Facebook, Spotify have to be EATING THIS MENTALITY UP!!

 

Nothing brings authoritarian institutions into power quicker than when the masses simply give up and acquiesce?!

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I'm not debating any further. Yes we've got what you want to do.

 

Sadly it seems you're not able to handle the answers that have been given to you.

 

It may work it may not... We don't have a Crystal ball to see what the future MIGHT bring or if its going to land you lots of listeners.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie
I'm not debating any further. Yes we've got what you want to do.

 

Sadly it seems you're not able to handle the answers that have been given to you.

 

It may work it may not... We don't have a Crystal ball to see what the future MIGHT bring or if its going to land you lots of listeners.

 

I just find it sad that apparently everyone on this forum has decided that an Internet radio station is only for hobbyists.

 

Maybe it is impossible to succeed - I don't know.

 

Just would have expected people that do something to have more hope that a positive outcome is possible.

 

It's a free world, and you are entitled to your world view.

 

Just not what I was expecting...

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The world of Internet radio is complicated like I said I was just making you aware of possible issues. Go ahead create a station have a go at streaming and see where it takes you. Just don't expect the road to be paved with Gold was all I was trying to get across.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie
The world of Internet radio is complicated like I said I was just making you aware of possible issues. Go ahead create a station have a go at streaming and see where it takes you. Just don't expect the road to be paved with Gold was all I was trying to get across.

 

So nobody in this forum has been able to make a profit from a pure Internet radio station?

 

That is, everyone here is just a "hobbyist"?

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Most of the users around here could be classed as hobbyists that's not a bad thing we all had to start somewhere.

 

20 years I've been into Internet-radio and Its rare to hear of a station making a profit. Most of the stations I see have begging bowls to cover their costs each month.

 

Wasn't trying to sugar coat things that's all.

 

We all have dreams and if that's your dream then go for it... Just be prepared for lot of hard work and the odd disappointment..

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie
20 years I've been into Internet-radio and Its rare to hear of a station making a profit. Most of the stations I see have begging bowls to cover their costs each month.

 

So how much per month are most of you spending?

 

My first week on here I did TONS of research, but took the last week off to get back to my day-to-day life and my primary business. So I have forgotten some of the numbers already.

 

I do recall that licensing was by far the largest expense to running an Internet radio station - especially proper/legal/ethical licensing. (Live365 is gonna get their ass sued off some day soon...)

 

For just pure web hosting costs it doesn't seem like it would be too bad.

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I'm spending very little doing my hobby. I'm doing it on the cheap because to me its a hobby.

 

To run a really successful station you need to remember TLH (Total listening hours) The more TLH you have the more you will pay each month.

 

I can't remember the streaming rates but last i saw I think it was $0.018 per listener per performance with people listening to your stream.

 

its not cheap to run a stream.

My Blog https://djgarybaldy.blogspot.com

User of RadioDJ FREE radio playout software since 2010.

How to Install RadioDJ: https://djgarybaldy.blogspot.com/2020/08/how-to-install-radiodj-free-radio.html

RadioDJ is my most FAVOURITE piece of software EVER

 

 

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Guest streamingnewbie
I'm spending very little doing my hobby. I'm doing it on the cheap because to me its a hobby.

 

To run a really successful station you need to remember TLH (Total listening hours) The more TLH you have the more you will pay each month.

 

I can't remember the streaming rates but last i saw I think it was $0.018 per listener per performance with people listening to your stream.

 

its not cheap to run a stream.

 

I just checked with a stream provider, and they said that if I do the licensing myself, they can offer up to 50,000 TLH for like $80/month, which is "cheap" in my book.

 

When I originally posted here, I was thinking I'd need 100 concurrent listeners between 7:00am and 10:00pm plus overnight so around 1,600 TLH per day and around 50,000 TLH per month. I think I calculated that would cost me around US$30,000 per year, which isn't a problem if you can sell more than that - in my case - of my products and services.

 

But, alas, that is the magic number I am trying to get confirmation on... How many concurrent listeners do you need on average to have enough traffic to be able to get the momentum you need to sell things? (Which is what I was trying to ask in my OP.)

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To make an internetstream successful I see 2 options ...

If the stream is related to a FM or AM station who broadcast for a region

If the stream is pointed to a certain public who is living in a specific region.

 

However an internetstream has a wide range of listeners, most often people from other regions and countries.

Point is, if too much people from outside of the region are listening the commercial impact disappears.

So it ain't that easy to create a simultaneous amount of listeners who are listening to "all content" (music & commercials) for reason that many of them are not related with some of the content of the station.

 

What ever some stations publish about their figures of listeners, none of them can tell the real thruth.

Why ?

Stream stats show the amount of traffic, hits on the stream and the daily listening hours.

However many of the hits on a stream are generated by bots who are visiting the stream ... Bots can be part of stream ripper software who only connect to rip a specific song.

 

If Your stream is pointed to a specific public and / or region You can achieve "a public".

However "that public" isn't made in one day, one week, neither in one Month ... It takes time.

You gonna need a lot of exposure to succeed. What kind of music do they like ? Do they like a back to back playlist if a host is on air ? etc ...

Playing commercials in between can mean that some of them disconnect ... unless Your public is trusted with those compagnies.

 

I agree that making radio isn't anymore as it was done in de "golden era" of radio (end 50s, 60s & 70s).

Those days, radio had still that thing called the magic of radio ... To be honest, those days are gone. Radio is made on an other level.

Too many radio's became a kind of wallpaper. Their genre of music, the lesser talk - the better, and the least interruptions as possible.

 

The range of people who are interesting for a project is an audience between 30 and 45 Years, those who consume, those who have the money to buy things ...

However most of them are addicted to platforms such as Spotify for reason that they can play their own choice of music.

Sad ... I know, but that's part of the reality.

Above the age of 45 untill 65 there are still people who prefer radio as it was known, but they prefer an other style / genre of music.

 

So my conclusion is once again ... You have to make a blueprint of Your general public of the region where You are living.

Example :

If Your region has 1 Million potential listeners, check how many people are in the age ranges.

If they match with Your supposed audience, how much of them are interested in radio.

If they are interested in radio, how much of them like a specific genre, or do they like a general CHR format.

To achieve that data You gonna need to make a plan, that way You gonna create an insight to what You are willing to achieve.

The only way to do this is to set up a survey ... How do You gonna reach all of them so that they can enter their ideas to your survey ?

 

If You can link Your project to an existing business, its gonna be possible to reach some of what "could" be your audience.

However the days are gone that so known friends gonna listen to the stream ... Yes, they say We gonna listen, but after 1 day they are back to their common things that they're used to do.

 

What You are willing to achieve is a very difficult exercise between the pro and cons.

You have talked already a lot that money isn't a problem ... In fact once Your stream is online, a software license only has a one time cost, the internet upstream is managed by your internet provider (most of them offer these days unlimited traffic) ... and the Monthly royalties ...

What gonna be the results of the "cost-benefits' ?

 

If all of the above is managed You can decide to start Your project with the desire to make some money with it.

For reason that it is an internet only project a customer can ask to play their commercials more often in a rotation of 12 times or more a day.

The costs to the customer of that rotation gonna be not equal to what should be paid on a regular local FM or AM station.

The income for You gonna be much lower, however the customer wants a high return.

 

I love Your enthusiasm and Your drive but I'm afraid that You gonna loose some of it during the preparations and / or during the runnin of Your project.

Just remind Yourself that the way that people are listening (aka consume) music is way different than lets say 20 Years ago ... Its even worser if You compair it to the world of "real radio" since the 50s untill the 90s.

 

Its not a shame to be a hobbyist.

Most of those hobbyists are people with decades of experience in radio and who are willing to bring back a small part of their type of radio.

As former professional I know that radio is a very tough world ... Most of them are doing it, but less do succeed.

 

If You have made a plan, lets call it a blueprint of what You are willing to achieve, feel free to share it.

At that moment We can give You input and feedback to make it even better, but please don't expect miracles.

I just find it sad that apparently everyone on this forum has decided that an Internet radio station is only for hobbyists.

Maybe it is impossible to succeed - I don't know.

Just would have expected people that do something to have more hope that a positive outcome is possible.

It's a free world, and you are entitled to your world view.

Just not what I was expecting...

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Guest streamingnewbie

To make an internetstream successful I see 2 options ...

If the stream is related to a FM or AM station who broadcast for a region

If the stream is pointed to a certain public who is living in a specific region.

 

Well, a terrestrial station is not an option right now.

 

But, yes, I have been thinking that if I created an Internet radio station that was targeted to where I grew up in the Midwest (i.e. market of 700,00+). That is a decent crowd, and one that I can intimately relate to and them to me, and if people from other parts of the U.S. join in, no problems because 1.) The music would be "universal" here in the U.S., and 2.) My primary business - which is the advertiser - applies to everyone in the U.S. and developed world!

 

 

 

However an internetstream has a wide range of listeners, most often people from other regions and countries.

Point is, if too much people from outside of the region are listening the commercial impact disappears.

So it ain't that easy to create a simultaneous amount of listeners who are listening to "all content" (music & commercials) for reason that many of them are not related with some of the content of the station.

 

Understood, but in my case I think I could cater things to extend past my immediate area with no real issues. (If I was soliciting advertisers from the local area - say a restaurant - then yes, it would fall off for people 1,000 miles away.)

 

 

 

What ever some stations publish about their figures of listeners, none of them can tell the real thruth.

Why ?

 

Stream stats show the amount of traffic, hits on the stream and the daily listening hours.

 

However many of the hits on a stream are generated by bots who are visiting the stream ... Bots can be part of stream ripper software who only connect to rip a specific song.

 

True.

 

 

If Your stream is pointed to a specific public and / or region You can achieve "a public".

However "that public" isn't made in one day, one week, neither in one Month ... It takes time.

 

Understood.

 

 

 

You gonna need a lot of exposure to succeed. What kind of music do they like ? Do they like a back to back playlist if a host is on air ? etc ...

Playing commercials in between can mean that some of them disconnect ... unless Your public is trusted with those compagnies.

 

Well, the longer term goal would be to make the "advertisements" from my primary business be more "conversational" than "hard-selling" advertisements, if you follow me?

 

And that is why I am investigating this whole Internet radio station idea - to create a platform where regular listeners come to primarily listen to music and radio shows, and where I can - as a trusted friend - make recommendations for my primary business AND also have mini-shows where I can educate people on various topics related to my primary business.

 

 

I agree that making radio isn't anymore as it was done in de "golden era" of radio (end 50s, 60s & 70s).

Those days, radio had still that thing called the magic of radio ... To be honest, those days are gone. Radio is made on an other level.

To many radio's became a kind of wallpaper. Their genre of music, the lesser talk - the better, and the least interruptions as possible.

 

Well, I'm not looking to create a DJ that yacks away all day, but rather a "friend" who helps transition between long blocks of music and who is your "guide" educating you about the music, someone you feel you can relate to too, someone who is a friendly voice in the background in a good way.

 

 

The range of people who are interesting for a project is an audience between 30 and 45 Years, those who consume, those who have the money to buy things ...

However most of them are addicted to platforms such as Spotify for reason that they can play their own choice of music.

Sad ... I know, but that's part of the reality.

 

I agree with you, but still ask this...

 

How can you know what you like if you only rely on your own knowledge?

 

In the past, a *good* DJ was a musical reference librarian that turned ou on to new artists, albums, songs and taught you about the stories behind the music to open your mind to all that is out there.

 

iHeart radio and Spotify will NEVER be able to do that.

 

It would be analogous to an American wanting to travel to Greece or the Philippines or China for the first time, knowing nothing about these places/cultures, and just "winging it"?!

 

Without a travel agent/tour guide - or DJ in my case - you would miss so much...

 

 

Above the age of 45 untill 65 there are still people who prefer radio as it was known, but they prefer an other style / genre of music.

 

The question is, "Are they too old to still buy things?"

 

And can the 35-45 group be "educated" and thus "saved"?

 

(I see the

 

 

So my conclusion is once again ... You have to make a blueprint of Your general public of the region where You are living.

Example :

If Your region has 1 Million potential listeners, check how many people are in the age ranges.

If they match with Your supposed audience, how much of them are interested in radio.

If they are interested in radio, how much of them like a specific genre, or do they like a general CHR format.

To achieve that data You gonna need to make a plan, that way You gonna create an insight to what You are willing to achieve.

The only way to do this is to set up a survey ... How do You gonna reach all of them so that they can enter their ideas to your survey.

 

I could create a survey, and "hit the pavement" and survey real people in person - have already considered doing that.

 

 

If You can link Your project to an existing business, its gonna be possible to reach some of what "could" be your audience.

Howver the days are gone that so known friends gonna listen to the stream ... Yes, they say We gonna listen, but after 1 day they are back to their common things that they're used to do.

 

Well, I am getting ahead of myself, because my primary business has not gone live yet. But once it does, and assuming it takes off, then I can give more serious thought to this whole Internet radio thing.

 

I will say that my target audience is moms and families, so I think that is a fairly stable and predictable population. And combined with starting off targeting a region - as you suggest - and by doing preliminary market research, it seems to me that there is potential for making this work.

 

(Would be a hell of a lot easier if the licensing costs weren't so damn much!!)

 

 

 

What You are willing to achieve is a very difficult exercise between the pro and cons.

You have talked already a lot that money isn't a problem ...

 

No, $$$ is a problem if I have more money going out than coming in!!!

 

I was saying that I would be willing to spend, say, $30,000/year in licensing if I made $50,000 in revenue.

 

 

 

In fact once Your stream is online, a software license only has a one time cost, the internet upstream is managed by your internet provider (most of them offer these days unlimited traffic) ... and the Monthly royalties ...

What gonna be the results of the "cost-benefits' ?

 

Not sure what you mean.

 

The goal is that I run my own "advertisements" / promotions / educational spots on my Internet radio station, and that I have enough listeners, and more specifically enough listeners who are interested in my advertising, to click-through to my primary business's website and that they make a purchase.

 

If it cost my $60/hour to pay for licensing, and every hour I could sell a one-year subscription to my business which runs $60, then I will have broken even, and I would be very happy. If I could sell two $60 subscription in that hour, then I have a profit, although my initial goal is for this Internet radio station to be a vehicle to PROMOTE my primary business and get enough traffic to that site so that my primary business can sell itself.

 

(Why do you think major corporations that have no affiliation with sports spend hndeds of millions of $$ on sporting complexes? Name recognition!!)

 

 

 

If all of the above is managed You can decide to start Your project with the desire to make some money with it.

For reason that it is an internet only project a customer can ask to play their commercials more often in a rotation of 12 times or more a day.

The costs to the customer of that rotation gonna be not equal to what should be paid on a regular local FM or AM station.

The income for You gonna be much lower, however the customer wants a high return.

 

Remember, "I" am the customer and the only customer...

 

 

 

I love Your enthusiasm and Your drive but I'm afraid that You gonna loose some of it during the preparations and / or during the runnin of Your project.

 

Yeah, I can see it is already an uphill journey!!

 

 

 

Just remind Yourself that the way that people are listening (aka consume) music is way different than lets say 20 Years ago ... Its even worser if You compair it to the world of "real radio" since the 50s untill the 90s.

 

Yes, I see that.

 

But why did that happen?

 

People typically do not switch away from things they love, right?

 

Most people only leave the comfort of something they have known for the "unknown" if 1.) The "known" no longer satisfies them, or 2.) the "unknown" looks so superior that they deem it worth the risk to switch.

 

Agree or disagree?

 

So I think why people switched to iHeart Radio and then Spotify - besides novelty - is that they felt that traditional radio was failing them.

 

If I could create an Internet radio station that capture some of the "magic" that radio provided in the past, and could at least somewhat compete with newer ways of listening, then maybe I could convince some of those lost souls to "come home"?

 

What do you think?

 

 

 

Its not a shame to be a hobbyist.

Most of those hobbyists are people with decades of experience in radio and who are willing to bring back a small part of their type of radio.

As former professional I know that radio is a very tough world ... Most of them are doing it, but less do succeed.

 

If being a "hobbyist" means being an "artist", then I agree.

 

But if being a "hobbyist" means being an "amateur" then that is NOT what I personally am trying to do.

 

It seems like a lot of people I have spoken to fall into the second category, which is their right, but just not what I aspire to do.

 

I agree that the odds are starting to seem insurmountable, but I haven't given up yet.

 

 

 

If You have made a plan, lets call it a blueprint of what You are willing to achieve, feel free to share it.

At that moment We can give You input and feedback to make it even better, but please don't expect miracles.

 

I think I have shared much of my "blueprint" above in this response and in other posts I have made.

 

If you have questions, or need clarifications, please let me know. :-)

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