Listening Drops, Commercial Stations Surge

Michael Hedges July 26, 2010 Follow on Twitter

In almost every market, recent radio ratings have shown significant changes. Audiences, it appears, have become unpredictable. Programmers and media buyers will have much to think about over the summer.

Austria’s GfK Radiotest audience survey for the first half 2010 shocked some observers as overall listening dropped to 81.4% of the population from 81.9% one year on. More interesting in the usually stable Austrian market was the drop in time spent listening to 194 average minutes from 198 minutes.

Public broadcaster ORF remains the dominant Austrian radio broadcaster.  Nationally, the ORF market share (persons 10 years and older) dropped to 69.9% from 70.8% one year on. Pop music channel Ö3 dropped to 37.2% market share nationally from 37.6%. Regional network Ö2 dropped in aggregate market share to 34.1% from 34.6%. Culture channel Ö1 dropped to 8.6% market share from 9.1%.  All bad news for the public broadcaster?

Hardly. FM4, the multi-lingual, slightly experimental radio channel, saw its market share nationally rise to 3.9% from 3.7% one year on. The ORF market share by province ranges from 79.5% (Burgenland) to 59.4% (Vienna). However, aggregate market share for ORF channels was lower in all provinces but Burgenland. In Salzburg and Tirol the aggregate ORF market share dropped significantly. Ö3’s market share ranged from 40.6% (Tirol) to 29.8% (Vienna), increasing only in Oberosterrich and Vienna. Ö2 regional channels increased market share in Kärnten (44.1%) and Steiermark (36.3%). The ORF press release (July 23) made a point of mentioning the 81 private radio competitors clawing it its market shares.

The Austrian government was the last in Europe to allow private broadcasting. Tradition and the imposing strength of ORF have made formidable competition for commercial stations. Only recently has a licensed national commercial channel developed. Kronehit, once a regional station, saw its national market share rise to 8.3% from 6.8% one year on. In Vienna, Kronehit’s market share rose to 6.9% from 5.1%. 

Competition in Vienna has been particularly fierce, with more radio channels, more attention and, of course, more money. Aggregate reach is stable at 75.2% with time spent listening falling slightly to 168 average daily minutes. ORF channels dipped slightly to 59.4% aggregate market share from 60.0% mostly on the weakness of Ö1, which dropped to 11.7% from 12.5%.

Aside from Kronehit’s ratings increase, other private stations’ results were mixed. Radio Energy increased to 6.7% market share from 5.8% year on year. Radio Arabella and Radio 88.6 both fell nationally to 8.7% and 6.3%, respectively.

Other private stations fared well in the provinces. In Steiermark, where total reach rose to 84.4% from 82.8%, Antenne Steiermark reach its highest market share ever, 17.8% from 16.7% one year on. Aggregate market share for private radio stations rose in each of the nine Austrian provinces.

In the money demographic – persons 14 to 49 years – overall listening fell to 80.7% from 81.8% one year on. Some ORF channels shun advertising but not sponsorships. Time spent listening dropped to 197 minutes, the lowest since private stations were authorized. The aggregate national market share for ORF channels among persons 14 to 49 years dropped to 65.8% from 68.0% one year on.

Ö3’s national market share dropped to 47.6% from 49.2% one year on, dropping in each of the provinces. Regional network Ö2’s aggregate markets share dropped to 20.7% from 21.9%, gaining only in Salzburg. FM 4, however, rose to 6.3% market share fro 6.0%, rising significantly in Vienna to 7.7% from 7.3%.

Private stations, on aggregate, increased market share among listeners 14 to 49 years to 32.9% from 30.7%. National channel Kronehit jumped to 12.1% from 10.0% year on year. In Vienna, Radio Energy rose to 10.5% from 8.8%. Antenne Steiermark, noted above, rose to 21.9% market share in Steiermark from 20.7% while Radio Grün-Weiss jumped to 7.5% from 5.3%.  

Public broadcasters dreaded the arrival of private, commercial competitors. Some watched as listeners abandoned legacy channels for new ones. Others saw under-funded commercial competitors stumble. The ORF, like many public broadcasters, is facing budget challenges. Long-term, however, private commercial radio broadcasters are proving to be quite resilient.

See also in ftmKnowledge

Europe's Radio - Western Europe

Opportunity meets tradition in Western Europe's radio broadcasting. Change has come fast and yet oh, so slowly. This ftm Knowledge file contains material and resources on public and private radio broadcasting in Austria, Belgium, France, Germany, Netherlands and Switzerland. 107 pages. PDF (June 2010)

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