Traditional radio is healthy, but there are challenges to tackle. Tobias Nielsen, Director of Audio+ Bauer UK, flagged up how important it is to reach a young audience when thinking of the future of radio.
Part of the vision of this project is to create more content, and think on an international level with more opportunities being created if a subscription model is added.
One of the attempts to make radio more appealing for that age group is to achieve what Nielsen describes as the “sweet spot” between something easy to use and flexible through subscription systems. The option to be able to skip a song is reinventing radio, giving listeners a choice and more control through a premium product.
Customers don’t mind paying for content when it is worthwhile. Nielsen explains that there is a small group of listeners that are passionate about their favourite radio station and are willing to pay to listen to without ads in the middle.
The option of premium radio is complementary to the advertising business. They will forever advertise, while having the option of a premium as “something additional done in full respect of the advertisement world”, explained Nielsen.
The point of a premium service isn’t to sell it to everyone. Rather, it is to have a premium version for those who really enjoy radio and the programs, and are willing to pay to enjoy without ads.
Written by Michelle Coelho and Artyom Laptseu.