Why Video and Streaming Didn’t Kill the Radio Star
Despite technological progress, radio remains a relevant platform for music engagement. What accounts for radio's continued appeal?
Streaming has become the dominant way that people listen to music. It accounted for 84% of global music revenues in 2023.[1] Yet, radio remains a relevant engagement platform. Why has radio not succumbed to newer technologies like video and streaming? Why may investing in companies involved in radio transmission offer a potentially attractive investment opportunity?
Radio Is Widely Listened To
Despite streaming’s reach, it has not overtaken radio as a primary engagement platform. In the U.S., 93% of adults listen to the radio each week, more than those watching television, using a smartphone, TV connected device, tablet, or PC.[2]
And Is a Source for Discovering New Music
Radio is often a source for listeners to discover new music. Nearly 46% of consumers who consider new music important say radio is a vital channel for discovering new tunes.[3]
Radio is Free and Widely Accessible
Just about anyone anyplace can access radio. While many streaming services require subscriptions, radio is free and readily available.
Radio is a Local Medium
Radio is often a local medium, tailored to the needs and tastes of the communities in which they broadcast. Radio DJs and personalities often live in the same community as their listeners. They can provide up-to-date information on local news and events in ways that other media cannot.
Unique Content and Information
Algorithms often define your online experience. Streaming services may use your viewing and listening history to suggest selections. However, radio personalities work hard to select songs that their audience may enjoy and strive to create a unique listening experience for their audience. This may result in listeners hearing content they never might have on streaming services.
Artists Still Want to Do Well on the Radio
While artists want a highly-streamed song, many still want a Top 40 hit or to be on the Billboard 200 and Top 100 charts.
Vital in Emergencies
Radio is often the last line of communication during emergencies. Radio is likely to function when other mediums are unavailable, e.g., the internet is down. Also, many radios come with cranks to ensure availability during loss of power.
Effective Use of Advertising Dollars
Radio advertising can be very cost-effective. It can deliver many more consumers per dollar spent than most other media. Targeted programming can be created and delivered at lower costs than at other mediums.[4]
Additionally, with radio advertising, the advertiser is always front and center. They are not competing with other ads on a page or being interrupted by other spots. The listener will hear the advertiser’s ad only.
Radio Generates Robust Revenues
The global radio broadcasting market grew from $136.29 billion in 2022 to $143.29 in 2023 and is expected to reach $170.46 billion by 2027, a compound annual growth rate of 4.4%.[5]
Making It a Potentially Attractive Investment Opportunity
Radio’s appeal may make it an attractive investment opportunity and an integral part of the global music industry.
How May Individuals Gain Exposure to Companies in the Global Music Industry?
The MUSQ Global Music Industry ETF (MUSQ)
The MUSQ Global Music Industry ETF (MUSQ) seeks to provide investment results that, before fees and expenses, correspond to the total return performance of the MUSQ Global Music Industry Index (MUSQIX). The MUSQIX Index is designed to provide exposure to global, publicly traded companies and royalty funds with a core business interest in the global music industry.
MUSQ may provide individuals with an attractive vehicle to gain exposure to the global music industry.
[1] Olson, Cathy Applefeld, U.S. Recorded Music Revenues Reach All-Tim Mid-Year High of $8.4 Billion, Forbes, 9/18/23
[2] Kelly, Chuck, Radio Matters. Here’s Why., Radio World, 2/17/22
[3] Mayfield, Geoff, As Streaming Dominates the Music World, Is Radio’s Signal Fading, Variety, 2/10/23
[4] Kelly, Chuck, Radio Matters. Here’s Why., Radio World, 2/17/22
[5] Radio Broadcasting Global Market Report 2023, The Business Research Company, January 2023
MUSQ Global Music Industry Index ETF is offered by prospectus. Carefully consider the investment objectives, risks, charges, and expenses. This and other important information can be found in the MUSQ ETF prospectus, which should be read carefully before investing and can be obtained by visiting https://musqetf.com or by calling 1-855- MUSQ-ETF(687-7383).
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There is no guarantee the Fund will achieve its stated objectives.
In addition to the normal risks associated with investing, international investments may involve the risk of capital loss from unfavorable fluctuation in currency values, differences in generally accepted accounting principles or social, economic or political instability in other nations.
Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.
In addition to the normal risks associated with investing, investments in small- or mid-capitalization companies typically exhibit higher volatility.
The Fund’s concentration in an industry or sector can increase the impact of, and potential losses associated with, the risks from investing in those industries/sectors.
The Fund is non-diversified.
The Fund is new and has a limited operating history for investors to evaluate. A new and smaller fund may not attract sufficient assets to achieve investment and trading efficiencies.
The Fund may invest in securities denominated in foreign currencies. Because the Fund's NAV is determined in U.S. dollars, the Fund's NAV could decline if currencies of the underlying securities depreciate against the U.S. dollar or if there are delays or limits on repatriation of such currencies. Currency exchange rates can be very volatile and can change quickly and unpredictably.
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