Radio Personalization

One of the trends that will shape the future of radio is personalization. As we have already seen in Pandora's internet radio strategy, consumers find value in being able to program their own radio stations- in terms of what types of artists and genres they want to hear. Larger broadcasting companies are beginning to realize this, and are taking steps towards integrating the concept.

Recently CBS broadcasting aqcuired Last.fm, which is an internet radio and social music networking site. CBS is trying to expand its online radio offerings, which they did for a sizeable price of $280 million. According to Mark Ramsey, CBS is going to incorporate Last.fm into their own radio stations to offer customized versions of their mothership. He says that "You'll see Last.fm integrated in all of CBS's radio websites which, for the first time, will enable customized versions of the analog stations you love - and whatever else your heart desires."


With all these consumer-tailored stations flooding the airwaves, more traditional "variety" stations will dwindle in value. Radio listeners will have their handful of personalized stations, and that will be all they listen to. People will no longer need hundreds of stations (which is bad news for satellite and HD radio). When this type of radio emerges, what we thought was "new radio" may become "old radio." However we don't know for sure when this will happen and to what degree. Still it will be interesting to see how it progresses.

Sources: http://www.hear2.com/2007/10/recently-apples.html
http://gigaom.com/2007/06/01/lastfm-cbs-280-million-hedge-for-its-radio-biz/