Traditional music radio has been disrupted by digital platforms (Spotify, Pandora, etc.). Especially younger users now opt for more personalized, on-demand options vs. AM/FM. Now smart speakers (Amazon Echo, Google Home) are starting to increase audio consumption across the board and may boost traditional radio as well.
According to a new study from NPR, 70% of smart speaker owners consume more audio content and 65% say they are listening to more music. They’re also getting more news/talk (28%), podcasts (20%), and audiobooks (18%).
The study found that 38% listen to AM/FM music (38%), AM/FM news talk (32%) and AM/FM sports radio (22%) on their new devices. As more consumers purchase smart speakers, AM/FM may be a surprise beneficiary.
As a search tool, the study found only 13% now use the device to find local business info. However, as these devices get smarter and become more transactional that may change.