Music Downloads, WiFi Radio and Portable Music Players: What It All Means for YOU.

The story at 11.

Oh, wait, this is the Internet.  Instant access and all that.

From the AllAccess article:

Download-to-own sales accounted for 25% of music on portable devices, unauthorized file sharing accounted for 19%, and 6% stemmed from users "ripping" CDs owned by others.

Legal digital music sales tripled in 2005, climbing up to represent 6% of global music receipts.

And here's some good news for us radio folks:

Nearly 1 in 2 people aged 12 to 24 were interested in FM radio capabilities being integrated into portable music players.

Combined with the information about an upcoming product roll-out found in this AllAccess article here:

BLOOMBERG is reporting that MICROSOFT is preparing to roll out a portable music player that will feature wireless download capability via built-in WI-FI. Designed to compete with APPLE's iPOD, the new device will also reportedly have a sharper screen.

MICROSOFT execs ROBBIE BACH and J. ALLARD from the company's XBOX division are heading up development of the new device. Additionally, former HOUSE OF BLUES SVP/Entertainment CHRIS STEPHENSON has joined MICROSOFT, and he is one of a group of execs who has met with content companies to seek licenses.

Look for the new device to hit the shelves in time for this year's holiday shopping season.

All of this tells me two things.

Firstly, it tells me that terrestrial radio listenership is declining due to portable music players and downloads.  At the same time, it also means that it won't decline as much as the doom-and-gloomers are predicting, as long as existing stations stay on top of their game with new technology.

Secondly, it tells me that even with all of these options, there's still a huge demand for terrestrial radio even when coupled with the new technologies, and that stations' listenership doesn't have to drop much at all.  Now this may sound like a drastic jump in trains of thought, but bear with me here:

This means every radio station needs to start a high-quality Internet stream immediately!

And no, it's not a change in my train of thought.  Here's the reasoning behind that statement (and the reason why I posted the Microsoft player article): Internet radio is where we're headed.  I keep hitting that point over and over again, but I can't stress it enough.  With more and more devices like the Microsoft player on the way, Internet streams will quickly become the most popular form of radio.  Combined with the revelation that those who own portable players want the availability of terrestrial radio stations, this means that if existing terrestrial stations don't start streaming, they will lose listenership.  More devices are going to be available with Internet capabilities than there will be with FM radio reception, that's just a given.  If stations start streaming now, they'll be well-prepared for the transition.  If they don't, they're going to be left in the dust (WCSR, this means you.  I told you guys when I was your webmaster that you should get on this, and that was back in 1998.)

Besides, it lets local listeners hear their favorite station no matter where they are in the world on a portable device.  How cool is that?!  I've been saying since the late 90's that I'd love to be able to do that!  But again, if stations don't start moving in that direction...

This also validates my point that time and time again, if you give people the choice between local content and non-local content, they're going to favor localism.  It's a time-honored truth.