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Bridge Ratings Industry Study : Internet Radio on Cell Phones

For Immediate Release:

Monday, January 23, 2006

Cell Phone Radio Subscriptions May Be a Business

Bridge Ratings was commissioned by a wireless company in December 2005 to analyze the degree of interest by consumers in the availability of radio station audio on cell phones. The study measured interest in broadcast, Internet radio, satellite radio and podcast radio.

Cell phone pervasiveness would be a significant contributor to the success of cell phone radio. Topline findings of our national study conducted between December 15, 2005 and January 16, 2006 projects that in the United States, 66% of the population owns a cell phone: U.S. population stands at 297 million, with 197 million cell phone users. In fact, today cell phone technology is the only audio-capable technology that could approach traditional radio's market penetration (currently at 93% or 276 million Americans who listen to terrestrial radio at least once a week).

In our study, 73% of teens own cell phones.

When asked "If the following audio options were available on your cellular telephone for a reasonable fee of $8.95 per month, how likely would you be to subscribe?"

Cell Phone Audio Potential - All Ages (%)
	Very Likely	Somewhat	Not Very	Not at all
AM/FM Radio	33	20	17	30
Satellite Radio	9	2	41	48
Internet Radio	35	18	20	27
Podcast Radio	6	8	21	65

The results are significantly more revealing with specific age insight:

Cell Phone Audio Potential **Traditional Radio** (AM/FM)- All Ages (%)
	Very Likely	Somewhat	Not Very	Not at all
12-17	20	18	36	26
18-34	24	20	30	26
25-54	28	15	28	29
55+	5	4	20	71

Cell Phone Audio Potential **Internet Radio** - All Ages (%)
	Very Likely	Somewhat	Not Very	Not at all
12-17	38	30	12	20
18-34	32	28	15	25
25-54	16	19	27	38
55+	9	6	37	48

Cell Phone Audio Potential **Satellite Radio**- All Ages (%)
	Very Likely	Somewhat	Not Very	Not at all
12-17	1	4	42	53
18-34	9	12	35	44
25-54	11	10	37	42
55+	5	7	29	59

Cell Phone Audio Potential **Podcast Radio**- All Ages (%)
	Very Likely	Somewhat	Not Very	Not at all
12-17	12	16	38	34
18-34	10	14	36	40
25-54	7	10	26	43
55+	4	6	23	67

This data represents a surprising confirmation by this sample that traditional media continues to be an entertainment source despite the new media options available. Among the entire study sample, terrestrial radio fared far better than previously thought with a virtual tie in "very likely" responses with Internet radio.

However, when one looks at the age breakdowns, it is apparent that 12-34 year olds are more likely pay a "reasonable" fee to subscribe to Internet radio on cell phones than their 25-54 year old counterparts.

Satellite radio still lags in this comparison even when compared to Podcast radio.

Sample size: 2083 persons 12+. Sample error: +/- 2.2%

For additional information or advisement, contact Dave Van Dyke at 818.291.6420.

Markets measured: Los Angeles, San Francisco, Dallas, Burlington VT, Toronto, Philadelphia, St. Louis.

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