Digital radio and the long tail

Breaking several months of blog silence with a trip to the Digital Radio Show, where, among other speakers, Tim Ayris, the head of marketing for WRN explains how the "long tail" effect applies to digital radio, and especially Sky, which has allowed niche broadcasts to reach a wide geographical area relatively cheaply.

With all the major formats catered for by the big groups and the Beeb, success for a digital-only station lies in appealing to a very clearly defined niche of people who aren't catered for elsewhere, says Ayris. WRN, for example, is currently in talks with a Nigerian internet radio station that is making a profit with adverts for money transfer services, airlines etc, but looking to reach more people on Sky.

He says even the smallest of digital radio stations can gain a loyal following (and make money) by appealing to a small, disenfranchised but economically sustainable group of people who don't mind spending a few quid for a satellite receiver to pick up a station that speaks to them. It doesn't matter too much where they are geographically. The only trick is to make sure you get to them first.

Shorthand permitting, here's a better explanation from Ayris:

"The long tail allows smaller niche broadcasters to develop as they take advantage of low cost digital opportunities to reach out and serve communities of disparate listeners. Survival depends on finding an audience segment that is sustainable. Any radio operator following this model needs to be the first to market. They have a choice of platforms no matter where that audience is located. As long as the audience is motivated enough, the digital radio world offers a low cost option for the small broadcaster."