HT&E: investments will see digital audio contribute ‘meaningful’ revenues and earnings
Here, There & Everywhere (HT&E), the owner of radio network ARN, is doubling down on its investments in digital audio offerings in the hope that they would contribute “meaningful” revenues and earnings over the coming years, according to company chair Hamish McLennan.
In the company’s annual general meeting today, McLennan said HT&E’s digital investments are “beginning to gain traction” as one of the factors in helping the company deliver on its goal of being “the best audio business in Australia”.
Most of the investments are in podcasts and live listening “to realise new opportunities in the increasing trends” towards digital audio consumption, he added.
“ARN’s digital audio revenue growth accelerated to 28% in H2 2022 and while $15 million represents less than 5% of total revenues, the strong demand for live and on demand audio in digital formats is generating new interest from our commercial partners who have an appetite to reach audiences with specialised data and targeting,” McLennan said.
“We are confident the investments we are making in content, distribution and commercialisation will see digital audio contribute meaningful revenues and earnings in the years to come.”
HT&E CEO & managing director, Ciaran Davis
HT&E chief executive Ciaran Davis said digital audio is also attracting and expanding audiences to ARN, with its podcast audience growing 54%. “We are encouraged that this new audience is not coming at the expense of radio but proving highly complimentary,” he said.
Davis said podcasting is now a mass medium in Australia after experiencing “explosive growth and widespread adoption in recent years” and that the trend has no signs of slowing down.
“With advancements in technology, easier access to content, and a growing preference for on-demand and personalised experiences, podcasting has become a mainstream form of entertainment and education,” he said.
“The advertising model is building with brands eager to tap into the engaged and captive audience. As the podcasting industry matures, advancements in data collection and analytics allow for more precise targeting and measurement. This data-driven approach not only enhances the value proposition for advertisers but also maximises revenue generation by delivering the right message to the right audience at the right time.”
He added that “the advent of live streaming” has opened up a new dimension of engagement for radio businesses extending the reach of the company’s broadcasts beyond traditional airwaves.
“With the rise of social media and digital platforms, live streaming provides an interactive and real-time experience that allows us to connect with our listeners in unprecedented ways,” Davis said.
“It fosters a sense of community, enables immediate feedback, and opens doors for collaborations and partnerships between content creators and brands.”
Davis added that digital audio is “now mass media,” citing figures from SMI showing the digital audio market was the fastest-growing digital market related to traditional content, up 30% in December 2022, and PwC’s Entertainment and Media Outlook forecasting that digital audio revenue, including streaming, would reach A$3.7 billion by 2026.
“We’ve made considerable progress growing new digital audiences and revenue opportunities and we expect our digital audio operations to be earnings positive on or before the end of 2024,” Davis said.
He added that audio entertainment is currently at a point where advances in technology, increased accessibility and changing consumer preferences could contribute to how audiences engage with radio and newer forms of digital audio content.
“As more people embrace podcasts, streaming services, and voice-activated devices, the demand for high-quality audio content will continue to grow,” Davis said. “This presents exciting opportunities for content creators, advertisers, and businesses to tap into the expanding audio market and engage with a highly receptive audience.”
Great to see, congrats to the team at ARN!
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