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Why is the trend of listening to Internet Radio increasing?

Why we're seeing increased Internet Radio usage (Part 1 of 7)

Music listening trend

Historically, consumers used to buy individual songs or albums for downloading purposes. Apple’s (AAPL) iTunes Store has been a popular source for owning music. You can buy a single song for between $0.69 and $1.29. However, consumers’ listening preference shave started to shift towards low cost subscription services such as the Internet Radio. Internet Radio is a broad level radio service that allows the user to listen to music through the Internet. Under Internet Radio, there is Personalized Online Radio, On-Demand music, and Streaming Live Radio—which are self-explanatory terms. Pandora (P) is a leading player in the Internet Radio market while Google (GOOGL), Samsung (SSNLF), and Amazon (AMZN) are upcoming players.

Internet Radio has started to become more popular than “Over-the-Air” AM/FM Radio

According to a survey conducted by Edison Research, the popularity of Internet Radio has increased over the last year or so. There are 67% more people listening to Internet Radio compared to only 23% more people listening to “Over-the-Air” AM/FM Radio. Some of the reasons cited by people for the preference of listening to Streaming Live Radio instead of local “Over-the-Air” AM/FM radio in the survey conducted by Edison Research were as follows:

  • There are more types of audio programming to choose from

  • The player often tells you what song is playing

  • You get a clearer signal

  • You like to listen to live radio stations from outside your local area

  • It’s more convenient than listening on a regular radio

  • You want to listen to a live event—sporting event or music event

To learn more about the increasing trend in listening to Internet Radio, continue reading the next sections in this series.

Continue to Part 2

Browse this series on Market Realist: