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.