Web radio growing faster than on-demand services (study)

The way consumers interact with music continues to evolve and not just from analog to digital but from downloads to streaming. Photographed is a Washington D.C. record store.

(Credit: Greg Sandoval/CNET)

Music listening patterns continue to evolve and not just from analog to digital but from downloads to streaming, according to findings from Internet research firm, NPD.

For the quarter ending in June, the audience for Internet radio services in the United States, which include companies such as Pandora Media, grew 27 percent from the same period a year earlier, NPD reported. In comparison, on-demand services such as Spotify, YouTube and Rhapsody, grew 18 percent over the same period.

Web radio stands to be an important money maker and it's not hard to figure out why the music sector and Pandora Media are preparing to go to war with each other.

Pandora is supporting legislation that would lower the royalty rates that Web radio services pay labels and artists to play music. The music industry, which had scheduled a pow wow last night to discuss how to battle Pandora's legislation, says that the sector has been shrinking for more than a decade while Pandora's... [Read more]