In November 2004, Bridge Ratings & Research released a study that said radio's audience was shrinking due to less time spent with AM/FM radio and more time spent with MP3 players, Internet radio, satellite radio and CDs. Now, Bridge Ratings says the erosion rate is slowing and that the fourth quarter of 2005 showed positive signs for terrestrial radio.

"Listening to AM/FM radio is returning to pre-2004 levels in many cases," reads the study. "Interestingly, terrestrial radio returning to former high-water marks seems to be the result of both the medium's lower commercial load policies plus a growing segment of MP3 users who, after some time immersed in their new technology toy, become fatigued with their time spent with the MP3 player and return to terrestrial radio among other sources of audio entertainment."

More specifically, the latest study explains that a 15 percent decrease in terrestrial radio use by 12-24 year olds was reported for Q3 2005 as compared to Q3 2004. By Q4 2005, use had increased by two quarter hours per week per person resulting in only a 4 percent increase when compared with Q4 2004. Meanwhile, radio listening by adults 25-49 has risen from 65 quarter hours a week in Q4 2004 to 67 in Q4 2005.

The Bridge Ratings study also notes that terrestrial radio audience erosion to alternative entertainment continues to occur in young demographics, though at a slower rate than seen previously in 2005. Also, erosion has halted for the time being among the 25+ age group. Furthermore, while male and female 12-24 year olds a year ago were equally using digital devices, Internet radio and CDs, time spent with MP3 players has increased among males faster than with females, and time spent with Internet radio has slowed.