NPD Group: AM/FM Listening Down 4% As Internet Radio Audience Grows
November 8, 2012

A new study from The NPD Group looks at trends in Internet radio options, finding that listening for streaming radio services is growing faster than the audience for on-demand options. Meanwhile, terrestrial radio listening has declined, according to NPD's data.

According to the study, 50 percent of Internet users (96 million) listened to music on an Internet radio or on-demand music service in the past three months. More than one-third (37 percent) of U.S. Internet users listened to music on Pandora and other Internet radio services, while an equal percentage (36 percent) used an on-demand music service, like YouTube, VEVO, Spotify, MOG, Rhapsody and Rdio.

Notably, the audience for Internet radio grew 27 percent year over year, as the on-demand music audience increased by 18 percent. As Internet radio and on-demand listening has risen, the number of consumers who reported listening to music on CDs dropped 16 percent, while the music audience for AM/FM radio fell 4 percent, and the number of consumers listening to digital downloads declined 2 percent.

NPD SVP of Industry Analysis Russ Crupnick does note that "Although AM/FM radio remains America’s favorite music-listening choice, the basket of Internet radio and streaming services that are available today have, on the whole, replaced CDs for second place. We expect this pattern to continue, as consumers become more comfortable with ownership defined as a playlist, rather than as a physical CD or digital file."

NPD’s "Music Acquisition Monitor" also revealed that since 2009, the percentage of Pandora users who also listened to AM/FM radio declined by 10 percentage points, those listening to CDs on a non-computer device fell 21 percentage points, and listening to digital music files on portable music players also dropped 21 points. Part of these declines can be attributed to the fact that 34 percent of Pandora users are now listening to music on the service in their cars -- either connecting through an in-car appliance, or listening via car-stereo-connected smartphones or other personal listening devices.

Although listening to music on YouTube and VEVO generally appeals to a younger audience, NPD noted similar changes in traditional patterns among these users since 2009. Among YouTube and VEVO users, CD listening on players and in cars dropped 22 percentage points, listening to digital files on portable players declined 17 points, and listening to AM/FM radio fell 12 points.

Consumers who listened to music on Pandora, VEVO, and YouTube also noted a significant positive effect on their overall discovery and rediscovery of music. In fact 64 percent of these services’ users reported rediscovering older music, and 51 percent were learning about new music.

"AM/FM radio has traditionally played a significant role in helping consumers learn about new music from well known artists, as well as finding new ones; however, Pandora and other music services are an increasingly important part of the music-discovery process," adds Krupnik.

The data in the study comes from NPD’s "Music Acquisition Monitor," which is based on 14,000 outgoing surveys to NPD panelists yielding more than 4,000 survey completions each quarter. The report includes consumer data through June 2012. Data is weighted and projected to be representative of the U.S. Internet population (age 13 and older). Pandora, YouTube, and VEVO users frequently use other radio and on-demand services; changes in their habits, or discovery patterns often reflect the variety of services used to engage with music.




 
Breaking News
Sharon Dastur Named SVP/Programming Integration At iHeartMedia
Mark Medina Named Program Director At Z100/New York
Denon Electronics, iHeartMedia Announce Partnership
Deezer Appoints Hans-Holger Albrecht CEO
TuneCore Acquires DropKloud And Its Founders
SoundHound Reveals Top Songs, Artists, Albums Of 2014
In Brief - December 18, 2014
December 17, 2014
iHeartMedia Names Don Parker VP/Programming, For San Francisco And Sacramento
Senate Approves Michael O'Rielly For Five-Year FCC Term
Nielsen Report: A Focus On The Public Radio Listener
iHeartRadio Jingle Ball 2014 To Air On The CW Network
In Brief - December 17, 2014
December 16, 2014
Beasley Names Rafe D'Amico VP/Strategic Partnerships
NRG Media Taps Shane Sparks Market Manager, Northwoods, WI Cluster
Shazam Upgrades Windows Phone App
KLUC’s 16th Annual Chet Buchanan & The Morning Zoo Toy Drive Breaks Records
Rdio Brings Personalized Internet Radio, On-Demand Music Subscription To Windows Phone 8.1
In Brief - December 16, 2014
December 15, 2014
CBS Radio, Carson Daly Agree To Multi-Year Contract Extension
JVC Media Closes On Purchase Of WHKQ/Orlando
Bruce Gilbert Named SVP/Sports For Cumulus And Westwood One
Don Martin Rises To SVP/Sports Programming For Premiere Networks
Columbia Promotes Bryan Younce To SVP/Video, Content Production
In Brief - December 15, 2014
December 12, 2014
Jayde Donovan Joins WPLJ As Morning Co-Host
The Week In Review: 12/8-12/12
Music News
J. Cole Earns Third Chart-Topper
Quick Hits: Dick Clark's New Year's Rockin' Eve, Joan Jett & The Who, Metallica, Van Morrison, Grammy Special Merit Awards
Green Day, Joan Jett Make The List For Rock Hall
Quick Hits: Madonna, Michael Jackson, The Voice
Quick Hits: Imagine Dragons, Iggy Azalea & Britney Spears, Mad Season, David Byrne / Talking Heads tribute concert
Iggy Azalea Maps Out Arena Tour
Quick Hits: Ne-Yo, Selena Gomez, Gwen Stefani & Pharrell Williams, Stevie Wonder, Everclear, Alex & Sierra, Modest Mouse
Taylor Swift Spends Another Week At #1
The Week In Review: 12/8-12/12
Quick Hits: Epicenter Festival, Beyoncé, Dr. Dre, American Music Priz
Quick Hits: Coldplay, New Year's Rockin' Eve, Golden Globe Song nominees, Judas Priest
Quick Hits: BET Honors, Modest Mouse, Rush
U2 Extends iNNOCENCE + eXPERIENCE Tour
Quick Hits: Kid Ink, Seether & Rise Above Fest, TV On the Radio, Bob Dylan
Beyoncé, Sam Smith & Pharrell Nab Six Grammy Nods
FMQB NOW

Jon Zellner
SVPP, iHeartMedia

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!