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
Universal Music Group Appoints Gautam Srivastava to EVP, Human Resources
Intergr8 Research: Which Hits Shazam Can Help You Spot Early
May 25, 2016
Nielsen Insights: Their Generation
NAB Statement on Court Ruling on Media Ownership Rules
Republic Records Celebrate DNCE Going Double Platinum
May 24, 2016
iHeartMedia Wins Legal Battle
Spotify's Losses Increase As Revenues Grow Faster
Pierre Bouvard: The TV Upfront: History, 2016 issues, and What It Means For Radio
United Stations Adds Sammy Hagar's Radio Show
May 23, 2016
Columbia Records Announces Jennifer Frommer As Head of Its Creative Agency
iHeartRadio Summer Pool Party Heats Up Miami
National Radio Hall of Fame Announces 2016 Nominees
Shelley Wade Named Afternoon Host at KMYI (Star 94.1)/San Diego
Spotify's Family Plan Gets An Upgrade
May 20, 2016
eQB NOW
May 19, 2016
Republic Records Promotes David "Davey Dee" Ingenloff to SVP/Rhythm Crossover Promotion
WLLD (WiLD 94.1)/Tampa Goes Nuts In PM Drive & Grabs A Franchize At Night
Mike Mathewson Named VP/Marketing For Columbia Records
Universal Music Forms Verve Label Group, Appoints Danny Bennett as President/CEO
Entravision Promotes Don Daboub To EVP/Integrated Marketing Solutions
May 18, 2016
Rare On-Air Opening At Power 106 Los Angeles
Ross Mahoney Named PD/PM Drive Host At KXTE/Las Vegas
Erika Alfredson Named VP/Marketing For Columbia Records
May 17, 2016
Music News
The Weeknd Tops Billboard Music Award Winners
Quick Hits: Teen Choice Awards, Bon Jovi, The Killers
Quick Hits: Eminem, Mariah Carey, Red Nose Day TV Special, My Morning Jacket, The Tragically Hip
Drake Stays at #1, Meghan Trainor Debuts at #3 on Billboard 200
Quick Hits: Red Hot Chili Peppers, Megadeth, Ramones
Drake Leads Nominees For 2016 BET Awards
Quick Hits: Adele, Fifth Harmony, Life is Beautiful festival, Beastie Boys
Quick Hits: Chevelle, Rage Against The Machine / Prophets of Rage, 3 Doors Down, Make America Rock Again tour
Ariana Grande, Calvin Harris & More Headlining Billboard Hot 100 Festival
Quick Hits: MuchMusic Awards, Guns N' Roses / Lenny Kravitz / Alice in Chains, Rage Against The Machine, Riot Fest
Puff Daddy Takes Bad Boy Reunion on the Road
Quick Hits: Justin Timberlake, Houston Open Air, The Temper Trap, High Elevation Rock Festival, Pilgrimage Music & Cultural Festival, Lou Reed
Drake Stays Atop Billboard 200, Radiohead Debut at #3
Quick Hits: Adele, Red Hot Chili Peppers, Sia, Oasis
Ozzfest and Knotfest Combine Forces
FMQB NOW

John Mayer
PD, WFLZ/Tampa

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!