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
eQB NOW
July 31, 2014
Scripps, Journal Merging Broadcast Operations, Spinning off Newspapers
New Research From Coleman Insights And knowDigital Finds Strong Demand For NextRadio
Cumulus Announces Multi-Platform News Service Powered by CNN Newsgathering Resources
In Brief - July 31, 2014
July 30, 2014
Nielsen Reports Second Quarter 2014 Results
WRQX's Marc Orem Named Cumulus' "CBOS Star of the Week"
In Brief - July 30, 2014
FMQB FYI... Links You Should Know About
July 29, 2014
SiriusXM Reports Second Quarter 2014 Results
Do It For Kidd
In Brief - July 29, 2014
July 28, 2014
CCM+E Names Maynard SVP of Programming
Bob Rivers Ending Long-Running Morning Show
In Brief - July 28, 2014
July 25, 2014
eQB NOW
The Week In Review: 7/21-7/25
Pandora Reports Increase In Revenue, Net Loss In Q2
WRQX/Washington, D.C. Announces New Morning Show
In Brief - July 25, 2014
July 24, 2014
WQHT (HOT 97) New York Names Jay Dixon As Program Director
Townsquare Media, Inc. Announces Pricing of Initial Public Offering
iHeartRadio Survey Reveals Funniest Woman in America + Best Disney Song Ever
In Brief - July 24, 2014
Music News
Lorde Pens New Hunger Games Song
Quick Hits: Katy Perry, Alicia Keys & Swizz Beatz, Enrique Iglesias & Pitbull, Sixx:A.M., Fitz and The Tantrums
5 Seconds Of Summer Debut At #1, Announce 2015 Tour
Quick Hits: Foo Fighters, Iggy Azalea, Virgin Free Fest, Maynard James Keenan
Lady Gaga & Tony Bennett Jazz Album Officially Announced
Quick Hits: Jessie J + Ariana Grande + Nicki Minaj, Muse, TV On the Radio, Hozier, Primus, Led Zeppelin
FMQB Retro-Active: Ken Sharp Gets Up Close with Graham Nash and Tom Petty
Quick Hits: Nicki Minaj, Fences / Macklemore & Ryan Lewis, Courtney Love / Kurt Cobain biopic, Wings, Bleachers
The Week In Review: 7/21-7/25
Quick Hits: Lil Wayne, Metallica, Pearl Jam, Lionel Richie
MTV Names Iggy Azalea New Host Of House Of Style
Quick Hits: Farm Aid 2014, Beyoncé, Ozzy Osbourne, Stevie Nicks
"Weird Al" Yankovic Lands First #1 Album Of His Career
Quick Hits: Hilary Duff, Pharrell & Miley Cyrus, Jack White, Ryan Adams, Mudvayne / Greg Tribbett
Godsmack Unleashes Epic "Generation Day"
FMQB NOW

Tommy Chuck, PD
WFLZ/WMTX, 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!