[Listening to AM/FM radio is still in 1st place. Listening to CDs used 
to be in 2nd place. Now it has been bumped to 3rd place by folks 
listening to IP audio services.]

Monday, Dec. 3, 2012

Internet Music Pushes CDs Out of Second Place

By Jack Loechner
MediaPost.com

http://www.mediapost.com/publications/article/188313/internet-music-pushes-cds-out-of-second-place.html


According to The NPD Group, 50% of Internet users (96 million) listened 
to music on an Internet radio or on-demand music service in the past 
three months. 37% of U.S. Internet users listened to music on Pandora 
and other Internet radio services, while 36% used an on-demand music 
service, like YouTube, VEVO, Spotify, MOG, Rhapsody, and Rdio.

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

Russ Crupnick, senior vice president of industry analysis at NPD, said 
“... although AM/FM radio remains America’s favorite music-listening 
choice... Internet radio and streaming services available today... 
have... replaced CDs for second place... ”

The study revealed that since 2009 the percentage of Pandora users who also:

Listened to AM/FM radio declined by 10 percentage points
Listened to cds on a non-computer device fell 21 percentage points
Listened to digital music files on portable music players also dropped 
21 points

Part of these declines can be attributed to the fact that 34% 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, 
says the report.

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
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. 64% of these services’ users reported rediscovering older 
music, and 51% were learning about new music.

Data (in this study) is weighted and projected to be representative of 
the U.S. Internet population (age 13 and older).

For more information from NPD, please visit here.
https://www.npd.com/wps/portal/npd/us/news/press-releases/the-npd-group-internet-radio-and-on-demand-music-services-rise-putting-pressure-on-traditional-forms-of-music-listening/

-- 
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George Antunes          Voice (713) 743-3923
Associate Professor     Fax   (713) 743-3927
Political Science       Mail: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011

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