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BizReport : Internet : April 12, 2013

U.S. youngsters tuning out AM/FM radio

While the middle-aged twiddle with the knobs on their radio sets, younger U.S. adults prefer to use Internet radio and streaming services, according to new figures released by the NPD Group.

by Helen Leggatt


During the final quarter of 2012, Internet radio services such as iHeartRadio and Pandora accounted for 23% of the average time spent listening to music each week among U.S. Internet users between the ages of 13 and 25. That figure represents a rise of 17% over 2011. Furthermore, 6 in 10 U.S. teens and adults are using streaming services more now than ever before. Meanwhile, digital files accounted for 15% of listening time and on-demand services such as Spotify 14%.

Different listening habits are evident among those over 35 years of age, found the NPD Group. AM/FM radio accounted for 41% of listening time while Internet radio accounted for just 13%.

According to the NPD Group, "Although consumers are overwhelmingly opting for free ad-supported online radio options, consumers' conversion to paid versions of online, on-demand radio remains low. While 42% of Web users listened to free radio options in 2011, just 3% paid to listen to radio online."

Tags: consumer survey, music industry, online radio, radio advertising

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