Streaming music gains in US market

April 2, 2013
A banner for Pandora Media Inc., the online-radio company, hangs in front of the New York Stock Exchange walk on its first day of trading as a public company on June 15, 2011 in New York City.

Streaming music services like Pandora online radio are gaining fast among US listeners under age 35, a survey showed Tuesday.

The NPD Group survey found subscription-based and services accounted for 23 percent of the average weekly music listening time among consumers between the ages of 13 and 35 in the fourth quarter of 2012.

That compared with a share of 17 percent the previous year.

The survey showed these listeners turning away from traditional AM/, which lost two percentage points and now accounts for 24 percent of music-listening time.

In the 36-and-older age group, by contrast, Internet radio accounted for just 13 percent of music listening, to 41 percent for AM/FM radio.

"Driven by mobility and connectivity, music-streaming services are rapidly growing their share of the music listening experience for teens and , at the expense of traditional music listening methods," said NPD analyst Russ Crupnick.

The survey also showed a shift to listening to music on mobile devices, with fewer people listening to CDs and digital music files.

One in five Pandora or iHeartRadio users are also connecting to those services in their cars, a bastion of AM/FM radio.

Pandora remained the month popular in the 13-35 age group, with 39 percent using that service, according to NPD.

In second place was iHeartRadio with 11 percent, the free version of Spotify (nine percent), Grooveshark (three percent) and Slacker (two percent).

Explore further: Cars the next frontier for Pandora

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