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

Related Stories

Cars the next frontier for Pandora

January 8, 2011

Internet radio star Pandora has topped 75 million users in the United States and is expanding into cars but it will be awhile before music fans abroad can enjoy their own personal stations.

Clear Channel swipes at Pandora with iheart revamp

July 11, 2011

(AP) -- Radio station giant Clear Channel Communications Inc. is taking a swipe at online music service Pandora with a revamp of its iheartradio application that imitates Pandora's personalized listening experience but doesn't ...

Spotify offers free Internet radio in US

June 19, 2012

Internet music startup Spotify on Tuesday added a free radio service for iPhone or iPad users in the United States in a direct assault on locally loved Pandora.

Pandora loss shrinks as revenue rises

August 29, 2012

Internet radio firm Pandora on Wednesday reported that its revenue climbed in the recently-ended quarter but that it still lost money due in large part to royalties paid out for songs.

Recommended for you

Nevada researchers trying to turn roadside weed into biofuel

November 26, 2015

Three decades ago, a University of Nevada researcher who obtained one of the first U.S. Energy Department grants to study the potential to turn plants into biofuels became convinced that a roadside weed—curly top gumweed—was ...

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.