Online radio is growing more than on-demand music

According to a study that NPD has carried out in the US, online radio grew by 27% in the last year, while on-demand music services only by 18%.

A study by the North American consulting firm NPD reveals a greater growth trend in online radio compared to on-demand music.

This study, carried out in the United States, reveals that the web radio sector, which in this country includes services such as those offered by Pandora, has grown by 27% in the last twelve months. In comparison, on-demand music services, such as those offered by Spotify, YouTube or Rhapsody, for example, are experiencing growth of 18%.

It should be noted that in the United States a new legislation is underway that, if finally approved, will mean a significant reduction in the price that online radio stations pay for royalties to record labels and artists, which would provide an additional boost to this market.

Another conclusion of this NPD study is that CDs have lost a lot of weight in recent years and are already in third place among the favorite distribution channels for Americans to listen to music. The first place continues to belong to AM/FM radios, followed by radio and web streaming services.

The survey has also revealed that the number of people who prefer to listen to music on portable devices such as iPods has been reduced by 21% in the last year.