According to a new study from the NPD Group, increased use of Internet radio and on-demand music services comes at the expense of CD and local radio listening. Internet radio grew 27 percent from last year to this, and on-demand music increased by 18 percent. On the other hand, the number of people listening to music on CDs dropped 16 percent, AM/FM music listeners dropped four percent, and people who listened to digital downloads declined 2 percent.
Even the car is in play. Once a complete lock for us, in-car listening to local radio is being eroded by the likes of Pandora, even though Internet reception in cars is in its infancy. Pandora listeners who also listen to AM/FM radio dropped 10 percent, those listening to CDs in the car fell 21 percent, and those listening to digital music on portable music players declined 21 percent as well. (See 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/)