It’s a Zero-Sum Game After All

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