Research Firm: Internet Radio Bigger Threat Than Satellite

Terrestrial radio’s biggest threat isn’t satellite radio but the rise of Internet radio and wireless Internet penetration. That’s according to a study published by audience research firm Bridge Ratings.
It projects satellite radio will have 35 million subscribers by 2010. But Internet radio streaming, with nearly 57 million listeners now, is already preferred among Americans for supplemental audio entertainment, says the company, and it will continue its growth as more users upgrade to broadband, to the tune of 188 million listeners by 2010.
Bridge Ratings President Dave Van Dyke asks, “As Internet radio use accelerates both in and out of home, will satellite radio’s profitability model matter?” Internet radio will be portable, much like an iPod or MP3 player with docking ports in the car and in homes so it can be heard through car and home entertainment audio components, according to the data.
While a wireless solution for in-car Internet radio still needs to be determined, its potential for use by the public, at 160 million users by 2010, is greater than the growth projections for satellite radio, according to Bridge.