Internet Radio May Threaten Terrestrial Drive-Time

While actual penetration remains fairly low, Internet radio poses at least a hypothetical threat to traditional radio listening in cars, according to a new national survey of 2,141 radio listeners, including cell-phone-only respondents, conducted from August 10-25 by Mark Ramsey Media and VIP Research.

MRM and VIP found that 34% of those surveyed said they would listen less to traditional local broadcast radio stations -- long the dominant drive-time medium for advertisers -- if they had access to Internet radio in their car. The proportion that would listen less to traditional radio was even higher among young adults ages 18-24, at 42%, and among fans of alternative music, at 50%. On a positive note, respondents were less likely to "give up" radio than other media and devices, with 5.3% saying they would give up radio compared to 39.1% for game consoles, 15.3% for iPods or MP3 players, 14.2% for DVRs, 12.9% for DVDs, and 5.9% for TV. However, these results may simply reflect the fact that there is no cost savings associated with forgoing free broadcast TV or radio.