Handbook of Media Economics, vol 1A

Internet radio services, including Pandora’s music streaming service, also provide a threat,

although traditional broadcasters have tried to develop online services to exploit the

medium. For example, Clear Channel’s platform, iHeart Radio, carries both terrestrial

stations and offers services that allow users to create their own playlists that are designed

to compete with Pandora. In 2013, 45% of the population reported listening to online

radio in the last month, and these people listened for an average of 12 h per week. The

threat that Pandora offers to traditional radio’s revenues, as well as its listenership, has also

increased as the platform now sells local advertising in large markets.

20

At the same time,

however, broadcast stations have