Handbook of Media Economics, vol 1A

Radio has faced similar transformations. First, consumers obtained access to satellite

offerings. Then came online radio. In principle, XM, Pandora, and iHeart Radio are sim-

ply different outlets that, while not local, are simply sources of audio programming. The

development of subscription-based interactive services such as Spotify’s premium offer-

ing (which gives users access to an extensive music library) presents a further complica-

tion. While it is a substitute for radio programming, it is also a substitute for the purchase

of recorded music. Streaming music services are a hybrid between radio services and

recorded music sales. The hybrid status complicates market definition; lack of widely

available data poses an important practical challenge ...