“Technology companies love to boast about how their services disrupt — in some cases even wipe out — existing businesses. Now they’re taking aim at a business that’s been a mainstay in our lives for over a century: radio.
Streaming music has made incursions against the established music business even since Napster began offering free (illegal) songs; but now a slew of legal online radio stations are crowding the music space. Rhapsody, Slacker, Last.fm, Grooveshark, MOG, and Spotify are just some of the better known services. They range from free streaming radio stations to on-demand subscription services, but the overall goal is clear: they want to take out traditional radio.
There have been threats to radio in the past. When MTV launched in 1981 many expected video to kill the radio star. Of course, that didn’t happen, and now music videos seem like quaint promotional tools, bested by amateur versions on YouTube.
And radio has fought back, notably through HD Radio, which boasts the clarity and fidelity of digital broadcasts. It was a way for local radio stations to compete against satellite radio. While it is widely available across the country and is standard or available as an option on most vehicles, HD Radio isn’t likely to stem the tide of online streaming music.
There’s an important difference today, you see. Until recently, broadcasters didn’t worry much about Internet radio in spite of claims it would kill their. business. Why? Because most podcasts and streaming services were desk-bound. Most people listen to the radio when they’re on the go, so why worry about nerds sitting at their computers playing music.
Now streaming online music is making a serious run at the last bastion of broadcast radio: the car. Â Read more