Internet radio is becoming increasingly more popular for many reasons. In addition to downloading music from iTunes or pirating music through torrent websites, people are looking for another way to listen to music. People don't really want to spend more money on albums with only a couple of songs that they want to listen to. They also want to discover more music than whats on the traditional mainstream radio. They are more active and want to have access to music while they are on the go.
People can access a massive library of music via Spotify for free. Create a personalized radio station on Pandora. Listen to live streaming radio on iTunes and iHeartRadio. The services range from live-streaming, personalized radio, and on-demand. I have tried each of these services and I have to say I've been impressed by Spotify. Mainly because it gives users direct access to pretty much every artist and every album they ever created for free (shuffle play only but who cares?). The only drawback to it's service is if you want to listen to a specific song you have to pay $10 for the service, but if you are a college student they offer it for $5.
The advent of Internet radio has a lot of benefits to music listeners and artists alike. Pandora claims to pay artists millions of dollar for the rights to have their music on its service. However, not much is known about how the other services pay for licensed music.
It's hard to say where Internet radio will go from here and how it will impact the music industry over time, but for now it's here to stay. I hope that all artists will be able to profit greatly from it as we watch the big record labels crumble.
http://blog.pandora.com/2012/10/09/pandora-and-artist-payments/
http://www.edisonresearch.com/home/archives/2013/09/the-new-mainstream-2013-new-research-into-streaming-audio.php#.U4yxaiJiy_V
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