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Why more people listen to Internet Radio from personal computers?

More people are listening to Internet Radio from personal computers

In the previous part of the series, we discussed the changing preference of consumers towards Internet Radio from the traditional way of purchasing individual songs and listening to “Over-the-Air” AM/FM radio. We discussed that while Pandora (P) is the leading player in the Internet Radio market, Apple (AAPL), Google (GOOG), Samsung (SSNLF), and Amazon (AMZN) are some of the upcoming players in this market.

According to the previously mentioned report from Edison Research, 78% of the people listen to Internet Radio from their personal computers (or PCs)—desktops and laptops. 70% of people listen to Internet Radio from Smartphones and only 45% listen to Internet Radio from Tablets. Let’s try and find out why more people use PCs to listen to Internet Radio despite the structural decline that we are seeing in the PC market.

 

Smartphone market is about 4x that of the PC market

According to a report from Gartner and the previous chart, the PC market could decline from 296 million in 2013 to 277 million in 2014. The tablet market could show strong growth by increasing from 195 million in 2013 to 271 million in 2014. Smartphone sales will increase from one billion to 1.2 billion during the same time period. Despite smartphone market being about 4x that of the PC market, the Edison Research report claims that more people listen to Internet Radio from PCs.

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