Internet Radio Fighting for its life

Thursday, June 17, 2010 at 9:31 am

Over the past few years internet radio companies such as Pandora have risen in popularity, especially with the younger crowd, with their ability to offer streaming radio content for a wide variety of stations with no charge to the listener. You might be stuck listening to a brief 15 second commercial or two and can only skip a certain number of songs due to licensing constraints, but Pandora’s free radio platform has exceeded 48 million users in an amazingly short time frame.This free ride may soon be coming to its end with AT&T announcing new data usage charges for its new customers. Both iphone and ipad users using AT&T for the first time will no longer be able to opt for the unlimited data package currently available to subscribers. The new limited model of the “unlimited” data plan offers 200 MB for 15 per month, 2 GB for 25 per month and an extra 10 charge for each additional GB. This will not affect customers on the current unlimited plan. This tiered data system allows for sizeable usage quotas but still may have a sizeable impact on internet radio listeners, in addition to people who often enjoy movies or TV on their phone through both Netflix and Hulu applications. Other service providers, including Verizon, maysoon followAT&T’s lead in revamping their data packages.While Pandora’s platform may call for free internet radio, they have no control over what your service provider charges for the data usage necessary to stream content to your mobile device. This is not only unwelcome news to frequent internet radio listeners, companies like Pandora will not receive any cash benefit as a result of AT&T’s new policy. With internet radio a limited option for new users in the foreseeable future as prices are forecasted to skyrocket, satellite radio is a welcome alternative, providing similar options with regards to station diversity and signal strength across varying locales.

Categories: Uncategorized