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 to research.
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120 Handbook of Media Economics
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