Internet Radio: A New Engine for Content Diversity?

While traditional radio stations in every country are subject to extensive government regulations intended, Internet radio stations remain largely unregulated. As Internet radio usage has increased, however, certain stakeholders have begun to argue that these Internet radio broadcasters are providing significant and diverse programming to American audiences and that, as a result of this new source of diversity, government regulation of spectrum-using radio station ownership should be further relaxed. In the United States, one of the primary justifications for regulation of ownership has been to protect diversity in broadcasting. This study hypothesizes that Internet radio broadcasting does add diversity to the radio broadcasting industry and that, once it is available to a significant segment of American audiences, Internet radio should be considered as relevant by regulators. Similar rationale may be applied by private radio broadcasters elsewhere. Using preliminary data from Arbitron, MeasureCast and Real Networks, this study evaluates the role of Internet radio broadcasters according to five criteria intended to gauge the level of diversity being delivered to listeners online. By measuring the levels of format, channel, ownership, location and language diversity among Internet radio stations, it is possible to draw preliminary lessons about the new medium's ability to provide Americans with diverse broadcasting options. This study finds that Internet radio broadcasters are in fact adding measurable diversity to the radio broadcasting industry. Internet broadcasters are providing audiences with access to an increasing number of stations, owners, formats, and language choices, and it is likely that technologies aiding in the mobility of access as well as broadband evolutions will reinforce these findings. Eventually there may be cause to monitor the early concentration of ownership, both among Internet radio station owners and content distributors. However at this time the net effect of Internet radio broadcasting has been to increase the diversity available to audiences.