Mike Walker said:FM and AM are only the delivery system...the "truck" the product is delivered in. The STATIONS and the NETWORKS, where programming originates...that's what will endure. RADIO (in my mind) isn't a delivery method, it's an idea...the delivery of audio content (news, entertainment, spots, COMPANIONSHIP) in real-time. Over time, it makes no difference how that delivery is accomplished. The people who produce the content will be the same guys and gals doing terrestrial radio today...the ones with the experience, talent, and infrastructure to deliver what people will consume. THAT is what will survive over time.
But before the delivery method ("the truck") can be replaced, a truly better, more efficient method must be developed. One that's MORE efficient, MORE convenient, with BETTER coverage, BETTER penetration, BETTER economy of scale, LOWER COST, etc. Internet radio is none of those things. It may be in time, but certainly isn't now! It's less efficient, less convenient, with poorer coverage and penetration into remote areas, vastly poorer economy of scale, and higher...RECURRING cost! You may believe that this will "replace" terrestrial radio. Hell, I may believe it too (sometimes I do). But not until each and every one of the above points can be addressed, and conquered...for any one of them is a compelling reason for the continued success of the method of delivery (AM and FM) we have now.
As I asked my wife the other day...imagine radio had always been delivered via some kind of wired network (phone lines, the internet, cable). The only "wirelessness" it posessed was within short distances of a wireless router. Imagine that access to this "radio" came only with a monthly fee...and a rather high one (my broadband is about 60 bucks a month for 5mbps). Then imagine someone came along with terrestrial AM and FM...cutting the tether to a specifically defined data network (internet, wi-fi, wi-max, etc). Don't you think this 'new system' would CLOBBER what had existed before? I sure do!
Keep in mind that "radio delivered over the Internet" is a DISRUPTIVE technology. That's the kind that starts out as not good enough to supplant the current SUSTAINING technology. However, it gradually improves to where it get BETTER than the SUSTAINING technology. I argue that HD radio is an ehancement to the SUSTAINING technology. It's arrival comes at the exactly wrong time because it requires an investment its customers aren't interested in. Check the link below to a book to learn how and why this happens. It has happened over and over again in a variety of industries.
http://www.amazon.com/Innovators-Di...d_bbs_1?ie=UTF8&s=books&qid=1201880776&sr=8-1
This is a ground-breaking book that will make you look at business very differently. It certainly changed my views. REad a few of the reader reviews too.