According to MinOnline, a little noticed phenomenon began to coalesce last year. While everyone was watching social networking and video sites soaring in popularity — Internet Audio was quietly taking off too.

It may be one of the Big Things of 2009 — indeed, it may already be. Says Arbitron: 33 million Americans listen to Internet radio each week. Among at-work listeners, Internet use went from 12% to 20%. And among college graduates, 30% of all radio listening is over the pipes.
It makes sense. Sites like Pandora and Last.fm allow listeners to tailor their experience and — more important — share favorites and playlists with ease. As people in general demand more and more customization from their organizational and institutional relationships, it boggles my mind that anyone still puts up with broadcast at all.
From the article:

Why is the rise and success of Internet radio important to publishers? On several grounds. First, this is what your prize in-office users are doing with much of their day. Finding ways to weave into one of the things they most enjoy about broadband should be a no-brainer for any veteran Web content provider. If you think they like social networks and video, then wait until you see how much users love their Pandora. The average session time is three hours. Also, Web radio is an enormously robust channel for audio programming, including podcasts. Services like Last.fm, for instance, let users find and save popular podcasts into their libraries for later playback as a channel.

More to the point, however, streaming audio represents a massively popular mode of online behavior that invites a range of publisher partnerships: branded audio channels or “editor’s choice” channels, for instance. Why shouldn’t an online site offer an audio feed of its editor’s Web radio channel or channels created by that issue’s featured celebrities? What would an Utne radio channel sound like, or a BHG or High Times channel, for that matter? Lifestyle, art, regional and certainly music publications all aggregate taste groups that likely share musical or even talk radio preferences. Web radio listeners already swap their music channels in much the same way the rest of us trade and share article links in social media. Audio is the next content type users will want to coalesce around and share. This is a Web trend in the making that Web publishers should not take lightly.

As I tweeted a few days ago, the rise of Internet radio seems to me to spell game over for satellite. SiriusXM recently got a reprieve from having their stock delisted from NASDAQ, but how do they stay afloat over the long term?