A new report released by Webnoize has found that nearly 40 percent of the U.S. population will have listened to Internet radio by 2003. The report also found that although Internet radio use is growing, Webcasters are struggling to make such services into viable businesses and achieve profitability. Webnoize Director of Research Lee Black said that providers are attempting to stay afloat in the midst of high bandwidth costs, expensive content licenses, and a limited interest from advertisers.
However, Webnoize said it believes Webcasting hubs will emerge to build on "the buying power of national radio groups, the reach of local stations, and the technology skills of Webcasting services to become radio station" Internet service providers. The report was based on surveys taken from 13,000 Web surfers and interviews with advertisers, labels and Webcasters.