The proliferation of online radio stations has created many new radio station markets. Today there are hundreds of thousands of Internet radio stations, broadcasting music and talk shows round the clock. These radio stations are easy to set up, easy to operate and have a reach that is much more than the traditional land-based radio stations.

An online radio station that is based in New York can be heard in New Delhi or Nairobi in real time. The same holds true of an online radio station operating out of Melbourne or Sydney. All that the listener needs is a broadband Internet connection, which can allow audio files to stream without buffering.

An even bigger advantage of online radio is that it is not limited to audio. Online radios can also transmit text, visuals and graphics. They can even have chat rooms and message boards, which makes them a more interactive medium as compared to terrestrial radios.

The online radios have also changed the relationship between the advertiser and listeners. A listener can click on a hyperlink and order a product online after hearing a commercial. This is not possible with a physical radio, where the listener has to visit a physical store to purchase a product.

Online radio is also eating into the monopoly space that was so far enjoyed by major radio networks. Now listeners can tune into the programs they want to hear. They don’t have to suffer hours of mainstream broadcasting to get a song or program of their choice. The online radio listeners can bookmark their favorite radio stations, receive playlists by e-mail and play their programs at their convenience.

Online radio stations deliver audio in two formats: as downloads and as streaming media. The advantage with downloads is that a user can store the music or a talk show on his system, and listen to it without going online again. It is like owning a CD. The streaming broadcasts can only be heard. It is like a physical broadcast, and the user can listen to the music being played. He cannot record the sound.

There are several players available on the net that can be used to listen to online broadcasts. The more popular ones are Windows Media Player, Real Player and Winamp. Most of these players produce high quality digital sound provided they are connected by broadband lines to the net. Listeners who use dial up connections often end up frustrated because low bandwidth disrupts downloads.