Pandora eating into CD and downloads, says NPD Group

From Billboard:

Radio is as popular as ever, but not all radio is the same. A new report by NPD Group says Pandora is encroaching on the listening habits of its users.

NPD says 37% of Internet users listened to Pandora and other Internet radio services in the past three months. The company pegs the number of U.S. Internet users at 96 million, which means NPD believes 35.2 million people have listened to Pandora in the last three months. Pandora claimed to have 59.2 million unique users in September alone.

NPD says since 2009 the percentage of Pandora users who also listened to AM/FM radio has declined by 10 percentage points. Listening to digital music files on portable music players dropped 21 points. NPD attributes some of the decline to the fact that 34% of Pandora users are now listening to music on the service in their cars.

Continue reading the rest of the story on NPD