In the early days of the Internet radio service, the format used to describe radio en direct stations was am and fm. Nowadays, the term radio is used to refer to any Internet-based audio transmission, including CDs, DVDs and MP3s. Internet radio (as online radio, web radio, internet radio, streaming radio, or e-radio) is a digital audio content delivery (CAD) system that transmits its sound over the internet using internet connections to broadband. Broadband Internet connection is widely available in most countries and the audio components of Internet radio service can be delivered through a broadband Internet connection. The high speed internet connection offers the best quality audio signal transfer and the best value for money.
Internet radio radio services differ from conventional broadcast radio in several ways. First, Internet radio stations can be freely listened to by anyone with an Internet connection. Second, Internet radio stations do not need air conditioning or a powerful amplifier, so they are very economical. Third, most radio stations allow their listeners to listen to their convenience so that they are not antagonistic at a particular time of day or night.
Streaming Radio is another emerging internet radio technology that allows listeners to tune internet radio stations for a pre-recorded music track, with the option of downloading the track or listening live. Most internet radio streaming services offer more variety of music than conventional radio stations and allow listeners to listen while doing other activities such as reading, watching television or talking on the phone. Some Internet radio streaming services even allow listeners to download individual radio stations to portable digital audio players (PDAs). Some Internet radio services allow Internet users to access the web pages of radio stations and play the audio file directly from the web page. High quality recording of a live radio show can be achieved using a microphone, but better quality recording can be achieved using a computer if the listener wishes to make their own recording of the radio show.
The main differences between radio and online streaming radio are the availability of programming and the cost of the service. Online radio can be accessed almost anywhere in the world, while radio programs spread through streaming radio must be transmitted over air waves and access terrestrial radio stations. Online radio is the cheapest way to hear radio programs, but it is quite often illegal to download music or share copies of the programs without the permission of the artist or the radio station. Many people prefer the quality of online radio over streaming radio because they like the option of listening to the radio whenever they want, any time of the day or night. Online radio also lacks the personal touch and interaction that listeners find at radio booths.
The online radio show business has many advantages. With a radio show, a marketer can advertise their product or service to a larger audience. If he makes a commission based on sales, he can ensure that a certain percentage of his listeners will buy his products or services. This gives it an advantage over other competent radio hosts. This allows him to reach a larger audience and generate more revenue from his shows.
Streaming radio on the other hand requires that marketers create their own web page where they can list their products and services and broadcast their shows. This means that there is no cost involved for marketing except for a domain name. Some marketers also use free hosting accounts so that they don't incur any costs when setting up the website and their online radio stations.