The biggest advantage of using the internet as a medium of transmitting radio is that one can bypass all disadvantages and complications that affect traditional radio solutions without any difficulty. Radio content is converted into digital data and transferred through internet just as text, video, audio and other information is transmitted.
The computer, through a web browser or an independent program, will receive the data, decode it and play the same over the speaker of the computer. The rising popularity of wireless internet means that it is possible to transmit radio through wireless medium just as traditional radio waves are transmitted.
The only difference here is that quality is going to be very good and costs are going to be significantly lower as compared to traditional radio. The disadvantage involved here is that the radio will have to compete with data, video and text to reach the customer. Why would anybody bother about internet radio when one can play the video through wireless media devices?
It was not possible to transmit video through the wireless medium in such a manner that is accessible to all. One needed a television to capture the wireless signal transmitted through powerful broadcasting devices. While internet radio is a much better option as compared to traditional radio, it pales into significance when one compares it with other wireless entertainment options like video and internet.
In such a scenario, internet radio will have to reinvent itself and will have to provide facilities and benefits that no other medium provides. It is possible to log on to the internet and checkout websites that play favorite songs at minimal cost. Why should anybody interested in doing the same thing with the help of another software application that has been marketed as internet radio? This is a moot question. No service provider will invest money until these basic internet radio questions are answered.