A report in FMQB, a trade journal for the online radio industry, said the medium is making strong inroads among users, according to a recent study by American Media Services. 

"There's no question that listening to the radio over the internet is well on its way to becoming more of a rule than an exception," AMS CEO Edward Seeger said. "While most people still listen to radio via traditional over-the-air signals and receivers, it's also apparent that more and more consumers are finding the internet a convenient way to tune to their favorite stations."

Seeger said 67 percent of people surveyed reported that they had listened to internet radio, a sharp increase from just 36 percent from the same time last year.

Seeger said another noteworthy finding was that 71 percent of those who said they listened to internet radio reported doing so at home. Previous assumptions about listeners indicated that internet radio had a strong following among those tuning in at work.

Internet radio took a blow recently after the Copyright Royalty Board ruled to increase performance royalty rates for internet radio stations.