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In this rural area of Texas, a couple factors help boost AM listenership in the more remote areas...1 is that the terrain is very flat and even a 250 watt AM signal can travel for 50 miles or more. 2 is that in some areas there are only a couple of radio stations receivable...such as a country station on FM and and adult contemporary on AM. Satellite radio however may provide some competetion for these stations.
Personally I listen to just about 1 radio station, KCHX 106.7 (adult contemporary). I would listen to the station I work for (KOCV 91.3FM)...but it does not come on air till I come in and turn on the transmitter! So the car radios pretty much stay on this one station. The AM stations I mentioned can be somewhat weak where I live (although they are receiveable) so I don't often listen to them in the car. Sometimes on Sundays a talk station (KWEL 1070, Midland) will play music and I will listen to it.
I recently got Direct TV satellite service (there is no cable available where I live) and I listen to the music channels it provides at home.
I really don't think there is much of any commercial potential for internet radio. There is really no way to make money off of it.
There have been so many restrictions placed on it that's a lot more trouble than it's worth for many broadcasters. It seems however to be used more by amateur broadcasters (not as in "ham" radio but people just broadcasting music for fun).
Satellite radio however may have some commercial potential as an alternative to conventional broadcasting.
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