Early commercial broadcasts within the traditional radio format happen to be happening since the 1920s. The very first live internet exclusive radio broadcast was Seattle based rock group Sky Cries Mary and took place on the 10th November 1994. It was broadcast by Starwave a digital media start up owned by Paul Allen.
Throughout the same month, just a week later the Rolling Stones were built with a concert that was the "first major cyberspace multicast concert."talk radio
Also during the same month WXYC were the first traditional radio station to announce broadcasting on the internet. WXYC had begun testing bandwidth and broadcasting in August 1994. On the day that WREK using CyberRadio1 software started streaming their beta launch and advertising of their stream didn't happen until afterwards.
In 1995 a free download called RealAudio was released by Progressive Networks. It had been reported by Time magazine that it took "advantage of the latest advances in digital compression" and delivered "AM radio-quality sound in so-called real-time." Soon after Nullsoft and Microsoft released free downloads of audio players with streaming capabilities. More and more online radio stations began to spring up as audio player software be readily available.
One of the earliest American 24-7 internet radio stations licensed by BMI and ASCAP was Sonicwave.com, which was created by Edward Lyman.
In the same year Europe's first radio station to broadcast its traditional program on the web in full was Virgin Radio in London. It was available Twenty-four hours a day and would be a live form of its FM signal.house music
At the end of the 1990s internet radio began to attract huge investor and media attention. In the United States in 1998 Broadcast.com set a record in it initial public stock offering for that largest begin price in stock offerings. The offer price was $18, whereas the opening price for shares was $68 when trading opened around the first day. This was more surprising considering that the company was taking a loss at the time and they themselves had produced in one of their prospectuses they didn't expect that tot change in the near future. Around the 20th July 1999 Yahoo bought the organization for $5.7 billion.
In 1998 in Sydney, Australia NetFM's The Vinyl Lounge (longest running internet radio show) started net casting.
After 2000 stream quality improved as bandwidth became cheaper and today most stations stream somewhere between 64 kilobits per second and 128 kilobits per second which is close to being CD quality radio.