So why is bitrate important for streaming? When you compare the station output on FM to the Internet stream with 32k bitrate, the difference in sound quality is noticeable. Previously, when most Internet listening came through rubbish computer speakers then this wasn't an issue. But now as listeners become more sophisticated by hooking their PCs up to stereo systems, using Internet radios or listening through headphones at work, sound quality is more important. Most people rip their CDs at 128k bitrate or more and songs purchased through iTunes use the aac encoding to deliver superior fidelity, meanwhile streams of terrestrial FM radio stations are sound more like AM stations with less hiss.
So, will more North American stations catch up to their European peers and improve the quality of their streams?