Internet radio is a little different. Unlike old-fashioned radio, generally I have found I can avoid the 30 minutes of commercials which is great. Then, unlike an iPod playlist, you can be exposed to new or obscure music, expanding your tastes and discovering new artists. This is generally beneficial for both artist and listener. And radio programs can afford to be highly specialized since they are not targeting the masses, unlike traditional radio. Programs like Pandora and LastFM are very "web 2.0"...that is, interactive and customizable. Personally I find internet radio to be of more use than internet television.
this is not very representative, since I don't listen to music on my computer much and haven't used this for awhile but it should give an idea of the services available.
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