The government have given £1.8m to a consortium including independent production firm Somethin' Else to develop plans for a 'cloud radio' service.
A working product could be developed and on the market by next year after the 12-month long research project called Apollo.
Somethin' Else will work with partners We7, the Internet Advertising Bureau, BT and Yahoo on the project which has been given the money by the government’s Technology Strategy Board.
The focus for Apollo will be to develop 'next-generation personal radio and music services' that can work across any internet-connected device, such as mobiles, tablets and web TVs. Potential plans could include using Facebook’s API to tap into data and creating hybrid services that combine personalised music and audio information.
Paul Bennun, Digital Director at Somethin' Else, said Apollo will explore how the benefits of location sensitivity can be brought to radio. He said: "Wouldn’t it be useful to get traffic updates on your car radio saying the roundabout up ahead is blocked? With location sensitivity, we’ll be able to editorialise audio content that would help you know that."