On-demand entertainment is all the rage these days. You can fill your personal MP3 player with playlists and video clips or use your smartphone to watch television clips wherever you are.

Personal radio is doing the same, with companies like Pandora and Spotify allowing you to create your own radio playlists, even recommending songs to you once the software has figured out your music tastes. Slacker is another such service, providing music personalization with internet radio, a desktop music player and a portable music device.

Now, Slacker has raised $3 million in funding and industry experts hint that this will help Slacker break into the world of personal in-car radio. A deal with German giant Audi may already be in the pipeline.

Personal in-car radio will give consumers more choice than ever before on listening to their favourite music, and we look forward to other companies and carmakers offering the same before long.