For years, traditional thinking has said that when the Internet comes to cars, terrestrial and satellite radio are screwed. That reality has become one step closer with Pioneer’s announcement at the CES that they’re teaming up with Pandora for their high-end ACIC-X920BT receiver. Mashable reports that come March, early adopters that pick up the navigation/entertainment in-dash AV receiver will be able to stream Pandora, the most popular free Internet radio application.

That won’t come cheap though. The unit will cost $1,200. And you’ll need an iPhone or iPod Touch. And a $45 USB cable. I’m not great at math, but for $1,250, you could buy an old car. Or four years of satellite radio service. That being said, this is the first of its kind, and Pioneer is sure to come out with a less expensive version of the receiver. I mean, the first CD player cost $2,200. At this price point, it’s not going to catch on, but it’s definitely a warning shot for terrestrial and satellite radio, and it’s safe to say that in coming months, Internet radio is coming soon to a dashboard near you.