Death of radio: Is it time to say goodbye to our fave radio stations?

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  Quantumrun Foresight
• April 26, 2023

The radio continues to be a widely used medium, with most Americans tuning in to a radio station at least once a week in 2020. However, the long-term radio usage trend is unfavorable despite its current popularity. As new technologies emerge and change the way people consume media, the future of radio remains uncertain.

Death of radio context

About 92 percent of adults tuned in to AM/FM stations in 2019, higher than TV viewership (87 percent) and smartphone use (81 percent), according to market research firm Nielsen. However, this number dropped to 83 percent in 2020 as the rise of online audio platforms and streaming services continues to disrupt the industry. Podcast adoption, for instance, increased to 37 percent in 2020 from 32 percent in 2019, and online audio listenership has risen steadily over the past few years, reaching 68 percent in 2020 and 2021.

Radio broadcasting companies, such as iHeartMedia, argue that internet streamers like Spotify and Apple Music are not direct competitors and do not threaten traditional radio's survival. However, ad revenue has declined sharply, dropping 24 percent in 2020 compared to 2019, and employment within the radio industry has also declined, with 3,360 radio news employees in 2020 compared to over 4,000 in 2004. These trends suggest that the radio industry faces significant challenges and must adapt and evolve to remain relevant in an increasingly digital world.

Disruptive impact

Despite the uncertainties the radio industry faces, many companies remain confident that the medium will continue to thrive. The largest user group of radio remains elderly adults, with 114.9 million tuning in every month, followed by 18-34-year-olds (71.2 million) and 35-49-year-olds (59.6 million). Most of these listeners tune in while driving to work. The CEO of iHeartMedia, Bob Pittman, stated that the radio has survived for so long, even in the face of competition from cassettes, CDs, and streaming platforms, because it offers companionship, not just music.

Radio companies are not just in the music business but also in providing instant news and information. They have a deep-rooted connection with listeners who have grown up with the medium. Some experts believe that even if the radio as a medium disappears in the next decade, the format that has provided millions of people with comfort, nostalgia, and a sense of habit will remain. This was evident when Spotify introduced its personalized "Daily Drive" playlist in 2019, which combined music, news talk shows, and podcasts. This feature shows that even as technology continues to evolve, the demand for the type of content and community that radio provides will likely endure.

Implications for the death of radio

Wider implications for the death of radio may include:

• The necessity for governments to invest in new forms of emergency communication mediums to engage with the public should radio usage fall below a certain threshold. 
• The necessity for rural communities to transition to new technologies or mediums to source their news and information in place of the radio. 
• Internet music providers such as YouTube, Spotify, and Apple Music mixing different kinds of content based on user preferences to provide backdrop entertainment for daily tasks and commutes.
• Car consoles prioritizing Wi-Fi connection over radio buttons, making it easier for users to access online music.
• More media companies selling their stocks of radio firms to invest in online music platforms instead.
• Continued job losses for radio hosts, producers, and technicians. Many of these professionals may transition to podcast production.

Questions to consider

• Do you still listen to traditional radio? If no, what have you replaced it with?
• How will radio listening habits evolve in the next five years?