Is radio being disrupted?

Newspapers are already dead and television is dying but one media form has defied the internet's attempt to kill it. Radio has emerged unscathed from the age of disruption.

While newspaper subscription revenue has been decimated and television bleeds viewers, radio listeners have remained steadfast and loyal. Over 90% of Americans report listening to radio at least once a week; advertising revenue has actually grown and audience numbers have held up. Why?

Two key differences differentiate radio. Firstly, almost half of all radio listening takes place in cars where worsening traffic and longer commutes have maintained a captive audience.

About 80% of drivers report being tuned into radio at any one time, a figure that has been stable despite the enticements of social media and smartphones.

The second saviour of radio has been the high degree of localisation. Whereas newspapers and television are largely national and even international mediums, radio remains stubbornly local with specific shows designed for specific regions.

Localisation is reflected in content and in revenues, with about two thirds of industry revenue coming from local businesses advertising on local stations.

Localisation remains a key advantage in explaining the resilience of radio. The share of ad spending devoted to radio has been rocksteady at 7.7%, up from 7.3% in 2008. We all know what has happened to newspapers and television ad budgets in that time: they have been decimated.

Radio hasn't been disrupted yet but that doesn't mean it won't. A key determinant of survival will be the age of the car fleet.

A key feature in new cars is infotainment – the collection of screens, Bluetooth connectivity and compatibility with mobile devices that allows more content to be consumed while driving.

All new cars now come with, at minimum, phone connectivity and most models are starting to offer Apple Carplay and Android Auto, which allow the full functionality of mobile phones to be accessed while driving.

Will radio listeners continue to endure cheesy jingles and even cheesier radio jocks when a new world of content is now available, ad free and user selected? After having phone connectivity in my car, I haven't used radio in two years.

My guess is that as the car fleet renews, more people will start tuning out of radio and the last bastion of the old media world will end up just like newspapers and television: disrupted.