Podcast #1244: Why are Radio Stations Disappearing?

On this week's show we look into why terrestrial radio stations are disappearing. We also read your emails and take a look at the news.

News:

• LG reveals US pricing for 2026 C6 and G6 OLED TVs
• 19 Years Ago This Month, Apple Released the Apple TV

Other:

• Matter Products for Professionals

Why are Radio Stations Disappearing?

A growing number of commercial AM and FM radio stations in the US are shutting down or surrendering their licenses. Over the past decade through late 2025, about 342 AM stations disappeared—a 7% drop—while commercial FM stations fell by 112, or roughly 2%. This decline stems from shrinking ad revenue, fierce competition from streaming services and podcasts, and changing listener habits, especially among younger people who prefer on-demand audio.

Many owners face financial strain, leading to closures of underperforming signals, with one major radio group even declaring bankruptcy recently. AM stations suffer extra challenges like signal interference and new cars skipping AM tuners. While noncommercial FM stations are actually growing, the trend signals trouble for traditional over-the-air commercial radio, potentially reducing local broadcasting in communities.

Reasons for the shift:

Declining Advertising Revenue - Commercial radio (especially in smaller markets) face shrinking spot ad revenue with national and local ad markets declining as well. Cumulus shut down underperforming stations to cut costs and avoid bankruptcy. High operational expenses (utilities, maintenance, talent) make some stations unviable.

Shift Away from AM Radio - The AM band has seen the most closures. In 2024, the U.S. lost 61 AM stations; trends continued into 2025–2026 with further declines down to around 4,300–4,400 licensed AM stations. Reasons include:

• Poor sound quality (static, interference from electronics/EVs).
• Competition from clearer FM, streaming, podcasts, and satellite radio.
• High costs and low listenership/confidence in the band.
• Some stations surrender licenses due to expensive repairs or lack of viability.
• Electric vehicles removing AM tuners (due to motor interference) has accelerated concerns about access.

FM has been more stable or growing in noncommercial/religious sectors, but commercial FM has also seen some losses.

Competition from Digital Alternatives - Traditional radio listenership has declined due to Podcasts, streaming services (Pandora, Spotify, Apple Music), and on-demand audio drawing audiences away—especially younger listeners. Changes in commuting patterns post-COVID reduced in-car radio listening. With fewer daily commuters there are less people tuning into morning drive time radio shows. The rise of digital platforms has fragmented audiences and ad dollars.