Thomas Crampton asks:
Has MP3 killed the radio star?
A number of youth-oriented radio stations around the world have reported falling listenership.
Ironically, the rising popularity of music through MP3 may be the cause. (Someone told me today that some radio stations have a playlist as short as 25 song that they play in different order, so not surprising if they are losing listeners to an iPod with more songs.)
Years ago, when FM receiver prices came down, FM radio just killed AM radio in the music business. When I was a kid in the late 60's and early 70's, AM radio was filled with pop music. By the end of the 70's, FM owned the dial, and AM was in free-fall (it later recovered with talk radio).
Why did that happen? Because FM delivered a better music experience. Less static, lack of interference when you drove under wires/bridges - it just sounded better. Now music players are doing the same thing to FM radio. No loss of signal at all (until the battery runs down, anyway :) ), and no annoying chatter from the "personalities". For all the nostalgia you hear for local dj's, I've always found them annoying - if I'm listening to the FM dial, I want music, not talk. If I want talk, I'll tune to the AM dial (or grab a podcast).
You can also ensure that your player is filled with music you like - you don't get interrupted by the occasional tune that just grates on you. On the other hand, that illustrates an issue - where do you find new tunes without radio? Peer recommendation, I suppose - but someone has to be hearing the new stuff somewhere. Other than that though, a music player delivers a better experience. If FM radio wants to survive, it's going to have to do better than limited playlists.