Radio has had serious competition over the years from newspapers, television, and cable television. Now the Internet is added to the long list of media competing for the consumers' listening and viewing hours. However, although the Internet is a competitive threat to radio, many stations also recognize that it has huge potential to generate revenue. Many stations have Web sites to complement their programming. The local content offered by radio stations should mix well with the Internet's information-driven audience.
According to a report from the Pew Research Journalism Project, the audience for Internet radio is growing steadily. In 2013, 33 percent of Americans listened to Internet radio weekly and 45 percent monthly. In 2023 those percentages kept rising. Monthly Internet usage grew to 75 percent, while weekly listeners increased from 33 percent to 70 percent. According to the Pew report, online listenership had been flat from 2019 to 2021, but has since been on the uptick and "...this increase marks the highest these figures have been since 2002 when data was first tracked."
The coronavirus pandemic, which began in late 2019, caused business lockdowns and social distancing requirements to prevent the spread of the virus. With more people spending time at home, media consumption increased in 2020 and early 2021. A Nielsen study found that 28 percent of those surveyed reported listening to the radio more during the COVID-19 outbreak, and more were listening from home, on mobile devices, computers, and smart speakers. Revenue in the U.S. radio industry declined in 2020, however, due to the economic slowdown and decrease in advertising budgets for radio companies. Post pandemic, the economy is gaining strength but the radio industry is expected to have slow growth in the coming years. There will be increasing competition from music streaming services and podcasts from companies such as Spotify and Apple Music. According to the research group IBISWorld, "Changes in consumer behavior have led to a shift in spending toward essential goods, streaming services, and more interactive forms of home entertainment." This has caused a dip in traditional radio listenership as well as advertising revenue.
The U.S. Department of Labor predicts employment in some professions in radio will decline through 2033. Employment of broadcast news analysts, reporters, and journalists will drop 3 percent due to declining ad revenue. On the other hand, by 2033 producers and directors as well as engineering and sound technicians should expect a 3 to 8 percent increase in jobs. The trend toward consolidation into large radio networks will limit employment growth somewhat. A network can produce news programming at one station and then use the programming for broadcast from other stations, eliminating the need for multiple news staffs. Technical workers can maintain equipment at several stations simultaneously.
Computer technology will also affect employment growth. New systems combine the functions of several older pieces of equipment and do not require specialized knowledge for operation. This reduces the need for certain types of workers, particularly editors, recording technicians, and graphic designers.
Radio stations are increasingly using outside production companies to create programming, including music, news, weather, sports, and professional announcer services. The services can easily be accessed through satellite hookups and reduce the need for program production and news staff at radio stations. In addition, more radio stations may choose to operate without live broadcast announcers. Some radio stations are using artificial intelligence to generate content and interact with listeners.
The radio industry is also expecting heavier competition from the Internet; about 96 percent of Americans were using the Internet in 2024, according to Pew Research Center, and this percentage is increasing. Many in the industry aren't that concerned about a loss of listeners—they see the Internet as a way to better reach their listeners. Currently, thousands of radio stations have Web pages; many radio shows are available for download or streaming.
Although the number of women and minorities working in the broadcast industry has grown and will likely continue to increase, women and minorities still face discrimination and prejudice in the workplace; many women earn lower salaries than men working in identical positions.