AM Radio is in for the fight of its life.
As has been well reported in recent weeks, some car manufacturers have announced plans to no longer install AM radios into their new vehicles.
Most notably, Ford plans to stop putting AM radio in new gas-powered and electric vehicles beginning in 2024, including the all-electric Mustang Mach-E and F-150 Lightning pickup.
“We are transitioning from AM radio for most new and updated 2024 models,” Ford spokesman Wes Sherwood told the Detroit Free Press. “A majority of U.S. AM stations, as well as a number of countries and automakers globally, are modernizing radio by offering internet streaming through mobile apps, FM, digital and satellite radio options. Ford will continue to offer these alternatives for customers to hear their favorite AM radio music, news and podcasts as we remove amplitude modulation — the definition of AM in this case — from most new and updated models we bring to market.”
Of course, having a dashboard that allows a driver to find your station’s app is not anywhere close to the same as having an AM radio in the vehicle that allows a user to scan the radio and find a station with ease.
Mike Ramsey, an analyst with Stamford, told the Detroit Free Press, “In my view, this isn’t that different from automakers discontinuing 8-track players, cassette players, and CD players. Technology has advanced.”
With all due respect to Mr. Ramsey, that’s a horrible analogy. CD players don’t create content and are not vehicles (no pun intended) of information. A CD player is simply a device that plays the music you already have purchased. Those phased out for more modern technology, but the avenues for how you discovered that music (radio, in many cases), remained the same. AM radio’s listening is still largely via the AM band, not apps. Could people transition? Yes. Will everyone? Absolutely not.
The data overwhelmingly backs up the notion that radio is still the primary source of listening for those in vehicles. Of those surveyed in a new DTS study, AM/FM radio is the most used feature in-vehicle, far outpacing satellite radio, and Apple CarPlay. Data shows that 72% of those surveyed use AM/FM radio, compared to 24% who listen to satellite radio, and 14% who use Apple CarPlay. Also in the survey, AM/FM radio is where most go for local news and information, which is the second most popular in-vehicle entertainment choice.
But here’s the biggest tidbit from that survey: Of those that seek local news, 87% find it on AM/FM radio, 29% on satellite radio, and 14% on a dedicated news app.
AM radio is where they find the news. That’s the best case that needs to be made going forward.
On top of that, and not to be overlooked, is the charitable element of AM radio stations in markets across the country. Add it all together, and we’re easily talking about hundreds of millions of dollars on an annual basis that AM radio stations raise, through their audiences, for great charities around the country.
None of this is to excuse mistakes the radio industry has made in caretaking for its AM stations, and properly branding and promoting its AM radio stations, however despite those missteps, the industry is still a powerful form of information, entertainment, and influence in local markets and on a national level.
The radio industry needs to fight back, and fight back fast. Before it’s too late.
Pete Mundo is a weekly columnist for Barrett Media, and the morning show host and program director for KCMO in Kansas City. Previously, he was a fill-in host nationally on FOX News Radio and CBS Sports Radio, while anchoring for WFAN, WCBS News Radio 880, and Bloomberg Radio. Pete was also the sports and news director for Omni Media Group at K-1O1/Z-92 in Woodward, Oklahoma. He’s also the owner of the Big 12-focused digital media outlet Heartland College Sports. To interact, find him on Twitter @PeteMundo.
