But in two years, we may not be making the same prediction. Today’s kids do not listen to radio as much as previous generations did. They listen to iPods and soon, iPads.
We believe that radio continues to be important, especially during drive-time commutes. We think record companies should continue to support radio stations because people still listen to radio to discover new songs and then decide to download songs (or buy CDs, if they’re boomers) based on what they hear on the radio.
But because today’s children are not getting in the habit of listening to radio, and because today’s homes are less likely to have radios other than as part of a stereo system, radio stations are going to need to find ways to reach and cultivate new listeners.
That’s where record companies can come in, to their mutual benefit. Of course, radio may survive during increasingly long commute times since more states have enacted laws that prohibit texting while driving or require drivers to use hands-free technology when using their cellphones.