Radio still has a future, despite critics’ frequent predictions of its demise throughout its history. The inherent portability of the medium gives it an advantage over other types of media that require an individual’s full attention, such as television or print. The simplicity of radio has lent itself to a wide range of applications.

In recent years, new technologies have promised to expand the reach of radio and enhance the types of programming it offers. Satellite and HD radio have increased the amount and diversity of available programming by making more stations available. Internet radio has increased the accessibility of radio communication, allowing practically anyone with access to a computer to create and distribute subscription podcasts worldwide. These new technologies promise to make radio an enduring, innovative form of media.

Satellite Radio

In 1998, the FCC awarded licenses to two businesses interested in creating a radio version of cable television, without the cables. This act signaled the beginning of satellite radio, and the companies soon became XM and Sirius. These two networks sold special receivers that could pick up satellite transmissions broadcasting a wide range of formats on different channels to listeners who paid a monthly fee for the commercial-free programming.

Like cable television, satellite radio did not have to censor its disc jockeys or guests for profanity. This attracted somewhat controversial radio personalities known for their conflicts with the FCC, such as Howard Stern and Opie and Anthony (who abruptly ended their show in 2014 after SiriusXM fired Anthony Cumia for making racist and hate-filled remarks on social media). The networks also drew hosts such as NPR’s Bob Edwards and Bruce Springsteen’s guitarist “Little” Steven Van Zandt to create their shows. Because listeners paid one price for access to all the channels, disc jockeys experienced less pressure to adhere to the limited playlist style of programming commonly found in terrestrial radio stations (Breen, 2005). In 2008, Sirius and XM merged to form Sirius XM. In 2010, the company recorded its first profits (Reuters, 2010) and has remained profitable since then.

HD Radio

Developed around 2001 to help terrestrial radio stations compete with emerging satellite radio technology, HD Radio provides a digital transmission of radio signals, resulting in reduced static and improved sound quality, even for AM stations. Not only does HD radio provide upgraded quality, but the technology also allows for the compression of signals, enabling one station to air so-called shadow stations on the same frequency as its regular broadcast. Although listeners require an HD radio to receive these channels, they incur no subscription fee, as independent stations provide their programming as needed (Pogue, 2009).

Stations such as NPR’s WAMU in Washington, DC, broadcast different types of programming on their shadow channels. For example, the station’s 88.5-1 broadcasts the regular analog schedule of WAMU, while 88.5-2 broadcasts bluegrass and country music programming (American Universe Radio).

HD radio enables current broadcasters to offer content that they would typically reserve for more commercial programs. WAMU’s bluegrass and country shadow station plays content originally played over the airwaves but relegated to the Internet in favor of more marketable programs. The innovation of HD radio allowed the station to reintroduce the programs without risking its financial stability. With this economic freedom, HD radio offers a host of programming possibilities for traditional radio, though it has not experienced the same explosion as streaming and podcasting.

Internet Radio and Podcasting

Although technological advances of the past 50 years, such as audio recorders and microphones, have made creating a radio program simple, finding a way to broadcast that program presents difficulties for the average person. The expansion of the Internet, however, has changed this limitation into a manageable hurdle for both businesses and individuals alike.

Internet Radio

At its core, Internet radio provides a platform for streaming audio programs over the Internet. As early as 1994, radio stations such as Chapel Hill, North Carolina’s WXYC began broadcasting their signal over the Internet, potentially gaining a worldwide audience (WXYC). Online-only radio stations soon followed. Services such as Live365, founded in 1999, have acted as distributors for Internet radio programs, charging broadcasters fees to stream their programs to a large listening audience.

Pandora represents a distinctive type of internet music service. While it now offers a broader range of features, its foundational model allows users to create highly personalized “radio stations.” A listener establishes an account and provides a “seed”—a song, composer, or artist. The service then leverages its proprietary Music Genome Project. This sophisticated analysis system catalogs songs based on hundreds of musical attributes (from lyrics and instrumentation to harmony and vocal qualities). Using this detailed analysis, Pandora curates a continuous stream of music that aligns with the user’s initial selection. Listeners retain control by giving “thumbs up” or “thumbs down” to songs to refine their station’s playlist, and can create new stations based on different seeds. Although Pandora has expanded to include podcasts and on-demand listening for its premium subscribers, this intelligent, algorithm-driven custom radio experience remains a core and defining aspect of its service, differentiating it from purely on-demand streaming platforms.

Today’s digital music services primarily operate on a freemium model, offering both ad-supported listening and ad-free paid subscriptions. Pandora, for example, continues to rely on a mix of on-screen and audio advertisements for its free tier, while also providing premium, ad-free options with additional features. Pandora competes with Spotify and YouTube Music, both of which offer extensive free, ad-supported tiers that provide access to vast catalogs of music, user-curated and algorithmic playlists, and genre-specific “radio stations.” Other major players with ad-supported options or free radio-like experiences include Amazon Music (via its free tier) and iHeartRadio, which also integrates traditional terrestrial radio stations with custom digital channels. These platforms utilize a combination of audio, display, and sometimes video advertisements to monetize their free services while also encouraging users to upgrade to ad-free subscription plans for an enhanced listening experience.

Problems of Internet Broadcasting

Despite the rise of Internet radio over the past several years, its prospects for success remain uncertain. As the trend gained momentum, many inexperienced broadcasters faced the issue of royalties, while experienced broadcasters encountered new legal matters related to streaming. Stations that broadcast over the airwaves must pay publishing royalties to the musicians and songwriters behind the recordings. Rather than pay an individual musician or songwriter each time a recording gets played, however, broadcasters—including radio stations, coffee shops, and restaurants—pay for a blanket license that allows them to play any song. As Internet broadcasting grew, musicians and record labels began demanding royalties from Internet stations and specifying new licensing restrictions. For instance, Pandora Radio’s licensing and service model today varies significantly between its free, ad-supported tier and its paid subscription tiers (Pandora Plus and Premium). For users on the free tier, limitations are in place. They are generally restricted to a limited number of skips per hour per station, with a daily cap across all stations. However, they may be offered the option to earn additional skips or replays by engaging with video advertisements. For Pandora Plus and Pandora Premium subscribers, these restrictions are lifted, primarily providing access to unlimited skips and replays, as well as ad-free listening. Additionally, Premium subscribers have on-demand access to Pandora’s full music catalog.

Other issues arose as terrestrial stations began streaming on the Internet. Since its inception, the medium has struggled with concerns such as whether advertisers should pay for commercials played over the Internet as well as over the air, and what types of licenses Internet radio stations should use. The federal government played a critical role in mediating royalty agreements between webcasters and record companies, notably through the Webcaster Settlement Act of 2009. This landmark legislation established a framework for internet-only stations, often referred to as “pure-play” stations, to negotiate royalty rates for the digital public performance of sound recordings. These rates vary based on categories of coverage and service type, aiming to strike a balance between fair compensation for artists and copyright holders and the financial viability of internet radio platforms (Albenesius, 2009). While the 2009 Act facilitated specific agreements for past and initial future periods, the royalty landscape is dynamic. The Copyright Royalty Board (CRB) regularly reviews and sets new statutory royalty rates for subsequent periods, ensuring ongoing negotiations and adjustments that reflect the evolving digital music industry. This continuous process aims to strike a balance between the interests of content creators and digital broadcasters.

Podcasting

Podcasting has fundamentally reshaped the audio landscape by offering on-demand programs, primarily consumed through streaming via dedicated apps like Spotify and Apple Podcasts, though download options remain available. The term “podcasting” originated from the use of portable MP3 players, such as Apple’s now-defunct iPod, to access these programs at the listener’s convenience. Many traditional terrestrial radio stations and networks have fully embraced podcasting to supplement their over-the-air broadcasts, repurposing popular radio shows as podcasts or creating exclusive digital-first audio content. Given their format as discrete programs rather than continuous streams, podcasts generally represent a more accessible medium for individual or small-team production compared to managing a live Internet radio station.

The accessibility of podcasting has empowered countless creators, leading to substantial careers and commercial ventures. Beyond early successes like Mignon Fogarty’s Grammar Girl, which within a year of its inception had garnered 1 million downloads and received national acclaim (Faherty, 2007), the modern podcasting scene boasts massive independent and network-backed shows that have attracted vast audiences, generated significant advertising revenue, and extended into other media. For instance, Joe Rogan’s The Joe Rogan Experience commands millions of listeners per episode and secured a groundbreaking exclusive deal with Spotify. Similarly, true-crime narratives like My Favorite Murder have led to live tours and a dedicated media empire. In contrast, narrative journalism podcasts such as The Daily from The New York Times demonstrate the power of audio storytelling to inform millions daily. These examples underscore that podcasting no longer merely offers a potential vision for radio’s future; it is a central and thriving component of the contemporary audio medium, demonstrating how radio has evolved beyond its traditional broadcast limitations into a highly diverse, personalized, and on-demand experience.