Radio streaming competition in the U.S. remains intense, with traditional terrestrial broadcasters (AM/FM stations and groups like iHeartMedia, Audacy, Cumulus) aggressively expanding their digital audio presence to counter pure-play streaming giants (Spotify, Apple Music, Amazon Music, YouTube Music) and satellite/digital hybrids (SiriusXM). The landscape reflects a hybrid model: radio leverages its local strength, live content, and in-car dominance while building streaming apps and ad tech to capture digital revenue.
Key Market Dynamics and Trends
🔎Audience Reach and Habits: Audio overall commands strong daily engagement (around 21% of U.S. media time, or nearly 3 hours per day). Traditional radio (including simulcast streams) holds significant share in ad-supported listening—often around 60-70% in certain metrics like in-car audio—despite fragmentation. Streaming audio (pure digital services) grows faster in ad revenue (projected ~9%+ in 2026), fueled by programmatic buying, personalization, and smart speakers. However, many listeners seamlessly switch between broadcast and streams in cars, blurring lines.
🔎Revenue Shifts: Radio's core spot advertising faces modest declines (e.g., ~1% projected drop in some forecasts), offset by digital/streaming gains (6-9%+ growth). Groups bundle on-air with streaming/podcasts for better recall and targeting. Internet radio/streaming market grows rapidly (e.g., global estimates from ~$3.6B in 2026 onward at double-digit CAGR), driven by broadband, connected cars, and programmatic ads.
🔎Competitive Pressures: Pure streamers like Spotify dominate on-demand music discovery, personalization, and features (e.g., lossless, audiobooks, Wrapped). Radio apps (iHeartRadio, Audacy) compete by offering live local programming, personalities, news/talk, and free tiers. SiriusXM holds premium satellite/streaming niche (sports, exclusives). Broadcasters emphasize "local connection" and community over algorithms.
Major Players' Strategies in 2026
- iHeartRadio (iHeartMedia): Positions as a hybrid powerhouse—live terrestrial feeds + personalized stations, podcasts, and events. It rivals Spotify in reach for music/news/talk, with strong in-car and free access. Focuses on cross-platform bundles and creator content.
- Audacy: Under CEO Kelli Turner, shifts to a "content-first" model (verticals like news, sports, country over market silos) to scale expertise and free locals for revenue. Partners with Podscribe for attribution, Sonos for streaming access, and others (TuneIn, Jomboy Media) to boost digital audio/podcasts/CTV. Emphasizes premium audiences, AI-enhanced creator pairings, and audio-digital integration for better ROI (e.g., lifts in conversions when bundled).
- Others: Townsquare, Beasley report digital gains offsetting core losses. SiriusXM pushes programmatic audio. Pure streamers face radio's habitual reach advantage in daily commutes/news.