Radio remains one of the most valuable entertainment options in the car, according to a major new study released Tuesday by Nielsen in partnership with iHeartMedia.
The “comprehensive” research underscores radio’s strong hold on drivers even as automakers increasingly consider dropping AM/FM receivers from new vehicles — a move the report warns would represent a multibillion-dollar gamble for the industry.
The findings arrive at a pivotal moment for broadcast media. The AM Radio for Every Vehicle Act — which would require AM capabilities as standard equipment in all new passenger vehicles — continues to advance on Capitol Hill but faces hurdles, with broadcasters from 31 states lobbying lawmakers as recently as Tuesday. Meanwhile, the FCC could deliver a significant lift to AM/FM radio at its August Open Meeting.
iHeartMedia, which owns many leading spoken-word AM stations, partnered on the Nielsen study as the industry confronts declining in-car access to traditional radio. The report emphasizes radio’s unique role in delivering free, local news, emergency alerts, and entertainment without relying on data connections or subscriptions — advantages that remain critical during commutes and long drives.
More Than Just Music: Safety, Sports, and Connection
- What might explain the continued loyalty to AM/FM radio? Many drivers value the practical benefits that streaming apps struggle to replicate as smoothly. Safety First: 8 in 10 respondents say it is important for their vehicle to receive national Emergency Alert System notifications, one of broadcast radio’s defining strengths. Interestingly, this safety element is highly valued by younger demographics (ages 18–54).
- Zero Latency for Live Sports: Live sports scores as a differentiator with 2 in 3 consumers noting that “zero latency” (the broadcast not lagging behind real-time action) is important when listening to sporting events in the car. This feature of AM/FM is especially valued by male drivers, younger demographics, and Hybrid/EV owners.
- Hassle-Free Local Connection: More than 3 in 4 buyers agree that AM/FM radio is a simple, friction-free entertainment option and a reliable “neutral” choice when traveling with friends and family. 8 in 10 also find it important for accessing real-time traffic and local news updates.
Automakers have cited cost, space for electric vehicle components, and the rise of streaming services as reasons to remove AM/FM tuners. However, the Nielsen-iHeartMedia analysis concludes that eliminating broadcast radio could alienate a large segment of drivers and carry substantial financial risk.
The study’s release adds momentum to efforts to preserve AM radio. The bipartisan AM Radio for Every Vehicle Act (H.R. 979 / S. 315) has strong support, including nearly 380 cosponsors in the previous cycle, and has been incorporated into surface transportation packages. Proponents highlight AM’s reliability for public safety alerts during emergencies such as wildfires and severe weather.
With the FCC poised to address broadcast issues in August and the legislation still active in Congress, the coming weeks could prove decisive for the future of AM/FM radio in American vehicles.