Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Recording equipment. Photo: Catherine Ivill / Getty Images

iHeart Media, the country's biggest radio broadcaster, filed for bankruptcy protection last week. The news came after the company said it expected bankruptcy within a year last April and after its greatest rival, Cumulus Media, filed in November.

Why it matters: The fates of iHeart and Cumulus raise questions about the future of terrestrial radio, which is struggling to compete with digital broadcasting and streaming services like Spotify. Although the companies' ad-driven revenue model is facing headwinds, market research indicates that consumers are still tuning into radio in robust numbers.

Warning signs
  • iHeart Media paid $1.4 billion in interest on its debts last year, per the New York Times. The company had been continually refinancing its debts for the past four years, Greg Plotko, a legal expert in bankruptcy, tells Axios.
  • "The bankruptcy [was] the culmination of iHeartMedia’s years long dance with its creditors; a final phase, long expected by analysts, began last month when the company skipped a $106 million interest payment," writes the Times' Ben Sisario.
By the numbers

Consumers are still listening to radio, according to Nielsen's market research.

  • 93% of adults over the age of 18 tune into AM/FM radio each week. The number ticks up to 95% when considering just those between the ages of 35 and 49.
  • Listening to radio comprises 17% of American adults' media diet. That's compared to 41% of time devoted to TV and 23% to using an app or the web on a smartphone.
  • Adults tune into radio 5.1 days a week on average, on par with the 5.6 days and 5.8 days a week that they watch TV and use their smartphones.
  • They spend an average of nearly 13 hours a week listening to AM/FM radio.
  • Yes, but: Teens listening to terrestrial radio has fallen about 50% over a 10-year period, Larry Miller, director of NYU Steinhardt's music business program, tells Axios. He writes in an August 2017 study, "Generation Z, which is projected to account for 40% of all consumers in the U.S. by 2020, shows little interest in traditional media, including radio, having grown up in an on-demand digital environment."

But ad revenue is flattening, per PwC's analysis...

  • Radio advertising revenue for terrestrial radio grew by 1.6% in 2016, and that growth is projected to slow to just 0.4% by 2021. Compare that to the 7.5% annual growth expected for satellite radio advertising in 2021.
  • One bright spot for terrestrial radio is online advertising, which brought in $1.35 billion in 2016 and is expected to see an annual growth rate of 8.6% by 2021.
  • Still, the bulk of terrestrial radio's ad dollars come from broadcast advertising, which yielded $16.3 billion in 2016, but has essentially plateaued.
The big picture
  • The future of terrestrial radio is grim because it has failed to engage the newest generation of consumers, Miller says. Even the older, more engaged consumers of radio could slip away as automobile dashboards add options for on-demand, voice-activated content in addition to linear AM/FM radio.
  • One solution for terrestrial radio companies to save themselves is to take their content and put it on the platforms that users are now getting their media from, says Miller.
  • "Don't do a podcast of your 4-hour morning show. No one cares ... Instead, use your talent and your ability to build local content ... [Y]oung people are increasingly listening to podcasts that were built for them," he says.

Go deeper

Updated 5 mins ago - Politics & Policy

Top Pentagon officials contradict Biden on Afghanistan advice

Photo: Carolone Brehman/Pool/AFP via Getty Images

Top military leaders confirmed in a Senate hearing Tuesday they recommended earlier this year that the U.S. keep 2,500 troops in Afghanistan, and that they believed withdrawing those forces would lead to the collapse of the Afghan military.

Why it matters: Biden denied last month that his top military advisers wanted troops to remain in Afghanistan, telling ABC's George Stephanopoulos: "No one said that to me that I can recall."

Poll: Latinas more likely to open their own businesses, despite pandemic setbacks

Janie Isidoro, owner of My Corazon, a Chicano business in downtown Hanford, Calif. Photo: Al Seib/Los Angeles Times via Getty Images

Latinas in the U.S. are more likely to own, or plan to open, their own businesses than non-Hispanic women, despite the pandemic’s disproportionate burden, a recent poll found.

Why it matters: The survey, conducted by Telemundo, the Latino Victory Foundation and Hispanics Organized for Political Equality, suggests Latinas can be a driver of growth for the U.S. even though they have faced greater COVID-19-related setbacks.

Warren opposes Fed chair Powell's renomination, calls him a "dangerous man"

Sen. Elizabeth Warren speaks during a hearing before Senate Armed Services Committee on Sept. 28. Photo: Alex Wong/Getty Images

Sen. Elizabeth Warren (D-Mass.) questioned Federal Reserve Chair Jerome Powell's record on financial regulation during a hearing Tuesday, calling him a "dangerous man" and saying that she would not support his renomination for a second term.

Driving the news: While the Fed chair’s term expires in early 2022, President Biden is expected to make a decision this fall on whether to reappoint Powell or nominate another candidate.