American radio and the car industry have more in common than most people would initially think. Throughout the 20th century there were many challenges both these industries faced but they have survived and thrived, proving they are both highly profitable legacy industries. However, despite their ability to adapt, they are facing millions of Millennials who aren’t as interested in their products as older generations. Both automakers and radio operators are watching them gravitating away from their respective businesses.
Digital technologies are taking over about every aspect of our everyday lives, and this is no different with automobiles and radio. A new era in digital technology has emerged, leaving both automotive and radio to seek out new employees with skill sets that have nothing to do with their businesses historically. With the rise in this technology comes a new set of competitors that automakers would have never thought to be opponents. Companies such as Google and Apple are competing for a spot on the user’s dashboard, while radio broadcasters were slow to understand challenges posed by Pandora, Spotify, and SiriusXM.
One thing is for sure – things aren’t what they used to be. And that’s why it’s fascinating for our company to watch what many automakers are now doing to face these challenges, while wondering whether radio couldn’t go down a similar road. This is not to say the auto industry has it all figured out, because many of their executives will tell you that these next five years are as impossible to predict as the previous five.
To read more about the industry wide disruption, click here.