When radio came about, newspapers were supposed to disappear. When television came about, radio was supposed to disappear, and so on. What we are seeing is that radio operators have improved the place of radio stations as local services. They broadcast the local news, traffic updates, the weather, and so on. Radio is still in demand, especially when people travel by car. We have to understand that most people listen to the radio in their cars. I recently saw that a car manufacturer announced that they would add the G4 network to the OnStar service in some cars, but we are far from switching to Internet radio. It seems that conventional radio is still in a good position for at least a few years.
On February 28th, 2013. See this statement in context.