Radio is suffering because listeners are opting for iPods rather than tuning in.
The phenomenal success of Apple's iPod has some executives worried that many younger listeners are tuning out radio altogether, writes Associated Press.
The medium is also struggling to compete with commercial free satellite and digital radio stations, and suffering a decline in advertising revenue, states the report.
Industry observers link the problems to the industry's focus on profits and Wall Street, rather than consumers. They say that cost-cutting has compromised the quality of programming, and extra advertising has alienated listeners.