The Car’s Connectivity Shift: Why Internet Radio Is Overtaking FM and DAB+

The automotive landscape is undergoing a significant transformation and with it, the way we consume audio in our vehicles. While traditional radio formats like FM and Digital Audio Broadcasting (DAB+) have long been staples of the in-car entertainment experience, a new contender is emerging: internet radio. This shift isn’t simply about better audio quality; it’s driven by evolving consumer expectations, the rise of subscription-based services, and the car’s increasing role as a connected platform.

The Limitations of Traditional Radio

For decades, radio reach has been measured through panels and projections. Yet, modern advertisers demand more granular data, real-time campaign optimization, and cross-channel comparability. FM and DAB+ architectures aren’t designed to deliver this level of detailed measurement and targeting.

Consumers now prioritize scalable audio quality, consistent availability, and seamless integration with a broader connected ecosystem. This demand is particularly acute in the car, where the value proposition is shifting.

The Rise of the Connected Car and Subscription Models

Automakers are increasingly focused on selling subscriptions rather than individual services. The most valuable subscription isn’t for a single audio app, but for internet connectivity itself, unlocking access to music, podcasts, navigation, communication, and over-the-air updates. The vehicle is evolving into a platform, and connectivity is the key to unlocking its full potential.

Online services like Spotify and other streaming platforms are gaining prominence in car interfaces, not necessarily because they are inherently “better” than FM or DAB+, but because they visibly demonstrate the value of that internet connection – the service drivers are paying for.

FM and DAB+: A Shifting Role

FM and DAB+ are losing their prime positioning and becoming secondary options. This transition is still in its early stages, but it’s poised to significantly impact listener behavior, habits, and market share.

The Radio Advantage in the Digital Transition

Despite these changes, traditional radio isn’t obsolete. Radio stations already possess a large and loyal audience on FM and DAB+. This established reach can be strategically leveraged to expand into online channels, giving radio a distinct advantage over purely digital competitors.

Strategically, the future of audio lies where it can be precisely measured, personalized, and integrated into a platform – the internet.

Jan Müller is the founder and CEO of Audiospace and the new owner of my105.