Radio’s Fear of the Future — and Why the FCC Needs an Overhaul

Radio’s Fear of the Future — and Why the FCC Needs an Overhaul
By Jason Davenport

From the golden days of AM to today’s streaming boom, one thing has remained constant in radio: its fear of change.

For decades, traditional broadcasters — including many here in Alabama — have viewed every new technological leap as a threat. Satellite radio? “It’ll kill local stations!” Podcasts? “They’re unregulated and unfair!” Internet radio? “It’s not real broadcasting!” Instead of adapting, much of the industry has clung to outdated business models, counting on federal regulators to shield them from innovation.

But while technology has leapt forward, the Federal Communications Commission (FCC) — the very agency tasked with ensuring a fair and future-ready broadcast landscape — has stayed stuck in the past. And Alabama’s independent broadcasters, local innovators, and community voices are paying the price.

Alabama’s Airwaves: A Legacy Under Threat

Alabama has a proud legacy of local radio. From the soulful grooves of Montgomery’s WBAM in the ’60s to Birmingham’s country powerhouse WZZK in the ’90s and early 2000s, our airwaves once reflected the heartbeat of our communities.

But many of those stations are now gone — or swallowed by national conglomerates playing the same 30 songs from Atlanta to Anchorage. Localism has been replaced with syndication. Personality has been traded for playlists.

Independent operators in Alabama trying to launch low-power FM stations, revitalize AM frequencies, or build digital alternatives face a bureaucratic wall. FCC policies, designed for a 20th-century model, impose ownership limits, outdated licensing hurdles, and restrictions that stifle community-based innovation.

Protectionism Over Progress

When satellite radio launched in the early 2000s, traditional broadcasters hit the panic button. They lobbied the FCC to block companies like XM and Sirius from airing local content, claiming it would harm “community-focused” stations. That wasn’t about protecting listeners — it was about protecting turf.

Then came internet radio and podcasting. Again, instead of embracing the potential of on-demand audio and global reach, many stations doubled down on the old ways. Now, anyone with a mic and a story can launch a podcast or online station — and in many cases, reach more engaged listeners than entire FM markets.

The Quiet Evolution of Audio

Take internet radio. At XLoungeRadio.com, based in Montgomery, I’ve built a platform that blends classic alternative, modern rock, and a fresh take on Album-Oriented Radio. And we’re not alone.

Across Alabama, passionate creators are launching podcasts, livestreams, and curated channels that serve audiences traditional radio ignores.

• Substrate Radio in Birmingham is a community-driven internet station featuring local DJs, musicians, and curators with a deep focus on indie, punk, electronic, and experimental music.
• Longshore and McKnight, former Montgomery sports radio hosts, took their longtime show from WMSP Sportsradio 740 to YouTube, where they’ve found a massive new following.

These innovators receive no regulatory recognition, no public broadcasting support, and no fair policy framework. It’s like building a smart city — but forcing everyone to use rotary phones.

The Royalty Double Standard

Here’s one of the biggest hypocrisies in American radio — and it hits Alabama artists especially hard.

Terrestrial FM/AM stations are exempt from paying performance royalties for the sound recordings they air. That means when your song plays on a local FM station, you — the artist — don’t get paid for the actual recording. Only the songwriter gets compensated, through ASCAP or BMI.

But if that same song plays on an internet station or podcast, the broadcaster must pay performance royalties through ASCAP, BMI, SESAC, and SoundExchange — covering both songwriting and recorded performance.

Let me repeat: Internet broadcasters pay full freight. Terrestrial radio pays half.
And yet, it’s the smaller, independent digital outlets that shoulder the financial burden — while billion-dollar terrestrial groups skate free.

This unfair system was baked into law through the Digital Millennium Copyright Act (DMCA), pushed by aggressive lobbying from the National Association of Broadcasters (NAB) and its state affiliates like the Alabama Broadcasters Association (ABA). These groups have fought to preserve terrestrial radio’s royalty exemption — while demanding newer platforms pay up.

It’s anti-artist. It’s anti-competitive. And it’s indefensible in 2025.

It’s Time for FCC Reform

If we want a fair, modern, and artist-friendly broadcast environment, we need a full overhaul of the FCC. That means:

• Streamlining licensing for community and micro-broadcasters, including online platforms.
• Updating ownership rules to reflect digital competition, not just analog monopolies.
• Closing the royalty loophole so that every artist gets paid, no matter the platform.
• Empowering innovation in local news, music, and public service broadcasting — especially in underserved rural and urban areas.
• Recognizing internet radio and podcasts as legitimate media — not “unregulated outliers.”

Radio doesn’t have to die — but it does have to evolve. The next generation isn’t waiting for a signal to come in clear. They’re streaming, downloading, and curating from their phones.

If the FCC and traditional broadcasters won’t catch up, someone else will simply build a better system around them.

Final Thoughts

Montgomery — and cities across Alabama — are filled with creators, musicians, and voices that deserve to be heard. Let’s not bury them under outdated policies and corporate red tape. Let’s create a system that reflects today’s technology and tomorrow’s potential.

The future of radio isn’t on the dial. It’s online, on-demand, and in the hands of the people.

 

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Jason Davenport is a digital media consultant and owner of the independent digital radio station xloungeradio.com. He can be reached at Jason@pulsemediamontgomery.com.