No AM/FM, No Problem? Discussing Radio vs. the Audio-Free EV

Slate Auto’s new electric truck has no AM. No FM. No infotainment system at all. Instead, the minimalist vehicle, priced at $20,000 and scheduled for a launch later next year, relies on a bring-your-own-media strategy. Drivers will be encouraged to mount their own smartphones or tablets to the dashboard if they want to hear anything beyond road noise.

While Slate says the stripped-down dash is a move toward simplicity and cost savings, the announcement has triggered concern across the radio industry. With AM radio already under pressure from many manufacturers, Slate’s decision to drop all radio has raised serious questions about what automakers might do next – and how prepared radio is for this new reality.

Fresh off their recent discussion over the state of in-car radio, Radio Ink spoke with Jacobs Media President Fred Jacobs and Quu CEO Steve Newberry to unpack what Slate’s approach might mean for the industry, what lessons broadcasters should take from it, and how radio can remain essential in a dashboard that may no longer include it by default.

When asked whether Slate represents a worst-case scenario for radio’s future or if the action was just a marketing stunt, Jacobs didn’t mince words: “It is always erosive to radio when these omissions happen, in some cases, emboldening other OEMs to consider or even try it. A better name for this truck would be Spartan because it is obviously bare-bones.”

“They try to rationalize not including a radio, or anything, as a way to minimize buyer complaints. A well-designed AM/FM radio or even slimmed-down infotainment system would generate fewer claims than buying a Slate with a gaping hole where the radio should be,” he added.

Newberry, while less alarmed, still sees the move as significant. “I don’t want to be dismissive of Slate’s efforts as a marketing stunt, nor do I think it is a sign of disaster for radio,” he said. “I don’t believe there will be a rush toward purchasing vehicles as stripped down and feature-free as Slate’s vision, and I certainly do not believe the vast majority of consumers want a vehicle without a radio. However, the fact it is even being suggested should send a message to the radio industry about why we must continue to provide great content that makes us invaluable to consumers.”

While Jacobs says he has seen modular dashboard ideas surface at CES during his many sojourns to the annual show, this marks the first time a BYOM strategy will hit the consumer market. “Just like we watch how a new format performs in Minneapolis, automakers will have their eye on this experiment. It’s not dissimilar to FaaS packages; they’re evaluating that charge a subscription fee for a feature like heated seats.”

Newberry added, “Consumers want variety and they want choices. The ability to BYOM via one’s cell phone is likely to have some appeal because our phones are our most personal entertainment device and configured precisely as the user prefers.”

But that doesn’t mean it’s an ideal solution. “Radio now has multiple distribution platforms other than AM and FM,” Newberry continued. “I know the economics behind streaming are much different, yet consumers are continuing to migrate more and more to streams. Radio must be there.”

But as car dashboards become more fragmented, is radio ready to adapt?

“It’s not, sadly,” Jacobs said. “Most broadcasters are ensconced in competing with other radio broadcasters and don’t see the bigger picture. Our Techsurveys – comprised of mostly core radio listeners – unequivocally show that when consumers buy or lease a vehicle with infotainment systems, their radio listening declines. And yet, most broadcasters aren’t researching or even considering the more existential challenge posed by in-car media choice.”

Newberry acknowledged the uneven playing field across the industry: “Some stations are very well prepared with great personalities, strong local connections, podcasts that enable on-demand listening, and other creative programming elements. Others, because of economic or other pressures, are just not as compelling as they should be, and they are not prepared.”

“Whether we are ready or not,” he added, “we are no longer the default and we have to play to a higher level and standard.”

Asked how broadcasters can protect the value of in-car radio, Jacobs pointed to differentiation. “Radio needs to focus on the qualities that make it unique and relevant. Personality, reflecting the local ethos, connection, companionship – these are all elements broadcasters should be leaning into.”

Newberry agreed: “Let’s define what value we are protecting in the auto. I don’t believe it is just a music issue. Music has become a commodity, and it is widely available from dozens – if not hundreds – of sources. Our value certainly includes a musical experience, but it is so much more. Breaking news, disaster information, updates on threatening weather, and personalities that are icons in their communities are our special ingredients. We have to define AND deliver on those unique qualities.”

While some younger drivers may welcome the chance to customize their listening setups, Jacobs says the average consumer expects more out of a new car. “Most other car buyers don’t want to think about it, much less figure it out. There are expectations a new car will have certain features: windshield wipers, turn signals, a radio.”

And in today’s economy, he added, “Why would any OEM give a consumer a valid reason NOT to buy their cars or trucks?”

Newberry offered a similar caution. “In today’s political and economic climate, I’ve seen research that shows consumers want simpler, less complicated solutions to every aspect of their lives. They are fatigued with navigating technologies, working expectations, difficult conversations, and hard decisions. It seems to me the BYOM model is another ‘complication’ for the end user.”