Most homes have FM radios as well as virtually all cars. Even the Tesla Model 3 has FM. Most are probably in use on a regular basis and it seems unlikely that radio is going away anytime soon. However the combo of streaming, the Internet, and apps is the general direction of the future it seems.
While I have used Apple music, I’m not a current subscriber…or for that matter to any other pure paid music service. I do use the free Pandora as well as some free offerings by Amazon Prime. I’m not a fan of the Apple Beats area at all. I don’t use cable or satellite TV, but instead use OTA signals and Netflix. I’m not sure paid music radio is going to be a big seller.
Apple has so far missed the boat on TV. Others like Sling, HBO, Showtime and a dozen others have set the stage while Apple has been in a “coming soon” mode for many years it seems. Maybe this will be their chance to get a better start for radio.
Two things I'm curious what others feel about:
1) Radio certainly has its place. As a very avid podcast-listener and AmazonPrimeVideo/Youtube user for the majority of my video entertainment (DirecTVNow is my "cable" provider, for less than 50% of my video entertainment), there are times I really feel like listening to something that I know many others are listening to at the same time. CarTalk on NPR, certain TV series, and definitely football games. There's just something attractive about "pseudo group experience," even if it's "old fashioned." Hopefully the feeling of wanting to be a part of something simultaneously with others will always have appeal and 10 years from now won't be the world of only Amazon purchases and Youtube media ingestion.
All this ability to allow "I can watch whatever I want whenever I want" certainly has its upsides, but at the same time it's removed the feelings of anticipation and "I'm watching this with thousands of others" that really made something feel so much more special compared to being able to watch/listen to almost anything at anytime. Things go in waves and I certainly think that at some point things will swing back away from the insta-have.
If I'm not the only one feeling that way and if Apple or iHeart or xyz radio/broadcast provider can tap into fulfilling that need in a "want to have more of that way," which could be the gold nugget.
2) To me, the instant-ness and convenience of FM radio & broadcast TV (or even satellite radio) vs. the added steps required to partake streaming/podcasts/youtube is the equivalent of:
Corded headphones vs. removing headphone ports on iphones, or
Light switches vs. home automation lights, or
Offering magsafe/USB-C/USB-A/SDcard ports vs. "simplifying" to usb-c, or
Time-tested "obvious" and helpful UIx cues vs. flat design and "new fresh iOS 7 interface," or
Controlling all i-device volumes with the buttons vs. separating ringer/notification volumes vs. media volume, or
Controlling volume via buttons vs. via software
Apple & others COMPLETELY overlook the fact that "instant-on abilities" and convenience factors have a LARGE value, no matter how must "additional service" one receives via unavoidably more complex options.
Jony Ive can float higher and higher on cloud 9 each time he manages to remove a port or jack or button from an Apple device, but each time it results in introducing to the customer at least some type of lag or extra workaround, which really starts to add up after a while. Sometimes you just want to start the car and, wham, your radio which was left "on" is playing and you're off & running. If I had no light switches and had to rely on my iphone to spool up an App to turn on my lights upon arriving home, I'd go absolutely bonkers.
Podcasts, streaming, blue-toothing, etc., all still have certain lags that you notice those times when reverting back to caveman-esque light switches and FM radio, and until streaming/downloading/syncing/bluetooth-connecting catch up, there's an advantage in there somewhere that FM/broadcast still has.