"as we know it" is the key here.
Radio, as a medium and an industry is far from "over" or "dead". He is talking about current valuations and stock price. He's right in the respect that radio from an investment perspective is not smart...for now.
In my opinion, Radio will be going through a "growth" phase between 5 and 10 years from now. Here's why:
Traditional Radio users White 18-54 are declining in % of population within the United States. These are the majority of people that Cramer is talking about that can afford the luxury of Satellite and iPods as primary in-car accessories. They are also the people concerned with stock price.
The growth market for Radio will be Hispanic, minorities and growing immigrant populations. As the percentages of race shift in the United States, to where "white" will become the "minority", the households of current "minorities" will rely on a "free" medium for both entertainment and information. Niche formats (such as the Rumba experiment in Philly) will become much more common.
Households, in general regardless of race, that live between the poverty line and lower middle class will not have the discretionary funds to purchase Satellite nor will they purchase a new or used car that will be Satellite equipped. They will rely on what is available and accessible: "free" radio.
TV did not kill radio. Cable did not kill radio. The internet did not kill radio. Satellite will not kill radio.
The target demographic just changes...it's electronic evolution.
