Yea, and the coming of TV was supposedly going to kill the movies, starting in the 1950's, and kill radio, in general. It did not happen.
Granted, both have changed and adapted significantly, in order to survive. Is AM dead? Not in the slightest, as far as we are concerned.
Our parent company, MultiCultural Radio, is one of the largest operators of AM's exclusively (well, one FM...) in the country. Both of our stations
are also available on the internet, 24/7. We program to a foreign language audience. It is definitely a niche audience - the standard industry
techniques of programming, sales, and audience measurement do not really apply to us, and our mission. A number of ideas are being proposed
to help AM radio. Certainly, better designed receivers would help greatly. Just look at what happened to telephones: old Western Electric Ma Bell
phones were far superior to cheapo $5 phones you could buy at Walmart! I did not even discover FM until I was 14 years old (back in the day).
It was Top 30 on WRKO back then - my little transistor radio pressed to my ear. Yea, there are many more options available now. I occasionally
listen to internet audio streams. I also listen to CD's in my car, at home, etc. But radio is still prominent in my listening mix -- FM, and AM as well...