According to this rather plain-speaking editorial on Radio and Music Pros, it's not finding the audience that's the issue with the medium, it's over-consolidation. A radio veteran observes what he thinks happened to move the industry one step closer to the edge (and not the station at 102.1!)

He says it started when big corporations were allowed to take over so many stations, especially in the U.S. 

"Hundreds of owners became dozens. Dozens became a handful.  The promise of scale gradually became an obsession with efficiency.  Stations that once competed by sounding different began sounding identical.  Research replaced instinct.  Voice tracking replaced personalities.  Shared playlists replaced local music directors.  Regional programming replaced hometown programming. 

The accountant slowly became more important than the program director.  The lawyer slowly gained more influence than the news director.  Eventually the spreadsheet outranked the audience.  Wall Street rewarded quarterly savings while listeners quietly disappeared."

Did Radio Surrender Its Greatest Competitive Advantage?