SUSTAINABILITY OF CROATIAN LOCAL RADIO STATIONS IN CONTEMPORARY MEDIA ENVIRONMENT

Despite being part of traditional media, which has seen declining audiences, radio has experienced a resurgence in recent years. This can be attributed to several factors: listening to the radio does not require basic literacy; it allows for multitasking; and its content is often entertaining, particularly music. Additionally, radio has successfully adapted to new media trends by incorporating formats such as streaming and podcasts, appealing to younger audiences. In Croatia, local radio stations play a significant role in communities, offering access to information, entertainment, and education, with nearly 160 radio channels – almost 90 percent of which are local. However, these stations often struggle with financial resources, staffing, and technological infrastructure. The aim of this paper is twofold. First, drawing on publicly available secondary data from the Agency for Electronic Media (AEM), the Ministry of Finance, the State Statistical Office, and the Croatian Association of Market Communication Agencies (HURA), the paper will examine the current business conditions of local radio stations and identify challenges that may pose a threat to their sustainability. Second, through a survey and in-depth interviews with owners and editors of local radio stations, the paper seeks to identify how these challenges and obstacles affect the competitiveness, audience, and advertising revenue of local radio stations, with particular attention to the role of digital technologies as key strategic tools for the sustainable development of radio stations. The research results show that local radio stations in Croatia, despite their importance for media pluralism and local communities, face significant economic challenges due to a lack of financial resources, outdated technological infrastructure, and the strong influence of local and regional governments on their ownership. Although digitalization is a long-term goal, local stations currently show little interest in transitioning to digital platforms, primarily due to the high infrastructure costs and lack of state support.