Short answer: No.

I’ve written a bit about the song and MTV here and here, but basically, the song was released in late 1979, and was a big hit across Europe and Australia as well as in the group’s native UK. This obviously wouldn’t have happened if radio boycotted the song.

At the time, it was clear that the song was historical in focus; it’s very obviously referring to the period in the 1950s-1960s when television took over many of the previous functions of radio - “I heard you on the wireless back in ‘52” goes the opening line, after all. Radio stations these days tend to be news/talkback or music-focused, but before that things that would now be on TV were shows on radio - variety shows, game shows, drama serials, comedy serials, etc etc. This was where you find the radio stars who didn’t make it to video, because what worked in the audio world looked strange on a screen or whatever (look at footage of Ed Sullivan on the Ed Sullivan Show such as when he presents the Beatles - he’s a former radio star whose presence on TV is an odd one for modern audiences, though he did become a video star unlike some of his competitors). This transition was in living memory for a lot of people in 1979 (and especially was slower in the UK, where BBC radio was slower to move away from the older radio formats on some of its channels - it still has radio game shows.) Obviously the killed radio star, in the song, was also something of a metaphor for the idea that times change and lots changes along with it (in 1979, with its synths and clever modern production, 'Video Killed The Radio Star' was clearly not old-timey sounding).

The song, in 1979/1980, was less of a hit in the US (where it barely reached the top 40) but that was likely more because a) US radio had been relatively resistant to ‘new wave’ music in this era and b) The Buggles weren’t entirely suited to doing the sustained, gruelling publicity/schmoozing campaign needed to really break a hit in the US (Trevor Horn having made his name post-The Buggles as a producer in the backroom of acts from Frankie Goes To Hollywood or Yes, suggesting the spotlight wasn’t his main objective). At least, there’s no discussion of the song at all in 1979/1980 in the music industry trade mag Billboard (beyond listings that it was being played on a radio station here and there and that it got into the top 40 briefly) suggesting that it mostly wasn’t on radio DJs’ radar one way or another.

The US singles charts in December 1979, the week the Buggles scraped into the top 40 in the US, were topped by ‘Babe’ by Styx, and feature a bunch of adult contemporary, AOR, and disco music mostly (‘Escape (The Pina Colada Song)’ was rising towards the top, ‘Rock With You’ was about to become a big hit, etc). That week the biggest ‘new wave’ hit was ‘Pop Muzik’ by M, at #25. The Buggles perhaps would have fit weirdly into a lot of top 40 radio playlists of the era.

It’s only with the launch of MTV in 1981 that ‘Video Killed The Radio Star’ acquired the bolder connotations it has now in the usual narrative of pop history, in terms of the rise of more visually oriented artists in the US (first the ‘Second British Invasion’ New Romantics like Duran Duran, and then Madonna, Michael Jackson, Prince, etc) and the fall of older AOR acts who were visually quite unfortunate/boring (say, Christopher Cross, who hit the top of the charts with ‘Sailing’ in this pre-MTV era while looking like what more modern folk these days might call a ‘neckbeard’).

But of course The Buggles video was played first on MTV because it already existed (because it was a useful way for the group to promote the song through shows like Top Of The Pops in the UK or Countdown in Australia) and thus was cheap to use, not because it was tailor made for MTV.