The included shadow light plugin actually draws shadows, not lights. The radius property is for the size of the light source and softness of the shadow edges rather than the distance the light "shines". You can make a hard edge by using a dark masking layer on top of everything, that is a circle or radial gradient of some sort centered on the player that is transparent in the middle.
Alternatively, you could use a visual line of sight/visibility map type effect, which is a bit more involved.
redblobgames.com/articles/visibility
I have an implementation of something similar here, with some other stuff I was testing out when the cast ray feature came out. dropbox.com/s/m6x32uzqcjlf8sk/VisualLOS.c3p