Category Archives: Sales

Choice Paralysis

57 channelsI sat in on Radio World’s presentation about “Digital Sunrise for AM Radio” hosted by editor-in-chief Paul McLane. The webcast lasted almost two hours and was technically informative.

The question Paul kept asking the presenters about going all digital on AM, was a question he hears numerous people asking him, “has the horse left the barn?” In other words, has the world moved on and does anyone really cares about AM radio anymore.

But that’s not the question that was running through my mind.

Too Many Choices

We live in a world with infinite choices when it comes to audio & video entertainment. Twenty-eight years ago, Bruce Springsteen released his song “57 Channels and Nothing’s On.” The lyrics are very telling of the condition we find ourselves in today.

I bought a bourgeois house in the Hollywood hills
With a truckload of hundred thousand dollar bills
Man came by to hook up my cable TV
We settled in for the night my baby and me
We switched ’round and ’round ’til half-past dawn
There was fifty-seven channels and nothin’ on
Well now home entertainment was my baby’s wish
So I hopped into town for a satellite dish
I tied it to the top of my Japanese car
I came home and I pointed it out into the stars
A message came back from the great beyond
There’s fifty-seven channels and nothin’ on
Well we might’a made some friends with some billionaires
We might’a got all nice and friendly if we’d made it upstairs
All I got was a note that said “bye-bye John
Our love is fifty-seven channels and nothin’ on”
So I bought a .44 magnum it was solid steel cast
And in the blessed name of Elvis well I just let it blast
‘Til my TV lay in pieces there at my feet
And they busted me for disturbing the almighty peace
Judge said “What you got in your defense son?”
“Fifty-seven channels and nothin’ on”
I can see by your eyes friend you’re just about gone
Fifty-seven channels and nothin’ on

It’s not unusual for people to spend an entire evening going through the program guide on Netflix only to finally retire for the evening having not watched a single program. We’ve all done that.

On just Netflix alone it was estimated in 2015 that it would take a person 34,739 hours to watch everything available on the streaming service. I’m sure that number has grown considerably when you consider in 2019 Netflix introduced 371 series and movies to view.

Add to Netflix more television streaming services like Amazon Prime, Hulu, Apple TV+, Disney+, YouTube and it means choice is not the TV viewer’s problem, it’s choice paralysis. (And maybe also how to pay for it all.)

ALL DIGITAL AM

The question running through my mind about investing in building out an all-digital AM radio service in America is, “why?” When I scan the AM band now, I can hear the same talk shows on station after station. The FM band is no different when it comes to everyone doing the same type of programming.

It has me humming Bruce Springsteen’s song in my head, only with a lot more channels of programming attached to the “nothing’s on” part.

Digital AM seems to be the answer to a question, that listeners aren’t asking.

Less is More

Many businesses fall into the trap of thinking that more products equal more sales and radio certainly can be accused of falling into that trap.

HD Radio was designed to offer a higher quality broadcast signal for AM and FM radio stations. FM station owners didn’t really get interested in HD Radio until they learned they could feed FM translators with HD2, HD3 signals and put more FM analog signals on-the-air in their market.

I learned that the all-digital AM service offers the opportunity for an HD2 signal that could feed another FM analog translator.

What Al and Laura Ries tell us from their research is how this strategy of adding more and more choice becomes a trap and can lead to negative consequences in the long term.

Just One Thing

In media sales, we try to have our clients identify what one thing makes them special and unique. What makes their business so different that consumers will want to come to them instead of their competitors. You may know this process as finding a business’s “unique selling proposition.”

One Good Reason

Back in the day, 66-WNBC put up a billboard that gave radio listeners one good reason to turn their radio dial to 660 AM. It simply said “If we weren’t so bad, we wouldn’t be so good.”

56

This one simple sentence captured the essence of both Don Imus and Howard Stern. It was this radio station’s one good reason to listen. It was this radio station’s one good reason to advertise on it.

And speaking of one, I was told by the WNBC Sales Manager that it only took one commercial on Howard Stern for an advertiser to see immediate sales results.

That’s the power of a unique brand.

Misplaced Priorities

Radio had a choice to make in the last decade, to either develop unique powerful brands localized to the marketplace the FCC licensed them to serve, or build out more signals with programming that was virtually hard to tell apart from one another. Unfortunately, the radio industry chose the latter and as a result has turned the business into a commodity.

Something for everyone equals nothing for nobody.

Economics defines a commodity as goods or services that have fungibility, or in other words something the marketplace treats as everything being nearly equivalent to each other, with little regard for who produces it.

This is why radio sales people will often hear advertisers says things like “all radio stations sound the same, now let’s talk about your spot price.”

Perception is reality.

Or should I say that the listener and advertiser’s perception is accurate with the reality today being all radio stations do sound the same.

Elections & Radio Listening

I read an article the other day that said what changes the outcome of any election is turnout. That the way someone wins an election is by getting people, who normally sit it out on the couch, engaged and out to the polls. It’s not getting people to switch party affiliations.

I think radio may have a similar problem.

For the radio industry to be growing again, what radio needs to be focused on, and investing in, are its people and programming, not putting more signals on the air with nothing to hear.

 

 

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DJs Get Paid More than Real Musicians

Wolfman JackI was reading an article in Medium about “How Platform Capitalism Devalued the Music Industry,” when I came to this comment from electronic pop artist Grimes – currently dating Elon Musk – “DJs get paid more than real musicians.”

As the blowback continues to reverberate from the recent “employee dislocations” by iHeartMedia, of hundreds of their disc jockeys across America, I wondered who were these highly valued DJs Grimes was talking about.

World’s Highest Paid DJs

Turns out that Forbes published a list in July of what Forbes called “The World’s Highest-Paid DJs of 2019.”

chainsmokers

The #1 highest paid DJs are “Chainsmokers” earning $46 million in pre-tax income over the past year.

Who?

If that was the first thought that flashed across your brain, you’re not alone. The Chainsmokers are made up of Drew Taggart and Alex Pall.

#2 was “Marshmello” at $40 million, #3 was “Calvin Harris” at $38.5 million, #4 was “Steve Akoi” at $30 million and rounding out the top 5 was “Diplo” at $25 million. Forbes actually ranked the top 15 and you can see the whole list HERE.

None of these DJs are on your local radio station. They are all club DJs.

The Chainsmokers signed a three-year exclusive residency deal with Wynn Nightlife in Las Vegas that has the pair performing only in nightclubs at XS and Encore Beach Club in Vegas in 2017. The pair is such a draw, that agreement has been extended until 2021. The group also records EDM albums and released their first single in 2013.

Club DJs

marshmelloChristopher Comstock, aka “Marshmello,” signed with the Palms Casino Resort in Las Vegas taking up residency at their Kaos Dayclub and Nightclub.

Marshmello entertains from a rotating DJ booth shaped like his signature cylindrical marshmallow mask. If you’d like to see him in action, here’s a link to a YouTube video

This year coming in at #3, “Calvin Harris.” He previously had been the #1 highest paid DJ for six consecutive years.

Absent from the list are over-the-air radio DJs.

Radio’s Highest Paid

It should come as no surprise that Howard Stern reigns in the top spot with an income north of $90 million. But he’s on satellite radio.

The top earner on terrestrial radio is Rush Limbaugh, who recently announced he’s battling advanced lung cancer. Then comes Ryan Seacrest, Sean Hannity and Glen Beck, all syndicated talk radio hosts.radio sign

What’s the attraction of all of these personalities?

Grimes puts it this way, “It’s kind of like Instagram or whatever. [Listeners] don’t want the real world.” Great personalities give us an escape from our world and make us feel like we are a part of their lives.

Great Radio

Radio provides the listener with community and companionship through the stories it tells and music it plays.

Harry Harrison, New York City’s Morning Mayor, recently passed away at age 89. He was a New York City DJ Legend, broadcasting over WMCA, WABC and CBS-FM for the majority of his radio broadcasting career.

Cousin Brucie was invited to share his memories of Harry and why he was so loved by Big Apple radio listeners. Brucie said it was all about making the members of the radio audience feel like family. It’s all about talking to people and being out in the community Cousin Brucie & DTwith them, touching their hands. In fact, the host said, when Brucie showed up at NBC4  to do the segment, people who work at the TV station came to see him and gave Brucie a hug. Something that rarely happens when guests appear on the program.

I know how they feel because, one Saturday night, that’s exactly what I felt like when I had the opportunity to spend a night in “Cousin Brucie’s Place” at SiriusXM.

The Power of the DJ

The common thread, whether we’re talking about a popular club DJ or radio DJ, is their ability to bring people together, engage in the same thing at the same time and make us feel like we are welcome and belong.

Harry Harrison told his listeners that “every brand new day should be unwrapped like a precious gift” and he always wished his listeners the very best, “because that’s exactly what you deserve!” Ron Lundy greeted his listeners with “Hello Luv,” Dan Ingram called his listeners “Kemosabe,” and everyone was a “cousin” with Brucie.

The biggest casino operators know how important the DJ is in bringing people into their dance clubs. A great club DJ can read the room and know exactly the right mix of music to play to get everyone involved and have a good time.

That same magic built great radio on thousands of local radio stations across America. It can’t be replaced by artificial intelligence and algorithms.

Real local radio knows how to read the community and provide exactly what it needs at that moment. All great radio is local and relevant.

DJs become your best friend.

Is there anything better than hanging out with your best friend?

 

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We Are the Choices We Make

WSM(15)From my earliest days, I knew what I wanted to do in life. Drive a car, fly a plane and be a disc jockey.

I know, they don’t seem like big hairy audacious life goals, but to an eight year old, they were.

Disc Jockey

You might be surprised to learn that the goal of becoming a professional disc jockey on an AM radio station came first. I actually had to have my mom drive me to the radio station and pick me up after my shift and I’m sure it was a kick for both of my parents to hear their youngest son on the radio.

My mother was a radio listener. My father never was.

Driver’s License

By the time I got my driver’s license and was graduating from high school, my radio work had earned me enough money to buy my first car and head off to college.

My course of study in college was in physics and education. I was on the path to becoming a teacher. My parents didn’t feel that becoming a full-time disc jockey was a career with any future and wanted me to have a college degree and a career I could fall back on.

While pursuing my undergraduate degree, I worked to get an FCC license for an FM radio station for my college and became the first general manager of WJJW 91.1FM. Between classes I DJ’d on my college radio station, and on weekends, holidays and summers, earned money working in professional radio.

I never had a student loan and between my radio work and playing a trombone in professional marching and concert bands, I not only paid for my college education but saved some money too.

1968 was when minimum wage paid the most money per hour in the history of the minimum wage law in America. You can’t do what I did on minimum wage today.

Airborne

Flying a plane wouldn’t happen until 17-years later. I was promoted to general manager of WIIN-AM/WFPG-FM in Atlantic City, New Jersey. The previous general manager had worked out a trade deal with our local airlines, which also provided our news/talk AM planeradio station with local traffic reports during beach season. When I took over the job, everything was already in place for flying lessons and I took advantage of the arrangement and learned to fly.

Soloing a plane over the South Jersey Shore Beaches in the summer time on the weekends was such a thrill.

Teaching

IMG_3351Whenever people would ask me what I wanted to do next with my life, my answer was always the same, teach. Yes, I wanted to teach at a college or university the very profession that I had spent my entire working life doing, radio.

When Clear Channel was doing major RIFs (Reduction In Force) in 2009, I one day found myself with a surprise visit from my Regional Vice President. For the past year, I had spent being told who I needed to terminate next in my radio stations and I knew this time it was me. It was the worst year in radio I ever had.

The good news was, I saw in Radio Ink that Western Kentucky University was looking for a broadcast professor to teach sales, management, history and other radio/media courses. The position perfectly described my background and because of my two college degrees, both in education, I knew I had found the final path of my professional life.

I moved to Kentucky. Helped Dan Vallie to create the KBA/WKU Radio Talent Institute and over the course of seven years did research on the future of radio, along with creating this very blog, that I’ve been writing weekly for over five years.

Disc Jockey, Second Act

Before retiring from the university, Joe Limardi, then operations manager for WSM 650AM in Nashville, invited me to come to Music City and do a radio shift on The Air IMG_2368Castle of the South. Joe Limardi had been a guest professional broadcaster in my Capstone Class at WKU and it was during his lectures with my students that I learned that Joe had grown up listening to me on the radio back in our hometown of Pittsfield, Massachusetts on WBEC 1420AM. Joe always thought of me as a disc jockey and little did I know I inspired him to pursue a radio career.

IMG_2352I had not been behind the mic on a radio station in 35-years. I had a 10-minute lesson in how to run the control board from Joe and then was off on my own to do the next four hours on The Legend WSM.

Soloing on WSM that day was a thrill, one I had not had since my flight instructor got out of the plane one day and said, “Take it around by yourself.”

But my disc jockey second act didn’t end that day, I continue to do a VT midday shift (EST) on WMEX-LP out of Rochester, NH and heard worldwide on TuneIn Radio.

One thing is clear, we are the choices we make.

Don’t let anyone tell you, you can’t do it.

 

 

 

 

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2020 – The Last Year of the Decade

New Decade Begins 2020 or 2021A lot of people think that a new decade began in 2020, but the reality is, it’s the last year of the current decade. 2021 begins the next decade.

The 21st Century didn’t begin in 2000, but on January 1, 2001. The new millennium also began in 2001.

I think what may have confused everyone is the angst so many of us felt when the calendar turned from 1999 to 2000. I remember that New Year’s Eve so vividly because I spent it at my cluster of radio stations in Waterloo, Iowa. Why? Because virtually the entire world was anxious that their computer systems might crash at midnight.

Y2K

Did you forget about the Y2K Bug?

Y2K, short-hand for year two thousand, was a computer flaw — or bug — that was predicted to cause great problems with dates beyond December 31, 1999.

Every company worked feverishly putting in patches that were supposed to fix this problem, but no one really knew for sure if they would.

The fear was that all of our computer systems at the radio stations might not interpret the “00” as 2000 but as 1900.

New Year’s Eve 1999

The CEO of my company’s radio stations commanded that all general managers, operations managers, programmers and engineers be on duty on New Year’s Eve 1999 and be prepared to take the operation LIVE if our computers failed.

I told the staff of my four radio stations what the company plan was, and my director of sales said at that employee meeting, “If you’re going to be here on New Year’s Eve, so are we.” Shelly Routt, then began planning one of the best New Year’s Eve parties I’ve ever enjoyed at our cluster’s headquarters in downtown Waterloo.

Friday Night

December 31, 1999 was a Friday night.

What made this computer bug issue so critical at my radio cluster was, we operated all four radio stations every weekend without a single person on duty. We were fully computer automated.

On a typical Friday afternoon, when the week ended at 5pm, we locked the doors not to return until Monday morning. Think about that, we were running full automation over twenty years ago.

All those jobs that gave new radio people their start in the business, weekends and overnights, were gone.

The talent farm team system was decimated.

25 Dying Professions You Should Avoid

I guess that’s why I wasn’t surprised when a reader of this blog sent me an article from Work+ Money 

about 25 professions that were going away, that BROADCASTERS was fifth from the top.

2020 Vision

The primary reason cited was that more and more listeners prefer streaming over their local, drive-time disc jockey.

Work+Money wrote:

“One in 10 of the nation’s 33,202 radio and television announcers are expected to see their jobs disappear by 2026. Consolidation in the industry, as well as increased use of syndicated content, is fueling the decline. There’s also the explosion of streaming music services.”

Automation

As I went through the list of professions in danger, a singular reason reared its ugly head, automation. Robots, artificial intelligence – both newer forms of automation – were replacing many white collar as well as low skill jobs in the workforce.

robot djIf your job can be replaced by a mathematical equation, a logarithm if you will, consider your future employment to be at risk.

To be perfectly clear, all broadcasters won’t be disappearing, but the profession of broadcaster will be in a state of decline.

College Degree & Broadcasting

The cost of higher education continues to soar, but the payback of a college degree hasn’t kept pace. While the price of consumer goods has increased by a factor of 4 since the late 1970s, getting a college diploma has increased by a factor of 14, according to the Federal Reserve Bank of St. Louis.

Sadly, not all degrees offer the same ROI (Return On Investment), but ironically they’re all pretty much priced the same at any college. According to PayScale a college degree in dentistry sees a dental graduate’s median entry-level salary of $118,800 versus a degree in broadcasting where a starting disc jockey or newsperson can expect an entry-level salary of $40,000.

I never went to college to be a broadcaster. Broadcasting, which I started professionally while a freshman in high school, paid for my college education; both undergraduate and graduate degrees.

What did I go to college to learn? To be a teacher.

It wasn’t until I retired from over four decades as a broadcaster that I would begin my career in education as a broadcast professor at a university.

During that time, I would witness extensive broadcast industry deregulation and consolidation and that led us to the state that broadcasting is in today.

Apprentice Programs

The radio industry needs to grow new talent. It’s time for broadcasters to have an apprentice program in place that allows youth to learn and grow as responsible community broadcasters without requiring a college degree at the outset.

Over time, the broadcast industry can provide “just-in-time-learning” programs that will allow these new broadcasters to grow and expand their skills to take on more and more responsibilities leading to senior management and ownership of radio properties.

The new decade begins in less than a year.

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The Words You Use Matter

wordsI was reminded of this important statement the other day when I read an article in Radio Ink penned by Larry Rosin, President of Edison Research. Larry’s article was titled “Stop Saying ‘Still’” and you can read it HERE

The point of Larry’s article was when by using the single word, still, in telling radio’s story, we in essence are devaluing the medium.

Weak: Radio is still what people listen to in their cars.

It automatically makes the mind wonder, what else people are listening to in their cars. Or if radio was still important in the car, why do we have to remind anyone of this fact.

Larry did an excellent job of showing how by eliminating the word “still” in that sentence how much more powerful it becomes.

Strong: Radio is what people listen to in their cars.

I Think Versus I Know

When making a sales presentation, one of the phrases I worked to have my students at the university eliminate was “I think this will work.”

When you use the word “think,” the advertiser assumes, that if you don’t know if it will work, s/he’s not going to waste their money trying to find out.

But if you instead say, “I KNOW this will work,” the advertiser will draw confidence from your words that this is something they should be doing.

Transference of Confidence

Sales is the transference of confidence.

If you’re confident in the program you’ve put together for your client, use words that transfer your confidence to your client.

Think” doesn’t transfer confidence, “know” does.

It’s much the same thing that Larry Rosin talked about in using the word “still” to describe radio’s attributes in the sales process.

Words That Influence

In the world of sales, some words have real “magic.”

Because” is a magic word. When we were growing up our parents used this word when answering their children’s questions, and as a result we have become conditioned to respond to this word whenever we hear it.

In a sales presentation, adding the words “because this program is very effective” causes the person hearing your presentation to be primed to accept what you’re telling them. This is due to the cause/effect inference.

Add the word “Now” to the sentence can make it even more powerful.

Because this program is so very effective, you need to be doing this NOW.”

Doesn’t that sound confident? Doesn’t that sound positive? Doesn’t that convey a sense of urgency?

Courtesy Never Goes Out of Style

Two words you can never over use, are “Please” and “Thank You.”

I’m sure your parents told you repeatedly to always ask for things by saying “Please” and whenever anyone did anything for you, to always say “Thank You.” These words still show respect to the people you deal with and you should use them with everyone you meet in the selling process.

Our Favorite Name

Everyone has a favorite name. Their own.

In sales, it’s important to use a person’s name, but not to over use it.

As a general rule of thumb, I suggest using a person’s name in your opening and conclusion and maybe once during the presentation.

Imagine

Now, just imagine yourself making more sales because you are using words that are extremely effective.

Please give it a try with your sales presentations this coming week.

Thank You for reading this article about how the words you use matter.

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Dislocation is the New RIF

UNADJUSTEDNONRAW_thumb_641For many of you, this past week has been a very stressful one. The world’s largest radio owner/operator, iHeartMedia, announced a countrywide Reduction In Force or RIFs. However, reading an internal memo obtained by All Access, I see that the new term for this is “employee dislocation.”

No matter how your phrase it, a lot of good radio people lost their job this week.

Is Your Iceberg Melting?

Let’s face it, the radio industry so many of us fell in love with, is melting away.

Back in 2009, the book everyone was reading was by Ken Blanchard called “Who Moved My Cheese?” Ken actually published this little 95-page book back in 1999 and it’s still an extremely great read.

But today, maybe the book everyone in broadcasting ought to be reading is “Our Iceberg is Melting and Succeeding Under Any Circumstances by John Kotter, who is an award winning author from the Harvard Business School.

In Melting, Kotter writes a simply fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – it’s melting away.

It’s a story that will resonate with anyone in broadcasting, as a new round of “employee dislocations” occur and there are fewer radio stations to relocate to, as this is the same thing that is happening by the other big box broadcasters nationwide.

Kotter’s book walks you through the eight steps that produce positive change with any group. You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

Regarding change, when all employees, corporate and middle management are on the same page, it is amazing what can happen. What I’m hearing from the broadcasters I know, both those that have been RIF’d and those who have not, it is a feeling that there’s a lack of honesty in communication from the top through the entire organization.

“Fool me once, shame on you.

Fool me twice, shame on me.

Fool me three times, shame on both of us.”

-Stephen King

The problem for the leaders of the broadcasting industry is that radio people have been fooled too many times and the level of trust is at an all time low. Daryl Ledyard, who was “dislocated” from a position he’s held at WBBS in Syracuse for over ten years told Rolling Stone “[iHeartMedia is] very much convinced that the local aspect of radio is no longer important.” However, iHeartMedia says in their statement “we will continue to serve every local community in which we operate just as we always have.”

It begs the question of how that will be possible when the number of on-air people have been reduced to one or two or none.

Live & Local?

Over the years, at every radio meeting I attended, the one refrain heard over and over and over was that “the power of radio is live & local.”

In October 2017, the FCC voted along party lines 3 to 2 to eliminate the Main Studio Rule.

When the FCC voted to end that provision in America’s broadcast law, what did that mean to regulations that have been in place since 1934? FCC attorney Gregg Skall explained it this way in his 1991 “Main Studio Rule and Staffing” memo:

The main studio rule as clarified in 1988 requires a station to maintain a main studio within its principal community contour “which has the capability adequately to meet its function…of serving the needs and interests of the residents of the station’s community of license.” That rule has now been further revised to allow a main studio to be located either within 25 miles from its community of license reference coordinates, or within the principal community contours of any station, of any service, licensed to its community of license. (See memo, Revised Main Studio and Public File Rules). Jones Eastern requires the station to maintain a “meaningful management and staff presence” at the main studio on a full-time basis during regular business hours.

You can read the full memo HERE 

Since the introduction of automation systems, syndication, satellite delivery and computer voice tracking, the LIVE aspect of radio has been on the wane. Even in the #1 radio market in America, New York City, stations may or may not have a live operator behind the microphone when you’re tuned in.

In 1967, when I was starting out in radio, we used to have to announce whether a program was live or pre-recorded so the listeners wouldn’t be deceived about the broadcast. In the early days of radio, virtually all radio was live, it was the exception for something to have been recorded.

Today, what you are listening to is more than likely not live but syndicated, voice-tracked or pre-recorded.

With the Main Studio Rule, the goal was, that there would be a live person at the station and the studio would be in the community the licensee was licensed to serve.

Lance Venta writing on RadioInsight on October 24, 2017 wrote “But what will it (elimination of the Main Studio Rule) mean in the short term? Probably not a lot. In the long term, be prepared for a much leaner broadcast facility.” You can read Lance’s entire article “The Radio Station of the Future…Today!” HERE

The National Association of Broadcasters lobbied for the elimination of the Main Studio Rule, and its then executive VP of communications Dennis Wharton said “We’re confident that cost savings realized from ending the main studio rule will be reinvested by broadcasters in better programming and modernized equipment to better serve our local communities.”

Public Safety

When a broadcaster doesn’t have a studio in the local community it serves, it delivers its programming through the internet, satellites, microwaves or wired lines. Broadcasters have been quick to point out how these forms of communication are first to go down in natural disasters.

What seems to be missing in this conversation, is what happens when a local community is hit with a Black Swan Event. I wrote a whole blog article about how such an event could impact communities FCC licensed radio stations are empowered to serve. You can read that article HERE

Those who believe in the unconditional benefits of past experience should consider this pearl of wisdom allegedly voiced by a famous ship’s captain:

‘But in all my experience, I have never been in any accident… of any sort worth speaking about. I have seen but one vessel in distress in all my years at sea. I never saw a wreck and never have been wrecked nor was I ever in any predicament that threatened to end in disaster of any sort.’

-E. J. Smith, 1907, Captain, RMS Titanic

[Captain Smith’s ship sank in 1912 and became the most talked-about shipwreck in history.]

The Future Predicted in 2004

On May 24, 2004, the Federal Communications Commission (FCC) held a “Broadcast Localism Hearing” in Rapid City, South Dakota.  The president, general manager and co-owner of KLQP-FM licensed to Madison, Minnesota (population 1,767) Maynard Meyer addressed the commission.  Telling them:

“I have been involved in the radio business in announcing, sales, engineering and management for about 36 years, all of my experience is in communities of 5,000 people or less.  We personally live in the communities we serve so we know the ‘issues,’ we work to address them in our programming and have been doing so for the past 21 years.“

“A few years ago, many stations operated this way, but much of that has changed for a variety of reasons.  I think the beginning of the end of local broadcast service started in the 1980s when the Federal Communications Commission approved Docket 80-90.”

Mr. Meyer went on to explain to the FCC, how that many communities “on paper” had a local radio station that actually was nothing more than a transmitter being fed from another location tens of miles away.  Mr. Meyer went on to say:

“I don’t think this is the best way to promote local radio service.  From what I have seen through my personal experience, as soon as a hometown studio is closed and relocated, the local service is relocated as well.”

(I’ve edited his comments. The full text can be found HERE)

What do you think?

 

 

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Radio’s History of Feeling Inferior

Family Listening to Golden Age of Radio“There are some things that will scare you so bad, that you will hurt yourself,” said Molly Ivins. And that’s exactly what I believe the radio industry has been doing to itself for most of its 100-year history.

The Golden Age of Radio

The first golden age of radio was during the 1930s and 40s, and was a period when over-the-air commercial radio was sewn into the fabric of American’s daily lives. It delivered the day’s news and provided entertainment to people struggling with the effects of the Great Depression and a second world war.

Here comes TV

Television was introduced to America at the 1939 New York World’s Fair with a live broadcast of President Franklin Delano Roosevelt opening the fair on NBC’s experimental station W2XBS in New York City.Family Watching TV

Unfortunately, the development of television in America was halted by Japan bombing Pearl Harbor on December 7, 1941 and bringing the United States into World War II.

When the war ended, there were only six television stations on the air in America, three in New York City, one in Chicago, one in Philadelphia and one in Schenectady, New York.

The number of television sets in use in 1946 were about 6,000, but by 1951 that number grew to over 12 million, and by 1955 half of all homes in the United States had a black and white television.

Radio’s Over Because of…

Radio’s inferiority complex began with television, and probably for good reason. Television stole radio’s prime time programs and right along with it, it’s listeners. Worse, radio’s big station owners and radio networks, CBS and NBC, would use radio’s revenues to fund the development of television stations and TV networks.

There were many who predicted that television would be the demise of radio broadcasting.

This was the first known case of “radio’s over because of…”

What’s Killing Radio, Let Me Count the Ways

I worked in the radio industry all of my professional life. Other than earning money as a professional musician early in my working life or as a Broadcast Professor at the end, radio has been my source of income and my love.

During that time, I would hear about the latest new technology that was going to put radio out of business.

  • TV was going to be the end of radio
  • FM was going to be the end of AM radio
  • CB Radios were going to be the end of commercial radio
  • 8-Track Tapes were going to be the end of home & car radio
  • Cassette Tapes were going to be the end of home & car radio
  • Compact Discs were going to be the end of home & car radio
  • MP3s were going to be the end of home & car radio
  • Satellite Radio was going to be the end of radio
  • The internet was going to be the end of radio
  • iPhones/iTunes were going to be the end of radio
  • Pandora & Spotify et al were going to be the end of radio
  • YouTube was going to be the end of radio

Have I missed any?

FCC Symposium Sees Radio Industry Challenged by Competition and Regulation

The FCC held a symposium at the end of 2019 to solicit things it needed to be addressing for the health of the radio industry. Fingers, by the invited panelists, were pointing in every direction, but at themselves.

The radio industry believes it can make itself better by more consolidation and less regulation. Yet when I look at the history of radio, its most successful years were during a time of intense regulation and severe ownership caps.

However, it amazes me that the only answer offered continues to be the same one, that to my eyes and ears, got the radio industry into this predicament in the first place.

Don’t it always seem to go
That you don’t know what you’ve got
‘Till it’s gone.
They paved paradise
And put up a parking lot.

-Joni Mitchell

What’s Radio’s Real Problem?

radio signWhen television came along and took away radio’s people and programs that were attracting its large listening audience, it was forced to re-invent itself.

Radio dropped its block programming and began programming music. The transistor made radio portable. Radio personalities, promotions and new music made radio exciting to a whole new generation of listeners.

One of the people at the FCC’s symposium was Karen Slade, VP and GM of KJLH Radio in Los Angeles. Instead of the 30,000 foot view of radio’s current situation being shared by the radio owners and CEOs, she said she saw the problem from about ten floors above street level. She said her radio station had 500,000 listeners but that she was trying to reach more listeners through a variety of other platforms. My question is why?

For my entire radio career, I don’t think I ever managed even a cluster of radio stations that delivered that many total weekly listeners. Yet, my radio stations were very successful.

I managed a radio station in Atlantic City that had about a tenth of that many listeners and still delivered a million dollar bottom line to the stakeholders, plus we delivered results for our advertisers.

Radio’s real problem is not investing in what it already owns. Radio instead thinks the grass is greener in someone else’s media playground.

Smart Speakers

Forbes says smart speakers are the future of the audio. AM and FM radio is available via smart speakers, but so isn’t the entire world of audio content.

It’s estimated that smart speakers will be in 75% of American households in five years. Smart speaker reach had already passed a tipping point, before this past Christmas’ robust speaker sales, with 41% of American homes owning at least one of these devices.Child using Smart Speaker

So, what makes a smart speaker owner choose an AM or FM radio station’s content to listen to versus a pure play or even TV audio content? Let me use television as an example to demonstrate what I think matters.

Why does Stephen Colbert’s Late Show reach 3.1 million nightly viewers versus the 1.8 million viewers that both Jimmy Kimmel and Jimmy Fallon combined reach? Each of these shows look pretty much the same on paper. The difference can be found in the personality that presents the various program elements.

Radio stations used to understand how important the air personality was to the success of the station and its revenues. Radio promoted its air personalities on billboards, buses, on TV, direct mail and in print.

George Johns wrote about the time he hired a competing air personality in his market and paid him to sit on the beach for a year to wait out his non-compete contract. At the end of the year, he put him on the air in morning drive on the radio station he owned and was rewarded with huge ratings and revenues.

When Larry Lujack moved between WCFL and WLS in Chicago, his listeners and revenue moved right along with him. They didn’t call Uncle Lar “Super Jock” for nothing.

Mel Karmazin knew that Howard Stern would change the fortunes of Sirius Satellite Radio when he hired him away from his over-the-air commercial radio network. While Howard and SiriusXM prospered, his former radio properties became a shadow of what they once were.

Everyone I know who ever fell in love with radio growing up, has stories about the radio personalities that they couldn’t live without. My students at the university told me they would listen to their hometown radio personalities on streams in their dorm rooms.

Sadly, it seems like every day I’m reading about tenured radio personalities being let go. The very people who spent years building an audience are disappearing.

As Molly Ivins saw so clearly, sometimes there are things that scare us so badly, we hurt ourselves.

 

 

 

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