Tag Archives: ad supported media

The Great Ad Hack

great-hack-netflix-1564144457The other evening, I watched the Netflix documentary “The Great Hack.” It chronicles how big tech is taking our data, that we freely give away online, by both making money with our information and manipulating us.

The documentary makes one realize there’s a lot for us to be worried about.

 

Data Privacy

In an internet connected world, do we have any secrets? Everything about us is being stored, as we share our information via social networks, our credit card companies, our banks, our medical services – just about everyone we interact with online.

During the course of the documentary, professor David Carroll tries to see his data points as collected by Cambridge Analytica. Spoiler Alert: Professor Carroll wins a lengthy court case to obtain his data points. Cambridge Analytica never produces them but instead paid a fine and plead guilty for failing to do so. Not producing the data points was more important than revealing what they knew about Professor Carroll and giving the world an inside look at what they know about each of us.

Now Cambridge Analytica is liquidating to prevent anyone from ever seeing the data points they collected on anyone.

Our data privacy has always been important, but we’ve traded our privacy for speed and convenience in our internet connected world. The documentary points out that collecting and using our data points is a trillion dollar business that last year saw data surpass oil in value, making data the most valuable asset on earth.

The Persuadables

What Cambridge Analytica did was target people whose minds they felt they could change for the purposes of winning elections for their clients. In the military, such a tool is called Black Ops or False Flag tactics. Its psychological warfare used to induce confessions or reinforce attitudes and behaviors favorable to the user’s objectives.

Cambridge Analytica knew they didn’t need to change everyone’s mind, just a critical mass of people to achieve their client’s objectives.

Why did they do it? They wanted to make money, lots and lots and lots of money.

Advertising is Propaganda

The advertising “mad men” of Madison Avenue came from the propaganda operations of the United States military during World War Two. They took what they learned and applied it to selling cars, refrigerators, homes, soap etc. Great advertising seeks to persuade the reader, listener or viewer to buy a product or use a service.

Is it any surprise to anyone that as social media was born, these same methods would be applied to this platform, only on a level that was not possible through traditional media?

“These platforms that were created to connect us are now being weaponized,” says Carole Cadwalladr, investigative reporter for The Observer newspaper. “It’s impossible to know what is what, because nothing is as it seems,” she adds.

Tech Giants Crush Ad Market

Sara Fischer writes in Axios that the big tech companies like Facebook, Google and Amazon are consuming more advertising revenue than most other ad supported media combined. The reason? They have our data points and know how to effectively use them to get us to do what they want. You can read Sara’s full article HERE.

The eMarketer and Zenith Media data as graphed by Axios Visuals really shows where things are headed. (see below)

Screen Shot 2019-07-30 at 3.36.05 PM

Can Traditional Media Win?

The playing field today is so unlevel, it begs the question, if traditional media – newspapers, magazines, radio, television – can even have a fighting chance to win advertising dollars.

As a consumer, do you think you stand a chance to not be influenced by the tech giants when they are using your own information against you?

I encourage you to go deeper in this subject by both watching the Netflix documentary “The Great Hack” and reading Sara Fischer’s column “Tech Giants Still Crush the Ad Market Despite Looming Threats.”

Then I hope you will share your thoughts in the comments section of this blog article.

The future of our world is being shaped by the lack of data privacy.

I’d love to hear your thoughts.

5 Comments

Filed under Education, Mentor, Radio, Sales

Why Do People Love Radio?

We-Love-RadioI read a recent article in Bloomberg about how in an age of cord cutting, where millions of Americans are leaving the cable bundles and abandoning traditional TV, others are staying put.

Why?

The big reason should scare anyone working in ad supported media: “Our customers don’t want to cut the cord because they’d have to give up critical features like the ability to skip commercials…” said Jay Roth, chief marketing officer at Dish Network Corp.

Commercials = Clutter

A former colleague of mine at the university wrote to me the other day about the changes going on in higher education and the field of radio broadcasting. He wrote:

“I’ve also had it with local radio and TV, too. Too many commercials back to back to back – it’s like classified ads. Who remembers the 5th ad in a spot set, even if it is well written? (most are not). Thank goodness for SiriusXM. That’s where I am, unfortunately.”

Here’s the concerning point of sharing my colleague’s comment, this person grew up, worked in and taught AM/FM radio, and is of the age group that should still be “in love” with the business.No Ads

We have plenty of data showing how the younger age groups don’t even own a radio, instead listening to audio content via their smartphone or some other connected device.

So, what makes radio listeners stay?

The Radio Habit

A 2017 Jacobs Media survey found that AM/FM listening is pure habit. 91% of survey respondents said they listened to radio for an hour or more per day, but TV/video and the smartphone usage came in at 87%.AM FM Radio

Digging a little deeper, respondents cited hearing their favorite music and a connection to their favorite air personalities as reasons they listen to AM/FM radio.

Radio’s Free

The 2018 Infinite Dial  study from Edison Research and Triton Digital reported that 82% of respondents who have ridden or driven in a car in the past month listened to traditional car radio.

Pandora For Brands authored a “State of AM/FM Radio: What Advertisers Need to Know” piece that said:

“True, America’s oldest electronic mass medium – AM/FM radio – is still alive, kicking and serving throngs of listeners every day, but it’s also being disrupted by today’s growing digital media landscape. Radio has prospered for so many decades because it’s free, easy-to-use and there are tons of them around. In fact, it used to be the only way to enjoy music without having to invest in a record collection or to hear news, sports and traffic information on-the-go.”

But the real shocker was this data point:

“Currently, people between the ages of 50-60 years old who have mobile devices are spending more time with mobile apps than they are listening to AM/FM radio.”

-Nielsen Total Audience Report, Q1 2017

This age group was raised on AM/FM radio!

New Habits

I bring this all up because we are seeing new habits being formed with the new disruptive media technologies.

It’s like the old saying “Once they’ve seen New York, how are you going to keep them down on the farm?”

Once you experience Netflix or Amazon Prime, it’s hard to return to ad supported TV. And those folks who still buy the cable bundle, do so in part to have a way to eliminate the commercial clutter and to produce a more Netflix type of viewing experience.

Once you listen to your music on Pandora, Spotify, Apple Music or access your music via a smart speaker, you will be hard pressed to go back to a cluttered listening environment.

But the biggest new habit in our short-attention-span world is On Demand.

Whether we are talking about TV or audio, we are now a culture of wanting things when we want them, not when they are served up, and that’s the juggernaut all traditional media are faced with.

Newspapers, television and yes, radio, serve what they want you to have.

Today’s media consumer knows they have choices and they don’t have the time or patience for the way it used to be.

The Future is…

In 1967, the movie “The Graduate” had a scene where the Dustin Hoffman character was taken aside by a family friend who advised him about where the future was for a person his age. The answer was one word: “Plastics. There’s a great future in plastics.”

What might a friend advise a young person today to focus on? Podcasts?

Focus on the Things That Don’t Change

BezosJeff Bezos’ secret sauce has been to focus his efforts on things that would not change.

He said the question that he’s always asked is “What’s going to change in the next 10-years,” but the question that’s rarely asked is “What’s not going to change in the next 10-years?”

It’s that second question he feels is most important.

Bezos doesn’t concern himself with what will change, but on what won’t change. Then working to make those things better and better and better.

With this strategy, Bezos has become the richest man in the world.

This is what the radio industry should be doing.

 

 

21 Comments

Filed under Education, Mentor, Radio, Sales

Disruption is Everywhere

disruption aheadI’ve been reading the trades, trying to grasp what is happening, and it is all so very confusing. Have you felt that way too? That’s what a period of disruption looks like. Black is white. Up is down. It’s enough to give you an Excedrin headache.

SiriusXM

Jim Meyer, the CEO of America’s only satellite service reported strong growth in Q2. On his conference call he’s reported as saying that despite the surge in technology over the past ten years, AM/FM radio still attracts a big number of listeners. However, he also feels that the radio industry has a problem and it’s their product. He warns that if AM/FM radio doesn’t vastly improve their product, it will be to their own peril.

The feedback I received from my recent article “Radio & Traveling – Then & Now” that I wrote about in “From the DTB Mailbag…” seems to indicate that Mr. Meyer is not alone in that sentiment.

Streaming

Then I read how just halfway through 2018, streaming is growing at a rate that defies mathematical trends. By that, the writer meant when it comes to percentages, they are usually big when the numbers are small but become smaller as the numbers of people engaged increases.

With this area of streaming, we are seeing BOTH the numbers of people who stream growing with the percentage of people who are now streaming.

That’s a trend worthy of keeping you up at night.

Adoption Curve for Smart Speakers

In my university “Process & Effects of Media Classes” I introduced my students to the work of Everett Rogers and his Diffusion of Innovation Curve. Adoption Curve - Everett Rogers

Rogers studied how innovations with farmers in his native Iowa were adopted. He very soon realized that what he was witnessing occurred in all areas when a new innovation was introduced.

The latest research report from NPR/Edison, “The Smart Audio Report” showed we are into the Early Majority part of the curve with the smart speaker innovation.

Good News, Bad News

The smart speaker innovation has the ability to bring radio listening back into the homeEcho at a time when AM/FM radio is no longer the entertainment focus of the vehicle dashboard, replaced by the entertainment center that resembles the touch screen on your smartphone.

Unfortunately, the smart speaker also delivers an infinite world of audio choices and it is not a given that radio will be the benefactor.

Fred Jacobs basically lays out the fact that radio’s established brands such as a Z100 or a WTOP will find their engagement traversing from over-the-air to over-the-stream and onto smart speakers. I know that in my own case I can receive WTOP over-the-air, but atmospherics can play havoc with the signal at times. Not so with listening to WTOP via Alexa.

The best radio brands with strong listener engagement will grow.

Cord Cutting

The latest numbers indicate that cord cutting (eliminating the cable TV bundle) is growing faster than expected. The latest study from eMarketer  says that we can expect people cutting the cord to grow to 33 million Americans in 2018.

Netflix is now more popular than cable TV.

Jim GaffiganThe other night I watched Jim Gaffigan’s 5th Netflix special called “CINCO.” In his standup comedy routine, he hit the nail on the head about why Netflix is more popular than cable TV. Here’s what Jim said:

“Netflix has definitely made watching television with commercials kind of painful. Takes forever. You’re like, “What am I, growing my own food here? All right, Geico, we get it!” And it’s not just the length or the number of the commercials, it’s what the commercials say about the typical viewer of the show you’re watching. “Catheter? Why would–? Reverse mortgage? Back pain? I do have back pain. You know me so well, television show.”

Changing Habits

What we are witnessing in the current period of media disruption is the changing habits of the audience. They now have choices. Lots & lots & lots of choices.

Baseball, still radio’s #1 sport is seeing the decay of its audience to a myriad of choices to watch or listen to the same game. It’s no longer the monopoly it used to be.

But worse, once you’ve developed the Netflix or Alexa habit, going back to any delivery system that delivers lots of interruptions is, as Jim Gaffigan says, “painful.”

Ad Supported Media’s Future

I believe that there’s a future of ad supported media, but it can’t be done the way it’s currently being done. Podcasts understand this better than broadcast.

Amazon Prime is good at airing program promotions before the movie starts, in much the same way that my local movie theaters do.

And who didn’t enjoy hearing Paul Harvey say “page two?” It would be the first commercial break in his news and commentary but we listened. Because Paul was as engaging with his sponsor’s material as he was with the rest of his broadcast.

And thank you Mr. Harvey for making me want to own a BOSE Wave Radio. I now have two of them. However, I now play my Alexa Dots through them.

Life’s Only Constant

My old boss used to always say, nothing stays the same. You are either getting better or getting worse.

And he was right.

Life’s only constant is change.

13 Comments

Filed under Education, Mentor, Radio, Sales

What’s Changed in 98 Years?

Global Ad Spending Graph 2018 & BeyondIn the year 2020, commercial radio will celebrate its 100th birthday. Hopefully, by then, America’s two largest broadcasters will be out of bankruptcy. But before we light the candles and begin the celebration we need to face reality. Global ad spending, according to Zenith (see graph) will see newspapers, magazines, radio, cinema and outdoor all fighting to be the tallest ad-supported midget. TV will be marginally growing, but the internet will be the big winner; raking in more advertising revenue than, print, radio, cinema and outdoor combined. That’s sobering news.

It’s a Digital Future

Last week, I shared with you a “Readers Digest” version of a webinar I attended hosted by Kepios’ Simon Kemp. If you missed it, you can read it HERE

The essence of where things are headed will be influenced by the “next billion” people coming online. The “FLAAG” companies, Facebook-LinkedIn-Amazon-Apple-Google, are already in the process of having all of their interfaces, working on all devices, in the same way on a global basis. With a million new users a day joining the internet, mostly from underdeveloped countries, everything will be designed for the lowest common denominator.

Radio, Then vs. Now

Bob Shannon’s book “Turn It Up! – American Radio Tales 1946-1996” is a fascinating read. The legends of the radio industry share their own personal radio adventure as well as give their view on how radio is today. (Note: “today” being the mid-nineties when the book was being written.)

Chuck Dunaway said, “The formats haven’t changed in all these years – it’s just the music that changes.” “I still hear the stop sets falling in the same places and we’re still playing and programming to Arbitron (now Nielsen Audio), and not to the listener.”

Bill Figenshu noted that “when Wall Street started to pay attention to radio, it became more of a financial play and the corporations were turned over to the financial folks, who didn’t understand the value of local content.” “As a consequence, many radio stations, particularly those owned by large groups, sought to cut costs and localism, and being part of a community became a luxury; it didn’t happen everywhere, but it happened in lots of town and cities.” “It hasn’t been a good thing for radio or its listeners.”

That pretty much sums it up. Even after another decade since the book was written.

Radio hasn’t really changed but the world it operates in, has.

Time Spent with Ad-Supported Media

On Tom Taylor’s NOW, Jerry Lee is sharing his new book called “How to Grow Your Revenue More Than 20% by 2020.” In a recent headline, Jerry wrote:

“In Radio, we have two major problems. First, we are running far too many commercials for today’s audiences. Second, the commercials are awful. Our listeners can’t skip through the commercials. If they want to listen to their favorite station, they have to endure the seemingly endless commercial break or switch to another station that isn’t playing commercials at that moment.”

Sadly, the reality may be worse.

Time Spent with Media GRAPH

PQ Media released a graph showing the time spent with media that is ad-supported is going down while the time spent with consumer supported media is going up. This is even more worrisome when you realize that total time spent with media has been steadily increasing every year since 2011 and is projected to continue increasing through 2021.

Joe Mandese says that “advertising is falling to the lowest share of time spent with media ever.”

The Speed of Adoption of New Technology

technology-adoption-rates GRAPH

This graph shows how our world of technology adoption has picked up speed with each new innovation. But maybe even more important are the words Marshall McLuhan said about “the medium is the message.” McLuhan meant “that the form of a medium embeds itself in any message it would transmit or covey, creating a symbiotic relationship by which the medium influences how the message is perceived.” McLuhan was prophetic in realizing how the very medium itself can impact society, by not only the content it delivers but also by the characteristics of the medium itself.

You probably can come up with lots of examples yourself that demonstrate this observation by just comparing how newspapers, radio, TV, Facebook and Twitter, delivering the same content, influence how it’s received.

Radio’s Future

The radio I grew up in was not what’s commonly referred to as “The Golden Age of Radio.” That was the period of time before TV. I grew up in radio’s “2nd Golden Age,” one of a music based, youth-oriented radio. Radio that appealed to my emotions.

Radio that’s winning today, like Public Radio/NPR and Christian Radio, are touching people emotionally and appealing to things their listeners are passionate about.

Ignore people’s passion and emotion, and your radio station will die on the growing pile of media clutter.

 

3 Comments

Filed under Education, Mentor, Radio, Sales

Radio & the Consumer Driven American Economy

99This week produced some conflicting economic data. The stock market was setting new records and the unemployment rate dropped to 4.3% but the number of people filing for unemployment benefits beat analysis estimates. WTF?

The Surprising Threat to Radio

It’s estimated that two thirds of the American economy is driven by consumer spending. Don’t get hung up on the percentage, but know that a lot of our economy is driven by the buying and selling of stuff that is consumed.

Some things, like a Whopper are consumed quickly and other things, like the car you drive, are consumed over a longer period of time. Much of our spending is discretionary.

Radio is a strong driver of putting thoughts into people’s heads about things they should be deciding to consume. Radio is the word of mouth medium with the big mouth.

So what threatens radio today? Consumers are not spending.

Radio’s Role in Consumerism

Broadcasters can’t change the attitude of an apathetic consumer for the most part. Other factors in the world create consumer attitudes, uncertainty being one of the biggest.

Uncertainty causes consumers to hunker down and make do with what they already have. And today’s world is filled with lots of uncertainty that is being stoked 24/7 by the cable news networks, talk radio and social media.

Radio is excellent at directing consumers to different businesses, products and services when they are feeling confident and want to part with some of that discretionary cash.

Barron’s reports that year-over-year growth in U.S. retails sales peaked in mid-2011 at 8.3% and has since rolled back to 4.5%. The four biggest performing stocks are Amazon, McDonalds, Comcast and Home Depot.

A World of Debt

Radio people are very aware of the huge debt problems impacting iHeartMedia and Cumulus. But they may not be aware that American household debt in the last quarter reached a record $12.73 trillion and Barron’s says that just surpassed the debt American’s owed at the height of the housing bubble.

Student loan debt is now over $1.4 trillion, which is about $620 million more than U.S. credit card debt. Student loan debt rose six percent in the past year.

American credit card debt rose by $3 billion in February 2017, its highest level since 2008 according to The Motley Fool.

Market Watch says that U.S. households now have surpassed the amount of debt they had in 2008. Plus Americans are struggling with their auto loan debt with these sub-prime loans hitting their highest delinquency levels in December 2016. A pattern that Market Watch says was seen prior to the 2007-2009 great recession.

An Inconvenient Truth

During the 1960s and 1970s, the American economy expanded over 11%. In the 90s it couldn’t get above 9% and in the most current expansion it hit 5.9% and recently was only 3.6% according to Barron’s.

Many Americans no longer see consumption as being the “American Dream” but now are saving as much as they possibly can despite interest rates on savings sitting at anemic levels.

Income inequality is also playing a huge role in the current state of American consumerism. 76% of the wealth in America is now held by the top 10%. Only 1% is in the hands of the bottom 50% of American families in today’s America. CNN Money reported in December 2016 the wealth inequality in America is getting worse. “The rich are money making machines,” said CNN.

A 2016 study by Gallop senior economist Jonathan Rothwell found that the bulk of our national spending is eaten up by just three items – healthcare, housing and education.

What’s the impact on ad supported media in a world of enormous debt and haves vs. have-nots? I wrote about this after reading Thomas Piketty’s book “Capital in the 21st Century.” That article was called “The Future of Ad Supported Media” and you can read it by clicking on the link here .

Survival of the Fittest

What all of this is telling us, Spending is OUT and Frugality is IN.

A broadcaster friend of mine was sharing that in his PPM market TV ad time is now selling at “radio rates.” When the pie isn’t growing, media companies are forced to begin taking more from someone else.

Radio is the best value for the money when the economy goes soft.

I started my radio sales career at the beginning of the early 80s recession. I was very successful and it saw me enjoying a four plus decade long radio career before becoming a broadcast professor to pay-it-forward to a new generation of broadcasters.

As Warren Buffett says, “It’s when the tide goes out, that you know who’s wearing a bathing suit.” In other words, when the business changes from taking orders to really selling, we will learn which companies have trained their sales people to not just survive but thrive.

15 Comments

Filed under Education, Mentor, Radio, Sales

The End of Mass Media

84Jack Nicholson famously said in the movie A Few Good Men “You want the truth? You can’t handle the truth!”

I think he was right.

We can’t.

We say we can. We want to believe we can. But the reality is the truth is scary.

The Future of Mass Media

The reality is the future of our business – mass media – is that it won’t be all that “mass” anymore.

The future will be a media that is built around relevance and quality of message, not volume.

And that’s scary.

Not to just us broadcasters but to the ratings service known as Nielsen. We aren’t going to need to know the volume (aka cume) or AQH (average quarter hour) numbers in the future. The real value that we will deliver will be based on how relevant we are to our listeners and what value we deliver.

The King is Dead

Remember when the catch phrase of the day was “Content is King”?  Bill Gates famously said that.

There were others that felt that distribution was king.

Turns out the “king” is dead for both of these theories and the new king is relationships. And relationships are based on mutual interests and relevancy.

Facebook

What’s the power of Facebook?  Relationships.

Oh sure it uses complex algorithms to manage our relationships, but we are not smitten with algorithms we are drawn to relationships and we friend or unfriend based on the relevance of those relationships too.

Google gets it too.

Each of us is an individual and these social media companies go to great lengths to treat us in just that way.

One Size Does Not Fit All

Commercial radio broadcasting still strives to deliver the “one size fits all” solution. Those days are over.

Radio needs to build, as Seth Godin might say, tribes. People who believe what we believe.

Simon Sinek says that people aren’t attracted to what you do but why you do it.

What’s your WHY?

If there are enough people in your coverage area that will make you a meaningful size tribe of listeners, then do it. If not, find something else that is meaningful.

But trying to be all things to all people – the concept of “mass media” – those days are over.

Advertising

The 800 pound elephant in the room is how to pay for it. Ad supported media is being challenged by the internet in ways that Netflix, Amazon, Google and others that grew up on a different metric are not.

Today supply far outweighs demand in the advertising world.

Even those special live television events that were growing in audience every year are now seeing they’ve peaked. Nothing goes up forever.

The future is creating something relevant to the people you develop a relationship with. The value will be in how strong those relationships are not necessarily how big, in terms of numbers of people, they are.

The future for all media I suspect will start to look more like that of public radio or Christian radio. Each of these mediums has established strong relationships with their listener. They also don’t abuse those relationships with underwriting announcements that either doesn’t fit their audience or by unbalancing the content to underwriting ratio.

Commercial broadcasters seem to take the view that adding one more spot to the hour; the cluster etc won’t affect their audience. They would be wrong. It does.

Keeping things in balance and running seamlessly will be critical to broadcasters whether they’re being consumed over-the-air on AM or FM, or over the internet.

Sales people in this new world will be business evangelists that seek out business owners with innovative ideas and solutions to their problems. Businesses owners who benefit from these relationships with media sales folks will in turn reward the media enterprise with their support.

What’s your WHY?

But it all starts by first defining, as Simon Sinek says, your WHY.

“People don’t buy what you do; they buy WHY you do it.”

Answer that question, and you will have taken the first step.

 

16 Comments

Filed under Education, Mentor, Radio, Sales

Radio’s Jobs Didn’t Move to Mexico

75It seems like no matter what line of work you’re in, someone is finding a way to take your job away. If you’re in coal mining, you think the EPA is doing it to you. If you’re in manufacturing, you think its Mexico or China or some other country that pays their workers less and offers no benefits. But is that really what’s happening to jobs?

Where are the (Radio) Jobs?

I got into radio when I was in high school because I wanted to be a disc jockey. (Discs were what records were once called. Records were how we played music on the radio off of turntables, after live musicians were replaced by recorded music on the radio.) My DJ days are long behind me, but I don’t remember anyone from my earliest days being upset that records replaced the need for live musicians to play music on the radio. Do you?

Musician’s Union

I was also a musician. Played trombone. This was another way I earned money to go to college in addition to my radio work.

A fund set-up to promote live music from the playing of recordings on the radio is where the money came from to pay for my performances in local community concert bands. It was called the “Musicians Performance Trust Fund.”

To be eligible to be paid under this fund, you had to join the local musicians union AFL-CIO. I was a union member at age 15.

Truck Drivers

As high wage manufacturing jobs were leaving, many turned to the profession of truck driver. Truck drivers are well paid and people thought, let’s see them automate that. Truck driving employees have been untouched by globalization and automation. You can’t send truck driving in Ohio to be done by person living in Mexico. But that other factor, automation, is now on the horizon.

Uber Driverless Truck Delivers 50,000 Beers

I’m sure you’ve heard about driverless cars and that many expect they will be a reality by 2020 (3 years from now). But while many in the radio industry worried about the loss of radio listening in the car if the car starts driving itself and now everyone can watch TV or surf the internet, I worried that more middle class jobs would soon be automated, never to return.

Wired magazine reported in late October of 2016 how OTTO (Uber bought this company for $680 million) was driving the beer truck down the highway in Colorado without a human behind the wheel.

So it doesn’t take a lot of imagination to realize that we soon will see driverless cabs, buses, trains, planes, boats and a whole lot of people formerly known as the middle class will be out-of-work.

This same thing is happening in higher education too via the internet.

The Fate of the DJ

So where did the radio jobs, like being a disc jockey (DJ) go? They were high-teched. Automated. The industry calls it “voice tracked.” The very technology that did away with the need to have live studio musicians playing music now no longer needs the person that played the recordings of those musicians.

To radio personalities this is not news. It’s been that way since the late 20th Century.

To the multi-tasking, hard-working, over-committed and under-paid middle class it might have seemed as nothing had changed. Heck, they might have even seen the change as an improvement. Certainly recorded music was better in some ways than live studio musicians as it provided more variety in musical entertainment.

It’s Technology, Stupid

The wonderful high-tech devices designed to make our lives so much easier are also taking away the well-paying jobs that created the middle class of the 20th Century.

What’s the world’s 21st Century plan to deal with this change?

Ad Supported Media

The current crisis in ad supported media is that in a world of infinite media choices, and unlimited advertising avails, the money that used to be enjoyed from the sale of advertising is now less than previously realized.

About two years ago I wrote in this blog an article about what I saw as the future of ad supported media. I wrote it after reading Thomas Piketty’s book “Capital in the 21st Century.” I went back and re-read that article and see the trend lines of the graph on page 357 still all moving in the same direction and that should give us all pause.Picketty Chart on page 357

21st Century Media Business Model

All media is moving to a pay-for-play model. HBO, Showtime, Hulu, iTunes Radio, SiriusXM, CBS All Access, Amazon, Netflix, Pandora, Spotify etc. The ad supported model is coming to an end and the pay for what you want is replacing it.

The Wall Street Journal reported in the 4th quarter of 2016 that streaming revenues off-set declining sales of CDs and digital downloads.

People now rent what they want versus own.

And where does that leave your business?

15 Comments

Filed under Education, Mentor, Radio, Sales, Uncategorized