Tag Archives: Amazon Prime

What a Radio Looks Like in the 21st Century

first iPhone introducedIt was only 11-years ago that Steve Jobs took the stage and held in his hand the future. It was an iPhone.

Many people were skeptical that this device could compete with the very popular Blackberry. I think I may have been one of them, as I was a Blackberry owner/user until 2012.

I quickly realized that I knew how to operate an iPhone, after buying an iPad in the fall of 2011.  All Apple devices share a core eco-operating system that makes learning them fast and easy. My first iPhone was the 4S. The “S” stood for Siri and I quickly learned to use Siri to type all of my text and emails via dictation. In 2017, I upgraded to an iPhone 7.

OK, so I’m probably not telling you anything you don’t already know. But in just a decade, have you ever stopped to think about the impact that the smartphone has had on our lives and the technology we use?

RADIO

In America today, 29% of households don’t have a single working AM or FM radio. But it gets worse. The percentage of households without a single working AM or FM radio grows to 50% for the 18-34-year-old age group.

Edison Research recently reported that even 63% of heavy radio listeners now consume their audio online. 82% of those listeners own a smartphone and the most commonly downloaded App is Pandora (40%).

For many, a radio in the 21st Century looks like a smartphone.

SMARTPHONES

Crosley AM FM Radio

Often it appears like radio people think they are the only ones who are not affected by the innovations of technology. Such as, no matter what comes along, AM/FM radio will always be there. Unfortunately, that kind of thinking is like sticking your head in the sand.

Let’s think about how smart phones have replaced other “must have” technologies:

  • My Nikon camera no longer goes on vacation with me, it has been replaced by the pictures I take on my iPhone
  • Same for videos using my very expensive camcorders
  • My iPod is now my iPhone
  • My newspaper is my iPhone
  • My calculator is my iPhone
  • My eBook reader is my iPhone (or iPad)
  • My pocket voice recorder is now my iPhone
  • My GPS when on foot is my iPhone, though I still prefer my Garmin SmartDrive 61 in the car
  • My flashlight is now my iPhone
  • My iPhone is my compass, barcode scanner, and portable video player
  • My iPhone is the way I access Facebook, Twitter, and LinkedIn away from home
  • My iPhone is the way I get both my local weather forecast as well as access weather radar. Weather alerts come in immediately to my iPhone replacing the need for my weather radio.
  • I’ve been a cellphone only household since 2000
  • My smartphone is my household answering machine
  • My smartphone is my alarm clock
  • I no longer wear a wrist watch, as my iPhone is my watch
  • I use my iPhone as a timer when I’m cooking
  • I have my digital library on my iPhone
  • My work and personal calendars are all on my iPhone
  • I keep notes and other records on my iPhone
  • Since I take all my pictures with my iPhone these days, my photo album is also my smartphone. (Note: I have 2-TerraBytes of iCloud storage to back up everything)
  • My entire “rolodex” (contact list) is now on my iPhone (I started with a Day-Timer and went digital in 1989 with a Casio Boss. Then moved to a Palm Pilot. Then to the iPhone.)
  • I check my email when not at home on my iPhone
  • I surf the internet frequently on my iPhone
  • When I call the kids & grandkids, it’s using Facetime on my iPhone
  • My credit cards, plane tickets, show tickets are now all in my Apple Wallet on my iPhone
  • I can even use my iPhone to run my Apple TV as a remote control

SMARTPHONE ADDICTION

A new research study by Pew finds that 54% of U.S. teenagers, age 13 to 17, worry they may be spending too much time on their phones. While they also say they are trying to reduce their smartphone and social media time spent, 56% of teenagers find that doing so makes them feel anxious, lonely, or upset.Group Of Children Sitting In Mall Using Mobile Phones

And it’s no better for parents (and may I add, grandparents). Pew’s survey tells us that we are struggling with the same impulses over the time we spend on our phones and social media, sometimes with even worse results than teenagers.

Adults lose focus on their work and students lose focus in the classroom, by the constant need to check their smartphone.

SMART SPEAKER

echoMost research today indicates that since the introduction of the smart speaker, the device that’s getting a little less use is the smartphone. I would concur that is the case in my home as well. Our 3 Amazon Echoes are the way we access at home radio listening, get flash briefs, find out the time and latest weather forecast.

At home, 100% of our radio listening is streamed through a smart speaker.

Speaking of Voice Command devices, my Garmin GPS SmartDrive 61 is now programmed by my voice and I can add via points while driving simply by telling my Garmin where I want to go next. It’s the best improvement in automobile navigation since the GPS itself.

ON DEMAND

on-demand-cpeWhat the smart speaker and the smartphone have in common, are both devices give the user what they want, when they want it. On Demand is the real game changer of the 21st Century communications world.

Netflix, Hulu, Amazon Prime, Apple TV etc. are delivering on demand television. The smartphone and smart speakers are doing that same thing for podcasts, radio, news, weather and everything else.

Edison Research noted, in their recent research, that the hardware challenge in the home is significant. Getting analog radio back into the home (and I would add, in the very near future, the car) seems unlikely

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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.

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Voice Command

Voice CommandIt’s only been about two months and Alexa has changed the way I interface with my devices.

I’ve had Siri since I switched from a Blackberry to an iPhone4S. (The S stood for Siri.)

The new smartphone was such an improvement over my Blackberry Pearl that I never used Siri much in the beginning, later, I would use her to type my text messages, but that was about it.

Enter Alexa…

All that changed this past Christmas when my fiancé, Sue, put an Amazon Echo Dot into my Christmas stocking. It took about two weeks before I finally got around to plugging the Dot into electrical power, downloaded the Amazon Echo app to my iPhone7 and connected the Dot to our house Wi-Fi.

Now Sue has never been thrilled by all the remote controls to operate our TVs, radios and audio systems. And truthfully, I wish it could be simpler too.

Alexa teaches us both new tricks, by simply talking to her artificial intelligence voice. And we both love it!

Hey Siri…

Once adapted to Alexa, I began to use Siri to do more things on my iPhone7 and AppleTV.

We cut the cord last year but to satisfy my news diet, I put in Sling TV with the news package. The rest of our TV watching is filled up with Netflix, Amazon Prime and YouTube. New movies that we missed at the local theaters or never played in our area are viewed using iTunes.

Finding something to watch used to be rather tedious, but now, I just say “Hey Siri…”and she goes off and finds it, offers me the viewing options available to me (I always opt for the FREE route) and the program begins immediately.

GARMIN

Something that has long been on my bucket list has been driving across America from coast-to-coast and seeing those things I’ve only seen by flying over them. Places like Mount Rushmore, Yellowstone, the Grand Canyon etc. Lucky for me, that’s been on Sue’s bucket list too.

We put up a big map of the United States in our kitchen and have lined out the route we plan to take with bright yellow dots marking our planned stops along the way.

In preparation for this 8,000-mile, eight-week trip, I bought the latest GARMIN SmartDrive 61 GPS. It comes with the ability to do “Voice Commands” for plotting your next destination, finding hotels, restaurants and points of interest.

Thanks to Alexa and Siri, I quickly embraced this feature.

But it doesn’t stop there, my new GPS also links to my smartphone and displays news bulletins, real-time traffic, weather conditions, my complete contact phone book, helps me to find parking and then remembers where I parked when I want to return to my car. And it makes it all easily accessible by just using my voice.

But You’re a Radio Guy

Whenever I write something about new technology, what I hear back are things like, “You’re a radio guy” or “you love technology.” The meaning being, I’m not like your average consumer. But, I believe that just as Amazon has changed the way we shop for just about everything, Alexa will bring about a similar change in the way we interface with our devices.

Carnegie’s Constant Reminder

One of the many radio publications I would read daily was Jim & Cathy Carnegie’s Radio Business Reports (RBR). If there was one thing I remember most about that publication under Jim’s reign, it was about dealing with change. Jim constantly banged the drum warning the radio industry “to get with it or be left behind by it.”

He reflected change by taking his own publication and changing the way it would be delivered and cover the broadcasting industry. He led by example.

Seniors & VADs

I know the young person’s perception are that senior citizens (anyone with an AARP card) is stuck in their ways and not likely to adopt anything new. Well, I’m here to tell you, you would be wrong. Especially, when it comes to voice activated devices (VADs).

I fully anticipate that seniors, aka Boomers, will lead the adoption of these devices. One of the reasons being they enable us to eliminate the multitude of buttons and collection of remote controls by simply using our voices.

What I Learned About Seniors from a Pharmacist’s Son

Back when I was put in charge of a thousand-watt, daytime, Music of Your Life radio station, I remember going out and meeting with clients to build up my new radio station’s client base.

One day, I walked into a pharmacy thinking that my “old folks format” would be perfect for people needing medication. Well, I never got the pharmacy on-the-air for drug announcements.

Upstairs above the pharmacy, the youngest member of the family had started an electronics division, selling the latest computers, phones, and other gadgets. He told me he’d love to be a big advertiser on my radio station catering to the over 65 age group.

Why?

Because, he told me, unlike young people who when something new came out, would look at it and say, “I’m going to wait until they come out with the new and improved version,” seniors would buy it on the spot.

What he learned was, seniors felt they could afford to have the latest technology now, and if something better came out, they’d trade up to that next. And this was almost 40-years ago!

Now, with my AARP card occupying a place in my wallet for more than decade, I can tell you, that’s exactly how I feel.

Get on board the change train

OR

Get left behind

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“Corporate FM”

corporate fmKansas City Filmmaker Kevin McKinney originally released his movie “Corporate FM” in 2012, but unless you lived near a community that was screening the film or attended a film festival where it was being shown, you probably never saw it. Or even heard of it.

Amazon Prime

After re-editing the film in 2015 to reflect updates and changes in commercial radio since 2012, McKinney decided it was time to let more people access the information he covered in the film and just released it on Amazon Prime. (Here’s the LINK ) “Corporate FM” explores the consolidation of radio after the Telcom Act of 1996 and how big corporations with the help of Wall Street and private equity firms swallowed up the radio industry in America.

February 1996

I remember the day that President Bill Clinton signed the Telcom Act of 1996 into law. Clinton signs Telcom Act of 1996It was supposed to provide competition between the phone companies and the cable companies with the goal to increase services and reduce prices to the consumer.

Inserted into the bill at the 11th hour were two paragraphs that would change the radio industry forever.

In the film, Robert McChesney, Professor of Communication Studies, University of Illinois points out that commercial media lobbyists, without a single public hearing or any public debate, would insert these paragraphs and open up the consolidation floodgates for radio/TV. Politicians would later say they didn’t know what they were voting for. Even President Clinton would say that he didn’t know that those two paragraphs had been added before he signed the bill into law.

Cumulus and Clear Channel

As the McKinney film told the story of the rise of Cumulus and Clear Channel, it reminded me of my time with both of those companies.

In Waterloo, Iowa I was running the #1, #2 and #3 radio stations. When Cumulus took them over, John Dickey showed up at the stations and proceeded to tell all of us gathered in the station’s conference room what our new logos would look like, what our new jingle packages would sound like, who our new station voice guys would be, how our playlist would be compiled, who are new consultants were etc. To say we were all stunned would be an understatement.

Then later when I was working for Clear Channel (after the Bain/Lee takeover, but before it became iHeartMedia) in Sussex, New Jersey, we received a survey from corporate asking us how local decisions were made about branding, marketing, promotions, music and the like. I assume a similar survey was sent to every market cluster inside Clear Channel.

When the results were tabulated at HQ, we then received directives that no longer would those types of decisions be made on the local level. Local radio had changed.

Local Bands

Growing up, local radio was a way for local bands to get exposure and grow their audience. “Corporate FM” tells the story of how Jewel became a national artist being discovered by local radio and played on-the-air in San Diego.

In fact, it was seeing a drop in attendance at live shows that got McKinney to wondering what was happening, and giving birth to his movie about the consolidation/corporatization of the radio industry.

I know a local band here in Winchester, Virginia “Sons of Liberty.” They play all over the Shenandoah Valley and beyond. They have a CD that Rob McKenzie of Fireworks Magazine spoke glowingly about. Where you won’t hear the “Sons of Liberty” music is on the radio.

Oh, they’ve been heard on an FM radio station (98 Rock) out of Harrisonburg, Virginia on their Sunday night “Wet Paint” show that starts at 11pm. But as “Corporate FM” points out it takes repetition to have an audience become familiar with anything, and for someone to decide they like it, or don’t. Radio used to provide that type of exposure and then monitor audience reaction to see if the record was a hit or a miss. (Remember features like “Champ & Challenger?”)

Sneak Preview

ABC Radio Networks used to air a feature hosted by WABC’s Chuck Leonard called “Sneak Preview.” The network would call affiliates of the ABC Contemporary Radio Network to get their hottest new song and then play it to a nationwide audience. I remember being at WBEC in Pittsfield, Massachusetts when we told Chuck that our hottest new song was “Tracy by The Cufflinks.” He told us he had a terrible time trying to find a copy of the song in New York City.  But Chuck Leonard did find it and it played over the ABC network to a national audience. That was how radio made the hits.

Fifty to Six

“Corporate FM” tells how in the 80s ninety percent of mass media in America was owned and controlled by about fifty different companies, but after the Telcom Act of 1996 it was down to just six corporations.

“Most radio studios are completely empty after 7pm and for the entire weekend.

They set the phone lines to “busy” so callers will believe that someone is there.”

-Slide shown in film

Big N Rich

The popular country recording artists “Big N Rich” addressed the FCC in Memphis, Tennessee. They told the commissioners that one person in a corporate office today can dictate what 35, 55, or 100 stations play.

“Let’s say an artist puts out a song with a political viewpoint and that corporate person says I don’t believe in that position so we’re not going to play that record (Dixie Chicks?). One guy can affect what 30 million people get to hear.

That’s censorship.”

-John Rich

Fatherly Advice

Dick Fatherly says “the broadcasters have become the victims, and the winners are – who do you think? -Goldman Sachs.”

Josh Kosman, who wrote the book “The Buyout of America” put it this way: “Private equity took the radio business that was doing pretty well and gutted it.”

Josh has studied how private equity has impacted all industries in America. He used a simple example to explain the difference between you or I buying a house and a private equity firm buying a business doing a leverage buyout (LBO).

When we buy a house, we put down say 30% as a down payment and then take out a mortgage for the 70% balance.

When private equity buys a radio station, they make a small down payment and then the radio station they’re buying takes on the debt for the balance, leaving the radio station with crushing new debt.

The private equity companies then charge management and other fees, making back their down payment money, and a whole lot more. So, it’s zero risk to them.

It reminds me of the guys on the Atlantic City Boardwalk who used to entice you to let them guess your weight and if they got it wrong you won a prize. The only way those guys lost is if you didn’t pay them to guess your weight. For if they got your weight right, they gave you nothing and if they got your weight wrong, they gave you a prize that was valued less than what you paid them to play the game.

“Financial deals allow the corporate owners to keep their stations after bankruptcy.

This prevents local owners from reviving local radio.”

-Slide shown in the film

For those who hold out hope that if/when the big corporate entities fail, and it will return radio to local operators once more, that slide should send a chill down your spine.

America’s bankruptcy laws now favor the debtor in the corporate world.

Conclusion

This is probably a film that many will miss and that’s unfortunate. It’s only a little over an hour in length. It’s well worth your time.

For this is a film not just about what happened to the radio industry but what is happening to our way of life, in industry after industry. This modus operandi is being repeated today.

The people in the film offer their ideas for making radio great again.

I won’t spoil that for you, so you’ll have to watch the film.

Some of the statements made by various participants have since been proven wrong from the time the film was shot. Some of the statements are also inaccurate in terms of how today’s FCC license renewals can be challenged.

In all fairness, many people are still believing that the way it was, is the way it still is. Only it isn’t. Those laws have been changed by corporate lobbyists too.

I hope you will watch the film “Corporate FM” and then post your comments here on DickTaylorBlog dot com.

Note: Don’t have Amazon Prime, you can rent this movie for $2.99

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