Tag Archives: FCC

Is Radio Biting Off More Than It Can Chew?

caravelle radio broadcast stationThere are lots of items in the news these days about what the radio industry should be doing. Streaming, podcasting, smart speaker accessible etc. The one thing I hear little talk about is, improving the core product and focusing on what the listener is seeking.

The Radio Ecosystem

If you think about it, the radio ecosystem, AM/FM radios, have not seen any real changes in decades. Oh, there was the introduction of HD Radio – introduced around the same time as Apple introduced the iPod (R.I.P. 2001-2014), but listeners never really understood the need for it. HD Radio was embraced by commercial broadcasters when they learned they could feed analog FM translators from HD Radio signals and have more FM radio stations in a single marketplace. This was hardly listener focused and actually chained the radio ecosystem to old analog technology.

What IS Radio?

In the beginning, radio was a way to wirelessly communicate with other people using Morse Code on spark gap transmissions. Guglielmo Marconi built a radio empire on this technology.

David Sarnoff, a skilled Morse Code operator and a Marconi employee envisioned a “radio music box” and wrote a memo about developing a commercially marketed radio receiver for use in the home. It wasn’t until after World War I, when Sarnoff proposed the concept again, this time in his new position as general manager of the Radio Corporation of America (RCA), that it would see the light of day.

Sarnoff would demonstrate the power of radio by broadcasting a boxing match between Jack Dempsey and Georges Carpentier. In just three years, RCA sold over $80 million worth of AM radios, and not soon after created the National Broadcasting Company (NBC).

Federal Radio Commission

America’s first attempt at regulating radio transmission was the Radio Act of 1912, that was enacted after the sinking of the Titanic. This law didn’t mention or envision radio broadcasting.

As radio broadcasting began to grow in the 1920s, then Secretary of Commerce Herbert Hoover would begin the process of trying to regulate the limited spectrum that everyone now wanted a piece of.

The Radio Act of 1927 was America’s first real attempt at regulating radio broadcasting. The Federal Radio Commission (FRC) was then formed by this act.

It should be noted that the FRC operated under the philosophy that fewer radio stations, that were well funded and provided live original programs, were better for America than a plethora of radio stations providing mediocre programming. It was an idea that the major radio receiver companies championed.

Federal Communications Commission

In 1934, the Congress took another attempt at regulating broadcasting (radio & TV) as well as all the other forms of communication that now existed. The Communications Act of 1934 created a new regulatory body called the Federal Communications Commission (FCC). By 1934, radio broadcasting had evolved into a highly profitable business. Broadcast educator, Fritz Messere, writes: “Many of the most powerful broadcasting stations, designated as ‘clear channels’ were licensed to the large broadcasting or radio manufacturing companies, and the Federal Radio Commission’s adoption of a rigid allotment scheme, under General Order 40, solidified the interests of the large Broadcasters.”

The biggest and most well-funded broadcasters have been favored since the very beginning. What kept things in check until 1996 was the limit on the number of AM, FM and TV stations a single company could own.

Telcom Act of 1996

Those limits would evaporate with President Clinton’s signing of the Telcom Act of 1996. Radio, as America had known it, would be over.

Now, for the most part, a single owner could own as many radio stations as their pocketbook could afford. Lowry Mays and Red McCombs, founders of Clear Channel Communications, would grow their portfolio of radio stations to over 1200 from the 43 radio stations they owned before the act was signed.

In 2003, Mays testified before the United States Senate that the deregulation of the telecommunications industry had not hurt the public. However, in an interview that same year with Fortune Magazine, he remarked, “We’re not in the business of providing news and information. We’re not in the business of providing well-researched music. We’re simply in the business of selling our customers products.” (Mckibben, Bill (2007). Deep Economy. San Francisco: Ignatius Press. p. 132.)

Radio Zoning The FCC is now considering whether to further loosen up the ownership limits of radio and TV stations in America. FCC Attorney John Garziglia recently wrote:

“If radio stations could be erected like fast-food establishments and grocery stores, with no numerical limits imposed other than a businessperson’s risk tolerance, it would be difficult to argue for FCC-imposed ownership limits on radio. Indeed, a regulatory agency enacting numerical limitations on restaurants and grocery stores would likely not pass legal muster.

But there are widely-enacted municipal limitations on just about every type of local business. The limitations are called “zoning” – the permitting or prohibiting of certain uses in certain areas to protect the character of the community.

The FCC’s radio ownership rules can be thought of as a kind of radio zoning. In the same way as land-use zoning protects a community’s character, the FCC’s ownership rules permit or prohibit certain radio station combinations protecting the amorphous concept of the public interest.

With land-use zoning, communities maintain a distinct character, livability, aesthetic, and economic success by not bowing exclusively to the profit motive of land developers. Allowing several or fewer owners to own virtually all of the radio stations in the country would doom the specialness of our radio industry.”

 

I think John makes some excellent points and I would encourage you to read his complete article HERE.

Biting Off More…

Radio operators today can’t properly staff and program the stations they already own. What makes them think that will change if they own even more of them? Most radio stations are nothing more than a “radio music box” run off a computer hard drive, an OTA (over-the-air) Pandora or Spotify.

Former Clear Channel CEO, John Hogan, introduced the “Less Is More” concept when I worked for the company. While it actually introduced more on-air clutter, not less, the idea was neither new or wrong.

If owning more radio stations was the answer in 1996, then why in 2018 are we worse off than we were then?

Why was Jerry Lee able to own a single station in Philadelphia and dominate that radio market?

Why are many locally owned and operated radio stations some of the healthiest and most revered in America today?

Radio not only needs zoning on the number of radio stations a single owner can control in a market, but the total number of radio station on-the-air in a market. And it needs radio stations that are neglected to be condemned like property owners who let their land go to seed.

The FRC wasn’t perfect, but the concept of “less is more” served America well for many decades. Fewer radio stations that provided high quality, live programming, operating in the ‘public interest, convenience and necessity’ and by virtue of that diversity of ownership, provided diversity of voice and opinions, as well as healthy competition.

 

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AM/FM or just FM?

HD FM Radio ReceiverThere’s something that’s been troubling me for some time. It’s the radio industry’s habit of reporting radio listening results by calling it “AM/FM” versus what it really is, virtually all FM radio listening.

Nieman Lab

Who could not be buoyed by this headline from Nieman Lab: “AM/FM radio holds strong for American listeners.”

But is it true?

When I read the ratings reports from both PPM and diary markets, I see an FM world.

Don’t get me wrong, I grew up on AM radio and recognize that almost every market has a heritage AM radio station that still garners a big audience. I’m not blind to the wonderful ratings of 1010 WINS in New York City for example.

But there are only 26 all-news terrestrial radio stations left in America according to Nieman. This popular format is missing from the majority of America’s radio markets.

WTOP

WTOP logoWTOP was built on AM radio. It moved its entire operation over to the FM band and grew its audience, revenues and lowered its listener demographic. People who never heard this radio station on its AM dial position were suddenly newly minted fans of their all news format.

The FCC Saves AM Radio

The FCC’s mission to save AM radio is to give these radio stations an FM dial position using a translator. What are we really saving? The AM band or a particular format that a radio operator created on the AM band and now, to survive, needs to move it, like WTOP, to the FM side of the dial.

WIP

WIP logoFrom my blogging, I get lots of feedback about a variety of things concerning broadcasting. One reader wrote to me about his father, a sports fan, who turned on WIP-FM to hear the latest chatter. WIP-FM was broadcasting a game of no interest to his father, so his son said to him, why don’t you turn on WIP AM610. Sadly, this person wrote the audio was unlistenable. He wrote: “You’d think the FCC would mandate that AM have standards for audio quality in receivers.”

WSM

WSM logoWhen I was living in Bowling Green, Kentucky, I couldn’t receive 650AM WSM in my office, even though my office looked south and my antenna was able to enjoy a full wall of windows. The noise floor both inside my university office as well as around town while driving in my car made the station unlistenable. WSM was once listened to all the way to Louisville in northern Kentucky. Instead, I downloaded WSM’s app and could enjoy the radio station in crystal clear stereo. (I see WSM has stopped subscribing to Nashville Nielsen Audio ratings.)

BBC

BBC logoThe British Broadcasting Corporation (BBC) did a review of the range of services it offered on the AM band (called medium wave across the pond) and it included a financial review of all its services too. They concluded the ROI (return on investment) in AM was not there and announced they would be turning off some 13-AM radio stations in January 2018 according to Radio Business Reports.

WHVO

WHVO logoThere’s a great radio operator in Cadiz, Kentucky by the name of Beth Mann. WHVO is her AM radio station at 1480, but if you go on her website, you won’t find any mention of this station being on the AM radio dial. It’s promoted as WHVO 96.5 & 100.9 FM.

Bottom Line

It’s time to face the fact that AM radio needs to be re-deployed for a new service. Current radio station owners should be given a viable FM dial position that replaces their AM service area, and doesn’t require multiple translators to attempt to accomplish this task. (Note: WHVO needs two translators to deliver the signal of its AM 1480.)

It’s time to allow those same dedicated radio broadcasters to sell off their expensive AM tower sites and turn off their AM stations that consume electrical power with no real ROI.

Ecclesiastes 3

“To everything there is a season, and a time to every purpose under heaven…”

AM radio’s time has come and gone as the mass communication delivery system it was from the 1920s to the 1970s, much as radio replaced vaudeville.

To put things in perspective, at a time in America’s radio history when the number of FM signals equaled the number of AM signals on the air, 75% of all radio listening was to FM. So, you can only imagine what it’s like today for AM radio listening when FM signals outnumber AM signals by four and a half times in the USA. (FCC BROADCAST STATION TOTALS AS OF JUNE 30, 2018:  4,633 AM signals / 20,758 FM signals)

That’s why I believe we do no service in promoting radio as “AM/FM” and not being honest about where virtually all of the radio listening is really taking place.

Sadly, AM radio is to broadcasting as coal is to power generation. It was the perfect solution in its day.

 

 

 

 

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Radio Has an Addiction Problem

listening_to_radioHave you heard the latest? People are addicted to their smartphones. “We now see smartphones as dangerous for young minds,” writes Jean-Louis Gassée in a Monday Note.

More than 30 years ago MIT professor Sherry Turkle postulated that computers weren’t just a tool, but were sneaking into our minds. In doing so, they would change our relationship with the world around us.

Smartphones are Mobile Computers

Turkle would continue her thoughts on this subject in a 1995 book “Life on the Screen, Identity in the Age of the Internet” saying “computers don’t just do things for us, they do things to us, including our ways we think about ourselves and other people.”

Smartphones plus Social Media

When our mobile computers are married to a social media site like Facebook, things get really sticky. Sean Parker, a founding partner at Facebook, wrote about the problem after he left the company saying, “[Social Media] literally changes your relationship with society, with each other…It probably interferes with productivity in weird ways. God only knows what it is doing to our children’s brains.”

Time for Apple to Build A Less Addictive iPhone

The NY Times published an article by Farhad Manjoo that made the case for a less addictive iPhone. Can you imagine someone writing that broadcasters should be making TV or radio less addictive? That watching too much TV or listening to too much radio might be bad for our brains.

Broadcasters today find they have a different problem. They have lost the addictive luster of the past.

The Amazon Addiction

“For many businesses, Amazon is simultaneously a sales channel, a potential service provider and a competitive threat,” says Forrest Research. For broadcasters, Amazon is attacking our retail advertising revenue, by undermining the very businesses we sell to. Today Amazon is the go-to website for retail search, surpassing Google.

Trying to compete with Amazon is a retail challenge. The very retailers’ broadcasters depend on for their revenue.

Retailers measure how well they’re doing by their bottom line.

Amazon is all about increasing top line sales growth. (Wall Street hasn’t demanded Amazon to be profitable yet.)

See the problem?

Trying to beat the Amazon model is a race to the bottom with pricing for our advertising customers.

Free shipping, two-day shipping, lowest prices, biggest selection, customer ratings etc. are among the things making Amazon addictive.

People Made Radio Addictive

Over the years, radio has had personalities that made the medium addictive like Howard Stern, Rush Limbaugh, Dan Ingram, Larry Lujack, Robert W. Morgan, Jess Cain, Dale Dorman, Paul Harvey and many more.

Once upon a time, music formats could be addictive, but today’s access to streaming audio is challenging that beachfront.

Alexa Doesn’t Know My Local Radio Station

My local radio stations are called KISS (WKSI-FM) and WINK (WINC-FM). When I ask Alexa to play either KISS-FM or WINC-FM, I get the Los Angeles KIIS-FM or the WINK-FM licensed to Harrisburg, Pennsylvania.

When I asked Siri the same questions, she couldn’t help me play anything. Siri told me, “Sorry, Dick, I can’t help you with that on your iPhone.”

When your branding is not unique, these new consumer voice activated devices don’t have a clue what you’re trying to ask them. They either make their best algorithm guess or just throw in the towel.

Broadcast Station Call Letters

The FCC (Federal Communications Commission) solved this problem early in broadcasting by assigning each broadcast station its own unique call letters, but broadcasters abandoning those identifiers for branding like Kiss, Froggy, Hot, and others, that are duplicated all across the country, is now a problem in a voice activated world. But it’s not just the brand not being unique, the programming is likewise just as non-unique.

Don’t Be Generic

No one ever became addicted to a generic.

Addiction stimulates parts of the brain that trigger craving and longing, that release habit-forming, feel-good chemicals such as dopamine and endorphins.

Your iPhone does that for you.

You voice activated smart speaker does too.

Broadcasting is show business.

Which do you think stimulates the part of the brain that causes addiction? The show part or the business part?

Answer that question correctly and you’re on your way.

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Best of the Blog 2017

73On this last Sunday of 2017, it’s a good time to look back at the year just past and share with you The Top 5 Most Read and shared blog articles from 2017. Maybe you missed them or perhaps you’d like to read them again.

To date I’ve published 180 articles that have been viewed around the world over 115,800 times.

My Most Read Article in 2017

My most read/shared article of this past year was “Coal Ain’t Coming Back & Neither is AM Radio”. It was published on August 20, 2017. It told the story of how the fate of the coal industry in America was akin to that of AM radio stations. America’s broadcast industry was built on AM radio beginning with the first commercial radio license issued in 1920. This article received the most comments of any I published this year and was widely shared.

Second Most Read Article of 2017

In April, I wrote an article based on a blog reader question titled “The Question Radio Itself Has Yet to Answer.” That big question was, “what can radio do that other media can’t.” I opened the issue to readers to share with me their thoughts before sharing mine. It stimulated lots of emails, sharing and discussion.

Third Most Read Article of 2017

My third most read article would be the follow-up article to the one above, “What Can Radio Do That Other Media Can’t.” It was in this article I shared some of the over fifteen pages of reader comments, as well as my own thoughts. In my summary, I boiled it down to 5 key things: Live, Local, Community, Companionship and Relevant.

Fourth Most Read Article of 2017

In October, after the FCC voted 3 to 2 to eliminate the Main Studio Rule, I wrote “Live & Local?” It posed the question about maintaining the first of the five key things radio can do that other media can’t I wrote about back in April.

In this article, I shared the observations of Maynard Meyer, a local radio manager and owner from Madison, Minnesota who concluded in his statement to the FCC in 2004, “From what I’ve seen through my personal experience, as soon as a hometown studio is closed and relocated, the local service is relocated as well.”

After the article published, Mr. Meyer emailed me and said he still felt the same in 2017 as he did back when he testified before the Federal Communications Commission 13-years earlier.

Fifth Most Read Article of 2017

And finally, the fifth most read blog article I wrote and saw lots of people sharing, was “Radio’s Best Feature.” In it, I wrote about the speed of change in our world today and how to expect it to keep accelerating going forward.

Radio needs to understand its role in humankind. Technology doesn’t transform our human nature.

Our need for love, touch, companionship and community will always be a part of our humanity no matter what technology brings.

Most Read Articles, Period

Two articles I’ve written continue to see lots of traffic and continue to be far and away the two most read on my blog.

They are “SiriusXM Radio is Now FREE” and “The Day the “Dumbest Idea” Invaded the Radio Industry.” Both articles have now been read over 7,000 times.

The first article I wrote for my blog was “Clear Channel Media & Entertainment becomes iHeartMedia” and it was read a total of five times.

Why I Blog

I blog for broadcasters, educators and students.

I blog to provide media mentorship and to pay-it-forward to the broadcasting industry that I have been a part of for 50-years.

I’m grateful for the more than 88,000 people from all over the world who have visited to read an article that caught their interest.

FREE SUBSCRIPTIONS

You can subscribe to this blog for FREE and get a copy of each week’s article delivered to your email IN BOX every Sunday morning. To subscribe, simply go to the bottom right-hand corner of your screen and click on the FOLLOW button. (If you’re accessing this blog via a mobile phone or tablet, that button may not be visible, so be sure to do this on a computer or laptop.)

Next week I will begin my fourth year of blogging with all new articles.

Thank You for reading.

Feel free to contribute your thoughts to the discussion in the comments. Together we can all learn by sharing our experiences, knowledge and wisdom.

Happy New Year!

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Live & Local ?

Stuck in a Time WarpI’ve been attending a lot of radio meetings these past years and one refrain I’ve heard over and over and over and over is that the power of radio is it’s “live & local.”

This week, the FCC voted along party lines 3 to 2 to eliminate the Main Studio Rule.

1934 Congress Establishes the FCC

The first regulatory body to oversee radio was the Federal Radio Commission (FRC) that was established by the Radio Act of 1927. The FRC was created to, among other things, insure that the public airwaves of America were used in the “public interest, convenience and/or necessity.” The FRC was given regulatory powers for licensing all radio stations and insuring the airwaves were assigned to broadcasters capable of providing quality broadcasts. The amateurs were assigned to another piece of the broadcast spectrum which today is known as Amateur Radio Service or Ham Operators.

Amateur Radio like AM/FM radio is regulated by the Federal Communications Commission which was established by Congress with the Communications Act of 1934.

Main Studio Rule

So, this week when the FCC voted to end the Main Studio Rule, what did that mean according to the FCC’s regulations that have been in place in 1934 (and per Gregg Skall) updated in 1988 to make them clearer? FCC attorney Skall wrote back in 1991 in his “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.

LIVE RADIO

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.

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 and so it was the exception for something to have been recorded.

Today, it’s more likely what you are listening to is not live but syndicated, voice-tracked and pre-recorded.

LOCAL RADIO

With the Main Studio Rule, the goal was at least 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 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 has been lobbying for the elimination of the Main Studio Rule, and its 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.”

Brick & Mortar Presence

FCC attorney Scott R. Flick said that the Main Studio Rule was really a government mandate for radio to have a brick-and-mortar presence in an internet age. “Its existence hindered stations from evolving and adapting to the rapidly changing business strategies of their many non-broadcast competitors.”

It’s ironic that the biggest online retailer, Amazon, is now in the process of acquiring a brick-and-mortar presence as the radio industry appears to be moving in the opposite direction.

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 a Black Swan event. Will radio be ready for a Black Swan?

Today’s Big Regulatory Difference

The big difference I see today for radio versus its toddler years is how it is regulated. The Radio Act of 1927 provided the foundation for all broadcast regulation right up until today. While more Acts were passed and made law over the years, the basics remain much the same as when they were first made law.

Some of the key provisions in the original Act that we’ve deviated from today are:

  • Limiting the number of broadcasters to foster higher quality radio broadcasts versus having more stations of poor or mediocre qualities
  • Radio broadcasters would operate in the “public interest, convenience and necessity”
  • Radio would be a regulated medium to assure high quality and operating in the public interest
  • Radio would be commercial and privately owned (a condition that made radio broadcasting in the USA different from every other country in the world)

Those who complain that radio isn’t like it used to be only need look at how broadcast regulations have been changed over the past century; the biggest change being the Telcom Act of 1996.

Make Radio LiVE & LOCAL Again

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.  He told them (I’ve edited his comments. The full text can be found here. )

“Localism in radio is not dead, but it is in dire need of resuscitation in many areas.  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 many communities that “on paper” had a local radio station actually found that the transmitter was 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.”

What do you think?

 

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Coal Ain’t Coming Back & Neither is AM Radio

114I lived in Kentucky for 7-years.

Kentucky actually issues black license plates that say “Coal Keeps the Lights On.”

And yes, a lot of our electricity is generated from coal fired generating stations. But our dependency on coal has been in decline for years, today only about 30% of our electricity is generated from the burning of coal. 15% is generated from renewal energy sources.

But when it comes to jobs, solar & wind-energy jobs are growing 12 times as fast as the US economy. This has all been happening over the last 10-years or so. Renewable-energy jobs grew at the rate of 6% while fossil-fuel jobs declined at 4.5% from 2012 to 2015 according to Business Insider who also notes that the average number of employees at US coal mines dropped by 12% in 2015.

The solar industry now employs more people than coal, oil and gas combined.

The most recent statistics (2014) for the coal industry say 76,572 people are employed mining coal. That includes miners, office workers, sales people and others who work at coal-mining companies. In 1980, the industry employed about 242,000 people.

But to put the coal industry employment in perspective, there are more people employed in education in Kentucky than in coal. And the Washington Post compared the number of people employed in coal to other industries and reports: “Although 76,000 might seem like a large number, consider that similar numbers of people are employed by, say, the bowling (69,088) and skiing (75,036) industries. Other dwindling industries, such as travel agencies (99,888 people), employ considerably more. Used-car dealerships provide 138,000 jobs. Theme parks provide nearly 144,000. Carwash employment tops 150,000.”

In fact, more people are employed in RADIO (94,584 people) than in the mining of coal.

Coal jobs ain’t coming back.

AM RADIO

When I hear people in coal country cheering about coal jobs coming back under a new presidential administration, I look to my own industry; radio. AM radio is like the coal industry.

America, to a large extent, was built on coal due to the industrial revolution. All of our great factories depended on coal to power their machines. Coal was plentiful and we had lots of it. It was coal’s time.

In the 1920s, AM radio was born. Nothing like it had ever existed in the world. While the telephone brought people together, one person to another person, radio would bring the masses together. Inc.put together a list of “The 25 Greatest Inventions of All Time” and radio was #2 following the wired telephone. The History Channel compiled its own list and it put the smartphone in the first position followed by radio.

The “Golden Age of Radio” is the period from the 1920s to the 1940s when AM radio was the main source of entertainment in American homes. It would be replaced by television in the 1950s.

The transistor and car radio would pump new energy into the radio industry to a young generation in the 1960s and AM radio would be “born again.”

FM RADIO

The latest FCC (Federal Communications Commission) report as of the end of December 2016 shows that there were 4,669 AM radio stations on the air in America. Over on the FM dial, 16,783 signals now beat the airwaves (FM, FM educational, translators and low power FM).

To put things in perspective, at a time in America’s radio history when the number of FM signals equaled the number of AM signals on the air, 75% of all radio listening was to FM. So, you can only imagine what it’s like today for AM radio listening.

JOBS & ROBOTS

In coal mining, the need for coal miners goes down every year. Today, mining for coal no longer means muscle hardy men in maze-like tunnels wielding picks and shovels. The coal industry has steadily been replacing those jobs with robotic machines that require far fewer miners but more computer engineers and coders.

The radio industry employs its own cadre of computer engineers and coders that allows for fewer folks to appear on more radio stations through automation and voice-tracking. Is what’s happening in radio broadcasting any different than what’s happening in coal; or any other industry today?

I grew up on AM radio.

AM radio was my world and the people who made the magic caused this boy to make radio a career.

But AM radio and those jobs are not coming back any more than coal miner jobs.

93% of Americans 12-years of age or older listen to radio every week.

What percentage of those are listening to AM?

As AM radio stations add FM translators, do you think that number will grow again?

Sadly, AM radio is to broadcasting as coal is to power generation.

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First Impressions

113You’ve probably heard the old saying “you can’t make a second first impression.”

It’s true.

In sales, in those first few seconds when you meet a new client, you are either going to continue forward progress or it will be full-stop.

Same goes for job interviews or first dates. This is what makes making a good first impression so stressful.

Attitude

Good first impressions start with projecting a positive image. Projecting a positive image comes from your attitude.

I won’t go all Norman Vincent Peale on you, but your attitude is formed by what you do every waking moment. You can’t just turn it on when you need to. That will project a faux image easily discerned by any human being that can fog a mirror.

Derry’s Dad

In my broadcast sales class on talent assessments, guest lecturer and professional sales trainer Chris Derry, shared with my students that his dad was a stickler for having a positive attitude by what you wore on your face.

Come down to breakfast without a smile and you were immediately sent back upstairs. His dad didn’t care if you were late for school, you were not going to start the day at breakfast with a frowny face or a grumpy attitude. Chris said his sister went back up stairs many a day, but he quickly learned how to play the game.

But it wasn’t a game. It was building a positive character trait that would lead to a life of success in every endeavor that Derry would take on. He quickly learned even on days when he didn’t feel like smiling that forcing a smile for breakfast with his dad very quickly had him feeling more exuberant.

Fake It Till You Make It

Zig Zigler tells the story of faking a smile on his face and voice when he wasn’t exactly feeling it. He said that by faking it, it quickly became genuine and his mood would reflect his face.

Therapists will tell you that logic cannot change an emotion but action will. That by doing something that gives you a feeling of accomplishment, you will enrich your spirit and improve your attitude.

HD Radio’s 1st Impression

HD Radio is 15 years old. It answered a question no listener was asking (and still isn’t).

But why was HD Radio such a bust?

First, it was introduced with very low power that made reception of HD Radio nearly impossible in the home, office or car.

It tried to fix the poor quality of AM radio and improve the quality of FM radio. It would destroy AM radio with increasing co-channel noise interference and really make a mess of the band’s sky wave at night. With FM its improvement was almost unnoticeable to the average listener.

Worse, the promotion of HD Radio on FM radio stations often drew the comment to a listener with an FM not an HD Radio set that the sound of the station did sound better in HD. The listener didn’t understand from the radio ads they needed to buy a new radio set to pick up the HD Radio signal and so they didn’t. And even if they did figure out they needed an HD Radio set, trying to find one to buy at Walmart, Target or even Radio Shack was an exercise in futility.

Media Life magazine reported that media buyers say things like “HD Radio doesn’t feel like a thing” or “there’s almost zero consumer interest” or “it’s the least-promising technology of the new ones introduced in radio in recent years” or “most people won’t be able to hear the difference between HD Radio and regular radio and that’s a problem.”

First Impressions are a Bitch

There are 19,778 FM radio signals on the air as of the end of 2016 according to the FCC. Of those, around 2,000 of them are broadcasting in HD, about ten percent.

The number one reason those 2,000 FM radio stations are broadcasting in HD is to feed an FM translator that is not broadcasting in HD.

Media Life magazine compared how New Coke was introduced after the Pepsi Challenge was promoting it was beating Coca Cola in taste tests. I remember those days well. I was in radio sales and the local Pepsi bottler was my account. (I was a Coke drinker.)

I took that Pepsi Challenge one time with the owner of the Pepsi bottling plant and yes, I said I liked the taste of Pepsi better. He beamed.

I could tell the super sugary taste of Pepsi easily and I preferred the less sugary, belching kick of Coke. But I wasn’t about to pick the wrong one. I was in sales after all. I knew which side my bread was buttered.

Coca Cola totally bummed out about the Pepsi Challenge introduced a high sugary version of its drink and called it New Coke. It was a disaster. In months Coke brought back the original formula as Coke Classic. Today all remnants of New Coke are gone.

The lesson Media Life tells us is that “you can introduce something new and improved, but you can’t make the public want it.

Which brings me back to HD Radio.

Classic Radio

Maybe it’s time to bring back the elements that make great radio, great.

A product that is focused on a defined listener 100% of the time.

A product that is curated from music to jingles to personalities to commercials.

Nothing is put on the air that is out-of-place.

I think FM radio sounds great sonically.

Listeners do too! It’s why radio still reaches over 93% of Americans every week. It’s the #1 reach and frequency medium in America. It beats everything else. Period.

FM radio doesn’t need to make a first impression. It already is embraced by its listeners.

Bring back the classic formula that made radio great and cement radio’s future with the next generations.

Being Human Never Changes with Technology

No matter how much the technology changes, the reason one human being is attracted to another human being will never change.

Radio has their ear.

What will you say to them?

 

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