Tag Archives: FM Radio

What’s Radio’s Why?

WHYSimon Sinek says people don’t buy what you do, they buy why you do it. Watching the live streams of the 2018 Radio Show sessions and reading all of the reporting on the meetings in Orlando this past week, left me asking the simple question: “What’s radio’s why?”

College Kids on Radio

The RAIN Conference in Orlando put four college kids from the University of Central Florida on stage and asked them about their radio listening habits.

Spoiler Alert: They don’t have any radio listening habits.

These four students said things like “radio is obsolete,” “there’s no need for radio,” and “it’s very rare that I listen to radio.”

To these kids, radio doesn’t have any “why.”

What does?

YouTube, Apple Music, Spotify…in other words things that stream what they want, when they want it.

Write The Wrongs About Radio

George Johns and Bob Christy are getting together to write a blog aimed at fixing radio, by writing about the things they hear radio is doing wrong.

“(Radio) has to evolve to be relevant in today’s world,” they write. “There has been almost no evolution in radio (and) what George and (Bob) want to do is challenge radio to evolve and become relevant again.”

They write the  3 basics of great radio are: 1) be professional, 2) be interesting and 3) be entertaining.

The 25-54 Demo

Fred Jacobs wrote about the fabled radio demo of 25-54, also known as, the “family reunion demo.” It never really existed, except as a way for an agency buyer to get the C.P.P. (Cost Per Point) down for a radio station they really wanted to place their client on.

You would have thought as the number of radio signals increased, that the variety of programming choices would have too, but the reverse happened. Radio offered less choice of programming and music formats. As Fred writes, “broadcast radio surrendered its Soft AC, Smooth Jazz and Oldies stations to SiriusXM and streaming pure-plays.”

Millennials are not kids. I know, both of my sons are part of the millennial generation. They are both well-entrenched in successful careers and raising families.

The college kids referenced earlier are part of Generation Z. And those kids don’t know (or care) what radio even is. They don’t even know what life was like before smartphones. And smartphones have really replaced just about every other device Millennials and Boomers grew up with.

Norway Turns OFF Analog Radio

Norway is a country of about 5.5 million people. Norway turned off their FM signals almost a year ago and went all digital using DAB+. So what’s happened to radio listening in Norway?

Jon Branaes writes, “Norwegians still choose radio when they think it’s worth choosing. Radio has not lost our biggest fans but the more casual listeners.”

Norway has also seen FM listening replaced by internet delivered radio, which grew significantly after turning off analog FM signals. They expect smart speakers to contribute to even more of that type of listening in the future.

The Takeaways

Radio first needs to know its “WHY.” Then it needs to communicate it, clearly and simply or suffer the consequences.  Bud Walters of Cromwell loves to say, “If you don’t know where you’re going, any road will take you there.” Until the radio industry figures this out, getting new people to listen (or former listeners to return) will be a challenge.

“FM is not the future. DAB+ (digital broadcasting) can keep radio relevant in a digital future of endless choices.” But Jon Branaes adds, “Radio must respond with its core strengths – being live and alive, useful and present in listener’s lives.”

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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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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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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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You Can’t Have Too Much Fun

77There are some things in life you can’t have too much of.

You can’t have too much fun.

You can’t have too much wisdom.

You can’t have too much love.

Too Many College Bowl Games

My university invested a ton of money to upgrade to Conference USA. We won our bowl game in Florida this year too. Did you watch our team win? Probably not. Turns out attendance at the plethora of Florida college bowl games is down.

“When the Outback Bowl in Tampa announced an attendance of 51,119 on Monday who watched Florida dismantle Iowa 30-3, it became the sixth college bowl game among eight in Florida to have a decline in attendance from the previous year,” reports the Florida Times-Union.

NFL TV Viewership Decline

Rolling Stone magazine wrote that one of the big stories of 2016 was the decline in viewership of the NFL. How big was the decline? Down 8%.

Prime Time games were down the most with an audience erosion of 10 to 12%.

Commuter Traffic

The Federal Highway Administration says that by 2025 passenger miles traveled will have increased 72%. Why? Because that same agency says our population will have increased by 26% by that same year.

Tell me the road you commute to and from work isn’t already over congested.

Why is Country Music not the Top Radio Format in Nashville?

Nielsen Audio did a research study in 2014 and said the top radio format in America was country music. Ironically, the top radio station in Music City aka Nashville was NOT a country station. And it’s still not.

The latest ratings for Nashville show the highest rated country music station is ranked #7. The following radio formats are all ahead of that country station: Adult Contemporary, CHR, Sports, Urban AC, Talk and Variety Hits.

However, if you combine all of the audience of the many country format radio stations in Nashville, you will have a higher share of audience than the number one radio station commands.

Less Is More

So while you cannot have too much fun, wisdom, or love, you can have too many choices of products and services. Great for consumers’ maybe, but not for business owner/operators. Ask those who are dealing with the increase in college bowl games, NFL games, traffic congestion or playing country music in Nashville.

Radio is experiencing its own issues with supply versus demand.

The FCC will open up two windows for new translators this year. That’s after 750 new FM translators were signed on in 2016. Currently there are 19,778 FM signals beating the airwaves throughout America. Compare that to 4,669 AM radio stations currently on the air.

At the point in America’s history when the same number of AM radio stations equaled the number of FM radio stations on the air in America (end of 1992), 75% of all radio listening was to FM radio.

The Psychological Aspects of Overpopulation

This brings me back to my own undergraduate college days and psychology class. I remember learning about an experiment about putting too many rats into a confined space.

“As the number of rats rose above a certain level, the effects became rather dramatic,” wrote Albert J. M. Wessendorp, Psychologist-Psychotherapist. The rats displays behavioral disturbances, death rates rose, male rats began to show deviant sexual behavior and more. You can read more here.

Whales are known to commit collective suicide in order to control overpopulation.

What about you and me? How are we impacted by overpopulation (or over choice)?

The research says even human population growth is subject to limits. If we fail in controlling things ourselves, mother nature will begin to do it for us. (Think: Climate Change)

Radio Station Overpopulation

I love the radio business.

I share these thoughts because I’m concerned that the current overpopulation of the FM band is not taking into consideration the laws of physics or the impact of anything that gets overpopulated.

The FRC when it was formed (Federal agency that pre-dates our current FCC) it made it its mission to see America have quality radio stations or a large quantity of mediocre ones. We now look back on this period of time as “The Golden Age of Radio.”

Wessendorp writes that Maslow taught us that “People are only stirred into action when they feel their basic needs to be threatened.”

Have you looked at the revenue forecasts for radio for 2017? Are you feeling threatened yet?

What You Can Do

Next week I will continue with this topic and offer up what I believe is a solution to radio’s problem in an overpopulated entertainment world.

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Radios Go High-Definition

37That was the headline that appeared in the Baltimore Sun on January 7, 2004. Unfortunately, unlike HDTV (High Definition Television) HDRadio never stood for “High Definition” radio. And maybe that was the first mistake. HDRadio was simply a name they chose for the digital radio technology.

The iPod was introduced in October 2001. Steve Jobs introduced this music delivery changing device this way. Only a month earlier, XM began broadcasting the first satellite radio programming to be followed four months later by Sirius satellite radio. So by 2004, digital radio was already late to the party.

KZIA-FM Z102.9 saw Kenwood USA sell its first digital receiver in Cedar Rapids, Iowa to take advantage of KZIA-FM’s HDRadio broadcasts. “This is a significant move,” Michelle Abraham, senior analyst at In-Sat/MDR, a market research firm in Arizona, said of the roll-out of digital radio equipment. “It may not seem duly significant in the beginning, but in a few years from now, it will be a huge leap.” The hope was it would prove to be competitive to the newly launched satellite radio offerings from XM and Sirius (now merged into a single satellite company). HDRadio was also seen as improving FM to have CD quality sound and making AM sound like FM. It was heralded to help struggling AM radio stations.

Solving a Problem That Didn’t Exist

What HDRadio did for FM radio stations was solve a problem that listeners to FM didn’t feel existed. No one who listened to FM radio was complaining about the quality of the sound of the transmission. (They were complaining about other things, like too many commercials.) And for AM radio stations, it meant people buying radios for a service that didn’t offer anything they really wanted to hear or couldn’t get from someplace else. AM radio was now the service of senior citizens who already owned AM radios, who grew up with AM radio’s characteristics and whose hearing was not the best now anyway. So HDRadio for AM wasn’t something they were asking for either. Worse, AM radio stations that put on the new digital signal found it lacked the benefits of skywave and often interfered with other company AM radio stations as the industry quickly consolidated radio ownership.

Industries Most Disrupted By Digital

In March 2016, an article published by Rhys Grossman in the Harvard Business Review listed “Media” as the most disrupted by the growing digital economy. Turns out if you’re a business to consumer business, you’re the first being most disrupted by digital. The barriers to be a media company used to be huge, but in a digital world they are not. The business model that media companies depend on has not adapted well to the digital economy.

Education – Disruption Ahead

Having moved from media to education I only got ahead of digital’s disruption for a while. But even those industries that had perceived high barriers of entry are finding those walls crumbling quickly. Grossman says fifty percent of executives see education being impacted in a big way in the next twelve months.

Where Are The Radios?

Edison Research did their latest “Infinite Dial” webinar and the slide that most impacted me was the one about radio ownership. From 2008 to 2016 the percentage of people in America that don’t own a single radio in their home has gone from 4% to 21%. When Edison narrowed this down to household between the ages of 18-34, non-radio ownership rose to 32%. Mark Ramsey’s Hivio 2016 Conference had one Millennial describe a radio set as being “ancient technology.” Ouch!

It doesn’t seem all that long ago that Jerry Lee’s WEAZ in Philadelphia was giving away high quality FM radios to increase listenership to not just his radio station but to FM radio. And KZIA in Cedar Rapids gave away HDRadios to allow people to hear their new signal. It now appears time for the radio industry to begin giving away AM/FM radios every time they are doing station remotes, contests or appearing at venues that will attract lots of people.

Elephant in the Room

But the elephant in the room remains the broken media business model. Newspapers, magazines, radio, and television – any media that is ad supported – will be challenged to find a way to capture revenue to continue.

As Walt Disney famously said “We don’t make movies to make money, we make money to make movies.”

To anyone in ad supported media, we would agree we do it for the same reasons.

The $64,000 question is how.

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