Tag Archives: howard stern

The Hiring Challenge

Over one-third of American companies have eliminated college degree requirements and the reason they did is simple, to increase the number of applicants.

Here’s the reality, there are 1.9 jobs available for every unemployed worker.

Last year I wrote about how the radio industry needs to remove the college degree requirement from their Help Wanted Ads, and since that time, the ability to attract the best talent has become even more challenging.

The Latest Survey of Hiring Mangers

The website, Intelligent.com surveyed 1,000 hiring managers at the beginning of 2023 and released these key findings:

  • 53% of hiring managers say their companies eliminated the requirement for a bachelor’s degree for roles where a bachelor’s degree in not essential
    • 60% eliminated the college degree requirement for entry-level roles
    • 57%  eliminated the requirement for mid-level positions
    • 33% eliminated it for senior level jobs
  • 64% say the reason for removing the requirement was to increase the number of applicants
  • 76% say they are likely to favor experience over education
  • The majority of hiring managers say their company doesn’t see value in certificate programs, associate degrees, online degrees, or boot camps
  • 77% of companies are currently offering apprenticeships, or plan to, by the end of the year
  • 46% say attrition is a problem

Famous Radio Broadcasters Without A College Degree

Oprah Winfrey didn’t need to have a college degree to become one of the most successful women in broadcasting. She dropped out of college after only one semester to pursue a career in broadcasting.

In 2015, Forbes published the salaries of the top five radio broadcasters in America.

  • Glenn Beck earned $16.5 Million in 2015. Not bad for a Sehome High School graduate with no college experience.
  • Sean Hannity earned $29 Million, and never obtained a college degree, even though he attended four different colleges.
  • Ryan Seacrest earned $65 Million. He started his radio career at 16 while still in high school and would drop out of college to devote all of his energies to broadcasting.
  • Rush Limbaugh earned $77 Million and dropped out of college after only two semesters. His mother said at the time that Rush “flunked everything…he just didn’t seem interested in anything except radio.”

The BIG Exception

The top earning radio personality is Howard Stern. Howard graduated with a 3.8 Grade Point Average (GPA) from Boston University. In fact, Stern was named by Forbes as the world’s highest-paid media personality and the fifth highest-earning worldwide. As of February 2023, Howard Stern’s net worth is $650 Million.

I Love College

Please don’t think I’m dissing the college experience, I’m not. What I am taking issue with is the hiring practices of the radio industry that make having a college degree preferred. Radio is better positioned as a trade, one best learned by doing.

The radio industry should be presenting a broadcast career as an opportunity for students graduating from high school.

I treasure my five decade radio broadcasting career, but having my Bachelor of Arts and Master of Science college degrees never played a role.

It wasn’t until I pursued my second career in life, that of a college broadcast professor, that I would need those two pieces of paper to be hired at The School of Broadcasting and Journalism at Western Kentucky University.

Colleges sell pieces of paper representing knowledge learned. You can’t be part of the faculty unless you have also earned these benchmarks in higher education.

Finally, I am adamant about the radio industry starting its outreach at the high school level.

Radio Talent Institute

When I was at Western Kentucky University, I worked with Dan Vallie and his Radio Talent Institute. It’s an excellent program, now owned and operated by the Radio Advertising Bureau (RAB). Sadly, it’s offered as a summer program to students in a handful of colleges across America. I contend that the RAB should be offering this program in the high schools, especially those schools that have vibrant student run radio stations.

The Radio Talent Institute puts professional broadcasters into a mentorship role with the radio’s industry’s future leaders and we can’t start the recruitment effort early enough.

“A mentor is someone who

allows you to see the hope inside yourself.”

— Oprah Winfrey

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No College Degree Required

The other day when I went to my mailbox, I noticed a rather large piece of “junk mail” from a local HVAC company.

It said:

We’re Hiring!

Start a Rewarding Career with [business name]

Attention: High School Grads

HVAC is a Great Career Option! No Student Debt!

Great pay, hours and benefits!

Which got me to thinking about all the radio help wanted ads saying you need to have a college degree to apply. Why does the radio industry list having a college degree as a requirement, when the truth is, great radio broadcasters haven’t had one, nor did they need one.

Cost of a College Degree in 2022

According to Educational Data, when you consider student loan interest and loss of income, the cost of a four-year college degree can exceed $400,000.

It’s not unusual for a college grad to learn the starting pay in radio is often as low as $19,500/year ($9.36/hour) for on-air positions and sales positions are 100% commission based.

Start a job with Walmart with no college degree and you’ll make $12/hour. Get that same job at Target and you’ll start at $15/hour. At McDonalds the starting pay range at company owned stores is between $11 and $17/hour.

Virtually every job in today’s world will pay you more than most radio positions, and yet radio ads always require you to have a college degree while those other companies don’t.

Radio Talent Institute

I worked with Dan Vallie and his Radio Talent Institute at Western Kentucky University. It’s an excellent program, now operated by the Radio Advertising Bureau (RAB). Sadly, it’s offered as a summer program to students in colleges across America. I contend that the RAB should be offering this program in the high schools.

For all of the same reasons, one of my local HVAC companies is appealing to high school grads, this also makes sense for the radio industry.

Famous Broadcasters

Oprah Winfrey didn’t need to have a college degree to become one of the most successful women in broadcasting. She dropped out of college after only one semester to pursue a career in broadcasting.

In 2015, Forbes published the salaries of the top five radio broadcasters in America.

Glenn Beck earned $16.5 Million in 2015. Not bad for a Sehome High School graduate with no college experience.

Sean Hannity earned $29 Million and never obtained a college degree, even though he attended four different colleges.

Ryan Seacrest earned $65 Million. Like me, Ryan started his radio career at 16 while still in high school. Unlike me, who went to college and graduate school earning two degrees, Ryan dropped out of college to devote all of his energies to broadcasting. Needless to say, he’s really famous and I write this blog.

Rush Limbaugh earned $77 Million and dropped out of college after only two semesters. His mother said at the time that Rush “flunked everything…he just didn’t seem interested in anything except radio.”

The top earning radio personality was Howard Stern. Howard IS a college graduate, with a 3.8 Grade Point Average (GPA) from Boston University, earning $95 Million in 2015.

Now, if I was trying to sell you on the value of a college degree in broadcasting and compared Howard Stern to the other four on Forbes 2015 list, I would say that having a college degree can earn you 23% to 76% more money than not having that piece of paper.

College Degrees

Please don’t think I’m dissing the college experience, I’m not. What I am taking issue with is the hiring practices of the radio industry that make having a college degree a requirement. Radio is better positioned as a trade, one best learned by doing.

The radio industry should be presenting a broadcast career as an opportunity for students graduating from high school.

I treasure my four decade radio broadcasting career, but having my Bachelor of Arts and Master of Science college degrees never played a role.

It wasn’t until I pursued my second career in life, that of a college broadcast professor, that I would need those two pieces of paper to be hired at The School of Broadcasting and Journalism at Western Kentucky University.

Colleges sell pieces of paper representing knowledge learned. You can’t be part of the faculty unless you have also earned these benchmarks in higher education.

Finally, just as adamant as I am about the radio industry starting its outreach at the high school level, I am just as determined to see colleges hiring broadcast professionals based on their broadcast careers, knowledge that has been earned through years of on-the-job experience that no college curriculum can duplicate. Sadly, most colleges screen out any applicant that doesn’t have the required terminal degrees.

“Difficulties come into our lives to develop us.

Every storm is a school.

Every trial is a teacher.

Every experience is an education.”

— Nicky Gumbel.

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Best Suggestions for Radio’s Purpose in 2022 & Beyond

This week, I will review the best suggestions sent in by readers of this blog about what Over-The-Air (OTA) radio needs to do in order to survive and thrive in a 21st Century world.

But first, let’s set the stage for these ideas with something Dale Parsons wrote in the comments on my blog site:

“Every time someone asks what radio needs to do to become relevant again, I hear the old chestnut, ‘be live and local.’ Everything you listed Dick, is a live and local function that is now being done better by another platform. Just being live and local isn’t going to make it. We need to discover the compelling reason for people to use their radio. In the 1950s, when the electronic eye of TV put the whammy on radio, that compelling reason became music and news. Now the online platforms can do that better and faster.

Here’s the scary part concerning radio’s future. You and I have been in the business for about the same number of years. I realized yesterday that we have only one working radio in our house. It’s a palm sized Sony and the battery is dead. Where I live there is little radio coverage, however, when I visit town on the other side of the island on which we live, I find that I tune in streaming choices, rather than radio stations. I find no compelling reason to listen to the radio.

We have always considered radio to be a useful household appliance, much like a toaster. My compelling reason to pull out the toaster is because I need toast. My compelling reason for pulling out my radio was to be entertained and informed.

There’s nothing on the horizon that will be replacing my need for toast, but if a better way of delivering that toast comes along, I’ll probably switch to the new appliance.

People have a compelling need for entertainment and information. In the future, those needs might just be satisfied by a new appliance.

Hopefully, radio won’t be discarded like my toaster will be.

Ramblings from out here in Hana Maui jungle.”

[Dale Parsons was the program director that would transition WNBC-660AM in New York City from a music-intensive to a full service radio station when he took over in 1984. WNBC featured Imus in the Morning, Soupy Sales in middays and Howard Stern in afternoon drive. There was no other radio station, on AM or FM radio, that sounded anything like it. It was one-of-a-kind.]

Curtis LeGeyt, President & CEO of the National Association of Broadcasters (NAB)

The new leader of the NAB Curtis LeGeyt, appearing before a recent Congressional hearing, was asked to explain the viability of radio in today’s multi-media world. Here’s what he said:

I think where radio can stand out and where it will remain very, very viable in today’s media landscape is with a hyper-focus on local and a service to a demographic that simply can’t afford those subscription fees through other services. I believe there’s a really unique value and niche that we fill that none of our other competitors are hitting.

Hyper-Local Maynard Meyer

Maynard Meyer, or “Mr. Radio” as he is known to his listeners in Madison, Minnesota started in radio the same year I did, 1967. In 1983, he and his long-time friend, Terry Overlander, put KLQP-FM on the air.

Maynard is a member of the local Chamber of Commerce, the Kiwanis Club, a member of the city council, as well as serving on numerous boards and participating in several community activities. His dedication to radio and serving the community are credited with shaping the city of Madison, as well as much of western Minnesota, into what it is today. Maynard was inducted into the Minnesota Broadcasting Hall of Fame in 2011.

Responding to my question of “What is Radio’s Purpose in 2022,” Maynard wrote:

In rural America we are doing radio pretty much the same as we did when I started 50 years ago (as far as content goes), and the formula still works. Perhaps it would still work in larger markets, but, unfortunately, a couple of generations of programmers have led people to believe that radio is a music medium…there are a lot better ways to get music and people have found them.

The physical involvement of you and your staff in your community is as important, or possibly more important, than the content of your broadcasts. Everyone needs to know who you are and you need to become an indispensable part of the fabric of your community. You can’t just sound ‘local” you have to BE local. That formula continues to work for us in small town America where radio is often alive and well.”

Maynard Meyer certainly sounds like the type of broadcaster Curtis LeGeyt is referring to.

Randy Black, Radio Host

Another blog reader put it this way:

“You are going to have to personalize it for it to work. Included listeners. Cater to them. Put them on the air. Involve them. I am talking music stations here. Be informative. Be fun. Involve. Make it as 4d as possible.”

Steve Rixx, The Wake Up Morning Show on KSAM

“Radio in 2022 still serves its purpose by serving its local communities…IF it’s done correctly. My stations lean into the local, and are deeply involved with our people. Our listeners LISTEN because we are the source for everything happening in our area, and we support our youth and charitable organizations…and we just happen to play great music. BE the change you want. STOP complaining that ‘it’s not like it used to be.’ Most things aren’t. You can stay on the sidelines or get your hands dirty…you choose which.”

Darryl Parks on WLW’s Jim Scott

Can radio do this in a major market like Cincinnati? Yes, as Darryl Parks told us on his blog about the impact that Jim Scott made on the listener loyalty to The Big One – 700AM – WLW.

Darry wrote:

“Cities like Cincinnati are extremely provincial. Neighborhoods are strong. Some say our communities are closed to outsiders. Some of that maybe true. But, if you stick it out, once you belong, you will find the closest of friendships. Our little area of the Midwest is a very special place.

Now imagine that close friendship with over 2 million people. That’s how many people Jim Scott considers his friends – the entire market. I’m guessing that’s how many people might consider Jim a friend too.

As the radio story goes, when Jim first arrived in Cincinnati from WKBW in Buffalo, he made it a point to introduce himself to everyone.  And I mean everyone.  He’d finish his morning show on WSAI and then head to Cincinnati’s Fountain Square where he’d hand flowers to women and ask them to listen to him.  Other days, Jim would literally knock on doors, going house to house, neighborhood to neighborhood, introducing himself and asking those that answered if they would listen.  That was decades ago and he never stopped.

Years ago, at a wedding reception at Cincinnati’s beautiful art deco Union Terminal, I was standing with a small group of people, including Rich Walburg, my programming partner in crime at 700WLW. Another in the group noticed Jim going table to table introducing himself.  The fellow said, “Is that Jim Scott?  I want to meet him.”  Rich in his driest delivery replied, “Stay here.  He’ll make his way over.”  He eventually did and Jim introduced himself.

Jim has a way to make everyone feel special and he really is interested in how you’re doing.  He has a deep compassion for people.

He’s a radio personality who understands his on-air role, the importance of being an active member of the community and the value of his personal brand in the market.  He treasures his relationship with listeners and advertisers.  He knows ratings must come with revenue.

Jim is actively involved with many of our community’s service organizations and charities, because he knows how important it is to give back. Being involved in community service is normally the job of a radio station’s Market Manager.  That wasn’t the case at 700WLW.  I joked over the years, we had no idea what he did.  We just knew at night he was representing the station at a fundraiser and the next morning he was on the air at 5am.

Year after year, decade after decade, Jim gave himself to his radio audience, everyone of them considered dear friends. He was there during good times and bad. Sunny skies or snow. Jim Scott is a radio personality to study from. There will never be another like him.”

[Jim Scott retired from radio in 2015 after more than 50 years in broadcasting.]

It was 18 Years Ago…

So, nothing about what radio needs to do in a 21st Century world is all that different from the way it all began. Oh sure, the technology has changed dramatically, the ways of sending our content out to our listeners has multiplied and also made it possible for anyone with a computer and an internet connection to become a entertainment/information provider.

It was at a Federal Communications Commission (FCC) hearing 18 years ago, that Maynard Meyer sounded the warning about radio’s future.

On May 24, 2004, the 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) addressed the commission.  (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 which “on paper” had a local radio station, but actually had a transmitter that 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.”

“Wednesday Was Not A Great Day for Radio”

That was the headline Radio Ink ran with its article recapping the previous day’s Congressional hearing on Respecting Artists with the American Music Fairness Act. What made it a bad day for the radio industry? Maybe because all of those things that were presented as reasons radio needed to be protected from the recording industry, are things that only a handful of radio broadcasters actually still do.

Gloria Estefan speaking on behalf of recording artists explained that music has value and the very people who create those popular songs – artists, singers and studio musicians – see no compensation for their efforts that are fueling a billion dollar radio business. Their songs are being used without their permission or compensation.

Estefan did credit her career’s success to radio, but also went on to point out how much the business model had changed since she had a hit record with her Miami Sound Machine song Conga (1985).

The Advertising Pie

Before the COVID19 pandemic gripped our world, Gordon Borrell hosted a webinar in early 2019 and told of how the media pie is today sliced too thin.

To put things in perspective, Gordon shared how an over-populated media landscape is impacting local advertisers.

  • 1,300 daily newspapers, 6,500 weeklies
  • 4,700 printed directory books
  • 4,665 AM radio stations, 6,757 commercial FM radio stations
  • 1,760 Class A TV stations
  • More than 1,000 cable systems with local sales staffs
  • 660,000 podcasts were actively produced in 2018
  • 495 NEW TV shows were introduced last year in addition to what’s already on
  • PLUS, local ad sales are taking place on Facebook, Google and Amazon

For radio broadcasters, Gordon Borrell said the solution to the future of media expenditures would be a process of “thinning the herd.”

Borrell said, the way advertising buyers are responding to a world of media abundance is by:

  • Decreasing the number of companies from which they buy advertising from 5 to 3.5, and
  • 90% of their media buys are being made with companies who can bundle traditional and digital advertising.

Quality Over Quantity

I believe that we’ve reached a point where quality will beat quantity. Whether we’re talking about Netflix vs. Disney+ vs. Apple+ etc. or ABC vs. NBC vs. CBS etc. or magazines, newspapers, TV stations or radio stations. The day of reckoning is arriving and only the best will survive.

For radio stations that have always operated like Maynard Meyer’s, there’s no reason to fear the future. Stations that aren’t just saying they’re local, but proving it every day by their total involvement in their communities. Great radio means being dedicated and invested in operating in the public interest and fulfilling, as Dale Parsons said, “a (listener’s) compelling need for entertainment and information.”

 “In the struggle for survival,

the fittest win out at the expense of their rivals

because they succeed in adapting themselves to their environment.”

-author unknown (often attributed to Charles Darwin) updated 2/13/2022 thanks to Tom Asacker

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Choice Paralysis

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

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

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

Too Many Choices

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

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

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

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

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

ALL DIGITAL AM

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

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

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

Less is More

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

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

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

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

Just One Thing

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

One Good Reason

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

56

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

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

That’s the power of a unique brand.

Misplaced Priorities

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

Something for everyone equals nothing for nobody.

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

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

Perception is reality.

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

Elections & Radio Listening

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

I think radio may have a similar problem.

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

 

 

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DJs Get Paid More than Real Musicians

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

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

World’s Highest Paid DJs

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

chainsmokers

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

Who?

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

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

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

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

Club DJs

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

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

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

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

Radio’s Highest Paid

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

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

What’s the attraction of all of these personalities?

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

Great Radio

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

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

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

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

The Power of the DJ

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

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

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

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

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

DJs become your best friend.

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

 

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Radio’s History of Feeling Inferior

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

The Golden Age of Radio

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

Here comes TV

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

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

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

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

Radio’s Over Because of…

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

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

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

What’s Killing Radio, Let Me Count the Ways

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

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

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

Have I missed any?

FCC Symposium Sees Radio Industry Challenged by Competition and Regulation

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

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

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

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

-Joni Mitchell

What’s Radio’s Real Problem?

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

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

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

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

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

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

Smart Speakers

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

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

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

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

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

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

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

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

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

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

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

 

 

 

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Has Radio Become a Commodity?

commoditiesBy definition, a commodity product lacks a unique selling point. Two examples of what I mean are lettuce and pencils. No one has a brand favorite of either. To the consumer of both, they’re all the same. Commodities are interchangeable with other products or services, widely available, and therefore undifferentiated except maybe by price.

How about Radio?

Recently, an administrator of a radio group that I’m a member of on Facebook posed this question to the group “Rick Sklar once said jocks are like spark plugs and can be replaced with another one. What do you think?”

Now for those readers that may not be familiar with the name Rick Sklar, he became program director of WABC – 770AM in New York City in 1963. With WABC’s clear channel signal, a tight playlist that targeted teenagers and air talent which included Dan Ingram, Ron Lundy, Harry Harrison, Cousin Brucie, Chuck Leonard and Charlie Greer, Sklar made Music Radio 77 into the most listened to radio station in North America from the mid 60s to the late 70s.

Needless to say, the comments by former air personalities in the group took issue with this “spark plug” analogy, me included.

Unique Air Talents

One-of-a-kind radio personalities built radio into the listener favorite that it’s enjoyed for nearly a century. More recently, there’s Rush Limbaugh, Howard Stern (who said he was influenced by Arthur Godfrey), Paul Harvey, Super Jock Larry Lujack, Robert W. Morgan, The Real Don Steele, Dave Maynard, Joel Cash, Dale Dorman, Larry Justice, Jackson Armstrong, Salty Brine, Bob Steele, Dickie Robinson, Danny Neaverth, John Records Landecker, J.J. Jeffrey, Bill Bailey, Big Ron O’Brien, Don Imus, Bob Dearborn and so many more. Those are just some of the names that inspired me to pursue a 50-year radio career.

Each of these radio personalities is unique and the shows they presented attracted an audience that was loyal to their style of broadcasting. They were anything but, a commodity.

Computer Automation

With the advent of computer automation, the concept of voice-tracking was born. Now a few disc jockeys could be heard on-the-air over a multitude of radio stations across America. Unfortunately, this meant that customizing their radio shows to a particular radio market had to be eliminated and the DJ patter had to be appropriate for all markets the program was airing in. It became watered down and because all big box radio operators were employing the same “Best Practices,” the ownership of the station really didn’t matter as everything began to sound the same.

Contests became nationally oriented, jingles (if there were any) all sounded the same, and playlists, which once reflected regional differences and artists, were now homogenized.

On Air production, which was once an art form in and of itself, was now also computerized. The result being a disjointed, sloppy and anything but smooth radio experience.

The result of all of this was radio being turned into a commodity.

Culture Shock

“Technology is enabling great gains in convenience and diversity,” says Tyler Cowen, professor of economics at George Mason University. “What is being lost is a sense of magnificence.”

He goes on to say

“It is possible we will look back on the present day as a special time when both patterns of cultural consumption could be enjoyed in tandem and enriched (by) each other. But I suspect not. As today’s over-50 crowd slowly passes away, and our experiences fade from collective memory, I wonder if the world might be in for a bigger cultural shock than we currently realize.”

 

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Is Radio Being Disrupted or Simply Lacking the Human Factor

slide ruleI was a physics major in college. The slide rule was a necessary piece of equipment when I was going to school. Hewlett-Packard then came along and replaced it with a line of scientific pocket calculators.

When I began my radio sales career, I adopted the DayTimer written system for keeping track of my schedule and appointments. Then Palm came along and I replaced it with their Palm Pilot Digital Assistant.

When I became a general manager, I wore a pager. That soon was replaced by a Motorola flip phone.

Then Research In Motion (RIM) came along with the Blackberry and suddenly my flip phone and Palm were replaced by a single device.

I loved the size of my Blackberry Pearl smartphone and it wasn’t until I realized that the iPhone4S was the same size as the Pearl and more versatile that I switched to my first iPhone. I also saw Blackberry phones were clinging to life and wanted to adopt an ecosystem that would be around as long as I would be.

Today, I’m fully immersed in the Apple ecosystem and could not imagine what would ever get me to leave it.

Disruptive Innovation

I thought for years that these disruptive changes were due to mechanical innovation. But was that the core reason? Could it be something else?

In 1943, Thomas J. Watson of IBM is credited with saying, “I think there is a world market for maybe five computers.” And Ken Olson of Digital Equipment Company (DEC) while acknowledging the growth of people using personal computers, said he couldn’t understand why.

The Human Factor

How important is the Human Factor in the future of a company, or even an industry?

October 6, 1997: Michael Dell makes an infamously bleak appraisal of Apple’s fortunes. Asked what he would do with Apple, the founder of Dell Inc. says he would “shut it down and give the money back to the shareholders.”

Where do you think Apple would be today if Michael Dell had been put in charge? What did Steve Jobs, who had just returned to lead Apple say to Dell’s assessment? “We’re coming after you buddy!”

Jobs gave Apple a vision, backed it up with management fortitude and people with the technical skills to make the Apple vision a reality. It was those human factors that carried Apple to become one of the most valuable companies in the world.

Apple’s market value (at the time I was writing this article) was $948M and Dell’s was $27M.

Radio’s Human Factor

Which brings me around to the industry I loved for over 50-years, RADIO. The aspect of radio that first captured my attention was the radio personality. These were the people who built the relationship with the listener.

Then there was the dedicated radio programmer who created the stationality, the promotions and like a good sports coach, kept the radio stars playing together as a winning team.

While it appears, too much of the radio industry is focused these days on mechanical things, blaming it for disruptive innovation, maybe the real culprit is radio’s loss of the “Human Factor.”

“Absolutely everything begins with imagination.”

-George Johns

Howard Stern was never really replaced when he left OTA radio for Satellite Radio. Howard Stern, like him or not, has a vivid imagination. For his listeners, he creates a style of radio that they have to hear.

My favorite part of the Stern movie, “Private Parts,” is dialog between the audience researcher and Stern’s WNBC program director Kevin Metheny, aka Pig Vomit.

RESEARCHER: The average radio listener listens for eighteen minutes. The average Howard Stern fan listens for – are you ready for this? – an hour and twenty minutes.

PIG VOMIT: How can that be?

RESEARCHER: Answer most commonly given? “I want to see what he’ll say next.”

PIG VOMIT: Okay, fine. But what about the people who hate Stern?

RESEARCHER: Good point. The average Stern hater listens for two and a half hours a day.

PIG VOMIT: But… if they hate him, why do they listen?

RESEARCHER: Most common answer? “I want to see what he’ll say next.”

Does anyone want to listen to your radio station to hear what comes next?

“Radio only needs to move @ the speed of life.”

-George Johns

 

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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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Luck, Signal & Being Unique

123Back before the turn of the century, radio station owners often did market research to find viable programming “holes” in a market. Often it didn’t even take research, just an experienced radio nerd with a sense of what was to be popular. Once identified, the task was simply to put it altogether and hit the air.

Beautiful Music to Lite AC

I was in Atlantic City doing one of Bonneville’s beautiful music formats and Jerry Lee was in Philadelphia doing Bonneville’s Matched-Flow beautiful music format on WEAZ (EZ 101-FM).

Jerry Lee has always been a leader in the radio industry and with the research of Bill Moyes, they moved WEAZ from beautiful music to Lite AC and re-branded the station B101 (with new WBEB call letters too). It was a very gutsy move!

Jerry’s success with the new format saw me take WFPG-FM from beautiful music to Lite AC and re-brand as Lite 96.9 a few years later.

Timing is Everything

The year was 1989. The country would soon be headed into a recession. The format switch at WFPG-FM saw us go from #2 in the 12+ Arbitron Ratings to #1. Even better, we took the #1 positions in all the key buying demos.

As the economic conditions tightened in the early 90s, the number of stations deep being bought in Atlantic City regionally/nationally would go from five to three to one. And WFPG-FM was the one.

We delivered our first million-dollar bottom-line year in 1991. We repeated that performance in 1993. Meanwhile, the other radio stations in the market were just about making ends meet.

Signal, Signal, Signal

In real estate, the key to having a winning property is all location, location, location.

In radio, the key to having a winning property is signal, signal, signal.

WFPG-FM had one of the market’s only 50,000-watt non-directional signals at that time. Two other 3,000-watt radio stations were already programming a light adult contemporary format, but when we put that format on our huge signal, they both bailed, one changing to classical music and the other to classic rock. It left WFPG-FM as the market’s only Lite AC radio station and with the most popular music format at that moment in time.

Me Too

What I’m seeing is too many “me too” stations on the air today.

Me too is not a viable strategy.

The future for any venture in a 21st Century world is to zag when others are all zigging.

Look at any successful enterprise and you will see two things:

1) not everyone loves what they do and

2) they’re famous for what they do. (Think Howard Stern)

Howard would make Sirius Satellite Radio something special and unique. 124It’s why they forked over hundreds of millions of dollars to have Howard join their team.

What happened to the OTA radio station’s when Howard left for Satellite Radio?

They had an Excedrin headache for quite a few years.

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