Tag Archives: Inside Radio

AM Radio in Retreat

While the National Association of Broadcasters (NAB) is still pursuing its goal of getting Congress to pass the “AM Radio in Every Vehicle Act*,” the number of AM radio stations on-the-air continues to shrink.

How Many Radio Stations Are There?

Inside Radio published the latest FCC radio station count and the number of AM radio stations on-the-air continues to shrink.

In 1968, I passed my 3rd Class Radiotelephone FCC License, Broadcast endorsed, it was also the year that the Federal Communications Commission (FCC) began publishing its Broadcast Station Totals reports.

At that time the FCC said that 4,236 AM radio stations and 2,306 FM radio stations were on the air.

In December 1990, the next report the FCC published became available showing 4,987 AM radio stations and 5,832 full power FM radio stations were now on the air; plus, another 1,866 FM translator/boosters.

It’s worthy to note that the general public cannot tell the difference between a:

  • Full power FM
  • FM booster
  • FM translator signal

as to the FM listener they all are received on a standard AM/FM receiver. Only broadcasters, broadcast engineers and the FCC are concerned about such distinctions.

So, in just the first two decades of my radio career, FM signals outnumbered AM signals by 2,711.

Telecommunications Act of 1996

On February 8, 1996, President William Jefferson Clinton signed into law what is commonly referred to as “The Telcom Act of 96.” The intent of the legislation was to allow more companies to operate in the communications space, but what actually happened was a flurry of mergers and acquisitions as corporate media giants bought out small, local broadcasters.

The FCC reported that as of February 29, 1996 there were:

  • 4,906 AM stations
  • 7,151 FM stations
  • 2,527 FM translators/boosters on-the-air

almost two FM signals beating the airwaves to every AM signal.

A year after the Telcom Act of 96, the number of AM signals began its decline to:

  • 4,840 (a loss of 66 AM signals in one year)
  • full power FM signals increased to 7,295 (up 144 FM signals)
  • FM translator/booster signals grew to 2,744 (up 217 FM signals)

While AM radio signals were signing off, FM radio signals were growing by an additional 361.

Ten Years After Passage of the Telcom Act of 96

On March 31, 2006, ten years after the Telcom Act became law, and the consolidation of the radio industry began, the FCC Broadcast Station Totals report listed:

  • 4,759 AM signals
  • 8,989 full power FM signals
  • 4,049 FM translator/booster signals

and now something new began appearing, Low Power FM signals (LPFM) which numbered 712,  meaning the radio listening consumer could now access 13,750 FM signals versus 4,759 AM signals.

Wall Street investors were clearly showing more interest in FM signals than AM signals as their money poured into the radio industry.

Twenty Years After Passage of the Telcom Act of 96

Twenty years after President Clinton signed the Telcom Act and consolidation continued squeezing out the mom and pop broadcasters, the FCC Broadcast Station Totals report listed:

  • 4,680 AM signals (down 307 signals from the day I began my broadcast career)
  • 10,811 full power FM signals
  • 6,582 FM translator/booster signals
  • 1,516 LPFM signals

AM signals totaled 4,680 and FM signals totaled 18,908.

Radio Broadcast Signals 2024

Which brings us to the present day report, March 31, 2024. The FCC Broadcast Station Totals report now lists:

  • 4,427 AM signals
  • 10,983 full power FM signals
  • 8,913 FM translator/booster signals
  • 1,960 LPFM signals

Remember, the radio listening public DOES NOT distinguish between the different classifications of FM signals, as they all appear on the same FM radio receiver they are using.

To the radio listener, they have

4,427 AM signals compared to 21,856 FM signals

they can access. Almost 5 times as many FM signals as AM signals, and each year we witness those AM signals either reducing their power or just signing off-the-air and turning in their FCC broadcast license.

Radio Dominates in Vehicles

The latest research from Quu ( www.quureport.com ) shows that in 2023 model vehicles:

  • 100% of them have an FM radio
  • 98% of them have an AM radio
  • 98% of them have Android Audio
  • 98% of them have Apple CarPlay
  • 92% have SiriusXM
  • 70% have HD Radio

What surprised me about this research report, was that this was the first time I’ve ever seen separate AM and FM numbers listed. All reporting about radio usage should list AM and FM listening separately. I feel it is disingenuous to give the false impression that AM and FM broadcast signals contribute equally when that’s clearly NOT the case.

Having access to an audio service does not equate to usage.

Fred Jacobs in his TechSurvey 2023 for example, revealed how HD Radio was only listened to by 16% and SiriusXM was only listened to by 28%, which shows that despite their high availability numbers in vehicle dashboards, usage is still low. Unfortunately, AM/FM is never broken apart, but listed together so can they can garner 86% of the listening.

I’m thinking that both HD radio and SiriusXM usage might eclipse AM radio listening, if we were allowed to see AM and FM usage shown separately.

Vehicles On The Road in America Today

According to S&P Global Mobility, there are 284 million vehicles on our roadways and the average age of them continues to rise to a new record of 12.5 years. About 23% of all passenger cars now are 20 years or older with the bulk of them made between 2015 and 2019.

By 2050, when electric vehicles are projected to make up 60% of new sales, the majority of vehicles on America’s highways will still be powered by gasoline, because most vehicles today last twenty years meaning AM radio will still be in most cars, but the bigger question is how many AM radio stations will still be on-the-air.

Radio Needs To Look Forward

In ten to twenty years, AM radio will be at best a niche way to listen to audio.

Where the radio industry and the National Association of Broadcasters should be focusing their time is keeping FM radio viable, in all vehicles and FREE!

Sadly, the FM band is becoming overcrowded with signals and this, I believe, needs to be seriously addressed.

Finally, I would like to believe, as does Scott Shannon, that radio can still succeed in the 21st Century if it will just be “authentic, local, magical, and deliver an audio product with passion.” Or as radio programming consultant and author Valerie Geller puts it:

Great radio is interesting people communicating with listeners

by telling the truth, making it matter and never being boring.

11 Comments

Filed under Education, Mentor, Radio, Sales

The Importance of Free Speech

Tom Taylor NJBAI had the honor this past week to attend the 71st Annual New Jersey Broadcasters Association (NJBA) Conference and Gala held at the Tropicana Resort and Casino on the Boardwalk in Atlantic City.

I plan to share more information about this East Coast NAB style event in a future blog, but today I want to focus on something Tom Taylor said that I feel is critically important for all broadcasters to hear.

Tom Taylor Receives Lifetime Achievement Award by NJBA

I’m sure, like me, you are still experiencing some “Tom Taylor Now” withdrawal since the time Tom announced his retirement in December of 2018 and his daily coverage of the radio industry ceased publication. For anyone who’s lived around the Philadelphia area, Tom’s style was akin to that of Channel 6’s Action News. You got all the news you needed to know, delivered in an easy to digest style, sometimes accompanied by a sense of humor.TT NOW

NJBA President/CEO Paul Rotella and his Board of Directors’ selection of Tom Taylor for his 31-year run as a radio trade journalist was well deserved.

How It All Began

Tom was the son of a radio broadcaster. He was born in North Carolina and started at a radio station where his dad once worked.

Tom moved to New Jersey over 40 years ago to program the heritage WPST in Princeton, New Jersey and he has lived in the Garden State ever since.

Tom left WPST after 12 years with the title of Station Manager and Vice President of Programming for Nassau Broadcasting to begin a career in radio trade journalism. First for Kal Rudman’s Friday Morning Quarterback (FMQB) and then to Jerry Del Colliano’s Inside Radio, both based in Cherry Hill, New Jersey.

For the last six years of Tom’s radio trade journalism career, he rejoined Robert Unmacht and Kristy Scott to form RTK Media and publish Tom Taylor NOW – Radio’s Daily Management Newsletter. That publication ended on Friday, December 28, 2018 with Tom writing his “Final sign-off for the daily Tom Taylor NOW Newsletter.”

Tom’s “One Quick Word About Journalism”

In his acceptance speech, Tom said something I believe all broadcasters should hear about the importance of journalism in today’s world and the role of radio/TV operators in carrying out our responsibility to the communities we are licensed to serve. Here’s what Tom said:

“I spent 31 years as a New Jersey-based trade journalist. During that time, no boss or business partner ever said ‘Don’t do that story, because it will make somebody mad.’ Or, ‘be nice to so-and-so.’ More than ever, we need to support good journalism. And as local broadcasters, the responsibility is especially on us, because people look up to us – or down to us – as ‘the media.’ We’re really in the crucible.

This is something I said at the opening session of the recent NAB Show in Las Vegas – Regardless of your politics, does anyone in this room really believe that journalists are the enemy of the people?

Mark Twain said this – ‘Free speech is the cornerstone of every right we have.’

Let’s not forget that – or why we became broadcasters in the first place.

There’s an old joke, where the guy says ‘I wanted to be on the radio when I grew up. But then, I was told I couldn’t do both.’ On the inside, part of us is still a little kid, and that’s probably a good thing. But the rest of who we are is… (are) grownups who have a responsibility to the community. As long as we remember that, we should have listeners (and podcast users, and video consumers, and social media fans).

Here’s the other thing I said at the NAB Show – Plan well. Try new things. And adopt some extra confidence and pass that along to the folks who work for you. It’s contagious. And as you go home from Atlantic City – keep having fun with broadcasting. Because I believe, and I’ll bet you believe, that it’s still magic.”

Thank You Tom

Tom Taylor is still an inspiration to broadcasters everywhere and I’m grateful for this friendship that has spanned over 35 years since moving to Atlantic City, New Jersey in 1984 and becoming a member of the NJBA.Sharan & Tom Taylor

You and your lovely wife Sharan, have earned your retirement.

Live well. Live long. And be happy.

 

P.S. Scott Fybush produced a podcast with Tom Taylor and you can hear that HERE 

The part with Tom begins in 11:16 minutes into the podcast.

8 Comments

Filed under Education, Mentor, Radio

It’s Like Mowing the Yard When the House is On Fire

Screen Shot 2018-01-30 at 1.38.20 PM copy

Ladies & Gentlemen, we have a problem. Our business model is broken.

Trying to make your daily, weekly or monthly budget while ignoring the 800-pound gorilla in the room is akin to the title of this article.

The Big Disconnect in Local Media

Nancy Lane is the president of the Local Media Association. Her latest article on LinkedIN really caught my attention. Like the fact that only 1% of publishers/station managers/GMs agree that their sales reps do a good job when it comes to selling digital. Why do you think that might be?

Gordon Borrell Knows

LMA research notes that most traditional media sellers have too many things to sell, making it hard for them to be consultative.

I’ve been hearing Gordon Borrell tell broadcasters exactly what they need to do to grow their slice of the ad pie for a couple of years now. At seminars I’ve attended, Gordon always adds that the companies doing the best job of growing their digital sales, employ sales people dedicated to only selling digital. It’s probably why this month Gordon Borrell was quoted as saying, “The pool of dollars is stunningly large, and radio often doesn’t get more than a ladle dip in the shallow end.”

Finding Good Sales People

If you’re a sales manager, director of sales or GM, the best way for you to find good sales people would be if your current staff would recommend working for your broadcast station, right?

Well, Nancy’s LMA found in their research that current media employees recommending others to work at their company came in at a 3. To put that number in perspective, the company that does this kind of research for all industries, found historically with all of their clients, that an average score for employees recommending their company as a good place to work was 36. In fact, the company hired to do the research by LMA had never seen a score of 3 before. It was the lowest they’ve ever seen in the history of their research.

That news alone should be a BIG wake-up call to everyone in media, since talent recruitment/retention was cited as the #1 challenge.

Digital is a Marathon, NOT a Sprint

A couple of the hard realities of digital is that it will take a long-term commitment and there still isn’t an overall business model to effectively monetize the audience being attracted.

Another hard reality is that the time to see a return on a company’s digital investment is longer than many CEOs want to hear about, plus the digital margins won’t look anything like the fat margins enjoyed by legacy media companies of the past.

Just One Example

To try and put all of this into a little more in perspective, let me share some of the cold hard facts shared in an article titled “Thinking of Starting a Podcast, DON’T.”

Jordon Harbinger writes “We are in the golden age of podcasting.” So why when asked if everyone should be starting a podcast does he give this super complicated advice: “DON’T.”

Here’s why, Harbinger has been hosting a podcast since 2006 (The Art of Charm) and candidly admits that if he had to start all over again today, he’s not sure he would. “It’s never been easy and it’s not easily profitable,” says Harbinger.

Today, Harbinger says his podcast is grossing about $480k/year, but in the beginning, he was spending around $10k/month with no promise of an immediate return on that investment. In fact, he suspects if you were to add it all up, they’d be just barely in the black after six years.

The Problem is Us

Bob Hoffman, aka The Ad Contrarian, says that technology has impacted all aspects of the advertising business. Before technology, ad folks were flying by the seat of their pants and their gut. However, Bob says now that we have technology, he’s not convinced we still have any better reality of what works and what doesn’t.

Hoffman sums it up this way, “In my mind, advertising technology has lost its credibility for two reasons. First, we haven’t acknowledged the unanticipated consequences of what has ensued. Second, we have refused to act honestly and correct the errors of our expectations. Instead we have created an ongoing crisis of credibility with a constant stream of half-truths, lame excuses, and public scandals.”

If digital is our future, we have to fix this big disconnect.

Going Deeper

The Local Media Association has offered their research report for FREE and you can download a copy by following this link HERE

As LMA President, Nancy Lane puts it, “One thing is clear, the disconnect is hurting the industry’s ability to move the needle when it comes to growing digital. Politics, defensive postures, silos and more still exist. That needs to end tomorrow and only strong leadership will change that.”

4 Comments

Filed under Education, Mentor, Radio, Sales

History’s Technology Rhyme

Transistor Radio, Car Radio and Rock & Roll

Transistor Radio, Cars & Rock ‘n Roll

I’ve written before how history never repeats itself, but usually rhymes. So when I was reading an article in the NY Times about “Tech’s ‘Frightful 5’ Will Dominate Digital Life for Foreseeable Future” it hit me. Here was how history was rhyming when it came to communications. Fasten your seat-belt, this will get bumpy.

What this article’s author Farhad Manjoo wrote was how Amazon, Apple, Facebook, Google and Microsoft (others include Netflix in this mix) came along at a perfect time to roll up their user base. They were in the right place, at the right time in other words.

Geoffrey G. Parker, a business professor at Tulane University has co-authored a book called “Platform Revolution” where he explains how these tech companies were able to ride the perfect wave of technology change – that being a decrease in the cost of IT, an increase in connectivity and the introduction/fast adoption of mobile phones.

And when it comes to advertising, these companies are in the right place to leverage digital marketing and enjoy most of the benefits of this growth area as well. In fact, since there is a sense that these major digital companies will receive most of the online advertising monies, traditional media – like radio & TV – could see advertising monies return to them.  Let’s hope that happens.

So, where’s the rhyme in this story? Well consider this other time in communications history when television burst onto the scene after the end of World War Two in the 1950s. Radio, a lot of people thought, would cease to exist. Radio’s stars, programs and advertisers, to a large measure, jumped into television. Radio had to find a new act.

Radio was in the right place, at the right time for the birth of three things when TV came along; the transistor radio and the car radio. Both of these technology advancements would be the savior of radio along with one other important development; rock ‘n roll.

Radio was in the perfect place to ride the baby boomer youth wave of rock music, cars and transistor radios. Television grew in large measure by scarcity, only two or three television networks and few TV stations.

When broadband came along, that scarcity factor went poof. Radio now sees its dominance in the car being challenged by a digital dashboard.

The newest radio format to have come into existence – all sports/talk – is now 29 years old. Clearly, innovation in the radio world has stalled.

The good news is radio in America has more reach than any other form of mass media. The bad news is it sees annual erosion of its TSL (time spent listening). This can be fixed. To do this, radio needs to address the very factors that are causing its TSL to erode.

The thing most often heard from consumers about what they dislike about radio are its commercials. Yet, commercials don’t have to be a tune-out factor. No one tunes out the Super Bowl when it’s a blowout because they want to see what other clever commercials might still be coming on their television.

Most radio stations long ago did away with their copywriters. These masters of the spoken word who can craft a story about businesses need to be enticed back into the radio business at every radio station.

The number of commercials in a break needs to be reassessed by the radio industry as well. You can’t kill the goose that lays your gold revenue egg and expect it to continue to lay you golden eggs.

Bring back personalities. They not only sell the music (the record companies need you!); they sell your station and through live reads, your advertisers’ products and services.

Those who remember Paul Harvey News & Commentary will tell you that page two (his first live read commercial) was always something you turned up the radio for. I remember reading Paul Harvey brought in more money for the ABC Radio Network than everything else they did. And everyone loved Paul Harvey’s commercials and bought the products he talked about.

I think retired CBS Radio President Dan Mason said it best when he said this about radio:

“Without community and companionship, we have nothing.”

14 Comments

Filed under Education, Mentor, Radio, Sales, Uncategorized