Tag Archives: Internet

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  • My Nikon camera no longer goes on vacation with me, it has been replaced by the pictures I take on my iPhone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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When TV Disrupted Radio

97I grew up with TV.

Essentially, we were “born” in the same year.

I don’t remember a time when TV didn’t exist.

TV was supposed to put radio out-of-business. It was the “great disruptor.”

Why TV Didn’t Put Radio Out-Of-Business

While I loved my TV shows and even remember planning my life around TV GUIDE and the new fall shows, I still fell in love with radio and wanted to be a radio personality since elementary school and my first Zenith transistor radio.

Radio for me was never about Jack Benny or Groucho Marx or Amos & Andy or radio dramas like Orson Welles “War of the Worlds.”

Radio was exciting execution, engaging personalities and the best of new music from all genres.

Radio was addictive because it was so engaging.

Disruption Knows No Loyalties

It’s reported that as this decade began only 67 of the original Fortune 500 companies were still in business. Welcome to the 21st Century of Disruption.

The reality in today’s world of accelerating change is that the very success that rockets a company to raving success usually becomes the dagger that runs through its heart when the market environment shifts. Then new firms take over and former leaders fade into the history books.

The business truth is eventually every business sees its model fail.

Radio’s New Business Model after TV

Can you imagine a more difficult time than when TV swooped in and stole all of radio’s programs and talent? It was a time when people said things like “The last person to leave, please turn off the lights on your way out.”

It was a dark time for radio.

But not for all.

Only those who couldn’t see their way past the way it had been.

New broadcasters were quick to develop new formats.

1965 saw the birth of BOSS RADIO in Los Angeles with Bill Drake & Ron Jacob’s 93-KHJ.

At the same time 1010-WINS in New York would pioneer the all news format and everyone would know the phrase “You give us 21-minutes and we’ll give you the world.”

These new broadcasters would be the ones that inspired me to want to be a radio guy.

The Transistor Radio

Radio took advantage of the transistor radio. The youth of my day would all want a transistor radio of their very own and radio owned the youth generation.

The Car Radio

As we grew older and bought our first car, the car radio was a MUST HAVE accessory.

Movies like American Graffiti would romance the glory of the young and their radio.

The Internet of Things (IoT)

Today’s 21st Century finds radio with a new disruptor, the internet. It’s not a new product but an ecosystem.

Amazon and Walmart sell many of the same products and are quite competitive on price. The big difference is Walmart is a brick and mortar ecosystem and Amazon is internet based.

For radio to compete the industry needs to have a vision for how its product fits into a complex network of components, systems and user experience.

That’s the 21st Century radio challenge. (TV faces the same challenge.)

Today’s radio must seamlessly fit into a listener’s life on any platform the listener uses.

Disruption will crash and burn any business model that wants to hold onto the past.

Disruption will clear a path for those who are innovative, nimble and responsive to a changing marketplace.

For those broadcasters, the opportunities are limitless.

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Radio’s Best Feature

96The one constant in life is change.

What makes our world different than the world we grew up in is the rate of change in technology.

Adoption rates for technology over time according to the U.S. Census,  shows us that it took about 45 years for 25% of Americans to adopt electricity, 35 years for 25% of Americans to adopt the wired telephone, about 32 years for 25% of Americans to adopt radio, 25 years for TV, 15 years for personal computers, 12 years for mobile phones, 8 years for the internet and about 5 years for 25% of Americans to adopt smartphones.

Nearly nine in ten Americans today are on the internet and 77% of Americans now own a smartphone according to Pew Research.

K.I.S.S.

Most people who have any sales training at all know all about “KISS.”  Some say it means “Keep It Simple Stupid” and others will tell you it means “Keep it Short & Simple.”

But either way the message is the same, keep things simple.

“You have to work hard to get your thinking clean and make it simple.”

-Steve Jobs

Quite possibly our biggest challenge in the 21st Century is to keep up with the rate of accelerating change.

The More Things Change, the More They Are the Same

I’m sure you’ve heard this phrase uttered more than once in your lifetime. Every generation has thought that the rate of change was beyond their ability to cope.  A couple of centuries ago Henry David Thoreau told his contemporaries to “Simplify, simplify, simplify.”

Technology – especially information technology, the basis of our social networks – is speeding up exponentially. The famous Moore’s Law predicted this for computer chip development.

Exponential growth rate is an evolutionary process.

In his book “The Singularity Is Near” Raymond Kurzweil showed how civilizations advance through building on the ideas and innovations of previous generations, a positive feedback loop of advancement.

Each new generation is able to improve upon the innovations of the past with increasing speed.

Kurzweil wrote in 2001 that every decade our overall rate of progress was doubling, “We won’t experience 100 years of progress in the 21st Century – it will be more like 20,000 years of progress (at today’s rate).”

Only 17 years into the 21st Century and it feels like Kurzweil nailed it with his prediction.

It Still Takes 9 Months to Make a Baby

While it’s true so much of our world is uncontrollably speeding up, we are still human beings and we still pretty much move at the same pace biologically as we always have. Technology doesn’t transform our human nature.

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

Radio Reaches 93% of Adult Americans Every Week

The latest Nielsen Audio research reports “radio leads all other platforms when it comes to weekly reach (93%) among adult consumers – and with new insights available to compare radio to other platforms on a regular basis, it’s clear that radio is an integral part of media consumption for millions of Americans.”

Great radio makes a human connection, engages its community and is a companion.

Radio’s best feature in a world of complex technology is that it’s simple to use.

It’s that simplicity I believe that makes it the #1 media favorite.

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It Was the Best of Times & the Worst of Times

65Radio broadcasting began in the “Roaring 20s.” A time in America that saw the first tabloid newspaper appear. Reader’s Digest, New Yorker Magazine, Time Magazine would also be born right along with radio. It was a time of unprecedented economic prosperity and social change. It was a time of a strong backlash of racism, fear of immigration and morality.

The 1920s and the world we are living in today are not all that dissimilar. Today, the wealth inequality is greater than it was in the early 1920s.

And just like those times, almost a hundred years ago, that gave birth to radio we are living in times that are giving birth to the “Internet of Things.”

Immigration: Then & Now

After World War One ended, America got tough on immigration. The most stringent set of immigration restrictions in American history was enacted with “The National Origins Act of 1924.” It restricted the flow of immigrants from Europe (and elsewhere) to less than 200,000 per year. This fear of immigrants reignited the Ku Klux Klan. The KKK membership saw its membership rise to a new high in 1928. Reformers advocated for a more militant, less conciliatory stance.

Today the battle rages on over building a wall between Mexico and the United States and over immigration of Muslims.

Women’s Rights

While women had won the right to vote, they still couldn’t go to college and most professions still excluded women. While women could now own property, they couldn’t establish credit with a bank or get backing for a business venture.

Many felt that the only thing that changed in America when women were given the power to vote was prohibition; the 18th Amendment to the Constitution.

War on Illegal Substances

So while the United States tried to control alcohol in the 20s and failed, today we find America battling another illegal substance battle, marijuana, with much the same results.

People will find a way to do something they really want to do.

Modern Mass Media

The 20s ushered in the first decade of modern mass media. American-made films not only captured the attention of American audiences, but the whole world. Every city would have at least one movie house by the end of the decade.

Because the movies were silent, musicians were in high demand for the movies. And because radio was all live, it too needed musicians to perform during each broadcast day.

Radio Jingles

The 20s also saw advertising agencies now develop departments devoted to the creation of radio advertising and soon the commercial radio jingle was born.

The Worst of Times

The Roaring 20s would end with Black Tuesday, October 29, 1929, the stock market crash and the beginning of the Great Depression.

While this decade created favorable conditions for big business to prosper, the alliance of government and industry left labor unions out in the cold.

It was these times that radio was born.

The Great Recession of 2008 would be the environment that would see the Internet of Things born.

Today’s Big Regulatory Difference

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

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

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

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

Utopian Hopes, Dystopian Fears

When commercial radio was born in 1920, it was hoped that it would bring about national unity. Those utopian hopes and dystopian fears would fall basically into four different areas.

  1. Radio would create a physical unity in the country bringing people together as one
  2. Radio would bring about a new cultural unity as Americans
  3. Radio would make America a one language nation providing linguistic unity
  4. Radio would bring about institutional unity where everyone wanted the same things and held the same vision

I will let you draw your own conclusions on the success or failure of these goals for radio.

Internet of Things

Broadcasting in America started out as a government-assisted oligopoly. The internet did too. Both, I would argue, now fall into the unlimited category. While I realize this is definitely true for the internet, I know others would quickly point out the limited amount of spectrum for AM and FM radio broadcasting. However, with the growth of FM translators and LPFM stations, it feels like it’s unlimited.

The original system of a government preferred broadcasting system is being challenged today by the Internet of Things.

And covered in dust, is the original fundamental principle of operating in the public interest, convenience and necessity and not merely for maximum profits.

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Welcome to the Social Capital Age

64We live in interesting times. The internet has changed our world in a revolutionary way. In its current form the internet is now over twenty-years old. There are college students today that don’t know a period of time when there wasn’t an internet.

The 5 Media Revolutions

There are only five periods in world history where communication has undergone such a massive change to be called a “revolution.” The first would be the invention of the printing press and movable type. The telegraph and telephone would be the second time. The ability to take photos, record music and voice and create motion pictures would be third. Radio followed by television would be the fourth time and the digital/internet period – the period we are living in today – is the fifth communications revolution.

Each communications revolution brought with it a period of adjustment and made the world a little more connected. Entrepreneurs who could envision the future would leverage each media revolution to their economic benefit.

The Post-Digital Age

Once upon a time, people spoke of the electrical age and the computer age. You don’t hear anyone say that anymore. Slowly fading away are people calling things digital or internet. It’s when people begin to take a new innovation for granted that it begins to have social impact.

Social Capital vs. Technical Capital

In the previous four media revolutions, technical capital is what separated the winners from the losers. What makes the fifth media revolution so confounding to media professionals is that every new media device sold today creates not only a media consumer but a media producer as well. By 2020 it’s estimated that there will be nearly eight billion people living on planet earth and 65% of them will be connected to the internet. That means there will be over five billion people who will be able to create content and distribute it over the internet.

“The moment we’re living through

 is the largest increase in expressive capability in human history.”

 –Clay Shirky

Professor Shirky also says that as these new social media tools get technologically boring, they get socially interesting. In other words, as the value of technical capital goes down, social capital’s value increases.

NPR Sees Large Ratings Increase

On Tuesday, October 18, 2016 NPR reported that its multiplatform journalism has seen a tremendous audience growth. NPR President and CEO Jarl Mohn said it showed that NPR was doing a far better job of its public service mission, community engagement and local impact.

What NPR is very effectively doing is increasing the value of its social capital. It is focused on its listeners who have an appetite for strong reporting and a need to be in the know.

Today’s media landscape allows one to convene an audience, but not control them. It takes discipline to understand this change in our 21st century communications world.

Advertising’s New Challenge

Older media folks still think of media in terms of radio, TV, newspapers, magazines etc. Today any person over ten doesn’t make this kind of distinction.

Radio to my college students is anything that they can get through any media device that is primarily audio-only. Satellite radio, Pandora, AM, FM is all radio to them. Likewise is the idea of ecommerce, mcommerce or brick-and-mortar, for today’s consumer it’s just buying stuff they want, when they want it.

Birds of a Feather, Flock Together

The concept of reaching a mass audience through target demos is over. It’s no longer about age, as it is state of mind. Today the game is about reaching a unique audience that is socially connected by their interests. Shared interests are the new “local.” The future is in the careful creation of the ad itself, which speaks to the interests of the consumer and then placing it in a media environment that is in sync with the product or service being presented. Podcasters are doing this quite effectively.

Media that defines what it is, monitors all content to be consistent with that definition, will be the media that wins for both its audience and its sponsors.

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Radio’s Dilemma (or Opportunity?)

38Radio’s a business. Peter Drucker said “The purpose of a business is to create a customer.” A business also needs to make profit or it won’t be in business for very long. On that we can all agree.

Surprisingly, many business people who know this still go out of business, often because they focus on the profit part and not the customer part. Plus those businesses either never had or lost their competitive advantage.

Radio’s dilemma is it lost that competitive advantage. That being having an FCC license to broadcast. Not everyone could obtain a broadcast license – they were limited by the Federal Communications Commission (FCC) – or had the ability to profitably operate a broadcast property. Profitability is when you earn money in excess of your cost of capital.

The radio business made a lot of money. Many enjoyed cash flow margins north of 50%. Its success attracted more people into radio ownership because it “looked easy” and made a bundle of dough. As more radio stations came on the air, it drove up wages, increased competition and increased multiples for valuing radio properties when they were bought and sold.

If this type of growth and expansion was all that was taking place, the “circle of (business) life” would have seen the radio industry slow down as the overcapacity from all of the new radio stations fought over the not-as-fast-growing advertising pie. It’s similar to what happen to the casino industry as expansion took off in America after just Nevada and New Jersey were no longer the only two states to license casino gaming.

Enter the great disruptor; the Internet. Radio, as we all once knew it, would be changed forever. For the Internet would now provide the world with an infinite number of “radio” options, like Pandora, Spotify, iTunes, RadioTunes et al. All trying to be ad supported like OTA radio.

Clay Christensen wrote about what happens when an industry is disrupted in his book The Innovator’s Dilemma.  He tells the reader how incumbent companies often respond to their disruptors with disastrous consequences.

Radio looked at the Internet as a “free broadcast license” and put their OTA signals onto a stream and then tried to squeeze a little extra profit by running separate ads on the stream versus over the air. It created a little extra money for the radio business but created a less enjoyable listener experience.  Sean Ross recently wrote in his newsletter “Ross On Radio” how different and better a radio station he listens to online sounded when he actually traveled to the market and heard the same station over the air. The difference was in the breaks and it was HUGE.

It doesn’t have to be all doom and gloom.

Southwest Airlines has enjoyed four decades of profitability. Like Walmart, Southwest had a root purpose for existing. Sam Walton’s Walmart mastered logistics to keep prices to his customers low and Herb Kelleher’s Southwest focused on constant improvements to make travel by air more affordable to more Americans. Like all successful enterprises, they put the customer first and profits were the result of doing everything else right.

For radio to be successful on the Internet, it needs to create a better user experience that attracts and delights the listener or that creates a new and different user experience that will enrich the end users’ lives. Radio, over the air, FCC licensed radio has the best platform to promote its Internet products. The possibilities are infinite. But each product must have a purpose beyond just making a buck.

Businesses that grow have a purpose beyond profit. Businesses that focus their growth on profits won’t have either growth or profits.

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Radio: Landmark or Beacon

albert-einstein-2Even though it was 110-years ago that Albert Einstein would disrupt the world with how we saw the universe and how we saw time, space, mass, energy and light, we still invoke his name when a person does something brilliant. We say they’re an “Einstein.”

Unfortunately for Einstein, his groundbreaking 1905 theory that would be the foundation for a new way of thinking in physics – quantum mechanics (which gave us things like lasers, microprocessors and iPhones) – wasn’t embraced by this genius. It would be his undoing for the rest of his life.

In the world of higher education, the importance of publishing in an academic journal is more revered than publishing on LinkedIn (where other forwarding thinking professionals hangout) or on a personal blog that’s available to the world. What once was – really isn’t anymore, except to those who cannot accept that today we live in a world made up of platforms, not products.

Radio suffers from a similar dilemma. To traditional broadcasters, radio is something that needs an FCC license, radio tower, antenna and transmitter that sends a signal out over the AM or FM radio bands. I always smile when I look at my old Radio Telephone Third Class Operator Permit that I earned taking a test administered by the Federal Communications Commission at the Customs House in Boston back in 1968. Notice it had the world “telephone” in the name.

Kentucky melon farmer Nathan Stubblefield was an early experimenter in radio broadcasting. Only Nathan wanted his wife to be able to talk to him while he was driving his car from their farmhouse. For you see, in those early days no one was quite sure what this new technology would or could be used for.

“The next big thing always starts out looking like a toy,” says Chris Dixon.

So when people started streaming over the Internet and calling it “radio,” traditional broadcasters looked down their noses at it in much the same way that journalists looked down their noses at the new media platforms like Buzzfeed and Vice Media invading their world.

Einstein teaches us something more than E=mc2, it’s that we need to learn to accept the new platforms that disrupt the world as we knew it and are creating the world that will be. Radio, higher education – most likely your business too – cannot afford to be Einstein-like in our future thinking. The world is moving faster and faster. 50% of today’s jobs won’t exist in ten years.

The iPhone, the Connected Car, Buzzfeed, Bitcoin etc are all platforms.  Radio, colleges, newspapers etc. are all products. Understanding this dichotomy is critical.

In Abraham Pais’s book “J. Robert Oppenheimer: A Life” he writes that Einstein’s inability to adapt to new platforms failed him and that he became a “landmark, but not a beacon.”

And so the choice in our world today is to adapt or die.

Welcome to the age of disruption created by the Internet.

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