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What I Recently Witnessed About Radio Use

Sue & I just returned from a seven week trip out west to visit our children and grandchildren who are living in Nevada, Montana and Washington. For me, our trip would also be a chance to witness how radio is used (or not used) in three different households, as well as in hotels, businesses and public transportation. What I would witness, was concerning.

Nevada

In Nevada, I noticed that for a household of seven, not a single radio was to be found. Audio was accessed by asking Alexa (Amazon Echo) to play something or a particular playlist was sent wirelessly to speakers via someone’s iPhone. Everyone, even the very youngest grandchild, who’s five, had their own iPhone.

In a house where both parents work, and can be called out at any hour of the day, this type of communications for all family members becomes a necessity.

Radio listening, if done at all, was something only done when in the car. Television, was connected to a cable bundle and only CNN or Netflix seemed to get viewed. The grandkids spent most of their time playing video games on the house computer, game console or their iPhones.

Montana

Here a Sonos home speaker system had been installed in the home. I found that two different local radio stations (country & classic rock) were programmed into rotation, along with an Amazon Echo smart speaker. Our grandkids called up songs they wanted to hear by asking Alexa to play them, so in the week we spent, Alexa was pretty much the default choice for anything musically played.

Television programs were all streamed via YouTube TV.

Radio pre-sets in the car were set to several country stations, several classic rock stations, several contemporary music stations and an oldies station. In all, 22 different radio stations were loaded onto the pre-sets. I added KBMC to that pre-set list when we borrowed the car a couple of times. KBMC programs a variety of jazz and classical music.

Washington

Our stay in the State of Washington took place on Whidbey Island. The only radio signal licensed on the island plays regional Mexican music and the majority of its content is in Spanish. So, it wasn’t surprising to find the pre-sets on the car radio did not include KNZW – La Zeta 103.3.

What was surprising was to see that all the pre-sets were to HD1 signals in this Mazda 6 sedan. (It appears Mazda has their radio default to HD signals and you have to toggle it off to get FM signals.) Since the island is just across the water from Seattle, all of the pre-sets were to Seattle radio stations. The two that dominated the listening in the car were KSWD (Audacy’s 94.1 The Sound) when mom was behind the wheel and KQMV (Hubbard’s Movin’ 92.5) when either of the grand kids got control of the radio. However, what is dispiriting to witness is how frequently the radio stations get changed whenever something comes on that they don’t wish to hear. When commercials come on, the station gets changed. Likewise, when songs they don’t like come on, the station gets changed. It’s like watching football using the Red Zone.

Here again, not a single radio receiver was to be found inside the home.

The Bus & Hotels

When we departed Whidbey Island, we took a bus into Seattle. On the bus we listened to KSWD 94.1 The Sound out of Seattle. It provided a nice sound track for the ride and the bus driver never changed the station for the two hours it took to reach our destination.

Every hotel room we stayed in featured flat screen TVs but none had a radio. The old clock radios have been replaced by digital clock/USB charging stations for our iPhones, iPads and laptop computers.

Summing It All Up

I realize there is nothing scientific about this, it’s all anecdotal, but it was a dose of reality that confirms much of the research I’m reading about today’s radio landscape.

No one in our seven weeks on the road tuned into any AM radio station. FM, was radio to everyone, but then, only in their vehicles. Listening to radio in the home was not possible, because there was only one radio in any of the homes we stayed at and that was in the garage.

HD Radio sounds great, but in all honesty, the one family that had this easily accessible in their car, probably didn’t know that’s what they were listening to and it certainly wasn’t the reason they were listening to any particular station.

With the exception of our two hour bus ride, radio exposure could be measured in short segments, that only happened to occur because the radio comes on with the ignition switch. Sadly, changing radio stations occurs constantly, so any commercial content never gets heard.

Likewise, businesses we frequented either had their own franchise “radio station,” like Walmart Radio or streamed a music channel from some other music service they subscribed to.

In our travels, we didn’t see a TV commercial, billboard or bumper sticker for any radio station. Lots of shirts and sweatshirts promoting lots of things, but not one for any radio station.

Radio, it would appear, has become the Rodney Dangerfield of media.

“We don’t get no respect.”

But then maybe, it’s a self-inflicted situation

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The Era of Stand-Alone Electronic Devices is Ending

111It was 10-years ago this past Thursday that the iPhone went on sale. On that fateful day, I was using a company issued Blackberry Pearl. It was such an amazing upgrade from my old Motorola flip-phone that I got a couple of years earlier.

Cell Phone Evolution

It was 1983 that Motorola introduced the DynaTAC 8000X Advanced Mobile Phone System. It was with the DynaTAC in his hand that Michael Douglas told the world “greed is good” in the movie “Wall Street.”

This phone could make and receive calls from almost anywhere. But that was it.

I never had one of those phones, my first cell phone was a bag phone that sat in the front seat of my car with a wire running out of a rear window connected to a magnetic antenna on my car’s roof.

Only six years later, the Motorola MicroTAC 9800X would become the first truly portable phone. Having this phone was a real advancement as it now fit onto a belt clip and went everywhere I went. However, I was still using a Palm Pilot to keep track of my calendar, contacts and other notes and a Nikon Coolpix to record radio station events for posterity.

In 2004, I got my first Blackberry and in 2007 I upgraded to a Blackberry Pearl.

None of these phones really changed my life other than they got better at making and receiving calls, sent & received text messages and company emails could be sent and received. I still relied on other single use devices to do the other things in my life.

My 1st iPhone

One of my problems with iPhones were how big they were. I grew to love the size of my Blackberry Pearl and didn’t want to go backwards to a larger phone. (Later I would learn it was the huge cases people put their iPhones into that made them so large, not the phone itself.)

My second Apple device, after my iPod Classic, would be an iPad2, purchased in November 2011. I wasn’t sure why I needed one, but since I was teaching at a university to the next generation of broadcast students, I thought I needed to stay up with the technology.

I quickly fell in love with my iPad and realized I now knew how to fully operate an iPhone.  So, in January 2012, I purchased the latest iPhone that had just come out, the iPhone4s. The iPhone4s was actually more compact than my Pearl and I would store it in a leather sheath just as I had with my Pearl.

The iPhone4s WOULD change my life!

The Beginning of the End

The day that Apple introduced the iPhone4s – October 4, 2011 – was one day before the death of former Apple CEO and co-founder Steve Jobs. The “s” stood for Apple’s new voice assistant Siri. (Siri would not be the first intelligent personal assistant but would be the one that would start a new round of innovation giving birth to Amazon’s Alexa and the Voice Activated Devices I wrote about last week.)

Equipped with my new iPhone4s, I quickly converted my entire contact file from Palm to Apple. My calendars – both personal & professional – were converted to my iPhone and iPad. My Nikon Coolpix began to gather dust as all of my pictures would be now taken with my new iPhone4s.

Being new to the Apple ecosystem, I signed up for the iCloud and iTunes match to connect my PC, iPad and iPhone all together. I was surprised to learn that many Apple devotees didn’t use these internet connected systems. But then I didn’t realize they only came on the scene a few months before I got my first iPhone.

Very quickly my iPhone4s replaced my camera, my video camera, my Palm Pilot, my cassette recorder, my note pad, my desk calendar, and even my iPod Classic. It became my way to email, text and make calls. My landline phone was discontinued the day I got my iPhone4s.

My unlimited data plan allowed me to stay connected to Facebook, LinkedIn, Twitter and Google Search. My phone became my resource for breaking news and if severe weather were imminent it would immediately alert me of pending danger.

Would bad weather cancel classes? My iPhone4s would alert me of any delayed opening or closing.

Very quickly my iPhone4s became one of three things I would not leave my house without: those being my wallet, my car keys and my iPhone.

Noteworthy is that Apple has made privacy “a fundamental human right” and is the only consumer-oriented technology giant with a business model not based on sucking up tons of personal data in order to target advertising to consumers, writes the Economist. In fact, this online business magazine says “the end of stand-alone electronic devices, however slick, is coming to an end.”

The End of Single Skill Students

What I’ve seen change in just the last seven years as a broadcast professor are the needs of the broadcasting industry in terms of what they want graduating students to know when they enter the workplace. In a word, EVERYTHING!

They need to be equipped with the “Swiss Army Knife” of skill-sets.

They need to be able to write for broadcast – online web-pages – social media, take pictures, take & edit videos, record & edit audio and so much more. Where once each one of these tasks was a single skill, today’s broadcaster needs to be able to it all. Much as we require of our electronic devices.

Cutting the Cord

When my laptop died, I replaced it with a MacBook Air. When it was time to replace my desktop PC, I bought an iMac. My iPhone4s has been replaced by an iPhone7 (that has as much memory as my MacBook Air) and AirPods. And when I moved to Virginia, I “cut the cord” on cable TV and went with AppleTV.

Everything is tied to the Apple ecosystem – iCloud, iTunes Match and to each other.

What I still enjoy using are my BOSE Wave Radios (I have two of them), my Garmin GPS and my car radio.

However, I know that my students have no such need for anything other than their smartphone.

And they are the people who will determine the future of broadcasting by the choices they make.

For radio the game will be less about numbers and more about attracting and engaging with a specific audience by super-serving their needs, wants and desires to such an extent they will find you on whatever device they choose to listen on.

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The Outlook for Radio vs. Print

John Cassaday retired. For a quarter of a century he had an up-close and personal view of the communications revolution. For sixteen years he was the CEO of Corus Entertainment, a leading Canadian media company. When he stepped down from that position in March of this year, he was asked to reflect on the broadcasting industry. I was most interested in his thoughts about the outlook for radio.

What’s the outlook for radio?

Cassaday was asked that question by The Globe and Mail. He responded:

“Radio is probably the most sustainable traditional medium. It’s becoming the only truly local advertising opportunity.”

The thing that separates chronically positive people from everyone else is that while they know everyone has their problems – it’s a part of life – it’s that they keep in perspective, that adversity brings growth. But what happens if your medium is headed for a cliff?

What’s the outlook for print?

Print aka newspaper revenue was over a $65-Billion (adjusted for inflation) behemoth as the world approached 2000. The current trend line has it eroding to less than it was in 1950; a little over $17-Billion. But it’s worse than that.

NYU professor Clay Shirky sees print revenue headed for a cliff.  One of the tipping points will arrive when the cost of printing the paper is more than the advertising dollars/subscriptions that support its printing. But that’s still not the worst of it.

Shirky believes there’s another even more important tipping point that will occur before the one I just mentioned. That’s the one concerning the psychological threshold for the advertiser. The point where the amount of papers printed and distributed no longer justifies the investment in this form of advertising. How attractive will print advertising be when it no longer delivers the massive audience that an advertiser desires? That’s the point when revenues go from bleeding to hemorrhage.

One of the suggestions Shirky puts forward for newspaper owners is to get their best customers to think about getting the paper more as membership than a subscription.

The NPR Membership Concept

The concept of having people so loyal, so dedicated to the content you create that they want to be part of the family is the powerful concept that has been used by public radio stations to raise the necessary funds they need to operate. But let’s be clear, NPR has made a major investment in content creation and serving it up on any platform a member desires.

Much as HBO used to say “It’s not TV, its HBO,” NPR could just as easily proclaim “It’s not radio, its NPR.” And if you think that’s absurd, more than one focus group has shown that people, who say they don’t listen to radio any more, still listen to their local NPR radio station and support it through membership.

The iPad was never going to save newspapers

Shirky says you can add the iPad saving newspapers to the long list of cruel jokes Steve Jobs played on the media industry. Jobs was always about doing what was right for Apple. How do you think Apple became the most valuable company in the world?

Google+ is not Facebook

Even media companies that we think have all the answers, don’t.   Google+ was a bad Facebook. Instead of trying to figure out a new niche that wasn’t being served and doing an incredible job, Google created Google+. The world wasn’t asking for another Facebook. This isn’t all that different than HD Radio. The world wasn’t asking for another type of FM radio either. The digital difference for the radio consumer has never been seen as a “must have.”

Shared interests is the new local

It’s clear that while geography used to be the only thing that defined what it meant to be “local,” going forward local is going to come to mean people who share similar interests. To a substantial portion of the population, where they live may indeed be the very interest they share. But radio operators will need to clearly identify and serve those interests if they are to survive and thrive. Leverage the opportunity to deliver desired content to your “members” or someone else will.

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Who’s in Their Ear?

When radio was first introduced, to listen to it, you needed to wear headphones. Radio was one-to-one and very intimate. As the technology evolved the radio speaker would change the medium from one-to-one to group listening. Radios were expensive. If you owned a radio you shared it. A family would gather around the radio and listen together. Families would transfer this together media habit to TV and the transistor radio would become the refuge of teenagers who wanted to go in a different direction.

Zenith Transister Radio

My first radio was a Zenith transistor with a little ear piece for one ear. I would go to bed and turn it on under the covers and listen to “the world.” It was all AM radio and after sunset, the DX’ing of the nighttime skywave would always bring a new radio station into my ear to savor.

In the mid-70s the Boombox would be introduced to America and these radios grew both in size and the amount of bass they 1could produce. By the 80s they could be as big as a suitcase and carrying them around on your shoulder was a status symbol.

Go to a beach resort, and whether you were walking the boardwalk or on the beach, radios were blasting music from every direction.

When Y2K didn’t impact our fully computerized radio stations, we all breathed a short-lived sigh of relief because it was quickly followed by a new threat; the iPod and ear buds. Once again listening to music became a very personal activity.

The ear buds would transfer to the iPhone and iPad. The introduction of the iPhone6 may have killed the iPod, but not the use of headphones or ear buds to listen to your audio.

So what exactly are all those people listening to? lady listening with ear buds

The latest research from Edison Research says American Teens are spending more time with streaming audio services from places like Pandora and Spotify, than they are listening to either streaming AM/FM radio or over-the-air radio. Edison reports this finding in their fall 2014 “Share of Ear” report.

Remember it was my generation that grew up hooked on radio & TV that were credited with eroding newspaper readership. (Full disclosure: I read all my news online using my computer, iPad or iPhone.)

It’s not all bad news for AM/FM radio. It is still popular Edison tells us “by a significant margin among all other age groups.” So where did the teens go? Pureplay Internet streamers. What do they love most? The ability to skip a song they don’t like.

That’s really not hard to understand. I love my DVR for a similar reason. Especially when it comes to award shows. I never watch them live anymore. I record them for later viewing and I can watch a 3+ hour awards show in about 20 minutes time. I skip all the bad parts.

In fact, I rarely watch anything on TV live anymore. Everything is recorded so I can control it. So is it any surprise that teenagers once they are given this kind of control will ever want to give it up. A new habit is being formed.

The other aspect about pureplays that AM/FM radio could be addressing is their complete focus on the quality of their streaming product. What I’m hearing is a clean commercial insertion. Nothing gets cut off in the middle or repeated multiple times in the same long break. Pureplays deliver their commercial messages in a style that compliments the music programming; in a way that actually has you enjoying listening to the commercial message.

The teenagers have moved their listening to streaming and podcasts. The spectrum auction being held by the Federal Communications Commission is all about creating more wireless connections for all kinds of mobile devices.

I live in South Central Kentucky. I can stream my iPhone into my car’s seven speaker sound system through Bluetooth and everywhere I drive it’s clean and clear with no dropout or buffering. It’s scary good. It’s as easy to do as turning on my car’s audio system. Nothing to plug in or connect. It happens automatically.

South Central Kentucky is also blessed with some excellent over-the-air radio stations. So they very effectively compete, in my opinion, with streaming. But I wasn’t raised on streaming. I also like a good air personality.

The next generation is being raised on streaming that they have some power over to skip things they don’t wish to hear. Reminds me of the old saying “How are you going to get the kids back on the farm, after they’ve seen New York?”

baby listening to ear buds

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