Tag Archives: KZIA-FM

Radio Has a Passion Problem

This past week, a post from Bridge Ratings President, Dave Van Dyke, has stuck with me as I’ve read all the various news articles about trying to “Save AM Radio.” What the radio industry seems to be missing, the problem is more than AM, it’s about broadcast radio in general.

Houston, We Have a Problem

Apollo 13 had just experienced an explosion and astronaut Jim Lovell called mission control in Houston to report the problem. I think that’s exactly what Dave Van Dyke was doing when he wrote:

“With so much competition for ears over the last 22 years, radio has felt the brunt of all that new tech resulting in severe passion erosion for media that once had the playing field all to itself. Radio’s saving grace are aging boomers unless somehow, radio reinvents itself.”

And with those comments, Dave posted this chart:

CES2023

At the beginning of every new year, Las Vegas is the focus for what’s coming with the Consumer Electronics Show, known simply as CES.

Fred Jacobs shared his visit to the DTS AUTOSTAGE booth and when he asked the booth’s presenter to demonstrate the radio, the person said, “you mean satellite radio?” And then, still confused by the question, started naming different streaming services.

For me, that snippet was both, very telling, and at the same time, sad.

Maybe It’s Time to Give Away Radios, Again

Back when AM radio ruled the airwaves,  Jerry Lee was trying to build an audience to his Philadelphia FM radio station, he began giving away high quality FM only radios that were tuned to WEAZ 101.1 FM.

Working in Iowa, I remember KZIA 102.9 FM was one of the first stations to begin digitally broadcasting and promoting their new service by giving away HD Radios that could pick up the broadcasts.

Last week, Maynard Meyer, owner/operator of KLQP 92.1 FM in Madison, Minnesota wrote in the comments section of this blog:

“Perhaps if radio stations made actual radios available, people would know what they were! We sell them in the lobby at the radio station and we can’t get them in fast enough. The last time I got a half-dozen in, I posted it on our Facebook page…sold them all and had 28 more people asking for one. I sell basic little pocket size AM/FM/Weather band portables about the size of a pack of cigarettes for $20. Believe it or not, there is a demand for a basic radio receiver but they’re rarely available in local stores (one local hardware store actually has a couple on the shelf at all times. Newspapers sell subscriptions, radio stations should sell radios! Come on people, think outside the box! When you need prizes to give away…get some radios! When people come in looking for prize donations…give them radios! Ask your local stores to stock a couple of radios. If people don’t know what radios are…it’s radio’s own damn fault!”

What is radio?

Radio is sound communication by radio waves,

usually through the transmission of music, news,

and other types of programs

 from single broadcast stations

to multitudes of individual listeners

equipped with radio receivers.

-Encyclopedia Britannica

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Radios Go High-Definition

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

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

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

Solving a Problem That Didn’t Exist

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

Industries Most Disrupted By Digital

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

Education – Disruption Ahead

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

Where Are The Radios?

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

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

Elephant in the Room

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

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

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

The $64,000 question is how.

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