Tag Archives: Las Vegas

CES 2019

Dave - 2001 .jpgI wasn’t at CES 2019. In fact, I’ve never been to CES.

But after reading the reports on this year’s Consumer Electronics Show (CES) in Las Vegas, I feel like I was there 50-years ago via Stanley Kubrick’s 1968 motion picture phenomena “2001: A Space Odyssey.”

Technology Integration

The Radio Advertising Bureau (RAB) did a special video they called “Bonus Report of C-Suite Radio Exec’s attending CES” and some of the comments those radio executives made is what made me feel like I’d seen this “movie” before.

Steve Goldstein

Steve said that what he’s marveled at over the years is how media is continually being integrated. He said only a couple of years ago, there was virtually no mention of smart speakers, and this year it’s not only a device exploding in the home, but now is coming into the car too. Goldstein thinks this voice activated technology is important because these devices are not radios, but audio devices and radio stations, as audio content producers need to re-imagine how they will sound and feel like on these devices. And he added, “it’s happening fast!”

Dennis Gwiazdon

Before recently moving to Las Vegas to manage the Beasley Media Group radio stations in that city, Dennis ran the top radio stations in Nashville, TN. When I was teaching at the university in Kentucky, Dennis was an annual guest in my Broadcast Capstone Class.

Dennis said of his visit to CES 2019 it helps radio broadcasters to think about where things are heading and to plan for the future.

Technology today is making our lives simpler by our ability to talk to our devices and connect ourselves to things we used to have to physically operate. Gwiazdon told the RAB that he lives in a smart home in Las Vegas and it’s fascinating to him how he can walk around his house, talk to it and make it do whatever he wants it to do. “I don’t have to touch a light switch, I don’t have to adjust the thermostat, when I come home I can have a routine set-up that will have everything ready for me when I walk through the door.”  “I’m living in that experience now, “said Dennis.

I’m Sorry Dave, I’m Afraid I Can’t Do Thathal 9000

And it was Dennis’ comments that brought to mind the astronaut named Dave in “2001: A Space Odyssey” that when his space pod was trying to re-enter the mother ship and Dave asked the HAL 9000 computer system to open the pod bay doors. Here’s a link to that memorable moment: https://www.youtube.com/watch?v=ARJ8cAGm6JE

HAL’s response to Dave was “I’m sorry Dave, I’m afraid I can’t do that.” The reason was that the HAL 9000 computer could not only respond to voice commands but, it turned out, could also read lips and knew what Dave and his fellow astronaut were planning on doing. They were planning on taking the HAL 9000 off-line because they suspected the computer was making mistakes.

The HAL (Heuristically programmed ALgorithmic computer) 9000 was basically artificial intelligence that was designed to learn, grow and protect itself from attacks. HAL sensed he was coming under attack and was trying to protect itself from the humans.

iPhone 4S

iphone 4s

Oh, it all seemed so innocent back in 2012 when I switched from my Blackberry to my first iPhone. It was the iPhone 4S. The “S” stood for Siri. Siri was my first voice activated assistant.

I found that I used Siri mainly for dictating text messages and emails rather than trying to type things into the phone’s touch screen. Siri did a pretty good job too.

Occasionally I asked Siri to tell me a joke or look something up for me, but not often.

Alexa

So now it’s 2019 and I have Siri on my tablets, my MAC, and iPhone 7. I have three Amazon Echo’s with Alexa, and in my car, my Garmin Smart Drive responds to my voice commands.  It sends me instant traffic information and detours when necessary, along with important weather alerts and breaking news.

I really feel like Dave in 2001, controlling so much of my world with just my voice.

It’s quite addictive and it happens very fast.

I hope they don’t ever turn against me.

Artificial Intelligence

Elon Musk and Stephen Hawking have both warned that AI (artificial intelligence) could potentially be very dangerous. Stanley Kubrick and Arthur C. Clarke certainly showed my generation why, back in 1968. AI is about building machines that think for themselves and grow in their intelligence. It’s what will make a world of self-driving cars, and so much more, possible.

Elon Musk has written:

“The pace of progress in artificial intelligence is incredibly fast. Unless you have direct exposure to groups like Deepmind, you have no idea how fast – it is growing at a pace close to exponential. The risk of something seriously dangerous happening is in the five-year timeframe. 10 years at most.”

On Demand

The world we live in today is one of “On Demand.” The future belongs to those who can create what people want and deliver it when they want it.

The consumer won’t have it any other way.

It’s not an attack on radio broadcasters. It’s the future. Here. Now.

 

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Out, damn’d spot!

28Lady Macbeth says this line in Act 5, scene 1. The line has made for ironic jokes and marketing schemes. The Bard’s lady, where the blood spot becomes dyed into her conscience and where the king and queen persist in imagining that physical actions can root out psychological demons, Shakespeare’s Macbeth is an exposition of how wrong they are.

This all came back to me when I read about former CBS Radio President Dan Mason speaking at Radio Ink’s Hispanic Radio Conference in March about how many radio spots should run in a typical hour of radio programming; his answer was 8 to 10 units. Whereas the typical radio station these days is running 14, 16, 17 (or more) units every hour and Mason says that’s probably too much.

On Twitter Radio Ink tweeted “Is Dan Mason correct? You should be playing 8-10 units per hour.” I tweeted back “YES.” To which Dan Mason tweeted back “@DickTaylor @RadioInk not easy to execute in today’s environment but this is the goal we have to work toward!” And to which I then responded, “@radiodanmason @RadioInk Agreed. No one ever said it would be easy. But moving in this direction needs to be the industry goal.”

Then the next day Radio Ink printed this headline as their lead story “We Would Pay More For Shorter Stopsets,” from ad agency executives Blair Overesch and Jeff Chase of Walz Tetrick Advertising in Kansas City. Their clients include the World Champion Kansas City Royals and Dairy Queen. They bemoan how their clients become lost in long horrible-sounding commercial clusters.

The Birth of the Radio Ad

When the commercial radio was born in 1920 the only way operators of radio stations could figure out to support the expenses that came with running a radio station was by the sale of radio advertising. They copied the model of newspapers and magazines of that time. And here we are almost a hundred years later and nothing has really changed in this business model, except the birth of the Internet. The Internet of Things (IoT) has been the big disruptor of just about every business model.

Look Outside Your Industry for New Ideas

It’s said that Henry Ford came up with the idea of the automobile assembly line when he visited the meat packing plants of Chicago. There he witnessed how cows were disassembled. It was done on a disassembly line. And so the story goes that Ford had an “Ah hah moment.”

Radio needs an “Ah hah moment” when it comes to its business model. But what could it possibly be? Where would we go, as an industry, to find this new business model? Not in the world of ad supported media, that’s for certain.

Casino Gambling & Changing Business Models

Casinos in America started in Nevada in 1931. New Jersey would be the second state in America to legalize casino gambling in 1978. So for almost half a decade, Nevada – Reno & Las Vegas – had a monopoly on this type of gambling activity. New Jersey would also enjoy a boom from casino gambling during the 80s and early 90s as the seaside resort saw a new casino opening up every year. Casinos made money on gambling. Period.

What changed was the wave of states legalizing casino gaming all across America in their search for new revenue sources. Vegas and Atlantic City would find that trying to live off of just gambling handles was quickly eroding. Their business model was being disrupted.

The Most Profitable Resort in Las Vegas

Can you guess which Las Vegas casino makes the most money? It’s not located in the heart of the “The Strip” where thousands of visitors walk by every day. It’s actually Wynn Resorts.

Billions of dollars move through Las Vegas every year. Casino operators do everything they can think of to have visitors gamble away as much of their money as possible while they are in Vegas. But Wynn changed the casino business model for his properties. Steve Wynn decided that with the explosion of casinos across America, he needed to move in a new direction. He needed to become less dependent on high rollers sitting at gaming tables for the bulk of his revenue. Non-gaming activities at Wynn’s Wynn & Encore Casinos account for 67% of the company’s revenues.

Focused On the User Experience

Steve Wynn is totally focused on the visitor or user experience when he builds a casino. He gives his full attention to every detail. This type of focus can be seen in the Bellagio, a casino Steve Wynn built over 16 years ago and has since sold. It’s number two in revenues in Vegas.

Becoming Less Dependent on Advertising

The smart radio operator will take a chapter from Steve Wynn’s playbook and move their stations off of full dependency on the ad supported business model. Steve Price at Townsquare Media appears to be doing just that with ad supported radio at the hub of their strategy. Price said he wants Townsquare to be the largest local digital content business, the largest live event business, and the largest digital marketing services business in their radio markets. Chairman and CEO Steven Price says, “We believe our diversified strategy remains sound, demonstrated by the stability of our local advertising business and the outsized growth in our other businesses.  In addition, we further diversified our business, with approximately half of revenue now derived from sources other than the sale of terrestrial radio advertising.”

Monetizing a Media Company Beyond Advertising

It’s not about throwing the baby out with the bath water. Steve Wynn didn’t abandon gambling. In fact, Steve Wynn makes more money than every other casino operator in Vegas by doing everything just a little bit better than his competitors – both in Vegas as well as elsewhere. He just unhitched his properties from total dependence on gambling revenues. I believe Steve Price is pursuing a similar path as Wynn with his media company. I believe that Townsquare can run 8 to 10 radio ads in an hour and make money. Moreover, make money for his advertisers by putting them in a radio spotlight and increase TSL and audience ratings by making his listeners happy with the proper balance of advertising and entertainment. Done in this way it is a win-win-win.

What’s your plan?

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