Tag Archives: Podcasts

War of the Worlds Radio Broadcast

This being Halloween Eve 2022, I thought it might be fun to revisit one of radio’s most famous broadcasts, Orson Welles Mercury Theater of the Air broadcast based on the novel by H.G. Wells’s “The War of the Worlds.”

On October 30, 1938, 84 years ago today, the program aired on the CBS Radio Network.

If you’ve never heard it, or would like to listen to it again, click HERE

Remember, listeners had no TV, no internet and no Google Search to confirm or deny what they were hearing over their radios.

The Morning After

When Orson Welles woke up on Halloween morning, he would quickly learn that he had become the most talked about man in America. Some listeners thought those fake news bulletins were the real thing and called police departments, newspaper offices and radio stations, which led many journalists to believe that the broadcast had caused a nationwide mass panic.

The 23-year old Welles thought his career might have ended with that broadcast, telling friends at the time “If I’d planned to wreck my career, I couldn’t have done it better.” In an effort to salvage his reputation and career, Welles would go before reporters, photographers and newsreel cameramen in a hastily arranged press conference held at the CBS building in New York City.

All of the questions centered around one key issue, and that was, did he intend or anticipate that his Mercury Theater broadcast would cause its listening audience to panic?

That question would haunt Welles for the rest of his life. Click HERE for a short clip of that press conference.

WKBW’s War of the Worlds

The Mercury Theater broadcast of The War of the Worlds was over a decade before my time, as it occurred during a time considered to be The Golden Age of Radio and it was when a radio set could be found in 80% of America’s households. (Today, less than 68% of American households have one working radio in them.)

By the mid-1930s, after finishing dinner, families would spend their evenings all gathered around the radio set. Ending a day, listening to the radio, had become a nightly habit that united Americans nationwide; across class, race, gender, regional and ethnic differences.

American families had become Radio Families.

The War of the Worlds radio broadcast that would keep me on the edge of my seat was produced by one of my favorite Top 40 radio stations in 1968, WKBW AM 1520 out of Buffalo, New York. I encourage you to listen to this broadcast by clicking HERE

The Original “Fake News”

While the fable of Orson Welles broadcast of The War of the Worlds causing mass panic in the streets of America is well-known, it is also famously inaccurate.

The broadcast did produce nearly two thousand letters to the Federal Communications Commission (FCC) about the broadcast, but more likely bold headlines and news reports in the newspapers across America were the real the culprit. Newspapers feared the power of radio and were eager to show that it was a medium that could not be trusted.

The Moral Questions

What role does media play in our society today? Can media cause citizens to be in a constant state of “moral panic?” How is media impacting the minds of our children? How do we determine what is real and what is fake?

Many scholars believe that pre-war tensions at the time of the Mercury Theater broadcast led to the anxiety listeners felt.

Today we live in a world of 24-hour news cycles and social media,  it’s non-stop “Breaking News.” The tensions of people living in the 1930s are not that much different than those we all are experiencing today.

As much as radio impacted and changed the world in so many ways back in the 1930s, today it’s the internet, smartphones and social media that’s impacting us in the 21st Century.

One can look no further than the podcast Serial. It told the story of Adnan Syed and caused both its listeners, as well as America’s legal system to question whether he should be sitting in a jail cell for the rest of his life. Thanks to the Serial podcast, Syed, whose 2000 murder conviction became a media sensation, became a free man after 23 years when new prosecutors found alternative suspects in the killing of He Min Lee, along with unreliable evidence in the case stirred up by the podcast.

The Age Gap

Of the two thousand letters sent to the FCC about The War of the Worlds broadcast, only twenty-four were from people under the age of 18 complaining about the program. It appears that children of the 1930s were better able to understand the nature of the broadcast than were their parents. In fact, most of the letters written by children approved of the broadcast, saying it didn’t frighten them.

Children were also more likely to recognize Welles’s voice from The Shadow broadcasts than were their elders, and also were more likely to listen to other science-fiction radio broadcasts of the time like Buck Rodgers and Flash Gordon.

Halloween Pranks

And finally, children were more likely than adults to understand that the broadcast on Halloween Eve was presented as a fun prank and not something real.

A fourteen year old girl from New York City summed it up best in a letter she wrote to Orson Welles:

“Didn’t any of our so called adults realize that Sunday night was Halloween Eve

and that it is the night for scary things?”

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Voice Cloning Technology

While I was traveling through Atlantic Canada in July, this news story broke in Radio World:

iHeartMedia’s plan to use Veritone’s voice-cloning technology for its podcast platform has some radio industry observers asking the obvious questions: How good does it sound and is broadcast radio far behind? 

The largest radio company in the United States says that for now, the synthetic voice solution will only be used to translate podcasts from English to other languages for use on the iHeartPodcast Network, first for Spanish-speaking audiences. But Veritone officials confirm its technology could someday be used for advertising to reduce time-to-market and production costs for radio.”

You can read the complete article here: https://www.radioworld.com/news-and-business/headlines/veritone-synthetic-voice-gets-an-audition

It reminded me of an article I wrote on this very subject in December 2021. I thought readers might find my article of more interest now that the deployment of this technology is happening at warp speed.

Is it Live, or is it Memorex?

I remember when the audio quality of tape recorders became so improved with audio reproduction, that the question of the day was, “Is it live or is it Memorex?” Memorex was a company established in 1961 for selling magnetic computer tapes. In the 70s Memorex moved into producing quality audio tape for recording music and voice.

TV commercials at that time featured Ella Fitzgerald singing a note that shattered a glass, while simultaneously being recorded on an audio cassette. The recorded audio would then be played back and the recording would also shatter a glass, to which the announcer would ask, “Is it live, or is it Memorex?”

Is AI Going to Replace Voicetracking?

Then Radio Ink published a story that got many of the people in my radio, podcasting and other social media groups talking about, titled “Is AI going to replace voicetracking?”

Voicetracking technology has been used to replace live radio personalities for decades, but what AI presents the industry with is the possible ability to bring back the big name radio personalities.

Dan Ingram, Larry Lujack, Robert W. Morgan, The Real Don Steele…

Imagine your radio market’s favorite radio personality returning to the airwaves. It’s not out of the realm of possibility.

A company called WellSaid Labs has created dozens of human voice avatars where all one needs to do to get them to talk, is type text into a computer and the voice will say it.

Imagine how having a creative person, who has studied the style of an iconic personality, and then creating new, contemporary material to be delivered in that personality’s voice might sound.

Netflix Research

Now you might be wondering why anyone would want this type of technology. Well, Netflix now streams content worldwide and buys new content from producers all over the world. Much of that content is produced in the country’s native language and so Netflix has to show that content with either subtitles or voice-dubbing the dialog with voice actors speaking in the language of the country the material will air in.

It might not surprise you to learn that when Netflix has offered viewers two ways of viewing  a program, Americans in particular, prefer voice-dubbing to subtitles. (I know I do.)

To speed up the process of voice-dubbing and to have voices that sound the same as the original actors, companies like WellSaid are developing artificial intelligence technology that by voice sampling can then re-create the voice automatically.

ALEXA

I already have conversations with Alexa and have wondered what she might sound like as a DJ on a radio station, haven’t you?

The afternoon DJ on KCSN, Andy Chanley, has been on-the-air there for over 32 years. Now using a robot DJ named ANDY (Artificial Neural Disk-Jockey), Chanley’s voice will continue to be heard in many places throughout Southern California. During a demonstration for Reuters, reporters say that Chanley’s AI voice was hard to distinguish from his human voice.

You can listen to these computer generated voices WellSaid has created for yourself by clicking on this link: https://wellsaidlabs.com/?#actors-preview-list

Is Your Favorite DJ Already a Robot?

WellSaid says its voice avatars are doing more than just DJ work, they are being used extensively in corporate training material and the creation of audio books.

Do I think I will live to see radio’s great personalities coming back to life? No, because I think there will be too many legal issues that might complicate that from happening anytime soon.

But I do think that original voice avatars, teamed up with creative content developers, might just come into existence sooner than we imagine and provide us with an entirely new form of radio entertainment.

(This article was originally published on December 19, 2021)

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Memorial Day Weekend 2022 Road Trips

This past Memorial Day Weekend, AAA (American Automobile Association) predicted that more than 39.2 million Americans took to the road, traveling more than fifty miles to be with family and friends. It was the heaviest holiday traffic in two years and was due to pent-up demand by people trying to get back to the way things used to be before the global pandemic. Even record-high gas prices at the pump weren’t a deterrent.

What Did All Those People Listen To?

A publication I read every day, called Morning Brew, thought it might be fun to survey their four million readers as to what they planned to listen to on their drive. Here’s how they put the question to their readers:

You get handed the Aux (Auxiliary Input) during a long road trip.

What kind of audio are you putting on?

Morning Brew found they could distill the answers given down to five different options. Here are the results:

  1. Curated playlist: 54%
  2. Podcasts: 20%
  3. Audio Books: 12%
  4. No Aux needed – road trips are for the local radio stations: 10%
  5. Nothing, I prefer to ride in silence: 4%

AM/FM Radio

Two things about these results I found interesting: the first was obviously the fact that broadcast radio was not the first, second or third choice for what to listen to when taking a long road trip.

Second, streaming audio wasn’t even a choice, in spite of the fact that these days many radio stations are beginning to focus on their streams due of the growth of smart speakers in the home.

If misery loves company, satellite radio wasn’t mentioned by Morning Brew’s four million readers either, it appears.

“The first step in exceeding your customer’s expectations

is to know those expectations.”

-Roy H. Williams

Radio & the Car

For years, I sold advertising telling people that cars were nothing more than radios on four wheels. Since the 1930s, cars and radio have been like peanut butter and jelly for pairing well together.

While a peanut butter and jelly sandwich is still #1 with sandwich eaters, car radio listening is not with audio listeners.

Radio reaches 73% of people in the car

and remains the #1 source for car audio listening.

– Statista Research 2022

Over the last five years, car radio listening, as measured by Statista has decreased 9%, while people playing their own digital music in the car has gone up 8%, and listening to podcasts has gone up 9%. Satellite radio listening over that same period is basically stagnant. (As a point of reference, back in the 70s & 80s car radio listening was around 93%.)

Statista’s latest research and Morning Brew’s reader survey are sadly telling the same story to any radio broadcaster willing to listen.

The reality is that people today have more control over what they can listen to when riding in their car.

Radio is Show Business

The challenge for broadcast radio is to figure out how to increase the value of the show that attracts and engages listeners while decreasing the obnoxiousness of the business part that pays all the bills.

Like a tightrope walker, it’s a very delicate balancing act.

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Radio’s Leaking Listeners

The results of Techsurvey 2022* was presented in a webinar this week and two things about the latest data and the trend lines of the last five years struck me.

“We have met the enemy and it is us.”

-Pogo

Walt Kelly coined that phrase in a poster he made for an anti-pollution poster for the first Earth Day in 1970. He would later repeat it in a comic strip he created for the second Earth Day in 1971.

Sadly, the similarities between what needs to be done to preserve our planet and the radio industry are striking. We all know what the answer is, but aren’t applying the solution.

Personalities

Jacobs pointed out that “over the past four surveys, broadcast radio personalities have stayed ahead of the music as a key attribute of the medium.”

Yet, the big radio owners have done more to eliminate the very advantage broadcast radio has over its many audio competitors. Worse, our industry has no plan to create a farm team of new broadcasters that will replace personalities that are retiring or have retired.

Instead radio has tried to compete in areas where, at best, it’s a distant second; like music discovery.

Besides Personalities Radio’s Positives are Under Attack

Radio, we are told is easiest to listen to in the car. Unfortunately, when a person buys a new car, they learn SiriusXM is just as easy to access. Plus now everything on their smartphone easily connects to their dashboard. In fact, Fred Jacobs points out that in Techsurvey 2022 the feature most wanted in a new car is Bluetooth (76%) followed by an FM radio (70%) and having a smartphone connector or auxiliary input (57%).

My first blog article of 2022 told how even with older cars, like our 2009 Honda and 2006 Subaru how easy it was to make them connected cars. You can read that article here. https://dicktaylorblog.com/2022/01/09/why-i-stream-all-my-radio-listening/

It doesn’t take a Mensa to realize that this is another hole in the radio listening bucket.

Radio is “free,” with the tradeoff being forced to listened to very long commercial breaks, which radio listeners say is the thing they most dislike about listening to broadcast radio.

Radio’s covenant with its listeners was, you give us your attention to our advertisers, and we will entertain and inform you. Sadly, radio owners kept adding more commercials to each hour while eliminating the very programming elements that attracted listeners.

There’s nothing wrong with advertising, that is when it is in balance with programming content sought by the user. Podcasts understand this and enjoy increasing listening with advertisers seeing a positive benefit from sponsoring them.

Trends

No one called Paul Revere’s warning that the British were coming as being negative, and neither should anyone who cares about the radio broadcasting industry call those who are trying to promote positive change, “negative.”

Techsurvey 2022 should be a wake-up call to radio people with trends that show eight in ten people that can now connect a smartphone in their cars. Those who own a car with a “connected system” now spend the majority of the in-car time with digital audio or SiriusXM.

The car is the last beachhead that broadcast radio has left, and it is under Sirius attack.

SiriusXM

Techsurvey 2022, like all the surveys that have been done before, use as their database, fans of radio broadcasting. They are the core of our industry and so when we see these folks leaving us for other forms of media, it’s like seeing the canary in the coal mine lying on the floor of its cage.

One of the reasons given by people who still listen to broadcast radio, as to why they continue to listen is, it’s become a habit. When a person buys a new connected car and gets SiriusXM to listen to for free, what is happening is that a new habit is being formed. Not only do they now have access to a myriad of content options, but often their favorite radio personality might be rediscovered hosting one of the music channels.

During the pandemic, SiriusXM removed the paywall for their App as well as listening on a smart speaker, both of which had been available for an extra charge. What Fred Jacobs showed on his webinar was how this positively impacted listening at home, at work and other places for the satellite provider. The habit of listening to SiriusXM was now something that could be done everywhere, and that should keep any radio broadcaster awake at night.

The tipping point is that magic moment

when an idea, trend, or social behavior

crosses a threshold, tips, and spreads like wildfire.

-Malcolm Gladwell

I fear we are at the tipping point.

*Watch the full presentation of Fred Jacobs webinar on Techsurvey 2022 here: https://jacobsmedia.com/techsurvey-2022-results/  

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Why I Stream ALL My Radio Listening

Twelve year ago, radio broadcast engineer Tom Ray, penned these words: “Unless we give Joe Consumer a reason to go out and purchase an HD Radio for his car – until he can obtain it easily and at a reasonable cost, and a device that works – I fear HD Radio is going to go the way of FM quad and AM stereo, relegated to the scrap pile of history.”

Tom Ray wrote his article for Radio World when he was the vice president/corporate director of engineering for Buckley Broadcasting/WOR Radio in New York City. He was a strong and vocal supporter of HD Radio and his WOR was one of the first AMs on the air with an HD Radio signal. So, any broadcaster that read Tom’s article, “HD Radio Shouldn’t Be This Hard,” should have taken it as a wake-up call about steps the radio industry needed to take to stay relevant in their listeners’ lives.

Buying a New Car in 2010

Tom is a loyal Ford customer, so when his Explorer went to the automobile graveyard with 230,000-miles on it, Tom wanted to get a new Ford Escape, equipped with HD Radio. The only problem was, Ford wasn’t putting HD Radios into their Escapes, instead, they were pushing Satellite Radio. (Tom noted that his wife listened only to Satellite Radio in her car, saying “in her opinion there is nothing worth listening to in New York’s Hudson Valley, 50 miles north of New York City.)

This should have been yet another radio industry wake-up call about its future.

I encourage you to click on the link and read what Tom Ray wrote a dozen years ago about how difficult it was to put an HD Radio into a new car which, at that time, didn’t offer OEM HD Radios and how he, as a broadcast engineer, was totally frustrated trying to install an aftermarket one.

Streaming Radio at Home

Since Christmas 2017, when my wife gave me my first Amazon Echo smart speaker, our Echo family has quickly grown to four of these devices. There is nowhere you can be in our home and not ask Alexa for something.

Since 2017, all of our in-home radio listening is via streaming.

While we also occasionally streamed radio in the car, on all of our road trips from 2018-2021, SiriusXM always seemed to be offering a 3-month free listening trial that I can honestly say we enjoyed the listening to. But, I’ve never been a subscriber, because other than road trips I spend very little time in the car.

Streaming Radio in the Car

In October, while enjoying my latest free 3-month trial for SiriusXM radio, I decided it was time to bring my in-house streaming radio habit into both of our cars. We own a 2006 Subaru Forester and a 2009 Honda Accord.

The Subaru doesn’t have an AUX input, the Honda does.

Streaming in the Subaru was accomplished with a Blue Tooth receiver that will broadcast on any FM frequency (88.1 works best). In the Honda, this same device’s output was plugged into an AUX receptacle.

The result is, as soon as either my wife or myself enters one of our cars, the Nulaxy KM18 immediately pairs with our iPhones. I installed the AINOPE Car Phone Holder Mount to hold our phones, and keep them easily assessible to control whatever we would like to listen to.

Total cost for each car: $33.43. Time to install, virtually nil. I just plugged the Nulaxy KM18 into a power port and it was operational. The AINIOPE holder easily clamps to an air vent on the dashboard and holds any smartphone.

Unlike the nightmare that Tom Ray experienced back in 2010 trying to put HD Radio into his car, this installation by me, a non-engineer, was a piece of cake.

A Call to Action

I recently sat in on a Radio World webinar called “A Call to Action, radio’s existential battle for the dash.” Paul McLane, Managing Director of Content/Editor in Chief of Radio World at Radio World/Future U.S., hosted the webinar and did an excellent job. However, one particular piece of information shared during the presentation that I thought was crucial was, how Mercedes Benz was equipping their vehicles’ radio screens with the following pre-sets: SiriusXM, FM, AM and TuneIn Radio.

TuneIn Radio is the App I use for most of my radio listening, but why was it chosen by Mercedes Benz? Turns out the answer is, “TuneIn’s radio stations can be accessed worldwide in 197 countries on more than 200 different platforms and devices.” TuneIn says it “provides the displaced radio listener a connection to home with local, national, and international stations anywhere they go and on any device.”

In other words, why would any audio consumer need DAB, DAB+, Digital Radio Mondiale, HD Radio, AM or FM when they can receive any radio station in crystal clear audio via streaming?

With the exception of the proprietary content offered by SiriusXM, everything else is available via streaming at no charge.

Cellular Plan

Now it goes without saying, that streaming consumes data. Each cellphone service provider offers different plans and different price rates. My wife and I are on Verizon’s unlimited phone/text/data plan. We have no landline phone in our home and our iPhones are our lifeline to being connected with each other, our family, our community and the world.

I’ve found streaming radio in our cars provides us with audio quality that is pristine. There’s no buffering or dropout, and it’s been a more reliable signal than AM, FM or SiriusXM radio, especially when traveling through tunnels.

Streaming Apps

I thought you might be interested in knowing what streaming Apps I have on my iPhone, here’s the current list:

  • TuneIn Pro
  • Audacy
  • Pandora
  • Spotify
  • Amazon Music
  • NPR ONE
  • YouTube
  • Simple Radio
  • StreamS
  • Apple Podcasts
  • AccuRadio
  • 650AM WSM
  • Stitcher

Why I Prefer Streaming My Radio

We live far enough away from Washington, D.C. that radio signals for WTOP or WETA experience lots of noise and dropout, depending atmospherics, sometimes making them totally unlistenable. However, their streams are always crystal clear.

This fall Sue and I escaped to Cape Cod for a week and when I get on the peninsula, I love turning on WFCC – Cape Cod’s Classical station – 107.5 FM. Now with streaming radio, I can dial up WFCC on my TuneIn radio App and listen when we’re back home in Virginia.

Full disclosure, I am the midday DJ on WMEX-FM in Rochester, NH. But even if I weren’t on the station, WMEX-FM would be my #1 pre-set for streaming. Gary James, the station’s morning man and program director, puts together a music mix that I find absolutely fabulous. It’s the music of my life.

Which brings me to another important point, radio today is global. No longer is your radio station competing just with other local stations, but radio that is streaming from anywhere on planet Earth.

Streaming also makes it possible for ON DEMAND spoken word radio, also known as Podcasts, to be easily available in the car.

Simington on Streaming

FCC commissioner Nathan Simington recently addressed Ohio broadcasters saying, “content delivery power had shifted away from broadcasters – stations and networks – and toward ‘online platforms,’ something he thinks the FCC needs to recognize in its quadrennial review of media ownership regs.”

He warned that:

  1. “Online media platforms are growing rapidly and threaten dominance over traditional media platforms; and
  2. Broadcast advertising revenue has flatlined, having been siphoned off from higher margin online platforms.”

The Future is Streaming

88% of the world’s population now uses mobile broadband as its main source of internet access, and nearly 90% of homes in the United States now have internet streaming. 2021 saw an estimated 22% ad industry growth rate, which Magna Global said was “the highest growth rate ever recorded” by this agency, beating a 12.5% growth rate recorded in the year 2000. The caveat however is, digital dominated traditional advertising raking in 64.4% of the growth in ad spending.

RAIN reports “The U.S. recorded music industry will exceed a 48-year revenue record set in 1999 (based on current estimates),” all coming from revenues paid by streaming music services.

The Harvard Business Review recently published “4 Principles to Guide Your Digital Transformation,” by Greg Satell, Andrea Kates and Todd McLees. In it, the authors wrote, “digital transformation is not just about technology. We’re desperately in need of a shift in focus. Leaders must inspire and empower their entire organization to boldly reimagine their work environment, customer needs, product offering, and even the purpose of the enterprise.”

Tom Ray was the proverbial “canary in the coal shaft” back in 2010, with few paying attention. Sadly, based on the early news coming out of the 2022 CES in Las Vegas, nothing has changed.

We’re living in a communications revolution,

bringing about changes that will be both

permanent and irreversible.

Revolutions never maintain or preserve the status quo.

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Your Cell Phone is a Radio

By definition, radio is, a: the wireless transmission and reception of electric impulses or signals by means of electromagnetic waves. b: the use of these waves for the wireless transmission of electric impulses into which sound is converted, according to Merriam-Webster’s dictionary.

Your cell phone sends signals to (and receives them from) nearby cell towers (base stations) using Radio Frequency (RF) waves. This is a form of energy in the electromagnetic spectrum that falls between FM radio waves and microwaves.

My First FCC License

When I studied for and passed the Federal Communications Commission (FCC) test to obtain my 3rd Class Radio-Telephone License, I initially wondered why it said “telephone” on it.

Telephones in 1968 were all wired devices, like in my parent’s house in which our family phone was connected by a copper wire and bolted to the kitchen wall.

When I began to study the history of radio, I learned that an early experimenter in radio broadcasting, Kentucky melon farmer Nathan Stubblefield, wanted to be able to talk to his wife while he was driving his automobile while away from their farmhouse. In those early days, no one had a clue what this new technology would become.

Radio’s Metamorphosis

The podcast “Local Marketing Trends” hosted by Corey Elliot and Gordon Borrell, recently featured an interview with the Radio Advertising Bureau’s (RAB) President/CEO Erica Farber in which she said the radio industry’s sales arm was going through a metamorphosis; today the RAB thinks more broadly, to include all things audio.

Gordon asked Erica if she meant podcasting and streaming audio like Spotify and Pandora, to which she said “Yes.” When might this happen, Gordon asked, to which she responded, “maybe today.”

Farber explained how she feels radio is ahead of the curve in not just delivering content, but in delivering services too. Radio is no longer just about selling thirty and sixty second spots but it’s a very different business now, with radio’s core product today being “delivering results.”

Audio Advertising Bureau

Might the Radio Advertising Bureau change its name to become the Audio Advertising Bureau?

I hope not. Here’s why I say that.

Radio suffers from traditional broadcaster thinking that it needs an FCC license, radio tower, antenna and transmitter which sends a signal out over the AM or FM radio bands. But if you ask a young person, what is radio, they will tell you about their favorite stream or podcast which  they listen to through their smartphone.

Radio is not a dated identifier, it’s very much in vogue in the 21st Century, but what imagine comes to mind when one says the word “RADIO” will differ depending upon a person’s age.

1940s Floor Cabinet Radio (what my parents listened to)
1970s Transistor Radio (the radio of my youth)
21st Century Smartphone used as a radio & a whole lot more (the “radio” I use today)

Apple Music Radio

You might have missed Apple’s August 2020 Press Release about how they were changing the name of their radio service from Beats 1 to Apple Music Radio. In spite of trying to invent a new name for their streaming music offerings, their users called it “RADIO.” And now, so does Apple.

Beats 1, has been Apple’s flagship global radio station since its launch in 2015. Five years later, it’s been renamed Apple Music 1. Oliver Schusser, vice president of Apple Music, Beats and International Content, explained

“Apple Music Radio provides an unparalleled global platform for artists across all genres to talk about, create, and share music with their fans, and this is just the beginning. We will continue to invest in live radio and create opportunities for listeners around the world to connect with the music they love.”Beats

Now is NOT the time for AM/FM Radio broadcasters to abandon the sonic brand known as “RADIO.”

Adapt or Die

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

Traditional media survivors will learn to accept and embrace the new platforms that disrupt the world as we knew it and are creating the world that will be.

An inability to adapt to new platforms is what causes both people and industries to fail.

AM, FM, internet streaming, smartphones, connected cars are all platforms. Radio, newspapers, magazines and the like, are all media products. Understanding this dichotomy is critical.

And so, the challenge for radio is not changing its name, but adapting its product to today’s platforms.

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Could 2021 Be the Year SiriusXM Adds FREE Channels?

Back in July of 2016, I wrote an article wondering what might happen if AM/FM radio broadcasters woke up one day to the headline “SiriusXM is Now Free.” What made me think about this happening, was I had just read how Angie’s List had announced they were pulling down their paywall and making their service free and available to everyone.

Pay to Play

Call it a subscription, a membership fee or a paywall, what happens when they are eliminated? In Angie’s List’s case, less than one percent of Americans were members at the $40/month fee that had been in place. Paying that fee let people see the reviews of members that they  experienced when doing business with certain businesses or services. But now, everyone could have free access to those same rather substantial reviews, while enjoying the website’s strong, trusted and valuable content.

Why did Angie’s List Tear Down Their Paywall?

Angie’s List is a publicly traded company. Their stock had been down seventy-five percent from the previous three years and management was under pressure to get the stock going back up. By tearing down their paywall, they would increase page views. When page views go up, revenue goes up.

SiriusXM Under New Leadership in 2021

On January 1, 2021, Jennifer Witz takes over from James Meyer as CEO of SiriusXM. Meyer has been leading the satcaster since May of 2004. During his tenure, SiriusXM has grown to having its service playing in 132 million cars, but with only 34.4 million paid subscribers.

Its stock price all-time high was back in February of 2000, over twenty years ago, when it hit $66.50 a share. This past year the stock has traded between $4.11 and $7.40, for an average price of $6.05 a share.

Do you see an Angie’s List type of problem?

Walking a Tightwire

Incoming CEO Witz knows she will be walking a tightwire by making part of SiriusXM free to all radios capable of receiving the satcaster’s signal. The challenge will be to monetize those non-members through ad-supported free channels without cannibalizing paid memberships. SiriusXM grew revenues 7% in 2019 to a record $6.2 billion.

AM/FM radio revenues are projected to fall 17% in 2020, largely due to the COVID-19 Pandemic, but quickly rebounding in 2021 and growing in the years beyond.

Audio Advertising Works

With the dynamic growth of smart speakers, fueled in the United States by Amazon which controls 70% of the home smart speaker market, new interest of advertising goods and services via audio only has increased dramatically.

This should be a boon to AM/FM radio advertising, except for one caveat, the way people consume audio today is vastly different than even ten years ago with eMarketer saying there are 204 million digital audio listeners in the United States today. In fact, listening to digital audio makes up two-thirds of all digital media consumption, second to only digital video viewing based on time spent on this activity.

Moreover, digital audio advertising has been growing at a double digit rate.

Competition for Your Ear

The competition to be in your ear has never been greater. Spotify, Pandora, Amazon Music, Apple Music, YouTube, podcasts, and audio books are all looking to get a piece of your time and attention.

With this increased focus on digital audio by consumers, advertisers are following in lockstep.

SiriusXM

Which brings us back to where this article started, SiriusXM. The satcaster has long seen AM/FM radio as its main competition and that two-thirds of AM/FM radio’s revenue stream is due to dominance on car radios. It’s simply too tempting not to want to utilize the chip it’s paid to have installed in your vehicle’s dashboard and monetize it in a new way. Doing so would mean an increase in revenues for its shareholders and at the same time the ability to elevate the company’s stock price.

If Apple has taught the world anything, it is that you can’t be afraid to cannibalize yourself if you want to grow your company.  Also, you don’t always have to be first to the party, to come away a big winner. You simply need to provide a superior product.

SiriusXM also enjoys the advantage of knowing who’s listening to what. Here’s how the satcaster puts it:

Jul 6, 2020 — “TRACKING” YOUR ACTIVITIES ACROSS DEVICES AND APPS We receive Listener Usage Data automatically from Internet-enabled devices. If you have a Sirius XM account, we may match the Listener Usage Data we receive to the device or devices associated with your account and thereby with you or your household.”

It’s an obvious advantage over audience estimates provided by a third party ratings company when a digital audio service can tell an advertiser how many people actually were exposed to their advertisement.

For radio sellers in 2021, it’s like bringing a knife to a gun fight.

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Streaming & Podcasting

computers streaming & podcastingI’ve been thinking about these two forms of audio for some time now. With each new article published about streaming, we see how more and more people are listening to music in this way. The smart speaker has certainly contributed to the growth of music listening via streams, and the smart speaker growth is exploding.

I know with my own experience by getting my first smart speaker as a gift, to now owning three of them, how it’s totally changed how I listen to music.

And then there’s podcasting, a way for the spoken word to be communicated.

Radio versus Streaming & Podcasting

Radio for most of my life was a way to hear both music and the spoken word. It was curated and delivered in fresh and exciting ways by a variety of radio stations across the country.

Unfortunately, radio delivered programming on its timetable, not the listeners.

As VCRs came into the television world, I remember hearing, why isn’t there a device like that for radio? There actually was, I owned one, but it never really caught on like the video devices did.

The VCRs and DVRs changed how people consumed their television programs, and essentially did away with the concept of “Must See TV” turning it into “must record TV.”

Netflix

Then along comes Netflix, and the concept of On Demand TV viewing was born.

One might argue that Blockbuster started it with video rentals, but it still really didn’t impact American viewing habits like streaming video did.

Again, Netflix disrupted people’s viewing habits when it would release an entire season of a TV series all at once. Gone was the need to come back week-after-week to see a program. Now, a new type of TV consumption was created, the binge-watch.

Broadcast versus Streaming

What’s really changed in our consumption of TV and radio is our ability to control what we see and hear, and when we want to see and hear it. In other words, On Demand is the media consumption process of the 21st Century.

I stream 100% of my television viewing. I can watch a program live, or start the show from the beginning if I arrive late, or just view it whenever I want, at another time through On Demand viewing.

Streaming TV has trained us, and now the smart speaker is taking our new media consumption habit and making audio listening just as easy to consume in this manner.

Alexa is ready, willing and able to play any genre of music that I want to hear, on a moment’s notice. She has more song selections than my own personal CD library and it’s so much easier to ask Alexa to play a song for me than try and find the CD that a song is on, and then load it into my CD player.

Podcasts

Complete honesty here, I’m not a fan of podcasts. I don’t know why, I’m just not. The only one I ever listened to in its entirety was the first season of the podcast Serial, and that was mainly due to a long 13-hour car drive, and my ability to download all the episodes onto my iPod to play in my car.

However, I do know that younger folks are really getting into podcasts and this segment will only grow as the spoken word genre finds a way to promote its wares.

The Looming Audio Battle

What I do see on the horizon is radio being drawn and quartered by streaming audio for music, and podcast audio for the spoken word. Both types of audio programming are easily called up via smart speakers and available On Demand.

Curated programming, as has been the staple of broadcast radio, will be challenged to compete.

Professional Radio & Amateur Radio

Radio won’t die, it has a future, but I see it bifurcating in the following ways:

  • There will be professional broadcasters and amateur broadcasters.
  • I see the future of radio looking something like the difference between professional and amateur theater. For example, the difference between Broadway and community theater; where the former are professional paid actors, and the latter is made up of talented volunteer locals with an insatiable love of theater.
  • The advent of low power FM radio stations is the first toe-in-the-water that points in this direction for amateur radio personalities who volunteer their time and energy.
  • Some of these volunteers will come from the ranks of retired or “dislocated” professional radio personalities and some will be members of the community that always thought it would be fun to be on-the-air.
  • What seems to be disappearing are local radio stations in the middle, ones that used to be ad-supported by local businesses, who now find themselves displaced by big box stores and online shopping.
  • The newspaper industry is the canary in the coal shaft for ad-supported media. Berkshire Hathaway Vice Chairman Charles Munger points out that, “Technological change is destroying the daily newspapers in America. The revenue goes away and the expenses remain and they’re all dying.” However, Munger does feel that papers like The Wall Street Journal and New York Times will most likely survive.
  • Newspapers have been cutting staff like crazy but it’s done little to turn things around. Radio is following in print industry’s footsteps as “employee dislocations” are occurring at all the major broadcasting companies.

Does any of this make sense to you?

I’d love to hear what your thoughts are.

Please post your thoughts on comments section of this blog article, so that others may read them and hear different opinions.

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Why?

Why why whyIt’s not unusual for little boys and girls to ask the question “Why?” They ask it a lot.

Why? Because they want to learn, to know why things have to be that way.

But what happens to the person who is asked the why question?

They are forced to think about it, sometimes even reassess the answer they knew and wonder if it was really the right answer or merely a convention. In other words, is the reason simply because, it’s the way something has always been done?

It causes one to consider that maybe things didn’t really need to be done that way, and could be done differently.

What If?

While why questions open our minds to new thoughts and opportunities, “what if” questions are like a fork in the road. They can take us in new directions.

For example, “What if radio stations only aired a single commercial in a break?” Or, “What if all radio commercials were delivered live by the radio personality?”

Edison Research revealed at this year’s Radio Show, that people would change radio stations or stop listening all together due to basically one of three reasons: 1) forced change, 2) engagement and 3) commercials.

Forced change was defined by a loss of signal or a bad signal. Engagement was described as boredom, didn’t like the song, the personality or subject matter. And I think everyone understands the tune-out factor of commercials to radio listeners.

Commercials

Why do commercials have to be a listener tune out? What if commercials caused radio listeners to lean into their speakers and pay close attention?

My first personal experience with doing just that was when I listened to Paul Harvey News & Comment and he said, “Page Two.”

Paul Harvey did his sponsor’s commercials live. He did them with passion and enthusiasm. The result was people listened, and even more importantly, they bought the products and services he told them about.

Podcasts

I’ve noticed that podcasters usually have a single commercial in their program and is usually delivered by the host of the podcast. What if that’s the reason podcast commercials deliver such powerful results and more advertisers are considering using podcasts as part of their advertising program.

Same, but Different

In my radio management career, I had the opportunity to live and work in different parts of the country with some fabulous radio professionals. The radio business is an identical business everywhere in America, but back in the days before consolidation and the concept of “Best Practices,” radio people tended to innovate the creative process in completely different ways. It’s one of the reasons many, my age, loved to DX AM radio signals after sunset.

The Innovators

I believe some of the best innovators for setting the course for radio in 2020 are working for you right at this very moment. They aren’t necessarily the “A players” or even the most focused ones, but they are the ones that are asking “Why & What If” and are continually looking for new problems to solve.

If you create a culture within your radio station that encourages that kind of inquiry, a culture that continually asks “why” do we always do things this way and “what if” we did things differently, radio for the 21st Century will begin to be born.

If you don’t, your business is ripe for disruption by another media innovator.

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Watch the Media

John ShraderI was recently invited to be a guest on the radio show and podcast “Watch the Media with John Shrader.” The program airs on the University of Nebraska-Lincoln campus radio station and the podcast of the show can be heard on SoundCloud.

John had some interesting questions and I thought I’d share them, along with my answers in this week’s blog article.

What is the State of Terrestrial Radio?

If we look at the topline number of how many Americans listen to terrestrial radio today versus the last ten years or so, that number is remarkably stable. Unfortunately, what has changed are the TSL (Time Spent Listening) and PUR (Persons Using Radio) numbers. They’ve been in a steady decline since 2007. That’s 11-years of erosion.

What’s not pretty is the accompanying loss of revenue that comes with losing 30% of your TSL.

Radio revenues today are characterized with such phrases as “flat is the new up.”

In 2017, U.S. commercial radio’s over-the-air income declined 2% year-over-year, according to BIA Advisory Services’ Q1 2018 “Investing in Radio Market Report.”

In should be noted that, the same report showed that radio stations reported a 9.7% increase in online revenues over the same period.

Radio Revenue Recent History

During the 1990s, ratings and ad revenue rose rapidly. According to the Radio Advertising Bureau, industry revenues grew from around $11 Billion per year to nearly $20 Billion between 1994 and 2000. After 1996, revenues grew by double digit percentages every year until 2001.dollar sign

PBS reported that “The collapse of advertising budgets that came in 2001 after 9/11 hit radio hard, cutting revenues by 8-percent that year to $18.4 Billion.”

In February 2005, then Viacom (today CBS) President Leslie Moonves told the L.A. Times this his top priority was returning the business to a “growth path.” Moonves recently sold off all of CBS radio stations to Entercom.

2017 Radio Revenues

In 2017, radio revenues ended at $13.87 Billion; not exactly a “growth path.”

BIA SVP and Chief Economist Mark Fratrik summarized the situation for American radio this way:

“Revenues are growing for broadcasters online but not over-the-air. We do not expect over-the-air advertising revenue of U.S. radio stations to grow much this year or in the near future. There is an unprecedented number of new audio entertainment and information sources and new advertising platforms competing with radio, including many that are unregulated. It’s an aggressive environment that competes for audiences with local radio.”

Who are Radio’s Listeners and Where do They Listen?

In general, today’s radio listeners are on the backside of Everett Rogers “Diffusion of Innovation Curve.” diff-of-innovationThey are part of the Late Majority and Laggards.

car radio.jpgThe primary way people access radio today is in their car. But by 2020, it is estimated that 75% of the cars sold will be connected to digital services.

Today’s heaviest radio listeners are reported to be Black or Hispanic.

Radio’s best listeners tend to be employed full-time versus unemployed. That’s great news for radio sales people to share.

What’s alarming is the fact that recent research showed that 29% of all American households don’t have a single AM or FM radio in them and even more alarming, 18-34 year old households are now at the tipping point of radio ownership. 50% of those household don’t have a single AM or FM radio in them. That probably explains how monthly online audio listening reportedly increased from 5% in 2000 to 64% in 2018.

Edison Research has more HERE

What’s the Future for Podcasting?

Podcasting is still growing. About 26% of people over the age of 12 have listened to any podcast in the past 30-days. However, 36% of Americans still don’t have a clue as to what podcasting even is. So, it would appear there’s a lot of growth potential.

Great podcasts, like great radio personalities, tell great stories.

Something to watch is Amazon. It laid off its entire original podcast staff in August.

What’s the Impact of Smart Speakers on Radio?

Tom Webster at Edison Research says “smart speaker adoption is the fastest tech adoption we’ve ever tracked in the Infinite Dial research. It went from 7% to 18% in a year.” echo

Smart speaker growth isn’t slowing and these new devices are replacing radios in the home.

I got my first Amazon Echo for Christmas 2017. By the end of Q1 2018, I owned three of them. 100% of my in-home radio listening now occurs via a smart speaker.

These things are addictive.

65% of people who own a smart speaker say they wouldn’t give them up.

What’s Radio’s Future?

People my age grew up with radio. Our parents controlled our home’s only television back in the 60s/70s. Radio was a way we could escape and connect with people our own age and the music of our generation.

Much as we created radio for our generation of listeners, today’s future broadcasters will need to mold it for their generation.

We are living in the days of a communications revolution. Not since the invention of the printing press and movable type has the world of communication been so rocked by change. Revolutions are messy, the future is not always clear, major disruption is par for the course.

New ways of communicating are being created.

Radio, as we knew it, is not coming back.

ON DEMAND

We now live in an ON DEMAND world. It has changed the way we use all forms of mass media. People going forward will want what they want, when they want it.on-demand-cpe

Netflix created the new phenomena of binge-watching TV shows. I do that now too. I also binge-listened to the podcast SERIAL on a long car drive after that weekly podcast had completed season one.

What Won’t Change?

What we know is that people will always be drawn to great story telling. Our brains are wired for stories. We also know that people will want to be connected to others like themselves.

Dan Mason puts it this way, radio is all about community and companionship.

I don’t see that changing, do you?

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