Tag Archives: Podcasts

What Happened to the Gatekeepers?

While radio advertising is still being heard by radio listeners, the relevancy of those ads to listeners is low. In contrast, the audio ads heard by podcast listeners were deemed highly meaningful.*

The Radio Ad Disconnect

Once upon a time, radio stations employed gatekeepers. (Gatekeeping – “the process of controlling information as it moves through a gate.)

Let me give you a personal example of what I’m talking about. In the 80s, I was managing WFPG-FM in Atlantic City, New Jersey. WFPG-FM programmed a Bonneville Beautiful Music format and was the market leader in the Atlantic City-Cape May, New Jersey Metro. Walter Powers, Vice President of Operations at Bonneville Broadcasting System, was our music gatekeeper. But just as important as making sure that the music was well targeted, WFPG-FM’s program director was the gatekeeper of every other element of content that would be heard on the radio station. Every advertisement was reviewed to insure it was appropriate and relevant to our audience. We employed these same standards when it came to our promotions and air personalities too.

Paul Harvey

Paul Harvey News and Commentary on the ABC Radio Network was an advertising powerhouse. Paul considered himself to be a salesman first and a broadcaster second. Harvey wrote and voiced the radio copy for the products and services he told his listeners about and it was well-known he would not advertise a product or service he did not personally use.

Today, we see this happening with podcasters who likewise voice the ad copy for the company that sponsors their podcast. I believe this is why podcast ads resonate with podcast listeners versus radio advertising.

Howard Stern

When Howard Stern was the afternoon air personality on 66-WNBC in New York City, he often read live copy for his local advertisers.

On one of my trips to New York City to meet with advertisers, I stopped into the broadcast facilities of WNBC and met with their local sales manager. I will never forget asking her this question: “What are fewest number of commercials you will sell an advertiser?” She answered: “one, if it’s on Howard Stern’s show.” One, I asked? Is that effective? She told me that Howard Stern was such a good communicator and had such a loyal audience, that if he promoted a product or business, even just once, they always got results. But then again, Howard had the authority to accept or reject any advertiser.

Both Paul Harvey and Howard Stern were gatekeepers for their radio programs.

Randy Kabrich

This past week, we learned of the passing of one of radio’s great CHR/Top40 programmers, Randy Kabrich.

In reading an article about his life, I couldn’t help but notice that the twice named Billboard magazine CHR/Top40 radio programmer of the year was a serious gatekeeper.

When Kabrich was Program Director at WROQ-AM/FM in Charlotte, North Carolina, the station management planned to accept an advertising buy from Planned Parenthood. Randy felt the ads were “too volatile and blatant” to appear on a “family” radio station. Inside Radio reported that Kabrich said “I’ve been trying to make WROQ a fun, family radio station – an escape from reality, from the conflicts in life – and I felt these spots were inappropriate for the station’s audience.” This resulted in Randy resigning.

Anything For a Buck

There was a time when radio operators employed gatekeepers that weren’t afraid to say “NO” to an advertiser and his money when their product, service or simply the way they wanted to deliver their message was not in concert to the goals of the radio station.

Those were the days when radio operators understood that EVERYTHING

that came out of the listener’s radio speaker mattered. Spoiler Alert:

 It still does!

*  https://soundsprofitable.com/research/the-ad-bargain/

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The Future is ON-DEMAND

I just finished reading the public radio research report “An Audience Growth Strategy for Public Media” prepared by Jacobs Media and Mark Ramsey Media for Maine Public radio service. What really stood out to me was how clearly this report shows where the future is for all traditional linear media.

Linear Is In The Rear-view Mirror

Broadcast radio and television – traditional media – was built on a linear program schedule, delivering to the media consumer, information and entertainment on a schedule determined by the broadcaster. The VCR (video cassette recorder) developed in 1956 became widely available in the late 70s and by the early 2000s was in virtually every American household, giving  television consumers the ability to now watch shows on their schedule, not the program provider’s.

“It is painfully obvious neither broadcast radio nor television is growing, especially as it concerns traditional (terrestrial) usage and linear program schedules,” writes Jacobs/Ramsey.

Today’s Media Consumer

America continues to become more diversified: 72% of Baby Boomers are white but only about half of Millennials are white and four-in-ten of Gen Zs are white.

Millennials were born between 1981 and 1994, so VCRs have always been a part of their life and Gen Zs were born 1995 and 2009, which means also having an iPod type device has always been part of their life. Both of these devices contributed to the habit of having what you want, ON-DEMAND.

In 2007, the iPhone introduced us to a media device that made ON-DEMAND media consumption ubiquitous.

Listening Options

Today’s non-radio listeners have a plethora of media options:

  • Spotify
  • Pandora
  • Apple Music
  • Amazon Music
  • Radio Tunes
  • SiriusXM
  • Podcasts
  • Audio Books
  • YouTube
  • Social Media

…just to name a few.

Jacob/Ramsey says “Linear program schedules common to over-the-air [broadcast] stations are not in alignment with new media consumption habits.” Today’s consumer is in control, not the media provider.

ON-DEMAND Digital

In today’s world, the future is “Go Digital, or Go Home.”

Today’s traditional broadcasters (Radio & TV), must take advantage of digital’s ability to serve their audiences with what they want, when they want it and on the media platform they want it on. The same attention given to over-the-air broadcasts will need to be given to all the other ways of content distribution; as each is of equal importance to the media consumer.

“Broadcast radio and television will remain the core business for years to come, but a focus on traditional media can no longer be considered a growth strategy,” writes Jacobs/Ramsey.

Peacock & Netflix

NBC’s Peacock streaming service paid $100 million dollars to exclusively stream the wild-card playoff game between the Kansas City Chiefs and the Miami Dolphins, setting a record for the most-streamed live event in American history. Comcast Chairman & CEO Brian Roberts considered the streaming gamble a success and a very proud moment for the company, but for consumers it will mean having to pay for playoff games in the future.

This week Netflix announced it had struck a 10-year deal with WWE to air “Monday Night Raw” on its streaming service. This program has been on linear television since 1993; 31-years ago.

Peak Listening On Audio Platforms

This pat week, when Edison Research published their article on which media platform commands the most listening in different dayparts, it was eye-opening.

The only daypart that broadcast radio commands is morning drive (6-10am), which just happens to be the one daypart the broadcast radio industry still invests in live air personalities. For the rest of the dayparts, consumers utilize streaming audio or previously downloaded content to their media device.

My favorite time to listen to radio growing up was 7pm to midnight. Some of the best known and loved air personalities broadcast during this daypart; Big Ron O’Brien, John Records Landecker, Wolfman Jack, Cousin Brucie among others. However, today the research shows that YouTube is what people listen to at this time of day.

Just before the end of last year, SiriusXM announced the debut of its new streaming App. It offers “discoverability and personalization at the forefront, [so] listeners can quickly and easily find and dive into the content they love across SiriusXM’s 400+ channels and tens of thousands of hours [with] on-demand content and podcasts, [allowing] fans to go deeper into their passions and get closer to their favorite music, artists, personalities and sports; [providing]  a seamless listening experience across streaming devices that reflects listener preferences and interests,  [ensuring] subscribers never miss a moment wherever they are and whenever they want to listen.”

Don’t you wish the NAB (National Association of Broadcasters)

was working on something like this, instead of focusing on linear AM radio?*

*https://www.nab.org/documents/newsroom/pressRelease.asp?id=6916

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What We Know About Radio Listeners and The Industry That Serves Them

The Pew Research Center recently completed a survey for National Radio Day about today’s radio industry and the people who listen to its broadcasts.

My own radio career has spanned over 50 years, and in that time I’ve witnessed considerable change. So, where are we now in 2023?

82% of Americans Over The Age of 12 Listen to Radio

While the 82% number of weekly listeners to radio is outstanding, in today’s competitive media world, that percentage of weekly listening is down from 92% in 2009, according to Nielsen.

Last week, Edison Research published new research showing that Share of All Audio Listening now ranks “On-Demand Platforms” ahead of “Linear Platforms,” the latter being sources such as over-the-air radio, radio streams, radio services, etc. People today prefer to listen to media on their time schedule, like podcasts, owned music, paid streaming services etc.

47% of Adults Get Their News From Radio (at least sometimes)

Pew Research says, that this percentage has remained relatively constant in recent years. However, just 7% of adults said that they prefer getting their news from radio broadcasts.

20% of Adults Get Local News From Radio

When FORD announced it would be ending AM radio in its vehicles, the radio industry was quick to mount an assault on Congress to have AM radio stay in all cars and trucks, initiating the “AM for Every Vehicle Act.”

When the town of Lahaina, Maui was going up in flames, news outlets were asking the head of Maui’s emergency management agency why he didn’t sound the warning sirens, but no one asked why it took that same agency 48 hours to reach out to local radio stations to spread the word.

38% of adults get their local news from TV, 17% from newspapers and 12% from the internet or other types of outlets.

Share of Adults Listening to Podcasts is UP

A decade ago, just 12% of Americans over the age of 12 said they had listened to a podcast in the past month, but in 2023 that number is 42%.

Podcasts began as an audio only, on-demand service, but today 22% of the top 250 podcasts include video which is posted on YouTube, finds a Podtrac study. In fact, today 75% of all podcast consumers say that podcasts are both audio and video, according to Coleman Insights.

Just as the term “podcast” can now refer to any on-demand audio/video content, I found that my university students, even a decade ago, thought all audio content as being “radio.”

Clearly, different generations use the same words, but what they mean in 2023 – and which demographic is using them – the meaning can be totally different.

Radio Strong

In spite of the many challenges facing radio today, the medium still reaches more Americans every week than any other platform measured by The Nielsen Company.

For the industry to stay strong and grow, it must listen to its audience and deliver what it is asking for, in the way they wish to receive it.

NPR, for example, makes everything they broadcast available on its website, social media, podcasts, and video-on-demand platforms.

“Radio’s strongest asset is its connection to a community,” says Donna Halper, an associate professor of communication and media studies at Lesley University. Halper believes that the “digital disruption has enhanced our connection to our listeners and to our community. It has kept radio on its feet.”

But it all comes down to the attitude of the people who own and operate radio stations in America. Managed properly, radio can stay strong and vital in the years ahead.

“Whether you think you can, or you think you can’t – you’re right.”

-Henry Ford

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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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