Tag Archives: public radio

The Winner Takes it ALL

108Everything old is new again. I’m sure you’ve heard the phrase. “Everything old is new again” was the title of a song in the movie musical “All That Jazz.” Part of the lyrics to this Peter Allen/Carole Bayer Sager song include:

 

Don’t throw the pa-ast away
You might need it some rainy day
Dreams can come true again
When everything old is new again

I might fa-all in love wi-ith you again

VADs

While I haven’t heard anyone call them this yet, I may be the first, I’m sure in time they will be referred to in this way, Voice Activated Devices.

You probably better know them as Amazon’s Echo, Google Home or Apple’s HomePod.

Amazon was first into this territory followed by Google and now Apple (their device will be available later in 2017). Microsoft recently announced they have partnered with Harmon Kardon to put the MS VAD “Cortana” into a smart speaker system. Harmon Kardon is a division of Samsung.

Fred Jacobs blogged about them in a recent article titled “Are Voice Commands the New Hi-Fi?” (Hi-Fi was introduced with the 33-1/3 discs introduced by Columbia 69 years ago this month – June 20, 1948.) In his article, he quoted Spotify’s Ian Geller who said voice commands allow people to “engage with music in ways they haven’t since the Hi-Fi stereo system became available.”

Fred feels that these new VAD’s are a “true moment for the radio industry – a chance to bring radio back to homes in a big way.”

The Old That’s New Again Part

As I study these new gadgets, I see a problem for radio of its own making, branding.

The radio I grew up with was very creative and prolific at branding itself with its listeners. It had to be because of the way radio ratings were conducted, either by aided or unaided recall. Billboards, bumper stickers, TV ads, t-shirts, putting your call letters and frequency on just about everything, everywhere it could be seen.

From virtually the beginning burning your call letters into the brains of your listeners was paramount.

Consolidation and PPM (Personal People Meter) would take the need to brand – or so the new Wall Street stakeholders thought – away. Consolidation did this through many signals in the hands of a few operators and the need to cut costs. Arbitron’s (now Nielsen Audio) PPM device did it by recording “listening” even when the listener was totally unaware of where the music or talk programming was coming from.

The new Voice Activated Devices now require a person to KNOW exactly what it is they want to hear when they say the activation words, like “Hey Alexa” or “Hey Google” or “Hey Siri” followed by a specific request.

Unaided recall is back.

Wi-Fi, Hi-Fi & Being Connected

While these new VADs maybe the new “Hi-Fi” for a 21st Century world, they require Wi-Fi to connect to the internet and their respective clouds.

While many of us today take access to a broadband connection for granted as our parents did a landline telephone line, many people in America were not so fortunate. Poor people or people in very rural areas depended on assistance from the Federal government to connect them up to a wired telephone line because private companies found doing so very unprofitable. The Universal Service Fund (USF) was established to provide the funding. Everyone who had a phone would pay a tax to help wire America.

As the need for internet broadband became as necessary in a 21st Century world as a phone line did in the 20th Century, the tax would continue to provide this telecommunications service in the United States.

To read about all of this more detail, click here

Various Ways to Listen

Public Radio in America is leading the way with directing people with the many ways they can be heard. A good example is WBAA AM & FM from Purdue University. Their “How To Listen” tab on their website informs the listener how to listen to their stations over-the-air, streaming online, via their App or via a Voice Activated Device.

This last VAD page also tells listeners how to listen to NPR One using voice commands, such as “Alexa, play NPR One.”

BRANDING Your Radio Station is IMPORTANT

Using a VAD is a return to the days of unaided recall for the radio industry. The need to brand your radio station is critical in a Voice Activated Device world.

How is your KISS, FROG, HOG, JACK etc. different than other such brands all over the world? How will your VAD know which one you want to hear?

Might the return of unique and one-of-a-kind FCC assigned call letters come back into fashion?

Coleman Insights just released a study on Public Radio that shocked programmers with the fact that fewer than one in four radio users can call to mind any Public Radio station.

It’s a Winner Take All World

When the elephants fight, it is the grass that suffers is an old African proverb. It means that the weak get hurt in conflicts between the powerful.

Today, the powerful are Microsoft, Google, Amazon, Apple and Samsung. Each one having their own voice assistant it hopes will dominate the field.

Our 21st Century technology is altering the structure of competition in America as never before. It encourages more monopolies, a “Winner Take All” world.

Natural monopolies are not new. Utilities are an example, but they were heavily regulated. The natural monopolies created by the internet crush competition and that could negatively impact the American economy. Internet innovation moves fast, the Federal government moves very slowly and regulation won’t stop them from occurring.

You can’t order from Amazon on Google Home. You can’t access your favorite iTunes podcasts on Amazon’s Echo. Each device requires a subscription to their music library, unless you request over-the-air radio streamed into your VAD.

War Chests

Apple as of May 2017 had cash reserves of $256 BILLION. In fact, Apple, Microsoft and Google own 23% of all U.S. corporate cash outside the finance sector according to Moody’s.

iHeartMedia is still wrestling with over $20 BILLION of debt. And Cumulus maybe even worse off.

Their challenges are not those of the entire radio industry and money is not always the determining factor in innovation. A perfect example is how the Wright brothers beat Samuel Pierpoint Langley in the race to create powered controllable flight. Langley had the financial support of the United States government and failed while the Wright brothers succeeded using their own resources from their bike shop.

Crisis

The Chinese language uses two symbols to represent the word crisis. One symbol means “danger” and the other means “opportunity.” 109Radio has been here many times in it’s almost 100-year history before.

Smart operators are already speeding down the path of opportunity.

Are you one of them?

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The End of Mass Media

84Jack Nicholson famously said in the movie A Few Good Men “You want the truth? You can’t handle the truth!”

I think he was right.

We can’t.

We say we can. We want to believe we can. But the reality is the truth is scary.

The Future of Mass Media

The reality is the future of our business – mass media – is that it won’t be all that “mass” anymore.

The future will be a media that is built around relevance and quality of message, not volume.

And that’s scary.

Not to just us broadcasters but to the ratings service known as Nielsen. We aren’t going to need to know the volume (aka cume) or AQH (average quarter hour) numbers in the future. The real value that we will deliver will be based on how relevant we are to our listeners and what value we deliver.

The King is Dead

Remember when the catch phrase of the day was “Content is King”?  Bill Gates famously said that.

There were others that felt that distribution was king.

Turns out the “king” is dead for both of these theories and the new king is relationships. And relationships are based on mutual interests and relevancy.

Facebook

What’s the power of Facebook?  Relationships.

Oh sure it uses complex algorithms to manage our relationships, but we are not smitten with algorithms we are drawn to relationships and we friend or unfriend based on the relevance of those relationships too.

Google gets it too.

Each of us is an individual and these social media companies go to great lengths to treat us in just that way.

One Size Does Not Fit All

Commercial radio broadcasting still strives to deliver the “one size fits all” solution. Those days are over.

Radio needs to build, as Seth Godin might say, tribes. People who believe what we believe.

Simon Sinek says that people aren’t attracted to what you do but why you do it.

What’s your WHY?

If there are enough people in your coverage area that will make you a meaningful size tribe of listeners, then do it. If not, find something else that is meaningful.

But trying to be all things to all people – the concept of “mass media” – those days are over.

Advertising

The 800 pound elephant in the room is how to pay for it. Ad supported media is being challenged by the internet in ways that Netflix, Amazon, Google and others that grew up on a different metric are not.

Today supply far outweighs demand in the advertising world.

Even those special live television events that were growing in audience every year are now seeing they’ve peaked. Nothing goes up forever.

The future is creating something relevant to the people you develop a relationship with. The value will be in how strong those relationships are not necessarily how big, in terms of numbers of people, they are.

The future for all media I suspect will start to look more like that of public radio or Christian radio. Each of these mediums has established strong relationships with their listener. They also don’t abuse those relationships with underwriting announcements that either doesn’t fit their audience or by unbalancing the content to underwriting ratio.

Commercial broadcasters seem to take the view that adding one more spot to the hour; the cluster etc won’t affect their audience. They would be wrong. It does.

Keeping things in balance and running seamlessly will be critical to broadcasters whether they’re being consumed over-the-air on AM or FM, or over the internet.

Sales people in this new world will be business evangelists that seek out business owners with innovative ideas and solutions to their problems. Businesses owners who benefit from these relationships with media sales folks will in turn reward the media enterprise with their support.

What’s your WHY?

But it all starts by first defining, as Simon Sinek says, your WHY.

“People don’t buy what you do; they buy WHY you do it.”

Answer that question, and you will have taken the first step.

 

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