Tag Archives: Rush Limbaugh

No College Degree Required

The other day when I went to my mailbox, I noticed a rather large piece of “junk mail” from a local HVAC company.

It said:

We’re Hiring!

Start a Rewarding Career with [business name]

Attention: High School Grads

HVAC is a Great Career Option! No Student Debt!

Great pay, hours and benefits!

Which got me to thinking about all the radio help wanted ads saying you need to have a college degree to apply. Why does the radio industry list having a college degree as a requirement, when the truth is, great radio broadcasters haven’t had one, nor did they need one.

Cost of a College Degree in 2022

According to Educational Data, when you consider student loan interest and loss of income, the cost of a four-year college degree can exceed $400,000.

It’s not unusual for a college grad to learn the starting pay in radio is often as low as $19,500/year ($9.36/hour) for on-air positions and sales positions are 100% commission based.

Start a job with Walmart with no college degree and you’ll make $12/hour. Get that same job at Target and you’ll start at $15/hour. At McDonalds the starting pay range at company owned stores is between $11 and $17/hour.

Virtually every job in today’s world will pay you more than most radio positions, and yet radio ads always require you to have a college degree while those other companies don’t.

Radio Talent Institute

I worked with Dan Vallie and his Radio Talent Institute at Western Kentucky University. It’s an excellent program, now operated by the Radio Advertising Bureau (RAB). Sadly, it’s offered as a summer program to students in colleges across America. I contend that the RAB should be offering this program in the high schools.

For all of the same reasons, one of my local HVAC companies is appealing to high school grads, this also makes sense for the radio industry.

Famous Broadcasters

Oprah Winfrey didn’t need to have a college degree to become one of the most successful women in broadcasting. She dropped out of college after only one semester to pursue a career in broadcasting.

In 2015, Forbes published the salaries of the top five radio broadcasters in America.

Glenn Beck earned $16.5 Million in 2015. Not bad for a Sehome High School graduate with no college experience.

Sean Hannity earned $29 Million and never obtained a college degree, even though he attended four different colleges.

Ryan Seacrest earned $65 Million. Like me, Ryan started his radio career at 16 while still in high school. Unlike me, who went to college and graduate school earning two degrees, Ryan dropped out of college to devote all of his energies to broadcasting. Needless to say, he’s really famous and I write this blog.

Rush Limbaugh earned $77 Million and dropped out of college after only two semesters. His mother said at the time that Rush “flunked everything…he just didn’t seem interested in anything except radio.”

The top earning radio personality was Howard Stern. Howard IS a college graduate, with a 3.8 Grade Point Average (GPA) from Boston University, earning $95 Million in 2015.

Now, if I was trying to sell you on the value of a college degree in broadcasting and compared Howard Stern to the other four on Forbes 2015 list, I would say that having a college degree can earn you 23% to 76% more money than not having that piece of paper.

College Degrees

Please don’t think I’m dissing the college experience, I’m not. What I am taking issue with is the hiring practices of the radio industry that make having a college degree a requirement. Radio is better positioned as a trade, one best learned by doing.

The radio industry should be presenting a broadcast career as an opportunity for students graduating from high school.

I treasure my four decade radio broadcasting career, but having my Bachelor of Arts and Master of Science college degrees never played a role.

It wasn’t until I pursued my second career in life, that of a college broadcast professor, that I would need those two pieces of paper to be hired at The School of Broadcasting and Journalism at Western Kentucky University.

Colleges sell pieces of paper representing knowledge learned. You can’t be part of the faculty unless you have also earned these benchmarks in higher education.

Finally, just as adamant as I am about the radio industry starting its outreach at the high school level, I am just as determined to see colleges hiring broadcast professionals based on their broadcast careers, knowledge that has been earned through years of on-the-job experience that no college curriculum can duplicate. Sadly, most colleges screen out any applicant that doesn’t have the required terminal degrees.

“Difficulties come into our lives to develop us.

Every storm is a school.

Every trial is a teacher.

Every experience is an education.”

— Nicky Gumbel.

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The Waiting for Godot Fallacy

I know many people who come to this blog and post comments about the articles I write pine for radio to return to the way it was twenty years ago. They’re hoping that one day the big consolidators will move on to new business ventures and will sell their radio stations back to radio people who will run those stations correctly. Sadly, wishing for that to happen is like Waiting for Godot .

But that doesn’t mean there’s not a future for radio. One of my readers, a multi-decade broadcast manager, engineer and consultant wrote the perfect prescription for making radio healthy again. Today, I would like to share with your those thoughts.

It’s Not About Being Local

“Local” being the savior of radio is a canard and always has been. The beauty of social media is that it is a rich media experience that is personalized expressly for one person: you. Radio cannot hope to be so “local” that it can beat that.

Serve Your Tribe

The secret to radio’s survival is not localism but “tribalism.” Providing not just a service but an experience. An experience that joins numerous people together, regardless of geography. Hence the success of right-wing talk radio, the success of NPR (which is rarely less than 21 or 22 hours of national progamming out of every day on virtually every “member station”) and most informatively, the success of K-Love, which has near zero local content at all yet has grown a huge and profitable audience.

These outlets’ content has precious little to do with the local community, but they all share a powerful defining aspect: listeners self-identify as being proud to listen (and prouder to donate to) the outlet in question.

Commercial Radio’s Tribal Leadership Vacuum

Most commercial radio outlets have achieved this tribalism on the backs of longevity of a given host: KISS 108 has been top-rated in Boston for decades because that audience has tuned in to hear Matty Siegel every morning for over forty years. Rush Limbaugh had his legions of Ditto Heads for nearly as long.

And therein lies the rub. Most of those hosts are in their 70s or older…or dead…and the pipeline to replace them has been sealed off thanks to post-1996 consolidation. Non-commercial radio operators, like K-Love and NPR, have succeeded in finding a content/style niche but there’s only room for so many of those.

It All Comes Down to Your Talent — Growing & Retaining It

So, to put it another way: it’s not localism that’ll save radio; it’s talent. And radio has worked very hard to drive good talent out of the business.

“Talent hits a target no one else can hit.

Genius hits a target no one else can see.”

-Arthur Schopenhauer

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What was The Fairness Doctrine?

After the January 6, 2021 siege on Capitol Hill, I began hearing people saying we need to bring back “The Fairness Doctrine,” as if that genie could be put back into the bottle.

But what exactly was “The Fairness Doctrine?”

It was a policy enacted by the Federal Communications Commission (FCC) in 1949 requiring the holder of a broadcast license to both present controversial issues of public importance, and to present these issues in a manner that was honest, equitable, fair and balanced.

In other words, broadcasters were supposed to not only uncover what the people in their broadcast service area should be aware of, but also to present both sides of the issue.

Operate in the Public Interest, Convenience and Necessity

From the beginning of my broadcast management career, I knew that my number one job was to protect the radio station’s FCC broadcast license to operate. Without a broadcast license, you were out of business. Second, my radio station(s) must operate in the public interest, convenience and necessity of the people in the area we were licensed to serve with our broadcasts.

The FCC created The Fairness Doctrine to ensure that “all sides of important public questions were presented fairly.”

For decades, this doctrine was seen as the keystone of broadcasters fulfilling their commitment to operating in the public interest. Compliance with The Fairness Doctrine was a primary litmus test during the license renewal process.

It was during the 1960s, when I started my radio career, that the FCC increased their enforcement of broadcaster compliance to The Fairness Doctrine. In 1963, the FCC formally stated that the presentation of only one side of an issue during a sponsored program would require that opposing views be given free air time to present their side. That rule became known as the Cullman Doctrine.

Broadcaster’s Free Speech

It probably won’t surprise you to learn that all of this increased oversight by the FCC on a broadcast station’s program content was seen as interference with a broadcaster’s “free speech.”

This would eventually be challenged at the Supreme Court in the Red Lion Broadcasting v. FCC decision of 1969, with the high court upholding the constitutionality of the public interest standard in general and The Fairness Doctrine in particular. In their decision, the court stated, “It is the right of the viewers and listeners, not the right of the broadcasters, which is paramount.”

The End of The Fairness Doctrine

In 1985, the FCC finally decided that The Fairness Doctrine was incompatible with the public interest. It would eliminate this rule in 1987, and in 2011, the FCC removed the rule that implemented the policy from the Federal Register.

“[T]he Federal Communications Commission should reestablish two principles that formerly served this country well: the public service requirement and the fairness doctrine. Every television and radio station should once again be required to devote a meaningful percentage of its programming to public service broadcasting. The public, after all, owns the airwaves through which signals are broadcast, and the rights-of-way in which cables are strung. And every television and radio station should once again have to follow the fairness doctrine: those with opposing views should have the right to respond to viewpoints expressed on the station.”
― 
Bernie Sanders, United States Senator

Trump Tweets NBC Broadcasts “Fake News”

In October of 2017, President Donald J. Trump tweeted “With all the Fake News coming out of NBC and the Networks, at what point is it appropriate to challenge their License? Bad for country!”

Broadcast legal experts immediately criticized and dismissed Trump’s tweet as both implausible and having no legal basis.

The American Bar Association’s Legal Fact Check wrote:

“The FCC publishes specific rules and guidelines related to news hoaxes and distortions and bars a licensee from knowingly broadcasting false information concerning a crime or a catastrophe. But the bar or threshold is high. Six days after Trump’s tweet, FCC Chairman Ajit Pai said his agency cannot revoke the license of a broadcaster ‘based on content of a particular newscast,’ and cited First Amendment protections of the press. FCC statements previously noted that the commission ‘often receives complaints … that stations have aired inaccurate or one-sided news reports or comments, covered stories inadequately or overly dramatized the events that they cover… (but) the commission generally will not intervene in such cases because it would be inconsistent with the First Amendment to replace the journalistic judgment of licensees with our own.’”

FOX NEWS CHANNEL

The Fairness Doctrine ended during the Presidency of Ronald Reagan, however, it’s often wrongly stated that this gave birth to cable’s FOX NEWS CHANNEL. It did not. Cable channels are not, nor have they ever been, regulated by the Federal Communications Commission (FCC).

Similarly, the internet is also not regulated by the FCC.

The Fairness Doctrine only applied to the licenses of broadcast radio and television stations.

A case could be made that the end of The Fairness Doctrine did open the door to the Rush Limbaugh Show, which made its nationally syndicated premiere in 1988. Rush Limbaugh was a savior for AM radio stations, who saw most of their music audiences moving over to FM radio stations, and those advertising dollars moving right along with them.

Limbaugh proved so popular with AM talk radio audiences, that AM radio station owners added more talk shows like Sean Hannity, Michael Savage, Glenn Beck, Mark Levin and others.

Cumulus Media

Following the siege on our nation’s Capitol in Washington, DC on Wednesday, January 6, 2021, Cumulus Media, the radio syndicator for the Mark Levin Show sent a memo to its talk show hosts to stop spreading rhetoric about a stolen election or face termination.

Brian Philips, executive vice president of content for Cumulus Media wrote in his memo:

“We need to help induce calm NOW (and) will not tolerate any suggestion that the election has not ended. The election has been resolved, there are no alternative acceptable ‘paths.’ If you transgress this policy, you can expect to separate from the company immediately.”

Cumulus Media operates Westwood One, which syndicates Trump-supporting radio talk personalities like Mark Levin, Ben Shapiro and Dan Bongino.

Free Speech

I find it ironic that the people screaming the loudest about what Cumulus Media has done is to thwart free speech. It’s not “free speech” to tell lies. United States constitutional law does not always protect false statements under the First Amendment.

Moreover, these same people are usually the ones who say, “Let the market decide.” In other words, let the corporations and companies make those hard decisions.

In this case, Cumulus Media did just that.

iHeartMedia which syndicates Trump-supporter hosts Rush Limbaugh and Sean Hannity has not publicly announced any similar action for these talk hosts as of the writing of this blog article.

In 2016, SiriusXM suspended conservative talk host Glenn Beck for agreeing with one of his show’s guests who asked, “what patriot will step up to remove Donald Trump from office if he’s elected president and oversteps his authority?” SiriusXM, operator of America’s two satellite radio services, suspended Beck because they worried the conversation might “be reasonably construed by some to have been advocating harm against an individual currently running for office.”

Michael Harrison, who publishes Talkers magazine was sympathetic to the Cumulus memo saying:

“Corporations are responsible for what’s on their air. They have to deal with client feedback. They have to deal with public image and protection of their license. Private corporations can control their platforms, and I believe that in and of itself is an expression of free speech in action.”

I’m all for the Fairness Doctrine, whatever that is.

-George Voinovich*

*George Victor Voinovich (July 15, 1936 – June 12, 2016) was an American politician who served as a United States senator from Ohio from 1999 to 2011, the 65th governor of Ohio from 1991 to 1998 and the 54th mayor of Cleveland from 1980 to 1989, the last Republican to serve in that office.

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DJs Get Paid More than Real Musicians

Wolfman JackI was reading an article in Medium about “How Platform Capitalism Devalued the Music Industry,” when I came to this comment from electronic pop artist Grimes – currently dating Elon Musk – “DJs get paid more than real musicians.”

As the blowback continues to reverberate from the recent “employee dislocations” by iHeartMedia, of hundreds of their disc jockeys across America, I wondered who were these highly valued DJs Grimes was talking about.

World’s Highest Paid DJs

Turns out that Forbes published a list in July of what Forbes called “The World’s Highest-Paid DJs of 2019.”

chainsmokers

The #1 highest paid DJs are “Chainsmokers” earning $46 million in pre-tax income over the past year.

Who?

If that was the first thought that flashed across your brain, you’re not alone. The Chainsmokers are made up of Drew Taggart and Alex Pall.

#2 was “Marshmello” at $40 million, #3 was “Calvin Harris” at $38.5 million, #4 was “Steve Akoi” at $30 million and rounding out the top 5 was “Diplo” at $25 million. Forbes actually ranked the top 15 and you can see the whole list HERE.

None of these DJs are on your local radio station. They are all club DJs.

The Chainsmokers signed a three-year exclusive residency deal with Wynn Nightlife in Las Vegas that has the pair performing only in nightclubs at XS and Encore Beach Club in Vegas in 2017. The pair is such a draw, that agreement has been extended until 2021. The group also records EDM albums and released their first single in 2013.

Club DJs

marshmelloChristopher Comstock, aka “Marshmello,” signed with the Palms Casino Resort in Las Vegas taking up residency at their Kaos Dayclub and Nightclub.

Marshmello entertains from a rotating DJ booth shaped like his signature cylindrical marshmallow mask. If you’d like to see him in action, here’s a link to a YouTube video

This year coming in at #3, “Calvin Harris.” He previously had been the #1 highest paid DJ for six consecutive years.

Absent from the list are over-the-air radio DJs.

Radio’s Highest Paid

It should come as no surprise that Howard Stern reigns in the top spot with an income north of $90 million. But he’s on satellite radio.

The top earner on terrestrial radio is Rush Limbaugh, who recently announced he’s battling advanced lung cancer. Then comes Ryan Seacrest, Sean Hannity and Glen Beck, all syndicated talk radio hosts.radio sign

What’s the attraction of all of these personalities?

Grimes puts it this way, “It’s kind of like Instagram or whatever. [Listeners] don’t want the real world.” Great personalities give us an escape from our world and make us feel like we are a part of their lives.

Great Radio

Radio provides the listener with community and companionship through the stories it tells and music it plays.

Harry Harrison, New York City’s Morning Mayor, recently passed away at age 89. He was a New York City DJ Legend, broadcasting over WMCA, WABC and CBS-FM for the majority of his radio broadcasting career.

Cousin Brucie was invited to share his memories of Harry and why he was so loved by Big Apple radio listeners. Brucie said it was all about making the members of the radio audience feel like family. It’s all about talking to people and being out in the community Cousin Brucie & DTwith them, touching their hands. In fact, the host said, when Brucie showed up at NBC4  to do the segment, people who work at the TV station came to see him and gave Brucie a hug. Something that rarely happens when guests appear on the program.

I know how they feel because, one Saturday night, that’s exactly what I felt like when I had the opportunity to spend a night in “Cousin Brucie’s Place” at SiriusXM.

The Power of the DJ

The common thread, whether we’re talking about a popular club DJ or radio DJ, is their ability to bring people together, engage in the same thing at the same time and make us feel like we are welcome and belong.

Harry Harrison told his listeners that “every brand new day should be unwrapped like a precious gift” and he always wished his listeners the very best, “because that’s exactly what you deserve!” Ron Lundy greeted his listeners with “Hello Luv,” Dan Ingram called his listeners “Kemosabe,” and everyone was a “cousin” with Brucie.

The biggest casino operators know how important the DJ is in bringing people into their dance clubs. A great club DJ can read the room and know exactly the right mix of music to play to get everyone involved and have a good time.

That same magic built great radio on thousands of local radio stations across America. It can’t be replaced by artificial intelligence and algorithms.

Real local radio knows how to read the community and provide exactly what it needs at that moment. All great radio is local and relevant.

DJs become your best friend.

Is there anything better than hanging out with your best friend?

 

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Has Radio Become a Commodity?

commoditiesBy definition, a commodity product lacks a unique selling point. Two examples of what I mean are lettuce and pencils. No one has a brand favorite of either. To the consumer of both, they’re all the same. Commodities are interchangeable with other products or services, widely available, and therefore undifferentiated except maybe by price.

How about Radio?

Recently, an administrator of a radio group that I’m a member of on Facebook posed this question to the group “Rick Sklar once said jocks are like spark plugs and can be replaced with another one. What do you think?”

Now for those readers that may not be familiar with the name Rick Sklar, he became program director of WABC – 770AM in New York City in 1963. With WABC’s clear channel signal, a tight playlist that targeted teenagers and air talent which included Dan Ingram, Ron Lundy, Harry Harrison, Cousin Brucie, Chuck Leonard and Charlie Greer, Sklar made Music Radio 77 into the most listened to radio station in North America from the mid 60s to the late 70s.

Needless to say, the comments by former air personalities in the group took issue with this “spark plug” analogy, me included.

Unique Air Talents

One-of-a-kind radio personalities built radio into the listener favorite that it’s enjoyed for nearly a century. More recently, there’s Rush Limbaugh, Howard Stern (who said he was influenced by Arthur Godfrey), Paul Harvey, Super Jock Larry Lujack, Robert W. Morgan, The Real Don Steele, Dave Maynard, Joel Cash, Dale Dorman, Larry Justice, Jackson Armstrong, Salty Brine, Bob Steele, Dickie Robinson, Danny Neaverth, John Records Landecker, J.J. Jeffrey, Bill Bailey, Big Ron O’Brien, Don Imus, Bob Dearborn and so many more. Those are just some of the names that inspired me to pursue a 50-year radio career.

Each of these radio personalities is unique and the shows they presented attracted an audience that was loyal to their style of broadcasting. They were anything but, a commodity.

Computer Automation

With the advent of computer automation, the concept of voice-tracking was born. Now a few disc jockeys could be heard on-the-air over a multitude of radio stations across America. Unfortunately, this meant that customizing their radio shows to a particular radio market had to be eliminated and the DJ patter had to be appropriate for all markets the program was airing in. It became watered down and because all big box radio operators were employing the same “Best Practices,” the ownership of the station really didn’t matter as everything began to sound the same.

Contests became nationally oriented, jingles (if there were any) all sounded the same, and playlists, which once reflected regional differences and artists, were now homogenized.

On Air production, which was once an art form in and of itself, was now also computerized. The result being a disjointed, sloppy and anything but smooth radio experience.

The result of all of this was radio being turned into a commodity.

Culture Shock

“Technology is enabling great gains in convenience and diversity,” says Tyler Cowen, professor of economics at George Mason University. “What is being lost is a sense of magnificence.”

He goes on to say

“It is possible we will look back on the present day as a special time when both patterns of cultural consumption could be enjoyed in tandem and enriched (by) each other. But I suspect not. As today’s over-50 crowd slowly passes away, and our experiences fade from collective memory, I wonder if the world might be in for a bigger cultural shock than we currently realize.”

 

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Radio Has an Addiction Problem

listening_to_radioHave you heard the latest? People are addicted to their smartphones. “We now see smartphones as dangerous for young minds,” writes Jean-Louis Gassée in a Monday Note.

More than 30 years ago MIT professor Sherry Turkle postulated that computers weren’t just a tool, but were sneaking into our minds. In doing so, they would change our relationship with the world around us.

Smartphones are Mobile Computers

Turkle would continue her thoughts on this subject in a 1995 book “Life on the Screen, Identity in the Age of the Internet” saying “computers don’t just do things for us, they do things to us, including our ways we think about ourselves and other people.”

Smartphones plus Social Media

When our mobile computers are married to a social media site like Facebook, things get really sticky. Sean Parker, a founding partner at Facebook, wrote about the problem after he left the company saying, “[Social Media] literally changes your relationship with society, with each other…It probably interferes with productivity in weird ways. God only knows what it is doing to our children’s brains.”

Time for Apple to Build A Less Addictive iPhone

The NY Times published an article by Farhad Manjoo that made the case for a less addictive iPhone. Can you imagine someone writing that broadcasters should be making TV or radio less addictive? That watching too much TV or listening to too much radio might be bad for our brains.

Broadcasters today find they have a different problem. They have lost the addictive luster of the past.

The Amazon Addiction

“For many businesses, Amazon is simultaneously a sales channel, a potential service provider and a competitive threat,” says Forrest Research. For broadcasters, Amazon is attacking our retail advertising revenue, by undermining the very businesses we sell to. Today Amazon is the go-to website for retail search, surpassing Google.

Trying to compete with Amazon is a retail challenge. The very retailers’ broadcasters depend on for their revenue.

Retailers measure how well they’re doing by their bottom line.

Amazon is all about increasing top line sales growth. (Wall Street hasn’t demanded Amazon to be profitable yet.)

See the problem?

Trying to beat the Amazon model is a race to the bottom with pricing for our advertising customers.

Free shipping, two-day shipping, lowest prices, biggest selection, customer ratings etc. are among the things making Amazon addictive.

People Made Radio Addictive

Over the years, radio has had personalities that made the medium addictive like Howard Stern, Rush Limbaugh, Dan Ingram, Larry Lujack, Robert W. Morgan, Jess Cain, Dale Dorman, Paul Harvey and many more.

Once upon a time, music formats could be addictive, but today’s access to streaming audio is challenging that beachfront.

Alexa Doesn’t Know My Local Radio Station

My local radio stations are called KISS (WKSI-FM) and WINK (WINC-FM). When I ask Alexa to play either KISS-FM or WINC-FM, I get the Los Angeles KIIS-FM or the WINK-FM licensed to Harrisburg, Pennsylvania.

When I asked Siri the same questions, she couldn’t help me play anything. Siri told me, “Sorry, Dick, I can’t help you with that on your iPhone.”

When your branding is not unique, these new consumer voice activated devices don’t have a clue what you’re trying to ask them. They either make their best algorithm guess or just throw in the towel.

Broadcast Station Call Letters

The FCC (Federal Communications Commission) solved this problem early in broadcasting by assigning each broadcast station its own unique call letters, but broadcasters abandoning those identifiers for branding like Kiss, Froggy, Hot, and others, that are duplicated all across the country, is now a problem in a voice activated world. But it’s not just the brand not being unique, the programming is likewise just as non-unique.

Don’t Be Generic

No one ever became addicted to a generic.

Addiction stimulates parts of the brain that trigger craving and longing, that release habit-forming, feel-good chemicals such as dopamine and endorphins.

Your iPhone does that for you.

You voice activated smart speaker does too.

Broadcasting is show business.

Which do you think stimulates the part of the brain that causes addiction? The show part or the business part?

Answer that question correctly and you’re on your way.

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Don’t Let Radio End Up Like Yahoo!

49I just finished listening to Jason Jennings’ podcast about how Yahoo went from being a company worth $120 Billion to its sale to Verizon for $4.8 Billion. I think the wisdom that Jason shared is very applicable to the radio industry’s journey through consolidation since the Telcom Act of 1996.

Jason says the selling of Yahoo is like a train wreck; you don’t want to look, but you just can’t help yourself. I know many who’ve said similar things as Wall Street invaded radio with its goal of “increasing shareholder value.”

So how can radio learn from Yahoo’s mistakes? What are the lessons Jason shared that apply to radio? Let me share with you the Top 5 Lessons of Yahoo:

#1) Know What You’re All About

Yahoo never really defined itself and the revolving door of CEOs contributed to this with each one bringing a different vision – or no vision – to Yahoo. Or as Jason puts it, the company didn’t have a purpose; they never knew what they were all about.

As radio was deregulated and its original mission of serving the public interest, convenience and necessity was abandoned, nothing replaced radio’s reason for existing except for “increasing shareholder value.” Not surprising as radio people were replaced by Wall Street investors.

#2) Have a Set of Guiding Principles

Radio’s guiding principles were first established by the FRC (Federal Radio Commission) and then by the FCC (Federal Communications Commission). Under President Ronald Reagan – and his government is best that governs least approach – radio’s deregulation began. President Bill Clinton would open the flood gates of consolidation with his signing of the Telcom Act of 1996.

With no guiding principles, investors were free to move in all directions; and they did, buying up not just radio stations but many of its manufacturers and service providers for radio.

It’s like the old saying, if you don’t know where you want to go, any road will take you there.

#3) Using a Business like a Personal Piggy Bank

Radio investors and many top radio executives began using radio as a personal piggy bank, only taking care of themselves and focusing on the immediate quarter with no long term vision, strategy or investment. Too many just lined their pockets and left.

#4) Trying to Be All Things to All People

Jason says “great companies stick to their knitting. You can’t be all things to all people.”

Radio was originally about serving their community of license via over-the-air broadcasting. It delivered local news, local sports, local community events, local bands and more by local radio personalities who lived in the communities they served. It was focused like a laser beam on local, local, local.

#5) Don’t Copy the Competition

Radio today is trying to copy Pandora, Spotify, Apple Music and others. Radio today is trying to also copy YouTube, Facebook, Pinterest, Twitter and SnapChat. Radio is trying to copy just about every other business advertising model and without any guiding principles has been economically treading water.

Yahoo’s SVP Brad Garlinghouse wrote his infamous “Peanut Butter Memo” in October of 2006 that pleaded with the company to narrow its focus and clarify its vision.

Brad felt that Yahoo was spreading its resources too thinly. Business Insider recently wrote “This internal memo from 10-years ago shows Yahoo still hasn’t solved its biggest problem.”

If Yahoo had a culture problem, radio by way of mass consolidation had an even bigger one. First, as Wall Street money flowed in and radio stations were bought up, each of those stations represented its own culture that would need to merge into a larger culture. Then these new larger radio groups would try to change the culture from a local scope to a national scope. National radio personalities like Ryan Seacrest, Rush Limbaugh and many others would replace local personalities. National radio contests would replace local ones. Live and local for the most part would soon only appear in the history books on radio.

Culture is created at the top. Over the last twenty-years, radio’s consolidation has seen a revolving door of top leadership. The culture of radio has been a moving target for both industry professionals and listeners alike. Culture is built over time. There is no “quick fix” for building culture.

Absent a company culture, what fills the vacuum is one of everyone for themselves.

Now twenty-years later, there are signs of new growth as people who believe in live and local, and operating in the public interest, convenience and necessity are entering the business.

In many small markets, this way of operating never got sucked into the vortex of consolidation.

Even some of our country’s biggest radio companies are focused on getting back to the core principles radio was built upon.

Radio, the first broadcast transmission system to reach a mass audience, almost 100-years later is still the leading way to reach a mass audience.

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