Tag Archives: satellite radio

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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The Car Radio is 100

Commercial radio was born in November of 1920. The first OEM (Original Equipment Manufacturer) car radio came along in 1922 designed by the Chevrolet Motor Company and manufactured by Westinghouse. This first car radio was heavy, cumbersome and expensive; costing $200. In today’s dollars this would be the equivalent of $3,347.00. A 1922 Chevrolet, Superior 5-Touring automobile was priced at only $860, so you can see how expensive it was to buy one with a radio installed.

The good news is the radio worked and would then birth 100-years of innovation in the automobile dashboard.

The 1920s Car Radio Sales Pitch

With a radio in your car, your family could drive anywhere within a hundred miles of a radio station while being entertained, informed and educated.

It’s hard for any Baby Boomer to imagine not having audio entertainment as standard equipment in their dashboard.

1930s

It was radio engineer Paul Galvin that would pioneer more affordable car radios which he manufactured and sold through his new company, called Motorola.

1940s

Midway through the 40s, it is estimated that nine million cars now had radios in their dashboard and people were becoming concerned that they were leading to distracted driving thereby causing more auto accidents. Both broadcasters and radio manufacturers made the case for how having a car radio was useful in emergencies and alerted drivers to bad weather conditions.

Today when the topic of distracted driving comes up, it’s usually about handheld cellphones being used by drivers. But back then, Radio-Craft Magazine told of the battle being waged between state legislatures and radio manufacturers: “Ever since auto-radio installations became popular, a controversy has been going on…as to whether auto radio presented an accident hazard or not.”

The president of the Radio Manufacturers Association made the case that car radios were safe saying:

“Radio is not distracting because it demands no attention from the driver and requires no answer, as does conversation between the driver and passengers. Motor car radio is tuned by ear without the driver taking his eyes off the road. It is less disconcerting than the rear view mirror.”

Several states proposed steep fines for drivers, while others considered making installing a car radio a crime.

The Princeton Radio Research Project was created to study the effects car radios were having on automobile safety. In a paper published by Edward A. Suchman for that project, he reported that his small study found no link between car radios and traffic accidents.

1960s

In 1963, Frequency Modulation (FM) radios were introduced into the automobile for the first time. Radio penetration in cars had now reached 60%.

Along with FM radios, the 60s also gave birth to both eight-track tapes and car stereos, primarily due to the use of transistors, instead of vacuum tubes. Solid state transistors were smaller, drew less power and emitted very little heat.

1970s

If the 60s belonged to the 8-track tape player, the 70s would belong to the stereo cassette tape player. Recording tape manufacturer Maxell promoted these cassettes as nearly indestructible.

1980s

While the Compact Disc (CD) would be introduced in the 80s, it didn’t really become ubiquitous until the late 90s, coexisting with compact cassette players in automobile dashboards for two more decades.

21st Century

Probably the biggest disruption to the automobile dashboard came with the advent of Bluetooth allowing smartphones to interface with a vehicle’s entertainment system.

In 2011, automobile manufacturers stopped offering cassette tape players in their new cars, soon followed by the elimination of CD players/changers.

Today’s new cars come equipped with access to Satellite Radio, and an automatic interface with your smartphone allowing you the ability to stream anything you want to hear into your car’s entertainment system.

In fact, my first article for this blog in 2022 was “Why I Stream ALL My Radio Listening,” which diagrammed how my car radio audio systems are now programmed by my iPhone.

“Radio is not going to be Numero Uno in the dash any longer.”

-Fred Jacobs

AM/FM radio will most likely coexist with other forms of audio access for a period of time, but the writing is on the wall.

The definitive answer to how long over-the-air radio will continue to be used in the automobile really depends on broadcasters and whether or not they offer compelling and attention-getting content that audio consumers demand to hear.

AutoStage

Xperi’s newest in-dash experience is AutoStage. It was demonstrated at CES2022 and it should be noted that this system comes with the following pre-sets: SiriusXM, FM, AM and TuneIn Radio.

I use the TuneIn Radio App 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 (Digital Audio Broadcasting), 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.

Waxing Nostalgic

Car radio has come a long way from the day William Lear and Elmer Wavering drove their girlfriends to lookout point high above the Mississippi River town of Quincy, Illinois to watch the sunset and their dates told them how much better this romantic evening would have been had they been able to listen to music in the car.

Lear and Wavering shared their girlfriends’ comments with Paul Galvin who would go on to make Motorola car transistor radios, and then AM/FM radio would dominate the dashboard for the rest of the 20th Century.

So, now moving further into the 21st Century, radio broadcasters really need to follow the advice of Steve Jobs in order to survive and thrive, and that is to:

Think Different

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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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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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Tall Towers in Big Fields

55I worked for Clear Channel for five years. As best as I remember, not a meeting went by that John Hogan wouldn’t say “we’re not about tall towers in big fields anymore.” And as I watch radio companies all across America selling off their radio towers, I think that day has come to fruition.

Introducing the iPhone7

This week on September 7, 2016 the iPhone7 came out and the big news was that it eliminated the headphone jack. The radio industry was in shock. How would NextRadio be heard without the wire that connected the ear buds to the phone since that wire acts as the antenna to receive FM radio through a smartphone with the FM chip activated. Except Apple never activated the FM chip inside any iPhone.

PPM & the iPhone7

Then only two days later, Randy Kabrich published a concern that may be even more important to the radio industry, and that was, how would PPM* work with the new iPhone7? Randy posted this picture with his article iphone7-with-ppm and you really should read all that Randy has to say on the subject with his article on Tom Taylor’s NOW here.

Change is the Only Constant

Jim Carnegie, who founded Radio Business Reports, used to continuously preach to the radio industry you can’t hold back change. If you are to survive you must embrace change.

In the case of wireless headphones, the tipping point has been reached. More wireless headphones are now sold than wired ones. So I don’t think Apple was going out on a limb by eliminating a 19th century technology. I also fully suspect that AirPods will soon become the new “IN” thing.

What Should Radio Be Focused On?

MediaLife Magazine published a really interesting article on the seven important trends that radio should be focused on. You can read the article here. I will give you the “Reader’s Digest” version with some of my own thoughts.

The Future of Big Radio

Radio is best when it’s LIVE & LOCAL. The consolidation of radio has not been the successful business model that investors on Wall Street bought into. Of course the concept of “increasing shareholder value” and radio’s operating in the public interest, convenience and necessity were at odds with one another from day one. I would agree with MediaLife that radio’s future will be via locally managed radio operators.

The Future of Local Radio

Johnny Carson used to say: “If you buy the premise you buy the bit.” In this case if you believe in the demise of big radio, then you will also believe in the rise of local radio. I know right here in Kentucky many locally owned and operated radio stations that are fully engaged in every aspect of the lives of their listeners and they are thriving.

Radio Goes Digital

With radio company after radio company selling off their radio towers, the writing appears to be on the wall that all radio will be delivered digitally and via the internet. Gone will be towers and transmitters and FCC regulations, fees and fines.

Convergence of Media

I remember writing a paper on media convergence when I was in college. That was long before the concept of a world wide web. With the internet all media becomes identical. What difference is there between a newspaper, a radio station or a television station when each of them can do the same thing? What will separate them is the quality of their content.

NAB, NAA and IAB et al.

The coming convergence will really play havoc with media associations. When what once were separate and distinction constituencies will now also converge into a media association.

I remember being in Washington, DC when Senator Gordon Smith came on board at the NAB President. I shook his hand and asked him about the NAB inviting the satellite radio and internet radio operators into our big tent. I said better to have them with us than against us. He nodded and said that was certainly something to think about. (I think he may have just been being kind.)

Radio’s Opportunity

The History Channel did a program on the “100 Greatest Inventions” and number two on the list was RADIO. Number one was the smartphone. The smartphone really replaces many of our other devices. My digital camera lays somewhere gathering dust as my iPhone has been my digital camera since I got it. CD player, iPod etc, have been all replaced by my iPhone for playing my own music collection. My iPhone is my radio and TV too. Newspapers, magazines, books, are also easily accessible on my iPhone. I know I’m not alone in finding that their smartphone has become a very important part of their life. My iPhone is the model 4S. It’s ancient in the eyes of my students. That’s why the new iPhone7 with the 256GB storage, stereo sound, wireless AirPods, water resistant and all the rest has me thinking it’s time to upgrade.

For me, the big change is the size of the phone. I like the size of my 4S. It was just a bit smaller than the Blackberry Pearl it replaced, but the technology leap it offered over the Blackberry was incredible. I’m sure that the size thing is only in my perception and once I advance to the larger screen I will wonder how I lived without it.

No One Goes Backward

History shows that once people adopt something new, they never go back to the way it used to be. We may wax romantically about the good old days, but if we had to trade another time in history for life without our smartphones and wireless internet, I seriously doubt we could make the trade.

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*PPM is a Nielsen’s Personal People Meter. It’s a device used to measure radio listening in the top 50 radio markets in the USA.

Note: Randy Kabrich blogs here: http://blog.kabrich.com/

 

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