Tag Archives: streaming audio

FM Chip, Data Usage & Streaming

121Apple recently introduced the iPhone 8, iPhone 8 Plus & iPhone X (it’s 10th anniversary iPhone). Each of these new iPhones have an FM chip in them, I’ve read, that if turned on, could receive OTA FM radio signals, but these chips are not activated.

I’m not an engineer, but I suspect there’s more to making an iPhone receive FM radio than just turning on a software switch. I will let those more knowledgeable about these things weigh in on this aspect.

Streaming Audio & Data Usage

One of the reasons broadcasters cite for having FM chips activated in smartphones is that it uses less battery power and doesn’t consume your data plan like streaming does.

And the other reason is that FM radio stays on-the-air when cell towers go down in a storm, like Hurricanes Irma or Harvey.

NextRadio says it’s seen a big percentage jump in usage to their App in Florida during Irma by allowing a smartphone equipped with an FM chip to listen to over-the-air FM radio broadcasts.

Verizon’s Smallest Data Plan

I’m a Verizon customer. Have been for a long time. I was on their unlimited data plan until a Verizon rep said my data consumption was not even half of Verizon’s smallest data plan and that I could cut my monthly phone bill in half by getting off that plan. So, I did.

This past Memorial Day weekend I streamed Allan Sniffen’s WABC Rewound while driving from Massachusetts back to Virginia. I consumed almost all of my 1GB plan due to this. I called Verizon about what I could do and was told they would switch me to their new small data plan at no charge. It’s now 2GB, plus any unused data rolls over.

I have something like 4+GB now and it grows because most of my music streaming is done when I’m connected on WiFi and not over-the-air.

I expect that this will be expanded again by Verizon due to competition from other wireless carriers.

T-Mobile Unlimited Music Streaming

Back in July 2016, I wrote a blog article titled “SiriusXM Radio is Now Free.” That article still sees lots of traffic from people searching for this service. I think they thought I wrote that it was now free, but the nature of the article mused what if they made some of their music channels free and then sold commercials in those nationwide free music channels. It’s actually something that’s been kicked around by America’s only satellite broadcaster.

But in 2014, T-Mobile introduced “Music Freedom.” T-Mobile wrote, “With Music Freedom, T-Mobile Simple Choice customers can stream all the music they want – without ever touching their high-speed data – at no extra charge.”

Then in 2016, T-Mobile expanded this to more than 100 music and video services. T-Mobile CEO and president John Legere vlogged: “Music Freedom and Binge On have radically changed the way T-Mobile customers watch video and listen to music.”

T-Mobile & Sprint Merger

CNBC says that T-Mobile and Sprint are in active merger talks. If they do become one, they would become America’s second largest wireless carrier. Can you see how both Music Freedom and Binge On would provide a very competitive stance to AT&T and Verizon?

Radio’s Streaming Effort May Be Screwed

Then Mark Ramsey published part one of a two-part blog post titled “Radio’s Streaming Effort May Be Screwed – Part 1” and showed Triton streaming activity for broadcasters and pureplays year-over-year. It’s not pretty. Pureplays up 16.2% and broadcasters down 1.6%.

Radio is not getting more important in the streaming world.

I believe it’s because, like most people, I listen to OTA radio using a device designed for listening to this service, a car or home radio set.

When I stream, I go to things I can’t get over-the-air, like Smooth Jazz music.

I put two new Smooth Jazz radio stations on the air in my radio career. Both of them are gone, as is the format in most radio markets in America today. Streaming is about the only way to listen to this genre of music.

Streaming Audio & NetFlix

Streaming audio teaches people to expect a different listening experience as Netflix taught people to expect a different viewing experience. Like getting an entire season of a show (House of Cards, for example) released on the same day and not dribbled out one episode per week, like broadcast TV.

Dave Van Dyke’s Bridge Ratings just showed how broadcast radio is being impacted by streaming: “New behavior by on-demand streaming listeners has accelerated time-spent-listening attrition because radio has not been able to accommodate the volume of songs released by popular artists.”

Broadcast radio can now sympathize with broadcast television with the way new product is released to the listening/viewing audience.

JJJRH

In my broadcast capstone class, one of the books my students read was by Gary Vaynerchuk called “Jab, Jab, Jab, Right Hook: How to Tell Your Story in a Noisy Social World.”

Gary skillfully shows how you can’t take your message and just paste it across all the various forms of social media. That each platform is like a different radio format. Your message to be effective and cut through needs to be molded to fit the social medium. Facebook is different than LinkedIn that’s different from Twitter, that’s different from Pinterest et al.

I believe it’s the same with taking your radio station’s over-the-air signal and simply streaming it (with a few exceptions, like a 1010 WINS or WTOP).

When your offering can be as easily received, as every other audio offering from anywhere in the world, yours will need to be either the very best, very niched or one-of-a-kind.

 

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SiriusXM Radio is Now Free

43

What would you do if you woke up one morning and saw this as the headline in all the radio trades? Have you ever considered the possibility of this happening? Well lots of people woke recently to this headline “Angie’s List is now free: What this means for your business.”

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 other members that had experienced certain businesses or services they had used. Now everyone can see those reviews. Angie’s List had developed a reputation for its members writing rather substantial reviews as well as being a website that is strong, trusted and contains valuable content.

Why Did Angie’s List Tear Down Their Paywall?

Angie’s list is a publicly traded company. Their stock is down seventy-five percent from three years ago. Management is under pressure. Tearing down their paywall means increased page views. When page views go up, revenue goes up. See the strategy?

Could SiriusXM Follow Suit?

Satellite radio currently captures about ten percent of radio listening and mostly in vehicles. The new digital dashboard entertainment centers will be a gateway to Pandora, Spotify, Apple, YouTube and more. Having an XM button on my Honda Accord, I know that my access can be selectively turned on or off by SiriusXM. When they do one of their free listen promotions, they don’t turn on all the channels, just the ones they think will hook me to listen. So, I would imagine, they could create a group of channels that could be on all the time and carry a limited commercial inventory attractive to national advertisers. Like the most popular musical venues, such as adult contemporary. Even if they only turned on the top five music formats, it would mean drivers could listen to them wherever they drove across America, plus SiriusXM would have the ability to pop in promos for their other channels that remained behind a paywall. It’s almost too scary to consider the possibility.

Teens Love Streaming

Teens love streaming audio and their smartphones. According to the Music Business Association and their data partner LOOP, teens spent 51% of their listening time on a typical day streaming their music versus only 12% of their time with AM/FM radio. This is a media usage habit being formed in the next generation. It not only affects traditional AM/FM broadcasters but satellite radio as well. This is a problem that needs to be addressed.

NextRadio App

Thanks to Jeff Smulyan and Emmis, the NextRadio App is the way FM broadcasters can get their audio into those smartphones, without running up a user’s data plan. However, Sprint has already removed many audio streaming services from running up their data plans by letting their customers listen as much as they want at no extra charge. Since teens avoid paying any fees whenever possible, free is always an attraction.

Less Than 1% of World Pays For Streaming Audio

AM/FM radio has been built on free. That’s an advantage that too often gets taken for granted. According to Nielsen 61% of people find out about new music via their AM/FM/satellite radio.

Price is the number one reason more people don’t pay for streaming audio. Out of a worldwide population of over seven billion people, about forty-one million buy some form of audio streaming; 0.58% of the world’s population. That percentage turns out to be lower than the total number of people who have a Netflix subscription around the planet.

23,870 AM/FM Radio Signals On-The-Air

The FCC just published their latest numbers for broadcast stations as of June 30, 2016. We are approaching 24,000 signals for radio in America. 19,194 of those signals are FM and 4,676 are AM. Plus we have two satellite radio signals, Sirius & XM, which are now under a single owner.

Pay & Free

It doesn’t take a whole lot of imagination to see satellite radio one day deciding to have the best of both worlds. Offer premium pay channels to those willing to pay for them and at the same time create a free tier of channels that could be ad supported by national advertisers.

What history shows us are things that happen in other industries and services eventually make their way around to virtually all of them. It’s only a matter of time.

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