Tag Archives: Streaming

Is Radio Biting Off More Than It Can Chew?

caravelle radio broadcast stationThere are lots of items in the news these days about what the radio industry should be doing. Streaming, podcasting, smart speaker accessible etc. The one thing I hear little talk about is, improving the core product and focusing on what the listener is seeking.

The Radio Ecosystem

If you think about it, the radio ecosystem, AM/FM radios, have not seen any real changes in decades. Oh, there was the introduction of HD Radio – introduced around the same time as Apple introduced the iPod (R.I.P. 2001-2014), but listeners never really understood the need for it. HD Radio was embraced by commercial broadcasters when they learned they could feed analog FM translators from HD Radio signals and have more FM radio stations in a single marketplace. This was hardly listener focused and actually chained the radio ecosystem to old analog technology.

What IS Radio?

In the beginning, radio was a way to wirelessly communicate with other people using Morse Code on spark gap transmissions. Guglielmo Marconi built a radio empire on this technology.

David Sarnoff, a skilled Morse Code operator and a Marconi employee envisioned a “radio music box” and wrote a memo about developing a commercially marketed radio receiver for use in the home. It wasn’t until after World War I, when Sarnoff proposed the concept again, this time in his new position as general manager of the Radio Corporation of America (RCA), that it would see the light of day.

Sarnoff would demonstrate the power of radio by broadcasting a boxing match between Jack Dempsey and Georges Carpentier. In just three years, RCA sold over $80 million worth of AM radios, and not soon after created the National Broadcasting Company (NBC).

Federal Radio Commission

America’s first attempt at regulating radio transmission was the Radio Act of 1912, that was enacted after the sinking of the Titanic. This law didn’t mention or envision radio broadcasting.

As radio broadcasting began to grow in the 1920s, then Secretary of Commerce Herbert Hoover would begin the process of trying to regulate the limited spectrum that everyone now wanted a piece of.

The Radio Act of 1927 was America’s first real attempt at regulating radio broadcasting. The Federal Radio Commission (FRC) was then formed by this act.

It should be noted that the FRC operated under the philosophy that fewer radio stations, that were well funded and provided live original programs, were better for America than a plethora of radio stations providing mediocre programming. It was an idea that the major radio receiver companies championed.

Federal Communications Commission

In 1934, the Congress took another attempt at regulating broadcasting (radio & TV) as well as all the other forms of communication that now existed. The Communications Act of 1934 created a new regulatory body called the Federal Communications Commission (FCC). By 1934, radio broadcasting had evolved into a highly profitable business. Broadcast educator, Fritz Messere, writes: “Many of the most powerful broadcasting stations, designated as ‘clear channels’ were licensed to the large broadcasting or radio manufacturing companies, and the Federal Radio Commission’s adoption of a rigid allotment scheme, under General Order 40, solidified the interests of the large Broadcasters.”

The biggest and most well-funded broadcasters have been favored since the very beginning. What kept things in check until 1996 was the limit on the number of AM, FM and TV stations a single company could own.

Telcom Act of 1996

Those limits would evaporate with President Clinton’s signing of the Telcom Act of 1996. Radio, as America had known it, would be over.

Now, for the most part, a single owner could own as many radio stations as their pocketbook could afford. Lowry Mays and Red McCombs, founders of Clear Channel Communications, would grow their portfolio of radio stations to over 1200 from the 43 radio stations they owned before the act was signed.

In 2003, Mays testified before the United States Senate that the deregulation of the telecommunications industry had not hurt the public. However, in an interview that same year with Fortune Magazine, he remarked, “We’re not in the business of providing news and information. We’re not in the business of providing well-researched music. We’re simply in the business of selling our customers products.” (Mckibben, Bill (2007). Deep Economy. San Francisco: Ignatius Press. p. 132.)

Radio Zoning The FCC is now considering whether to further loosen up the ownership limits of radio and TV stations in America. FCC Attorney John Garziglia recently wrote:

“If radio stations could be erected like fast-food establishments and grocery stores, with no numerical limits imposed other than a businessperson’s risk tolerance, it would be difficult to argue for FCC-imposed ownership limits on radio. Indeed, a regulatory agency enacting numerical limitations on restaurants and grocery stores would likely not pass legal muster.

But there are widely-enacted municipal limitations on just about every type of local business. The limitations are called “zoning” – the permitting or prohibiting of certain uses in certain areas to protect the character of the community.

The FCC’s radio ownership rules can be thought of as a kind of radio zoning. In the same way as land-use zoning protects a community’s character, the FCC’s ownership rules permit or prohibit certain radio station combinations protecting the amorphous concept of the public interest.

With land-use zoning, communities maintain a distinct character, livability, aesthetic, and economic success by not bowing exclusively to the profit motive of land developers. Allowing several or fewer owners to own virtually all of the radio stations in the country would doom the specialness of our radio industry.”

 

I think John makes some excellent points and I would encourage you to read his complete article HERE.

Biting Off More…

Radio operators today can’t properly staff and program the stations they already own. What makes them think that will change if they own even more of them? Most radio stations are nothing more than a “radio music box” run off a computer hard drive, an OTA (over-the-air) Pandora or Spotify.

Former Clear Channel CEO, John Hogan, introduced the “Less Is More” concept when I worked for the company. While it actually introduced more on-air clutter, not less, the idea was neither new or wrong.

If owning more radio stations was the answer in 1996, then why in 2018 are we worse off than we were then?

Why was Jerry Lee able to own a single station in Philadelphia and dominate that radio market?

Why are many locally owned and operated radio stations some of the healthiest and most revered in America today?

Radio not only needs zoning on the number of radio stations a single owner can control in a market, but the total number of radio station on-the-air in a market. And it needs radio stations that are neglected to be condemned like property owners who let their land go to seed.

The FRC wasn’t perfect, but the concept of “less is more” served America well for many decades. Fewer radio stations that provided high quality, live programming, operating in the ‘public interest, convenience and necessity’ and by virtue of that diversity of ownership, provided diversity of voice and opinions, as well as healthy competition.

 

19 Comments

Filed under Education, Mentor, Radio, Sales

What a Radio Looks Like in the 21st Century

first iPhone introducedIt was only 11-years ago that Steve Jobs took the stage and held in his hand the future. It was an iPhone.

Many people were skeptical that this device could compete with the very popular Blackberry. I think I may have been one of them, as I was a Blackberry owner/user until 2012.

I quickly realized that I knew how to operate an iPhone, after buying an iPad in the fall of 2011.  All Apple devices share a core eco-operating system that makes learning them fast and easy. My first iPhone was the 4S. The “S” stood for Siri and I quickly learned to use Siri to type all of my text and emails via dictation. In 2017, I upgraded to an iPhone 7.

OK, so I’m probably not telling you anything you don’t already know. But in just a decade, have you ever stopped to think about the impact that the smartphone has had on our lives and the technology we use?

RADIO

In America today, 29% of households don’t have a single working AM or FM radio. But it gets worse. The percentage of households without a single working AM or FM radio grows to 50% for the 18-34-year-old age group.

Edison Research recently reported that even 63% of heavy radio listeners now consume their audio online. 82% of those listeners own a smartphone and the most commonly downloaded App is Pandora (40%).

For many, a radio in the 21st Century looks like a smartphone.

SMARTPHONES

Crosley AM FM Radio

Often it appears like radio people think they are the only ones who are not affected by the innovations of technology. Such as, no matter what comes along, AM/FM radio will always be there. Unfortunately, that kind of thinking is like sticking your head in the sand.

Let’s think about how smart phones have replaced other “must have” technologies:

  • My Nikon camera no longer goes on vacation with me, it has been replaced by the pictures I take on my iPhone
  • Same for videos using my very expensive camcorders
  • My iPod is now my iPhone
  • My newspaper is my iPhone
  • My calculator is my iPhone
  • My eBook reader is my iPhone (or iPad)
  • My pocket voice recorder is now my iPhone
  • My GPS when on foot is my iPhone, though I still prefer my Garmin SmartDrive 61 in the car
  • My flashlight is now my iPhone
  • My iPhone is my compass, barcode scanner, and portable video player
  • My iPhone is the way I access Facebook, Twitter, and LinkedIn away from home
  • My iPhone is the way I get both my local weather forecast as well as access weather radar. Weather alerts come in immediately to my iPhone replacing the need for my weather radio.
  • I’ve been a cellphone only household since 2000
  • My smartphone is my household answering machine
  • My smartphone is my alarm clock
  • I no longer wear a wrist watch, as my iPhone is my watch
  • I use my iPhone as a timer when I’m cooking
  • I have my digital library on my iPhone
  • My work and personal calendars are all on my iPhone
  • I keep notes and other records on my iPhone
  • Since I take all my pictures with my iPhone these days, my photo album is also my smartphone. (Note: I have 2-TerraBytes of iCloud storage to back up everything)
  • My entire “rolodex” (contact list) is now on my iPhone (I started with a Day-Timer and went digital in 1989 with a Casio Boss. Then moved to a Palm Pilot. Then to the iPhone.)
  • I check my email when not at home on my iPhone
  • I surf the internet frequently on my iPhone
  • When I call the kids & grandkids, it’s using Facetime on my iPhone
  • My credit cards, plane tickets, show tickets are now all in my Apple Wallet on my iPhone
  • I can even use my iPhone to run my Apple TV as a remote control

SMARTPHONE ADDICTION

A new research study by Pew finds that 54% of U.S. teenagers, age 13 to 17, worry they may be spending too much time on their phones. While they also say they are trying to reduce their smartphone and social media time spent, 56% of teenagers find that doing so makes them feel anxious, lonely, or upset.Group Of Children Sitting In Mall Using Mobile Phones

And it’s no better for parents (and may I add, grandparents). Pew’s survey tells us that we are struggling with the same impulses over the time we spend on our phones and social media, sometimes with even worse results than teenagers.

Adults lose focus on their work and students lose focus in the classroom, by the constant need to check their smartphone.

SMART SPEAKER

echoMost research today indicates that since the introduction of the smart speaker, the device that’s getting a little less use is the smartphone. I would concur that is the case in my home as well. Our 3 Amazon Echoes are the way we access at home radio listening, get flash briefs, find out the time and latest weather forecast.

At home, 100% of our radio listening is streamed through a smart speaker.

Speaking of Voice Command devices, my Garmin GPS SmartDrive 61 is now programmed by my voice and I can add via points while driving simply by telling my Garmin where I want to go next. It’s the best improvement in automobile navigation since the GPS itself.

ON DEMAND

on-demand-cpeWhat the smart speaker and the smartphone have in common, are both devices give the user what they want, when they want it. On Demand is the real game changer of the 21st Century communications world.

Netflix, Hulu, Amazon Prime, Apple TV etc. are delivering on demand television. The smartphone and smart speakers are doing that same thing for podcasts, radio, news, weather and everything else.

Edison Research noted, in their recent research, that the hardware challenge in the home is significant. Getting analog radio back into the home (and I would add, in the very near future, the car) seems unlikely

16 Comments

Filed under Education, Mentor, Radio, Sales

Disruption is Everywhere

disruption aheadI’ve been reading the trades, trying to grasp what is happening, and it is all so very confusing. Have you felt that way too? That’s what a period of disruption looks like. Black is white. Up is down. It’s enough to give you an Excedrin headache.

SiriusXM

Jim Meyer, the CEO of America’s only satellite service reported strong growth in Q2. On his conference call he’s reported as saying that despite the surge in technology over the past ten years, AM/FM radio still attracts a big number of listeners. However, he also feels that the radio industry has a problem and it’s their product. He warns that if AM/FM radio doesn’t vastly improve their product, it will be to their own peril.

The feedback I received from my recent article “Radio & Traveling – Then & Now” that I wrote about in “From the DTB Mailbag…” seems to indicate that Mr. Meyer is not alone in that sentiment.

Streaming

Then I read how just halfway through 2018, streaming is growing at a rate that defies mathematical trends. By that, the writer meant when it comes to percentages, they are usually big when the numbers are small but become smaller as the numbers of people engaged increases.

With this area of streaming, we are seeing BOTH the numbers of people who stream growing with the percentage of people who are now streaming.

That’s a trend worthy of keeping you up at night.

Adoption Curve for Smart Speakers

In my university “Process & Effects of Media Classes” I introduced my students to the work of Everett Rogers and his Diffusion of Innovation Curve. Adoption Curve - Everett Rogers

Rogers studied how innovations with farmers in his native Iowa were adopted. He very soon realized that what he was witnessing occurred in all areas when a new innovation was introduced.

The latest research report from NPR/Edison, “The Smart Audio Report” showed we are into the Early Majority part of the curve with the smart speaker innovation.

Good News, Bad News

The smart speaker innovation has the ability to bring radio listening back into the homeEcho at a time when AM/FM radio is no longer the entertainment focus of the vehicle dashboard, replaced by the entertainment center that resembles the touch screen on your smartphone.

Unfortunately, the smart speaker also delivers an infinite world of audio choices and it is not a given that radio will be the benefactor.

Fred Jacobs basically lays out the fact that radio’s established brands such as a Z100 or a WTOP will find their engagement traversing from over-the-air to over-the-stream and onto smart speakers. I know that in my own case I can receive WTOP over-the-air, but atmospherics can play havoc with the signal at times. Not so with listening to WTOP via Alexa.

The best radio brands with strong listener engagement will grow.

Cord Cutting

The latest numbers indicate that cord cutting (eliminating the cable TV bundle) is growing faster than expected. The latest study from eMarketer  says that we can expect people cutting the cord to grow to 33 million Americans in 2018.

Netflix is now more popular than cable TV.

Jim GaffiganThe other night I watched Jim Gaffigan’s 5th Netflix special called “CINCO.” In his standup comedy routine, he hit the nail on the head about why Netflix is more popular than cable TV. Here’s what Jim said:

“Netflix has definitely made watching television with commercials kind of painful. Takes forever. You’re like, “What am I, growing my own food here? All right, Geico, we get it!” And it’s not just the length or the number of the commercials, it’s what the commercials say about the typical viewer of the show you’re watching. “Catheter? Why would–? Reverse mortgage? Back pain? I do have back pain. You know me so well, television show.”

Changing Habits

What we are witnessing in the current period of media disruption is the changing habits of the audience. They now have choices. Lots & lots & lots of choices.

Baseball, still radio’s #1 sport is seeing the decay of its audience to a myriad of choices to watch or listen to the same game. It’s no longer the monopoly it used to be.

But worse, once you’ve developed the Netflix or Alexa habit, going back to any delivery system that delivers lots of interruptions is, as Jim Gaffigan says, “painful.”

Ad Supported Media’s Future

I believe that there’s a future of ad supported media, but it can’t be done the way it’s currently being done. Podcasts understand this better than broadcast.

Amazon Prime is good at airing program promotions before the movie starts, in much the same way that my local movie theaters do.

And who didn’t enjoy hearing Paul Harvey say “page two?” It would be the first commercial break in his news and commentary but we listened. Because Paul was as engaging with his sponsor’s material as he was with the rest of his broadcast.

And thank you Mr. Harvey for making me want to own a BOSE Wave Radio. I now have two of them. However, I now play my Alexa Dots through them.

Life’s Only Constant

My old boss used to always say, nothing stays the same. You are either getting better or getting worse.

And he was right.

Life’s only constant is change.

13 Comments

Filed under Education, Mentor, Radio, Sales

Radio Stations Aren’t Performing Like it’s 1999

Calendar 1999Remember when spot loads were small, rates were high, profit margins were 30% to 50%+ and revenue growth was double digit. I do.

What Happened?

Change happened.

FM radio replaced AM radio.

And AM radio stations are adding FM translators in an attempt to stay relevant.

An Abundance of Listening Options

Today there are too many radio stations playing the same program features, repeating the same positioning liners and doing the same things that we used to do 30 to 35 years ago.

Pureplay streamers are relentlessly competing for our listeners’ ears.

Listening options are infinite.

The Internet Tore Down the Gate

Traditional media was born when the “gates” to being a media property were very high. For newspapers those high gates consisted of having to buy large printing presses, paper, ink, etc. For radio & TV those high gates were things like having a broadcast license, a transmitter, studios, etc.

Traditional media enjoyed being gatekeepers for news, information and entertainment because there was no place else to go.

Legacy media enjoyed attracting huge audiences, huge margins and lots of cash flow.

The Gatekeepers of the 21st Century

The new gatekeepers are called listeners, readers and viewers of media.

The new gatekeepers are accessing their media via their smartphones, tablets, computers, smartTVs and now voice activated devices such as Alexa, Google, Apple and Cortana.

Bottom Line

Long stop sets no longer need to be tolerated by listeners or advertisers. Every element that goes out over-the-air needs to be thoroughly vetted from the listener’s perspective.

And your streaming product cannot be an afterthought. It’s your future and if you expect it to grow into your new revenue source, you need to give it your full attention.

Listener Supported

Have you noticed the growth of Christian formatted radio stations? Have you noticed the growth of NPR and public radio?

These radio stations depend on listener support as well as business underwriting.

If your station stopped selling commercials and asked its listeners to donate money to support it, would they?

Our Challenge

The challenge for broadcasters is to build audio brands that our audience doesn’t just casually listen to but feels they can’t live without. To do that, your media property needs to know your listener so well, that you are creating a product that they find engaging in every way.

It’s time to play to win again versus a decade of trying not to lose.

Consumers Have a Choice

Here’s the reality of today. Consumers of media have lots of choices for how they want to spend their time. They don’t need us. It’s up to us to create a reason for them to want us, to need us.

NAB Radio Show 2009

Now here’s the ear-opening part of this article.

Most of these points were made during an NAB Radio Show presentation I attended almost a decade ago.

It’s 2018, how many of these issues are the same today?

Why is that?

I’d love to hear your thoughts.

28 Comments

Filed under Education, Mentor, Radio, Sales

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.

 

10 Comments

Filed under Education, Mentor, Radio, Sales

What Is Localism?

117I read with interest what the new Radio Board Chair of the National Association of Broadcasters, Randy Gravley, had to say in a Radio World interview about what he saw as the issues of concern for the United States radio broadcast industry.

The Most Pressing Radio Business Challenges

On the top of Randy’s list is the rise in streaming services. He feels for radio to be competitive it needs to be on as many platforms as possible but also needs to be delivering content not available elsewhere. It goes back to a real dedication to localism.

What IS Localism, Anyway?

I thought I would go to the flagship radio station owned by Tri-State Communications Inc. based in Jasper, GA to find out. Randy is the president and CEO of Tri-State Communications Inc.

The “Home” page says WJLA 101.1 FM is your source for up-to-date news, sports and community announcements. There was no mention about the radio station being available on any platform other than over-the-air. Likewise, the “About” page tells us that they can be heard in 18-counties in the tri-state area of Georgia, Tennessee and North Carolina. It also says: “Our signal, which remains constant (unlike AM radio stations that lower the power at sunset and sunrise), reaches our target audience of those thirty years old and older.”

I’m sure all AM broadcasters will appreciate that kind of talk. NOT.

The closest thing I could find to “localism” was that WLJA has a “dedicated, award winning staff with over 150 years of combined broadcast experience” and that they “cover all of the local news from our listening area.”

Local News

So, I went next to the “NEWS” page, which features a drop-down menu of “Local, Sports, Music.”

I started with the Local News and saw that the city of Woodstock was having an eclipse viewing gathering. NOTE: I’m reading this local news on August 31st about an event that already happened on August 21st between 1 and 4pm. I also learned that I could tour the new Northside Hospital Cherokee on Saturday, April 22nd from 10am to 2pm.

Is this an example of localism done right?

Local Sports

The “Sports” page did give me the high school football schedule, but other than a list of sponsors, nothing else.

Local Music

The “Music” page was a list of the “Top 30 Gospel Request Time Songs for 2016, 2015, 2014 and 2013.” But it appears these songs are the favorites from a national database not one compiled locally by the radio station.

There was no mention of any local gospel or country groups or any information about where this type of music might be enjoyed locally in live venues.

Local Sales

It was time now to see how the radio station sold itself to local advertisers.

In big red type is said “Home to over 38,000 listeners at any given moment!*” That sounded impressive, but there was that “*” at the end of the statement. The asterisk qualified that claim with the following information: “*As rated by ARBITRON 2007 county by county coverage in Georgia, Tennessee and North Carolina.”

OK, there are some immediate problems with that qualifier. First, it’s 2017 not ten years ago. Second, Arbitron has been gone since September 2013 when it was purchased by Nielsen and re-branded as Nielsen Audio. Other data is sourced as of 2008.

All of these things were found on the radio station’s “Sales” page.

Everything was station focused and not advertiser focused. (Or listener focused)

The sales information didn’t scream “localism” to me. It also offered no information about advertising opportunities via streaming.

In fact, I can’t find on any page anything about being able to hear WLJA 101.1 FM over the internet or via any of the platforms that Randy says are now so critical for radio broadcasters.

Apologies to Randy Gravley

When I started to write today’s blog, I never intended for it to come off looking like a “hit job” on the newly elected Radio Board Chairman. So, I want to apologize to Randy for how negative this article became.

But he’s not alone.

And that’s radio’s BIG problem.

We know what the issues are. We talk the talk, but when it comes to walking the talk, well that’s not happening.

Welcome to radio’s “Kodak Moment.”

Smartphones

77% of all adults in America today say they own a smartphone. That number was only 35% six years ago.

But if you’re looking for the smartphone’s impact on the future, 92% of 18 to 29 year olds today own a smartphone.

Suffice it to say, if your business model doesn’t work on a smartphone, ‘fuhgeddaboudit.’

The NEW Localism

I think the new localism is whatever a person wants, when they want it. Localism no longer means a geographical area. Localism means shared interests.

When a radio station or other mass medium markets itself as being “something for everyone,” it really is saying it’s nothing for nobody.

The future of mass media is reaching the smallest possible viable audience to earn a decent R.O.I. (Return On Investment)

Welcome to the Communications Revolution

What we are seeing in mass mediated communications is a revolution. Like the other worldwide revolutions (Agricultural, Industrial) the impact of this information-driven economic revolution will be enormous.

Unlike the world’s revolutions of the past, this one will explode with exponential speed.

You can see it happening with artificial intelligence (think Alexa or Siri), robotics, self-driving vehicles etc.

Traditional Radio Faces Grim Future

And on August 30, 2017 came a study by Larry S. Miller, Director of the Steinhardt Music Business Program at New York University that says radio is faced with a paradigm shift. He outlines why radio must adapt to the rise of digital.

I know that the NAB and Nielsen have already come out with their side of the story regarding this report by Mr. Miller.

But maybe instead of throwing stones, we should stop living in our own glass houses.

Radio CANNOT survive doing things the way they’ve always done them.

If technology doesn’t seem like magic

It’s probably obsolete.

24 Comments

Filed under Education, Mentor, Radio, Sales

What Can Radio Do That Other Media Can’t?

87I’m writing the follow-up to last week’s blog article while comments are still flowing in but I sense I have enough of a cross-section of comments to draw some conclusions; over fifteen type-written pages of comments to date. Not all commenters actually post their thoughts on my blog, but instead post them on the various social media platforms where they came in contact with my article. I try to monitor as many of those as possible to gauge the feedback on any week’s article.

Theater of the Mind

Quite a few people wrote that radio’s big advantage is that it’s “Theater of the Mind.” Unfortunately, so would streaming radio and podcasts if they so chose to utilize it. Podcasting does this quite effectively with shows like Radio Lab, Serial, Revisionist History and others. In fact NPR takes all of their segments from their highly rated programs like Morning Edition and All Things Considered and makes them available as podcasts. They are very fast at getting these segments posted online too. Lightning fast.

A lot of retired broadcasters seized on the “Theater of the Mind” advantage not realizing the extent that podcasting is doing this and how fast the podcast world is growing in audience and revenues.

Besides, truthfully, how many commercial radio stations these days do you know actually employ any “Theater of the Mind” these days. That whole concept was born from the days when radio did live dramas and that was last heard with the CBS Radio Mystery Theater that I remember running as a young lad back in the 70s.

Radio is everywhere, wireless and free

This might have been an advantage a couple of years ago, but is it still? Streaming audio is wireless, is pretty ubiquitous and now with many carriers free. T-Mobile has no data usage for quite a few streams. Plus audio streaming doesn’t use all that much data.

I’m on Verizon and gave up my unlimited data plan when the bill was climbing north of $100 per month. I switched to a plan that gives me unlimited talk and texting with one gigabyte of data per month for $50 per month. I was told by Verizon that based on my current usage that I wasn’t even using a quarter of a gigabyte per month. As I thought about it, my phone is either on my home WiFi or the university WiFi most of the time and operating very little off of cell towers for data.

However to test out how much data I’d use on a 15 hour drive from New England back to Kentucky I decided to stream radio through my iPhone4S to my car’s sound system. What I would learn was surprising in many ways.

First, I still used very little of my one gigabyte data plan. Second, I heard seamless audio with virtually no buffering and third, the audio fidelity was fabulous. The one thing I did find was how HOT my iPhone got continuously streaming like that.

Now remember, I started out in Massachusetts and drove through New York, New Jersey, Maryland, and West Virginia to get back to Bowling Green, Kentucky. That’s quite a drive and going through Maryland and West Virginia I went over lots of mountainous terrain. I did lose the signal going through tunnels, but that was about it (I also lose radio signals in those same tunnels).

So again, this is no longer radio’s advantage over other options. The people who wrote this was radio’s advantage maybe are not aware of how much things have changed. I know I was.

Radio allows you to multi-task

One respondent actually wrote his response as his own blog article on his site. In it he wrote that

“with today’s tech, radio and television can each DO almost everything the other can do, and they (do) more than the rest of the media types. The division between radio and TV is blurring…both can be just as fast, just as inexpensive. Periscope anyone? You, too, can be a serious broadcaster.

They could be the same except for ONE thing – audio-only format supports productive multiplexing. Doing two things at once. Listening, perhaps LEARNING, maybe just being entertained, WHILE doing some mindless-but-necessary task at the same time.

I cannot watch TV and hammer a nail.

I cannot read the newspaper while mowing the lawn, can’t look at photos or TV while driving a car, can’t appreciate that profit curve while taking a shower.

I CAN “get things done” and, simultaneously, listen to the radio or a podcast. I can, for all practical purposes, MULTIPLY myself. Literally, accomplish more in the same amount of time and with the same “effort.”” (Note: bolding and emphasis were the respondent’s)

That person was on a role until he got to the last paragraph. It was here that he wrote “or podcast.” I would add “or streaming” as well. Heck, I’m listening to my favorite Smooth Jazz streaming station while writing this article. Smooth Jazz helps me to think while I’m writing.

So while radio has always been the multi-tasking medium it no longer holds that as singular medium that can deliver that advantage.

Provides Information during Emergencies

Several writers said that cell phones are useless when the battery dies and that battery powered radios can run for a long time. I would agree. But I see a couple of problems here. How many people still own a battery powered radio and use it often enough to make sure the batteries are fresh?

Plus from the radio operator’s point of view, they can’t stay in business if the public only tunes to them during an emergency. I ran a news and information radio station and we did a study to find out why our ratings weren’t better than they were. We found that people depended on us only in times of emergencies or breaking news. Otherwise, they went to their favorite FM music station and not our AM information station. The format was changed to something else after we read the report in search for something that could sustain itself.

Worse, since many stations are syndicated, voice-tracked or automated in some other way, they often aren’t as quick to the draw in fast arising emergency situations.

My Verizon connected iPhone goes off no matter where I am with emergency information based on where I’m located.

Plus when it comes to things like weather alerts, school delays or closings, those messages quickly come into my iPhone to alert me. My university police department often sends out emergency messages about an active situation on campus.

So this is yet one more area that radio finds it has some strong competition.

What Can Radio Do that My Smartphone Can’t?

One reader thought the better question would be “What can radio do that my smartphone can’t.” Another phrased the question this way “What can radio do that other media won’t?”

Then maybe this person’s observation was most poignant:

“They all properly answered your question by stating what radio CAN do. But it should be noted that radio, as an industry is dismally failing to do the very things it is capable of doing.”

Why is that?

Many pointed out how our country’s largest radio companies are mired in huge debt and that prevents them from doing the very things that could take radio into the future.

While Nielsen says 93% of Americans over the age of 12 listen to radio every week, others were quick to point out that one only needed to listen 5-minutes to any radio station during the course of the week to be counted.

So what’s the answer?

Live & Local

This was mentioned by many. Then quickly followed up with, but my stations aren’t.

While the industry is quick to make this claim, the number of signals broadcasting today that are doing just that are appreciably much less.

Community & Companionship

Dan Mason said at a radio talent institute that the power of radio was community and companionship and that without both, it wasn’t really radio.

When I got into radio, owners were proud of their radio stations and took excellent care of them. They lived in the communities they were licensed to serve and that made all the difference.

My family for many years celebrated special occasions at Howard Johnson’s. People are always amazed when I tell them that. But, as Paul Harvey used to say, the rest of the story is that this Howard Johnson’s in Williamstown, Massachusetts was owned by the Brundage brothers. And they would both be in that restaurant every hour it was open. The parking lot was always full and you waited in line for a table. Everyone knew that the only similarity this place had to any other Howard Johnson’s was its orange roof. The Brundage family was proud of their restaurant.

Friendly Ice Cream used to make its store managers part owners of their restaurants and Friendly’s were always well run no matter where you happened to visit one in New England. That all changed when the company was bought by Hershey and they replaced owner/managers with salaried ones. It’s a scene all too familiar to many radio people I’m sure as the Telcom Act of 1996 changed the ownership landscape of the radio industry.

Now I don’t’ want you to get the idea that all of radio was perfect back then, the industry had its share of rotten apples to be sure, but you’ll find them in any enterprise.

WKDZ, Cadiz, Kentucky

I was in Nashville in September 2016 with some of my students for The Radio Show. The big dinner featured many station and personality awards. One that was justly deserved went to WKDZ in Cadiz, Kentucky. WKDZ won “Small Market Radio Station of the Year 2016.” Beth Mann is the owner/GM of WKDZ. All Beth wanted to do since the time she started working at that radio station as a child was own it. When the owners decided to retire, they sold it to their general manager at that time, Beth Mann. 88

Now winning such a prestigious award from the National Association of Broadcasters is a pretty awesome thing. But WKDZ has won Small Market Radio Station of the Year more than once. They won in 2002, 2013 and 2016. I fully expect them to win it again and again.

If you want to know what radio can do that other media can’t or won’t, then you need to take a car ride to Cadiz, Kentucky and visit this radio station. If you want to know more right away, then visit their station’s website: www.wkdzradio.com

WKDZ has that HERE and NOW energy many readers of this blog say they miss in radio. WKDZ has that audience engagement. WKDZ is LIVE & LOCAL & COMMUNITY & COMPANIONSHIP and so much more.

In fact, in a state like Kentucky where we are blessed with a plethora of local radio operators that are engaged, live, local, community and companions to their service area for Beth Mann and her radio family to rise above the rest makes her story all that more amazing.

After living in the Blue Grass State these past seven years I can also attest to how outstanding the state’s broadcast association is too. The Kentucky Broadcasters Association (KBA) is the gold standard for state broadcast associations.

Relevant

Summing it all up, radio needs to have a heartbeat. It needs to be LIVE & LOCAL & COMMUNITY & a COMPANION to the listener. But most of all, it needs to be RELEVANT.

Define who your audience is and then super-serve them 24/7, 365.

We know what to do.

Now we just need to do it.

 

19 Comments

Filed under Education, Mentor, Radio, Sales