Tag Archives: Streaming

Remodeling Communications

My church recently sent its Annual Report for 2020 to all its members. It reminded me that it was on March 13, 2020 that in-person worship service was suspended at our church, along with all other activities because of the highly infectious nature of COVID-19.

Pastor Martha Sims wrote, “In its 267-year history, this congregation has had its share of difficult times; fires and conflicts and even some changes that resulted from the virus of 1918.”

The 1918-1920 global pandemic, often referred to as the “Spanish Flu,” caused my church to end the use of a common cup for communion during services and begin using little individual glasses. While communicants had the option to either continue to drink wine from the common cup or use the new individual glasses, the record shows that people quickly adjusted to the new normal and both methods did not have to be offered beyond that first Sunday morning of the change.

Permanent Change

I share this story with you, because setting up those little individual glasses for the communion wine, and then collecting them, washing them and putting them back out again for the second Sunday morning service was something my wife and I participated in as part of our church service. But now I wonder what the future will hold regarding more changes in this and other areas of our church life after what COVID-19 has taught us.

We’ve dined out on only a few occasions, mainly due to traveling, and noticed that restaurants now give patrons a paper menu that is disposed of after orders are taken.

Hand sanitizer is found in every store you go into these days, often with signs asking people to use it upon entering. Might we find these changes remain, post-COVID?

Radio Personalities Broadcasting from Home

Broadcast programming consultant, Gary Berkowitz, hosted his first ZOOM call with radio programmers from throughout the United States and Canada talking about how they’re dealing with the global pandemic in their radio operations. What struck me most was that all of the radio stations had equipped their personalities with high quality microphones, processing, laptops and high-speed internet service to do their shows and/or voice track them from home.

Personalities in places like New York City and Philadelphia were broadcasting from their apartment or basement on some of America’s top radio stations.

One personality said he had to get special permission to go into the radio station to do a special Christmas broadcast, taking calls from youngsters who wanted to talk to Santa, because it wasn’t possible to execute this from his home studio.

A Canadian programmer said his radio group spent about $2,500 per personality to equip them with the best equipment to broadcast from home, and that it has worked out seamlessly with no disruption to any of their radio stations normal programming. Might this become permanent?

Bob Van Dillen

It’s not just radio personalities, but television personalities too. Bob Van Dillen is the meteorologist on HLN’s Morning Express with Robin Meade. Since the pandemic hit, Bob has been doing his weather forecasts from the safety of his home.

I also noticed that some of our local TV anchors and reporters on NBC4 out of Washington, DC are doing this too.

COVID-19 Disruptions

I’ve done a lot of reading about past global pandemics, with the intent of trying to learn how they made permanent changes to the world going forward. What I’ve learned is, there really is nothing to compare with what we’re going through, with those of the past.

The Internet

Probably the biggest reason this time is so different is the existence of the internet. Never before has the world been able to continue operating to such a large extent by being so instantly connected as we are today.

Almost everything we need, can now be obtained via this communications innovation.

Our last medical appointment with our doctor was done over a ZOOM-like connection. Our weekly church service is broadcast live on Facebook and on-demand recordings are available for later viewing on YouTube. Our church has already committed to continuing video church services even when in-person services can once again take place.

In my home, all of our television viewing is via streaming, using AppleTV, FireTV, Amazon Prime, Netflix, Hulu and YouTube.

I access the world of radio, via streaming as well these days by simply asking Alexa for the station or audio content I wish to hear.

Audio Tipping Point Crossed in 2020

While we were all consumed with trying not to contract COVID, the average time spent listening to traditional radio (AM/FM) was surpassed by listening to digital audio.

“ When we change the way we communicate, we change society.”
-Clay Shirky

The Future of Radio is to Meet the Listener Where They Are

Today’s audio consumer is more likely to be accessing audio content via digital streaming than through an AM/FM radio set and they are also more likely to want some visual content along with their audio. It will be critical for broadcasters to be offering programming – both audio & visual – that is engaging and delivers what people want.

Broadcasters will have to take into consideration the environment the media consumer is using their product in, and take full advantage of all the technology advances it offers, be it at home, at work or in the car.

In other words, it’s time for broadcast media to start making plans to remodel the way they communicate with their audience. The first question every broadcaster will need to be asking is:

How relevant are we to our media consumer in this environment?

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Your Cell Phone is a Radio

By definition, radio is, a: the wireless transmission and reception of electric impulses or signals by means of electromagnetic waves. b: the use of these waves for the wireless transmission of electric impulses into which sound is converted, according to Merriam-Webster’s dictionary.

Your cell phone sends signals to (and receives them from) nearby cell towers (base stations) using Radio Frequency (RF) waves. This is a form of energy in the electromagnetic spectrum that falls between FM radio waves and microwaves.

My First FCC License

When I studied for and passed the Federal Communications Commission (FCC) test to obtain my 3rd Class Radio-Telephone License, I initially wondered why it said “telephone” on it.

Telephones in 1968 were all wired devices, like in my parent’s house in which our family phone was connected by a copper wire and bolted to the kitchen wall.

When I began to study the history of radio, I learned that an early experimenter in radio broadcasting, Kentucky melon farmer Nathan Stubblefield, wanted to be able to talk to his wife while he was driving his automobile while away from their farmhouse. In those early days, no one had a clue what this new technology would become.

Radio’s Metamorphosis

The podcast “Local Marketing Trends” hosted by Corey Elliot and Gordon Borrell, recently featured an interview with the Radio Advertising Bureau’s (RAB) President/CEO Erica Farber in which she said the radio industry’s sales arm was going through a metamorphosis; today the RAB thinks more broadly, to include all things audio.

Gordon asked Erica if she meant podcasting and streaming audio like Spotify and Pandora, to which she said “Yes.” When might this happen, Gordon asked, to which she responded, “maybe today.”

Farber explained how she feels radio is ahead of the curve in not just delivering content, but in delivering services too. Radio is no longer just about selling thirty and sixty second spots but it’s a very different business now, with radio’s core product today being “delivering results.”

Audio Advertising Bureau

Might the Radio Advertising Bureau change its name to become the Audio Advertising Bureau?

I hope not. Here’s why I say that.

Radio suffers from traditional broadcaster thinking that it needs an FCC license, radio tower, antenna and transmitter which sends a signal out over the AM or FM radio bands. But if you ask a young person, what is radio, they will tell you about their favorite stream or podcast which  they listen to through their smartphone.

Radio is not a dated identifier, it’s very much in vogue in the 21st Century, but what imagine comes to mind when one says the word “RADIO” will differ depending upon a person’s age.

1940s Floor Cabinet Radio (what my parents listened to)
1970s Transistor Radio (the radio of my youth)
21st Century Smartphone used as a radio & a whole lot more (the “radio” I use today)

Apple Music Radio

You might have missed Apple’s August 2020 Press Release about how they were changing the name of their radio service from Beats 1 to Apple Music Radio. In spite of trying to invent a new name for their streaming music offerings, their users called it “RADIO.” And now, so does Apple.

Beats 1, has been Apple’s flagship global radio station since its launch in 2015. Five years later, it’s been renamed Apple Music 1. Oliver Schusser, vice president of Apple Music, Beats and International Content, explained

“Apple Music Radio provides an unparalleled global platform for artists across all genres to talk about, create, and share music with their fans, and this is just the beginning. We will continue to invest in live radio and create opportunities for listeners around the world to connect with the music they love.”Beats

Now is NOT the time for AM/FM Radio broadcasters to abandon the sonic brand known as “RADIO.”

Adapt or Die

When people started streaming over the Internet and calling it “radio,” traditional broadcasters looked down their noses in much the same way that print journalists looked down their noses at the new media platforms like Buzzfeed and Vice Media invading their world.

Traditional media survivors will learn to accept and embrace the new platforms that disrupt the world as we knew it and are creating the world that will be.

An inability to adapt to new platforms is what causes both people and industries to fail.

AM, FM, internet streaming, smartphones, connected cars are all platforms. Radio, newspapers, magazines and the like, are all media products. Understanding this dichotomy is critical.

And so, the challenge for radio is not changing its name, but adapting its product to today’s platforms.

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Will the Radio Industry Turn Around?

A long time reader of this blog, who is a major market personality, asked me “in your opinion is there any chance the industry will turn around?” This question assumes that the radio industry is going in the wrong direction. Is it?

The World is Constantly Changing

I often pondered if the town blacksmith ever wondered, as he saw motorcars become more common, if America’s transportation system would one day “turn around”  and return to one powered by horses? For many Amish people, horse power remains as vital to their lives as it has always been. Horsepower in our time has been a way we measured the output of our fossil fueled engines, in our motorized vehicles.

We need to realize that changes and evolution are the realities of life. Nothing stays the same. Does anyone think the radio industry is exempt?

The Internet

I’m communicating with you right now via the internet. When I first started on the internet, it was by using a dialup modem over the same telephone line my house phone used to make and receive telephone calls.

My first internet service was an interactive personal service called “Prodigy.

Dial-up was very slow, crashed a lot and sometimes it took several attempts to get a phone connection for your computer.

Prodigy’s business model depended on rapidly growing its advertising and online shopping business. It created email and message boards primarily to aid people in shopping, not for general communication between users, which in practice is what it became. Ironically, at a time when long distance calls were billed by the minute, Prodigy’s message boards exploded in popularity with users who would stay connected to the service far longer than projected with the result of driving up Prodigy’s operational expenses and negatively impacting cash flow for its stakeholders.

Prodigy, which began operations in 1984, would finally disappear in April of 2013. (That’s a life span of less than thirty years.) By that time, I had long departed the service for the much more robust America On Line (AOL).

Digital Fiber

At the end of 2020, my street was wired with fiber optic cable and our house abandoned Xfinity’s copper wire and download/upload speeds of 117/5 Mbps (Megabits per second) for the more symmetrical offering from Glofiber of 300 Mbps upload/download speed for around $15 less per month in cost.

I tell you this because back in the 90s, dialup access to the world wide web was amazing. It was like experiencing AM radio in the days when all that was available were newspapers and magazines to connect daily with the world. We gladly suffered through busy signals when trying to connect our computer modems and never realized how slow our connection speeds were. Like AM radio, it was good for its day but I seriously doubt you would want to return to that type of internet service after you’ve experienced high speed digital via fiber optic cable.

Just in case you are wondering, the 300 Mbps symmetrical connection speed I signed up for is the slowest speed offered. They offer up to 2 Gigabits per second but not being a gamer, I seriously have no need for anything that robust for what I use the internet for.

AM, FM, Streaming

AM radio was incredible 100 years ago when commercial radio service was licensed to begin operating in the United States. AM radio listening was eclipsed by FM radio listening in the late 70s, which is the dominate way most American’s hear broadcast radio. However, we’re now  fifty years beyond that time and living in a world where audio listening can be fully customized and on demand whether you want music, talk, the sound of ocean waves, or crickets.

Stimulus Checks

January 2021 is seeing another round of stimulus checks coming out from the Federal government. When Generation Z and Millennials were asked how they planned to spend their $600 check, after some basics like groceries, rent and overdue bills, their next most important  expenditure would be for video games/consoles that filled their entertainment passion while they socially distanced at home.

Car Buying

COVID-19 changed the way people bought a new car. As we were all forced to work, play, shop and communicate online, consumers found they could just as easily shop for cars via the internet as well. Moreover, surveys have shown that consumers really liked it and don’t plan to return to the old ways of buying a car. Car dealers, which had been resisting doing business this way for decades, now find themselves having little choice but to embrace this disruptive change or go out-of-business.

GYMS

59% of Americans say they plan to continue working out in their own home when asked about returning to a physical gym after the pandemic subsides. Among Millennials, that number grows to 81%, according to a survey by The New Consumer.

Interestingly, gyms are now finding themselves in the same situation as arcades. Once upon a time, people went to malls or amusement centers to play video games, but that’s been replaced by playing those games on a video gaming system, like Xbox or PlayStation.

The Power of Talent

I’ve often written that the “secret sauce” of great radio stations are their air personalities behind the mic.

Alexandra Bonetti, a fitness studio owner in New York, observed the bond that fitness clients formed with a particular instructor. This led her to create a tech startup called “Talent Hack.”

When COVID closed down gyms, fitness instructors suddenly found themselves on their own. (Not so dissimilar to the radio industry jettisoning their air personalities.)

Bonetti’s “Talent Hack” allowed fitness instructors to continue to serve their clients and monetize their talents.

It’s in challenging times like these that new business models like Talent Hack emerge.

The New Nature of Work

While technology accelerated the pace of our work lives, it never fundamentally changed the nature of the way we work. However, COVID-19 mandated changes to the nature of work in all industries.

For many, working from home was no longer a luxury but a necessity, due to social distancing.

Once business owners and their employees learned they could do their jobs remotely, real change to the nature of work was in the wind. Now it has been proven that people could work from anywhere, and that epiphany will produce profound changes for our cities, our transportations systems, our communications networks, the work week, and the work day going forward.

Accelerated by this global pandemic, the challenge has become NOT to turn things around, but to implement the changes needed to thrive in this changed world.

More to the point, the question is not whether the radio industry will turn itself around, but rather is it headed in the right direction? And from my vantage point, the jury is still out on that question.

“What you are going to be tomorrow

you are becoming today.”

-John Maxwell

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Streaming & Podcasting

computers streaming & podcastingI’ve been thinking about these two forms of audio for some time now. With each new article published about streaming, we see how more and more people are listening to music in this way. The smart speaker has certainly contributed to the growth of music listening via streams, and the smart speaker growth is exploding.

I know with my own experience by getting my first smart speaker as a gift, to now owning three of them, how it’s totally changed how I listen to music.

And then there’s podcasting, a way for the spoken word to be communicated.

Radio versus Streaming & Podcasting

Radio for most of my life was a way to hear both music and the spoken word. It was curated and delivered in fresh and exciting ways by a variety of radio stations across the country.

Unfortunately, radio delivered programming on its timetable, not the listeners.

As VCRs came into the television world, I remember hearing, why isn’t there a device like that for radio? There actually was, I owned one, but it never really caught on like the video devices did.

The VCRs and DVRs changed how people consumed their television programs, and essentially did away with the concept of “Must See TV” turning it into “must record TV.”

Netflix

Then along comes Netflix, and the concept of On Demand TV viewing was born.

One might argue that Blockbuster started it with video rentals, but it still really didn’t impact American viewing habits like streaming video did.

Again, Netflix disrupted people’s viewing habits when it would release an entire season of a TV series all at once. Gone was the need to come back week-after-week to see a program. Now, a new type of TV consumption was created, the binge-watch.

Broadcast versus Streaming

What’s really changed in our consumption of TV and radio is our ability to control what we see and hear, and when we want to see and hear it. In other words, On Demand is the media consumption process of the 21st Century.

I stream 100% of my television viewing. I can watch a program live, or start the show from the beginning if I arrive late, or just view it whenever I want, at another time through On Demand viewing.

Streaming TV has trained us, and now the smart speaker is taking our new media consumption habit and making audio listening just as easy to consume in this manner.

Alexa is ready, willing and able to play any genre of music that I want to hear, on a moment’s notice. She has more song selections than my own personal CD library and it’s so much easier to ask Alexa to play a song for me than try and find the CD that a song is on, and then load it into my CD player.

Podcasts

Complete honesty here, I’m not a fan of podcasts. I don’t know why, I’m just not. The only one I ever listened to in its entirety was the first season of the podcast Serial, and that was mainly due to a long 13-hour car drive, and my ability to download all the episodes onto my iPod to play in my car.

However, I do know that younger folks are really getting into podcasts and this segment will only grow as the spoken word genre finds a way to promote its wares.

The Looming Audio Battle

What I do see on the horizon is radio being drawn and quartered by streaming audio for music, and podcast audio for the spoken word. Both types of audio programming are easily called up via smart speakers and available On Demand.

Curated programming, as has been the staple of broadcast radio, will be challenged to compete.

Professional Radio & Amateur Radio

Radio won’t die, it has a future, but I see it bifurcating in the following ways:

  • There will be professional broadcasters and amateur broadcasters.
  • I see the future of radio looking something like the difference between professional and amateur theater. For example, the difference between Broadway and community theater; where the former are professional paid actors, and the latter is made up of talented volunteer locals with an insatiable love of theater.
  • The advent of low power FM radio stations is the first toe-in-the-water that points in this direction for amateur radio personalities who volunteer their time and energy.
  • Some of these volunteers will come from the ranks of retired or “dislocated” professional radio personalities and some will be members of the community that always thought it would be fun to be on-the-air.
  • What seems to be disappearing are local radio stations in the middle, ones that used to be ad-supported by local businesses, who now find themselves displaced by big box stores and online shopping.
  • The newspaper industry is the canary in the coal shaft for ad-supported media. Berkshire Hathaway Vice Chairman Charles Munger points out that, “Technological change is destroying the daily newspapers in America. The revenue goes away and the expenses remain and they’re all dying.” However, Munger does feel that papers like The Wall Street Journal and New York Times will most likely survive.
  • Newspapers have been cutting staff like crazy but it’s done little to turn things around. Radio is following in print industry’s footsteps as “employee dislocations” are occurring at all the major broadcasting companies.

Does any of this make sense to you?

I’d love to hear what your thoughts are.

Please post your thoughts on comments section of this blog article, so that others may read them and hear different opinions.

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Radio’s History of Feeling Inferior

Family Listening to Golden Age of Radio“There are some things that will scare you so bad, that you will hurt yourself,” said Molly Ivins. And that’s exactly what I believe the radio industry has been doing to itself for most of its 100-year history.

The Golden Age of Radio

The first golden age of radio was during the 1930s and 40s, and was a period when over-the-air commercial radio was sewn into the fabric of American’s daily lives. It delivered the day’s news and provided entertainment to people struggling with the effects of the Great Depression and a second world war.

Here comes TV

Television was introduced to America at the 1939 New York World’s Fair with a live broadcast of President Franklin Delano Roosevelt opening the fair on NBC’s experimental station W2XBS in New York City.Family Watching TV

Unfortunately, the development of television in America was halted by Japan bombing Pearl Harbor on December 7, 1941 and bringing the United States into World War II.

When the war ended, there were only six television stations on the air in America, three in New York City, one in Chicago, one in Philadelphia and one in Schenectady, New York.

The number of television sets in use in 1946 were about 6,000, but by 1951 that number grew to over 12 million, and by 1955 half of all homes in the United States had a black and white television.

Radio’s Over Because of…

Radio’s inferiority complex began with television, and probably for good reason. Television stole radio’s prime time programs and right along with it, it’s listeners. Worse, radio’s big station owners and radio networks, CBS and NBC, would use radio’s revenues to fund the development of television stations and TV networks.

There were many who predicted that television would be the demise of radio broadcasting.

This was the first known case of “radio’s over because of…”

What’s Killing Radio, Let Me Count the Ways

I worked in the radio industry all of my professional life. Other than earning money as a professional musician early in my working life or as a Broadcast Professor at the end, radio has been my source of income and my love.

During that time, I would hear about the latest new technology that was going to put radio out of business.

  • TV was going to be the end of radio
  • FM was going to be the end of AM radio
  • CB Radios were going to be the end of commercial radio
  • 8-Track Tapes were going to be the end of home & car radio
  • Cassette Tapes were going to be the end of home & car radio
  • Compact Discs were going to be the end of home & car radio
  • MP3s were going to be the end of home & car radio
  • Satellite Radio was going to be the end of radio
  • The internet was going to be the end of radio
  • iPhones/iTunes were going to be the end of radio
  • Pandora & Spotify et al were going to be the end of radio
  • YouTube was going to be the end of radio

Have I missed any?

FCC Symposium Sees Radio Industry Challenged by Competition and Regulation

The FCC held a symposium at the end of 2019 to solicit things it needed to be addressing for the health of the radio industry. Fingers, by the invited panelists, were pointing in every direction, but at themselves.

The radio industry believes it can make itself better by more consolidation and less regulation. Yet when I look at the history of radio, its most successful years were during a time of intense regulation and severe ownership caps.

However, it amazes me that the only answer offered continues to be the same one, that to my eyes and ears, got the radio industry into this predicament in the first place.

Don’t it always seem to go
That you don’t know what you’ve got
‘Till it’s gone.
They paved paradise
And put up a parking lot.

-Joni Mitchell

What’s Radio’s Real Problem?

radio signWhen television came along and took away radio’s people and programs that were attracting its large listening audience, it was forced to re-invent itself.

Radio dropped its block programming and began programming music. The transistor made radio portable. Radio personalities, promotions and new music made radio exciting to a whole new generation of listeners.

One of the people at the FCC’s symposium was Karen Slade, VP and GM of KJLH Radio in Los Angeles. Instead of the 30,000 foot view of radio’s current situation being shared by the radio owners and CEOs, she said she saw the problem from about ten floors above street level. She said her radio station had 500,000 listeners but that she was trying to reach more listeners through a variety of other platforms. My question is why?

For my entire radio career, I don’t think I ever managed even a cluster of radio stations that delivered that many total weekly listeners. Yet, my radio stations were very successful.

I managed a radio station in Atlantic City that had about a tenth of that many listeners and still delivered a million dollar bottom line to the stakeholders, plus we delivered results for our advertisers.

Radio’s real problem is not investing in what it already owns. Radio instead thinks the grass is greener in someone else’s media playground.

Smart Speakers

Forbes says smart speakers are the future of the audio. AM and FM radio is available via smart speakers, but so isn’t the entire world of audio content.

It’s estimated that smart speakers will be in 75% of American households in five years. Smart speaker reach had already passed a tipping point, before this past Christmas’ robust speaker sales, with 41% of American homes owning at least one of these devices.Child using Smart Speaker

So, what makes a smart speaker owner choose an AM or FM radio station’s content to listen to versus a pure play or even TV audio content? Let me use television as an example to demonstrate what I think matters.

Why does Stephen Colbert’s Late Show reach 3.1 million nightly viewers versus the 1.8 million viewers that both Jimmy Kimmel and Jimmy Fallon combined reach? Each of these shows look pretty much the same on paper. The difference can be found in the personality that presents the various program elements.

Radio stations used to understand how important the air personality was to the success of the station and its revenues. Radio promoted its air personalities on billboards, buses, on TV, direct mail and in print.

George Johns wrote about the time he hired a competing air personality in his market and paid him to sit on the beach for a year to wait out his non-compete contract. At the end of the year, he put him on the air in morning drive on the radio station he owned and was rewarded with huge ratings and revenues.

When Larry Lujack moved between WCFL and WLS in Chicago, his listeners and revenue moved right along with him. They didn’t call Uncle Lar “Super Jock” for nothing.

Mel Karmazin knew that Howard Stern would change the fortunes of Sirius Satellite Radio when he hired him away from his over-the-air commercial radio network. While Howard and SiriusXM prospered, his former radio properties became a shadow of what they once were.

Everyone I know who ever fell in love with radio growing up, has stories about the radio personalities that they couldn’t live without. My students at the university told me they would listen to their hometown radio personalities on streams in their dorm rooms.

Sadly, it seems like every day I’m reading about tenured radio personalities being let go. The very people who spent years building an audience are disappearing.

As Molly Ivins saw so clearly, sometimes there are things that scare us so badly, we hurt ourselves.

 

 

 

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How Do You Spend Your Time?

U S Music Industry Revenues 1H 2019When this pie chart was posted on social media, it immediately captured my attention, by showing where the United States Music Industry is making its money. You can read the Mid-Year 2019 RIAA Music Industry Revenues Report HERE.

Total revenues were reported to be growing at 18%, with 80% of the industry revenues coming from streaming. By comparison, the radio industry ended 2019 up 2% and the inflation rate for the United States for 2019 was 1.7%.

Going Apple

I’ll admit, I was late to the Apple party. When I was a broadcast professor at Western Kentucky University, Steve Newberry, EVP with the National Association of Broadcasters, and I were having lunch one day, Steve asked me if I had an iPad. I said “no, and I didn’t know why I needed one.” Steve said, well I can’t explain it, but once you get one you’ll wonder how you lived without one. So, I got one. It would be my second Apple device, the first being an iPod Classic. I purchased my iPad2 on Black Friday in November 2011.

Blackberry to iPhone

I had owned a Blackberry Pearl “smartphone” since my days as a Market Manager at Clear Channel, I loved all it could do and I loved its compact size. But in less than a month of owning and enjoying my iPad2, I would upgrade from my Blackberry to an iPhone4S in January 2012. In 2015 I would switch my university desktop computer from a Dell to an iMac, and today I have added Apple TV for streaming my video entertainment.

One of the wonderful things about the Apple operating systems are that once you know how to operate one, you can operate them all, and they are very intuitive.

iTunes Match

When I got my iPhone4S (the “S” stood for Siri and it was the first introduction of voice command, that has since been joined with offerings by other companies such as Amazon’s Alexa and “Hey Google”), I immediately added a couple of other Apple services like iCloud and iTunes Match.

iCloud backs up all my data and iTunes Match makes it easy for my music library to be available on all my Apple wireless devices, which in 2012 was my iPhone4S and iPad2.

iTunes Match is an annual subscription service, that for me, renews every November for $24.95.

This year after it renewed for 2020, I realized that since owning my Amazon Echoes, I really never use my music library on iTunes anymore. It so much easier to just say “Alexa, play…”

Streaming

I’m sure I own more AM/FM radios than you, unless you’re also a radio geek, then you might own as many as me or even more. But these days, the radios throughout my house broadcast whatever I stream via my Whole House FM Transmitter.

I may stream music from Amazon Prime or Pandora or from one of my favorite internet radio stations, but I never change the dial position on any of my radios because I simply need to tell Alexa to change what I’m streaming from virtually anywhere in my house. (That device has incredible ‘hearing.’)

When we go to bed, one of the things Sue and I especially enjoy is asking Alexa to play some of our favorite songs. Alexa’s the only “DJ” I’ve ever known to not only take requests but play them for you as soon as you ask her to.

You Are No Longer in the Radio Business

This year during Radio Ink’s Forecast 2020 this year, Scott Flick told the audience “Whether you like it or not, you are no longer in the radio business, but the audio business.” Today, the competition is not another radio station or even another media source, but the competitive landscape is for people’s time. We live in a world where a plethora of options can fill our time.

Relevancy Replaces Local

What is local to you? The price of gas at your local pump? The price of goods at the place you shop? The quality of the air you breath or the water you drink? I’m sure you answered, they all are. And chances are not any of them are produced locally, but somewhere else in the world.

Local today is planet earth.

What will make any media property worth a person’s time will be how relevant it is to the person accessing it.

Relevant radio will be one that is closely connected with its audience.

 

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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.

 

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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

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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.

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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.

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