Tag Archives: Techsurvey 2022

Radio’s Leaking Listeners

The results of Techsurvey 2022* was presented in a webinar this week and two things about the latest data and the trend lines of the last five years struck me.

“We have met the enemy and it is us.”

-Pogo

Walt Kelly coined that phrase in a poster he made for an anti-pollution poster for the first Earth Day in 1970. He would later repeat it in a comic strip he created for the second Earth Day in 1971.

Sadly, the similarities between what needs to be done to preserve our planet and the radio industry are striking. We all know what the answer is, but aren’t applying the solution.

Personalities

Jacobs pointed out that “over the past four surveys, broadcast radio personalities have stayed ahead of the music as a key attribute of the medium.”

Yet, the big radio owners have done more to eliminate the very advantage broadcast radio has over its many audio competitors. Worse, our industry has no plan to create a farm team of new broadcasters that will replace personalities that are retiring or have retired.

Instead radio has tried to compete in areas where, at best, it’s a distant second; like music discovery.

Besides Personalities Radio’s Positives are Under Attack

Radio, we are told is easiest to listen to in the car. Unfortunately, when a person buys a new car, they learn SiriusXM is just as easy to access. Plus now everything on their smartphone easily connects to their dashboard. In fact, Fred Jacobs points out that in Techsurvey 2022 the feature most wanted in a new car is Bluetooth (76%) followed by an FM radio (70%) and having a smartphone connector or auxiliary input (57%).

My first blog article of 2022 told how even with older cars, like our 2009 Honda and 2006 Subaru how easy it was to make them connected cars. You can read that article here. https://dicktaylorblog.com/2022/01/09/why-i-stream-all-my-radio-listening/

It doesn’t take a Mensa to realize that this is another hole in the radio listening bucket.

Radio is “free,” with the tradeoff being forced to listened to very long commercial breaks, which radio listeners say is the thing they most dislike about listening to broadcast radio.

Radio’s covenant with its listeners was, you give us your attention to our advertisers, and we will entertain and inform you. Sadly, radio owners kept adding more commercials to each hour while eliminating the very programming elements that attracted listeners.

There’s nothing wrong with advertising, that is when it is in balance with programming content sought by the user. Podcasts understand this and enjoy increasing listening with advertisers seeing a positive benefit from sponsoring them.

Trends

No one called Paul Revere’s warning that the British were coming as being negative, and neither should anyone who cares about the radio broadcasting industry call those who are trying to promote positive change, “negative.”

Techsurvey 2022 should be a wake-up call to radio people with trends that show eight in ten people that can now connect a smartphone in their cars. Those who own a car with a “connected system” now spend the majority of the in-car time with digital audio or SiriusXM.

The car is the last beachhead that broadcast radio has left, and it is under Sirius attack.

SiriusXM

Techsurvey 2022, like all the surveys that have been done before, use as their database, fans of radio broadcasting. They are the core of our industry and so when we see these folks leaving us for other forms of media, it’s like seeing the canary in the coal mine lying on the floor of its cage.

One of the reasons given by people who still listen to broadcast radio, as to why they continue to listen is, it’s become a habit. When a person buys a new connected car and gets SiriusXM to listen to for free, what is happening is that a new habit is being formed. Not only do they now have access to a myriad of content options, but often their favorite radio personality might be rediscovered hosting one of the music channels.

During the pandemic, SiriusXM removed the paywall for their App as well as listening on a smart speaker, both of which had been available for an extra charge. What Fred Jacobs showed on his webinar was how this positively impacted listening at home, at work and other places for the satellite provider. The habit of listening to SiriusXM was now something that could be done everywhere, and that should keep any radio broadcaster awake at night.

The tipping point is that magic moment

when an idea, trend, or social behavior

crosses a threshold, tips, and spreads like wildfire.

-Malcolm Gladwell

I fear we are at the tipping point.

*Watch the full presentation of Fred Jacobs webinar on Techsurvey 2022 here: https://jacobsmedia.com/techsurvey-2022-results/  

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P E R S O N A L I T Y

In 1959*, Lloyd Price released the song “Personality.”

It was about a girl and what made her special.

Here’s a sample:

            ‘Cause you got personality

            Walk, with personality

            Talk, with personality

            Smile, with personality

            Charm, with personality

            Love, with personality

With the exception of a daypart or two, it’s what most radio lacks today – PERSONALITY.

Rewound Radio

Every Saturday, Rewound Radio, a streaming-only radio station features its “DJ Hall of Fame.” They are air checks of some of America’s best radio personalities, like Dan Ingram, Ron Lundy, Robert W. Morgan, Charlie Tuna, The Real Don Steele and so many more. While everyone of the personalities I just mentioned are now in radio heaven, their recorded radio shows sound as vibrant and exciting as ever. That’s why people from all over the globe dial in to hear them, and not just radio people, radio listeners who grew up with them.

People like me.

Techsurvey 2022

So, it wasn’t really a surprise when Fred Jacobs gave us a sneak preview of his latest research on why people listen to over-the-air (OTA) radio.

People today listen to OTA radio for the very same reason that they always have, to hear their favorite radio personality. The unfortunate thing is, the radio industry talks the talk, but doesn’t really walk the talk.

Radio’s ultimate strength as a medium is dependent

on the power and popularity of its personalities.

-Fred Jacobs

Club DJs

When I walk the boardwalks in New Jersey, Delaware or Maryland in the summertime, you can’t help but be very aware of how important it is for each club to have a popular DJ. Club DJs get people dancing, having fun and spending their money in that particular club for hours.

The longer club patrons stay, the more money club owners make.

The reality is the role of a Club DJ could be easily automated and the music would be non-stop, but it is the special magic a live personality delivers that makes all the difference. Great performers make people feel things. They deliver an emotional experience that can’t be duplicated by automation.

“People are always neglecting something they can do

in trying to do something they can’t do.”

-Edgar Watson Howe

Living in a VUCA World

The world today is volatile, uncertain, complex and ambiguous; it’s a VUCA existence. Many businesses are told they must innovate or die.

In radio’s race to stay relevant, it tries to compete with streaming audio services, where at best it can only be second best when it plays on their terms. What OTA radio should be heavily investing in is the development and promotion of outstanding, compelling, relatable radio talent.

“Treat talent with respect.

They are the reason radio remains so important.”

-Lori Lewis

Family Feud

Sue & I love watching Family Feud with Steve Harvey. This TV game show debuted on ABC on July 12, 1976 with host Richard Dawson. It would be broadcast for nine years before the network pulled the plug,  but would continue to air periodically over the following decades. The show has had six hosts, but only its original host and the current host have seen the show be an audience hit.

In fact, it was when Steve Harvey took over as host in 2010, that Family Feud was finally resuscitated. His hosting abilities with his stand-up comedy and radio background has the audience always wondering what he will say next and almost always producing laugh-out-loud moments on the game show. It also doesn’t hurt that Steve Harvey is as nice as he seems. Being genuine is always an asset in the media world.

I said there were six hosts of this show over the years, Richard Dawson was the first and Steve Harvey is the current host, but you probably can’t name the other four without looking it up on Google. And that’s my point.

Personalities are the difference maker.

Radio leaders talk a good game when it comes to telling us how important local talent is to the power of great radio, but it’s time they put their investment monies where their mouths are, by hiring and training the next generation of radio performers.

It’s time for the radio industry to focus on a change that matters.

Family Feud Hosts: Richard Dawson, Ray Combs, Louie Anderson, Richard Karn, John O’Hurley and Steve Harvey.
*Note: an earlier version of this post stated the date of Lloyd Price’s hit record “Personality” as 1957. It was updated to 1959 after a reader pointed out this error.

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Subscription Media

The inspiration for this week’s article came from a blog written by Fred Jacobs titled “When will ‘Netflixification’ Come To Radio?” Fred’s article revolved around Netflix’s innovation of a subscription model for its entertainment offerings, which got me to thinking about when the subscription business model for media began.

The Subscription Model

We would have to journey back to the 17th century to find the earliest records of book and periodical publishers pioneering a subscription business model for print media.

The subscription business model is one where the customer

pays a recurring price

at regular intervals to access a product of service.

Most recently, Apple is said to be working on a subscription model for its hardware; iPhones, iPads, computers etc. Why? Well customers are good, but it turns out that subscribers are even better. Emarsys’s Chris Gooderidge writes that over the last nine years, “the subscription economy has grown nearly 6x (more than 435%),” with subscription businesses growing five to eight times faster than those with a traditional business model. The two years the world closed down due to COVID only served to accelerate companies’ and consumers’ digital transformation.

On Demand & Subscriptions

What most of us want, as consumers, is convenience. We want what we want, when we want it. The subscription business model fulfills this desire. It enables us to listen to music or play games, as well as watch TV shows and movies.  

The more customers gain a taste

of truly personalized repeat services,

tailored specifically to them…

they won’t want to go back to what they had before.

-Chris Gooderidge

Subscription Radio

In 1923, in Dundee, Michigan, an early radio entrepreneur offered subscribers a wired radio system, that would provide radio programs from several radio stations for $1.50 a month; which would be $24.75/month in 2022. While it didn’t succeed, it was the precursor to what later would become the cable television industry.

Subscription Television (STV)

Back in the 60s, over-the-air television experimented with a subscription model. Companies in Connecticut and California each found themselves in court with theater owners when they developed a subscription business model that offered recent movies to be viewed in the home. The battle in Hartford, Connecticut made it all the way to the Supreme Court.

In the end, the pay television model was taken over by cable television, which learned in addition to providing a community antenna to receive distant broadcast television signals, could also create original programming. These new program channels could be offered on a subscription basis, like CNN, ESPN, The Weather Channel etc.

Is a Subscription-Based Business Model Right for You?

Like most questions along these lines, the answer is: it depends.

The subscription model is dependent on products and services that have a high perceived value to the consumer. (Note: things offered for “FREE” often don’t have a high perceived value)

On the blog, Billing Platform, they list four common successful subscription based business models:

  1. Consumables and Retail Models in Subscription Billing: companies like Dollar Shave Club and Blue Apron
  2. As-a-Service Subscription Billing Models: companies like Microsoft with their Office 365 and Dropbox
  3. Digital Entertainment Subscription Billing Models: companies like Netflix, Disney+, Apple TV+, Amazon Prime, Hulu, Peacock etc for video and Spotify, Pandora, Radio Tunes etc for audio
  4.  Maintenance and Repair Subscription Billing Models: companies like landscaping, pest control, heating & cooling, as well as other common maintenance needs

Peak Subscription

Which brings us to the million dollar question, when do we max out on all of these monthly/annual subscriptions? When do we reach, “peak subscription;” that light-bulb moment when we realize we need to start eliminating some of these expenses.

It was that very question that finally got me to sit down and review our monthly household subscriptions and total things up. It’s something I’ve been meaning to do anyway, but Fred’s blog was the spark that put me in action.

Here’s our entertainment subscription list:

  • Amazon Prime
  • Frndly TV
  • Netflix
  • Disney+
  • Apple TV+
  • Washington Post
  • Time Magazine
  • The Atlantic
  • Consumer Reports
  • Radio Tunes
  • Pandora Premium
  • Sling TV

Now, to make most of these digital entertainment subscriptions work, we need to subscribe to an internet service and since we use many of these services on our iPhones, we also need to add in our monthly call/text/data plan too.

Our monthly cost is $228 or $2,736 annually.

Fred reveals that in the upcoming Techsurvey 2022, two-thirds of the people in his survey now agree with the statement, “I am concerned about the growing number of subscription fees I’m paying for media content.”

I urge you to sit down with your bills and do an audit of your household’s entertainments subscription expenses. If you are like us, you didn’t subscribe to all of them at the same time, but added them one-by-one over a period of years.

Sophie’s Choice

The problem for all of us, comes to making a “Sophie’s Choice” of our media subscriptions. We love them all and trying to decide which ones to eliminate is NOT an easy decision.

What one learns when they are faced with this decision is that we are “happily hooked” on all of them.

Commercial radio and TV operators also need to realize as the subscription economy for entertainment continues to grow, the number of hours in a person’s day is finite, and our time with subscription media means little is left over for OTA radio/TV.

People will spend their time, on those media services

they spend their money with.

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