Tag Archives: teenagers

What Is That?

One of my granddaughters, who’s 8 years old, was at our home the other evening, before heading off to dance class, when she looked into my curio grandfather clock and exclaimed, “What is that?” I walked over to her to see what she was pointing at, and saw it was one of my miniature radios. I said to my granddaughter, it’s a radio, to which she replied, “What’s a radio?”

What’s a Radio?

We’ve all probably seen the YouTube videos of young people trying to figure out what a rotary telephone is and how to use it, along with having a good chuckle along the way. But, if you’re a lifelong radio person, like me, having your granddaughter ask you what a radio is, can be rather disconcerting.

My grandkids are all connected to audio sources via their iPads, smartphones and smart speakers. The only place they may even be familiar with a radio is when they ride with their parents in the car.

Saving AM Radio

Last week’s blog was another in a series about the state of AM radio in America and if it could be saved. You can read that article HERE

As the latest monthly radio audience ratings get released, I can’t help but notice how most markets have one big AM radio station – maybe – that’s still a dominant force. In our nation’s capital, there is none.

Recently, seven former heads of FEMA (Federal Emergency Management Agency) said “AM radio serves as a linchpin of the infrastructure behind the federal National Public Warning System, which provides emergency-alert and warning information from FEMA to the public during natural disasters and extreme weather events.” Which made me wonder if our nation’s capital is in severe peril, as AM radio listening is virtually non-existent.

However, fear not, as I’m sure that no one in Washington, DC doesn’t know that WTOP News Radio at 103.5 FM is fully staffed and ready to provide that emergency information 24/7.

AM Radio Formats

The real problem, it seems to me, is that people confuse the AM and FM broadcast bands with a particular format. The reality today is, both commercial broadcast bands are filled with music and news/talk/sports formats. What has been different, for many years now, is more people listen to FM radio stations than they do AM stations; and by a wide margin, with most of that listening taking place in people’s cars and trucks.

Car Radio Listening

Research presented this past week at the NAB Show in Las Vegas says 46% of radio listening by people over the age of 13 only takes place in the car; a number that jumps to 58% for teenagers, according to Edison Research.

The U.S. Bureau of Transportation Statistics says that most people’s car trips are only three miles or less, so they aren’t listening for any length of time.

When asked what they listen to on long car trips, streaming jumped to 68% and broadcast radio fell to 32%.

Today’s Youth & Car Ownership

If radio’s last beachhead is a vehicle dashboard, the future for the next generation and car ownership should also be concerning.

It was only about two decades ago that 80% of American youth (18 year olds) had a driver’s license; today that number has fallen to just 60%. Here’s some of the reasons for the drop:

  • Lyft and Uber take them anywhere they want to go
  • Cost of getting a driver’s license
  • Cost of owning a car
  • Fewer teenagers have jobs compared to past decades
  • Having a car is no longer a “virtual necessity” (which the Supreme Court enshrined in law in 1977 for anyone living in America)

What Do Today’s Youth Do?

Today’s youth have their faces buried in apps and social media. It’s all about Instagram and Snapchat, YouTube and video games.

When you can easily access everything you want, from home on your digital devices, it’s easy to understand why teenagers today have little interest in getting a driver’s license and owning a car.

Digital interaction has replaced real social interaction for today’s youth.

And that’s another fly in the ointment of future radio listening by the next generation.

In my youth, there was nothing greater than putting down the top on my convertible, cranking up the radio and driving off to explore the world in my own car.

“On some nights, I still believe that a car

with the gas needle on empty can run about fifty more miles

if you have the right music very loud on the radio.”


-Hunter S. Thompson

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SiriusXM Radio is Now Free

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

Call it a subscription, a membership fee or a paywall, what happens when they are eliminated? In Angie’s List’s case, less than one percent of Americans were members at the $40/month fee that had been in place. Paying that fee let people see the reviews of other members that had experienced certain businesses or services they had used. Now everyone can see those reviews. Angie’s List had developed a reputation for its members writing rather substantial reviews as well as being a website that is strong, trusted and contains valuable content.

Why Did Angie’s List Tear Down Their Paywall?

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

Could SiriusXM Follow Suit?

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

Teens Love Streaming

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

NextRadio App

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

Less Than 1% of World Pays For Streaming Audio

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

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

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

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

Pay & Free

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

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

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