Tag Archives: Valerie Geller

AM Radio in Retreat

While the National Association of Broadcasters (NAB) is still pursuing its goal of getting Congress to pass the “AM Radio in Every Vehicle Act*,” the number of AM radio stations on-the-air continues to shrink.

How Many Radio Stations Are There?

Inside Radio published the latest FCC radio station count and the number of AM radio stations on-the-air continues to shrink.

In 1968, I passed my 3rd Class Radiotelephone FCC License, Broadcast endorsed, it was also the year that the Federal Communications Commission (FCC) began publishing its Broadcast Station Totals reports.

At that time the FCC said that 4,236 AM radio stations and 2,306 FM radio stations were on the air.

In December 1990, the next report the FCC published became available showing 4,987 AM radio stations and 5,832 full power FM radio stations were now on the air; plus, another 1,866 FM translator/boosters.

It’s worthy to note that the general public cannot tell the difference between a:

  • Full power FM
  • FM booster
  • FM translator signal

as to the FM listener they all are received on a standard AM/FM receiver. Only broadcasters, broadcast engineers and the FCC are concerned about such distinctions.

So, in just the first two decades of my radio career, FM signals outnumbered AM signals by 2,711.

Telecommunications Act of 1996

On February 8, 1996, President William Jefferson Clinton signed into law what is commonly referred to as “The Telcom Act of 96.” The intent of the legislation was to allow more companies to operate in the communications space, but what actually happened was a flurry of mergers and acquisitions as corporate media giants bought out small, local broadcasters.

The FCC reported that as of February 29, 1996 there were:

  • 4,906 AM stations
  • 7,151 FM stations
  • 2,527 FM translators/boosters on-the-air

almost two FM signals beating the airwaves to every AM signal.

A year after the Telcom Act of 96, the number of AM signals began its decline to:

  • 4,840 (a loss of 66 AM signals in one year)
  • full power FM signals increased to 7,295 (up 144 FM signals)
  • FM translator/booster signals grew to 2,744 (up 217 FM signals)

While AM radio signals were signing off, FM radio signals were growing by an additional 361.

Ten Years After Passage of the Telcom Act of 96

On March 31, 2006, ten years after the Telcom Act became law, and the consolidation of the radio industry began, the FCC Broadcast Station Totals report listed:

  • 4,759 AM signals
  • 8,989 full power FM signals
  • 4,049 FM translator/booster signals

and now something new began appearing, Low Power FM signals (LPFM) which numbered 712,  meaning the radio listening consumer could now access 13,750 FM signals versus 4,759 AM signals.

Wall Street investors were clearly showing more interest in FM signals than AM signals as their money poured into the radio industry.

Twenty Years After Passage of the Telcom Act of 96

Twenty years after President Clinton signed the Telcom Act and consolidation continued squeezing out the mom and pop broadcasters, the FCC Broadcast Station Totals report listed:

  • 4,680 AM signals (down 307 signals from the day I began my broadcast career)
  • 10,811 full power FM signals
  • 6,582 FM translator/booster signals
  • 1,516 LPFM signals

AM signals totaled 4,680 and FM signals totaled 18,908.

Radio Broadcast Signals 2024

Which brings us to the present day report, March 31, 2024. The FCC Broadcast Station Totals report now lists:

  • 4,427 AM signals
  • 10,983 full power FM signals
  • 8,913 FM translator/booster signals
  • 1,960 LPFM signals

Remember, the radio listening public DOES NOT distinguish between the different classifications of FM signals, as they all appear on the same FM radio receiver they are using.

To the radio listener, they have

4,427 AM signals compared to 21,856 FM signals

they can access. Almost 5 times as many FM signals as AM signals, and each year we witness those AM signals either reducing their power or just signing off-the-air and turning in their FCC broadcast license.

Radio Dominates in Vehicles

The latest research from Quu ( www.quureport.com ) shows that in 2023 model vehicles:

  • 100% of them have an FM radio
  • 98% of them have an AM radio
  • 98% of them have Android Audio
  • 98% of them have Apple CarPlay
  • 92% have SiriusXM
  • 70% have HD Radio

What surprised me about this research report, was that this was the first time I’ve ever seen separate AM and FM numbers listed. All reporting about radio usage should list AM and FM listening separately. I feel it is disingenuous to give the false impression that AM and FM broadcast signals contribute equally when that’s clearly NOT the case.

Having access to an audio service does not equate to usage.

Fred Jacobs in his TechSurvey 2023 for example, revealed how HD Radio was only listened to by 16% and SiriusXM was only listened to by 28%, which shows that despite their high availability numbers in vehicle dashboards, usage is still low. Unfortunately, AM/FM is never broken apart, but listed together so can they can garner 86% of the listening.

I’m thinking that both HD radio and SiriusXM usage might eclipse AM radio listening, if we were allowed to see AM and FM usage shown separately.

Vehicles On The Road in America Today

According to S&P Global Mobility, there are 284 million vehicles on our roadways and the average age of them continues to rise to a new record of 12.5 years. About 23% of all passenger cars now are 20 years or older with the bulk of them made between 2015 and 2019.

By 2050, when electric vehicles are projected to make up 60% of new sales, the majority of vehicles on America’s highways will still be powered by gasoline, because most vehicles today last twenty years meaning AM radio will still be in most cars, but the bigger question is how many AM radio stations will still be on-the-air.

Radio Needs To Look Forward

In ten to twenty years, AM radio will be at best a niche way to listen to audio.

Where the radio industry and the National Association of Broadcasters should be focusing their time is keeping FM radio viable, in all vehicles and FREE!

Sadly, the FM band is becoming overcrowded with signals and this, I believe, needs to be seriously addressed.

Finally, I would like to believe, as does Scott Shannon, that radio can still succeed in the 21st Century if it will just be “authentic, local, magical, and deliver an audio product with passion.” Or as radio programming consultant and author Valerie Geller puts it:

Great radio is interesting people communicating with listeners

by telling the truth, making it matter and never being boring.

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Radio’s Disappearing Act

Is AM radio disappearing from new cars the issue the radio industry should be focused on?

I think not and here’s why I say that.

WBZ 1030AM

I grew up listening to WBZ AM out of Boston on my daily college commute in Western Massachusetts. Carl DeSuze, Dave Maynard, Larry Justice, Mean Joe Green in the BZ Copter with Boston traffic reports and Gary LaPierre with the news. It was truly “The Spirit of New England.”

So, when Sue and I were headed to Boston for the graduation of our son-in-law from Berklee College of Music, I put on WBZ as we left our hotel in Spring Valley, New York, and we listened to this station on our three hour drive into Boston, we didn’t listen to it on 1030AM, but via its stream on the StreamS application (App). The station, which is now an all-news operation, sounded fabulous.

The fidelity was of higher quality than FM and there was no buffering or dropout of the signal.

Once in Boston, I tried listening to WBZ over my car’s AM radio and the quality was poor, with noise and interference emanating from our surroundings.

What Does a Radio Look Like?

Back in June of 2017, I wrote a blog article asking what a radio looks like today and the most likely answer to that question was a smartphone. I also addressed in that article of six years ago, I was noticing that hotels were replacing those cheap AM/FM radios with charging stations containing a digital clock, perfect for charging smartphones, tablets and laptops.

Car Radios & The Future

Then in September of 2020, I wrote about how radios first came to be an option for buyers of new cars in June of 1930. But today’s new car buyer wants Bluetooth capabilities more than they want an FM radio; AM radio is not a must-have in 2023 according to the latest Jacob’s Media Techsurvey. What do people connect in the car with that Bluetooth, their smartphones.

What I Recently Witnessed About Radio Use

After COVID began to fade, Sue and I took a trip out to the west coast to visit our children and grand children in that part of the country. What we noticed in every hotel room we stayed was a giant flat screen TV, but no radios, just more of those charging stations with digital clocks.

This prompted another article that same year titled, “Is Radio Up Schitt’s Creek?” Sue and I became big fans of this series out of Canada, that takes place in a fictional town called “Schitt’s Creek,” and takes place primarily in The Rosebud Motel, where the shows characters use televisions, computers and smartphones, but never use a radio.

When watching movies and TV shows, I often look to see if there’s a radio in sight, noticing in British productions they often are, but not in American ones.

Once It Was Radio

When Sue and I stayed in Bethlehem, Pennsylvania we visited the museum inside the Hotel Bethlehem and found that fifty years ago, a hotel having a radio in your room was cutting edge.

The Hotel Bethlehem opened in 1922, two years after the birth of commercial radio in the United States and in 1953, it announced that patrons would enjoy a brand new AM alarm clock radio in every room.

Now seventy years later, Hotel Bethlehem features fiber optic WiFi.

Where Are the Radios?

Last year, Sue and I took a road trip through Atlantic Canada. We stayed in hotels and Bed & Breakfasts (B&Bs) throughout our trip, and found WiFi has totally replaced the AM/FM clock radios.

In Montreal, our room at the Hôtel William Gray, had a Bang & Olufsen (B&O) Bluetooth speaker that easily connected to my iPhone. The fidelity of B&O equipment is legendary and it was a joy to be able to connect any of audio Apps on my phone during our stay.

Radio Set Ownership in the Home

In American homes today, 39% don’t have a single radio set in them, and radio set ownership gets worse for young Americans age 12 to 34, where that number grows to 57% according to Edison Research.

To put this into perspective, the Federal Communications Commission (FCC), says only 6% of the population still lacks access to fixed broadband service at threshold speeds. Meaning, the internet is more accessible than broadcast radio.

Are Broadcasters in Denial?

Valerie Geller, who wrote the excellent book “Beyond Powerful Radio,” recently said

“You can sit down with a broadcaster who rails against podcasting and digital audio and artificial intelligence (AI). Then you get in the car with them, they’re using GPS, they’re listening to a podcast, they’ve got SiriusXM, they’ve got Spotify. Podcasting and radio co-exist now. That’s our truth.

Radio is its own worst enemy. We have not spent or invested in developing talent. Every other business has research and development (R&D) and they spend on it because they are investing in the future. I love radio, but I hate the state it’s in.

A lot of the voice-tracking I’ve heard already sounds like AI. There’s nothing human about it. It’s just a broadcaster playing an actor playing a broadcaster. AI is just as good as those voice-tracks because there’s nothing real being said.”

AM Radio Leaving the Dashboard

Automobile manufacturers removing AM radio from the dashboard ought to be alerting the radio industry to BIGGER PROBLEMS. The AM situation is a symptom of what we should be focused on, and that’s creating GREAT RADIO.

If you think it won’t happen to FM next, you haven’t been paying attention.

AM/FM radio sets are vanishing from hotels, B&Bs, American homes and big box retailers.

If your listeners aren’t up in arms about that, then losing AM radio in their dashboard won’t be a big deal to them either.

To paraphrase the great sales trainer Don Beverage:

Make your radio station so valuable to a listener,

that they want to hear your programming more

than you want to broadcast it to them.

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Let’s Say Goodbye to Non-Compete Agreements

The Federal Trade Commission (FTC) just proposed a new rule that would ban employers from imposing non-compete agreements on their employees. Having spent the majority of my working life in the radio industry, I can’t remember a broadcasting company I worked for that didn’t have me sign one of these agreements, and I’m willing to bet that like me, you were never a fan of them.

What an FTC Ban on Non-Compete Would Mean

The proposed new rule eliminating non-competes would mean that employers could no longer make signing such an agreement a condition of hiring and that all existing non-competes would sunset within six months of the rule’s adoption. It would also require that employers give notice to their employees that the non-compete clause is no longer in effect and will not be enforced.

Should radio owner/operators be afraid? No, and let me tell you why.

The Day I Tore Up My Employee Non-Competes

Back when I was a general manager in Atlantic City, I had a sales employee walk across the street to my biggest radio competitor. I wanted to pursue this employee in court because I had them under a non-compete contract. However, the new owners of my radio stations said that if a person didn’t want to work for our broadcast company, to just let them leave.

Puzzled by this new operating philosophy, I asked the new owners, if they didn’t intend to enforce employee non-compete agreements, why did they keep them in place when they bought the radio stations from the previous owner. The company president’s response to me was, “darn if I know.” I said then, I’m going to tear them all up, and he said, “go ahead.”

Life Without Non-Competes

I have to tell you, as a young manager, the realization that every employee of my radio stations could walk across the street to my competitors, was scary.

However, something wonderful happened.

People who now worked for me knew they no longer were working under non-competes, and they now worked for me because they wanted to. It also made me realize that I too needed to provide a style of management that made people want to stay with me more than going someplace else. That, I would learn, is the best way to run a business.

Even better, having this type of work environment saw many talented people waiting in line to come work at our stations.

The FTC says the evidence to date suggests that non-competes suppress wages, reduce competition and keep innovative ideas from being birthed.

The rule making on this ban has just begun and the FTC is currently collecting comments from both supporters and opponents, and no timetable has been established for rendering a final decision on this proposal.

You can add your comments to the Federal Trade Commission decision making process by writing “Non-Compete Clause Rulemaking, Matter No. P201200” on your comment, and filing your comment online at https://www.regulations.gov

Today’s Media Environment

Radio today, unlike in 1920, operates in a marketplace that is over-served, and when that happens the basis of competition changes, opening the door for a new type of competitor.

Sadly, while this new media world was being born, the radio industry was focused on consolidation and increasing shareholder value, by replacing its radio personalities with technology and creating a radio medium that would play-it-safe to become predictable and boring.

“Never be boring.”

-Valerie Geller

Programming consultant, John Frost, recently asked this question in his weekly Frost Advisory,  “What does your radio station value?” Winning companies value encouragement and teamwork, according to Ken Blanchard, author of books like “The One Minute Manager.”

“Our greatest fear should not be of failure,

but of succeeding at things in life that don’t really matter.’

-Francis Chan

Radio can only win the future by attracting the most talented people to work in our industry, and giving them permission to fail.

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New Radio World Column Premieres

Thirty years ago Michael C. Keith entered a small New England college to start a new career. Keith had just spent the past ten years as a professional broadcaster and was now transitioning into the world of teaching. The first thing that he would learn was the only textbooks available at that time were woefully out-of-date. Radio was now format driven and there were no textbooks available in 1986 that were teaching the kind of radio Michael Keith had just left. So, Keith decided to write his own textbook. He called it simply “The Radio Station” and he pitched his manuscript to Focal Press.

If you like to read the entire article, simply click here: Focal Press Updates “Keith’s Radio Station”

This is the premiere of my new column in Radio World that will appear quarterly.

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