Tag Archives: Verizon

The End of Retail Business

Going Out of BusinessIs the retail industry dying?

Stores that I grew up with, like Toys R Us, Sears, K-Mart, and Radio Shack are either in bankruptcy or out-of-business. Other retailers are reducing the number of locations to become more profitable to their investors.

The local retailer finds themselves even more challenged to deal with the likes of Walmart and Amazon.

Radio Lives on Local

The prescription for the radio business is to focus their programming on their local community of license. In other words, be VERY local in everything they do.

If the radio station you listen to could be transplanted into another city without changing a single thing about their programming, other than their weather forecasts and traffic reports, then that radio station isn’t really local.

If, on the other hand, you drive into a community and you have no idea what the people on the air are talking about or who the people they’re talking about are, then you have come upon a LOCAL radio station that is serving the people of their listening area.

Local Retailers

In the smaller markets I’ve managed radio stations in, we didn’t really do much business with those big box retailers. Sadly, in most cases, after the grand opening schedule and remote broadcast, they pretty much stayed away from local radio.

The local businesses that lined the main street, or were located in a strip mall or populated the surrounding small towns, were the life-blood of a local radio station.

As Walmart and Amazon strip away the ability for these small merchants to make a living, radio’s business base is likewise being decimated.

21st Century Retailing

Retailing is being disrupted. While some retailers are closing, we also see companies like Apple, Amazon and even Coca Cola investing in building new brick and mortar locations.

The change that’s occurring according to Greg Satell is that “the primary function of a physical store is not to drive transactions, but to service and support customers.”

In other words, retailing is being reimagined.

Radio Reimagined

Radio is giving up its major strength by not having live, local personalities on the air 24/7. Successful small retailers are winning because they engaged in their community and are part of the community’s fabric. They are owned and staffed by dedicated people who believe in super-serving their customer base.

We are living in a time of too much automation and algorithms.

The moves being made by the Apples, Amazons and Cokes to get closer to their customer base by having local people serve their local community is an indication that the pendulum is starting to swing in the opposite direction.

Radio cannot ignore this change in the wind.

Radio needs to unlock the enormous potential of people serving people.

Radio’s Why

A couple of weeks ago, I got a lot of people talking when I asked “What’s Radio’s Why?” What it can’t be any longer is, “we’re #1” or “we have the most listeners.” Nobody cares.

There are more radio stations on-the-air in America, than at any time in the history of radio. Ironically, there’s less choice of formats to listen to and there are less people working per station today as well.

It’s time for radio stations to define an audience for each station and then super-serve that audience. The radio stations who’s audiences are the most dedicated and passionate will be the winners, not the ones with possibly a larger, but passive audience.

Just as each station’s audience is clearly defined and targeted, businesses that are seeking those same people will become just as defined, and a win-win business relationship can be built and sustained.

As I lived through the consolidation of radio and the automation of tasks, I felt that the radio industry applied technology to many of the wrong areas of the business. The air staffs were the first folks to be eliminated in favor of voice-tracking and automation. The main radio station phone line, the listener’s first point of contact, was automated instead of having a live person to greet the caller.

The radio industry eliminated, through technology, the very points where the “rubber meets the road.” The people serving people point.

The Human Connection

I own a lot of Apple gear. I didn’t buy any of it at an Apple store. I bought it online. My iPhones from Verizon. My other gear online from Apple.

What the Apple stores mean to me is a chance to go in and play with the equipment, to ask questions and, like when my MacBook Air crashed, to have a place I can go and have it repaired, almost overnight.

The Apple stores are my human connection to Apple.

The radio industry was built on the human connection. Radio’s air personalities were constantly promoted, in print, on billboard, on television and they were always out and about in the community being highly visible. During consolidation, radio lost its way due to non-radio investors who only saw the money-making benefits of cutting costs to widen margins. Once this “Best Practice” type of thinking wormed its way through the whole broadcast industry, those benefits were quickly marginalized.

Values Shift, Not Disappear

“The businesses that thrive over the long-term,

not only see where value is shifting from

but where value is shifting to and race to get there.”

-Greg Satell

This is radio’s wake-up call.

Is anybody listening?

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FM Chip, Data Usage & Streaming

121Apple recently introduced the iPhone 8, iPhone 8 Plus & iPhone X (it’s 10th anniversary iPhone). Each of these new iPhones have an FM chip in them, I’ve read, that if turned on, could receive OTA FM radio signals, but these chips are not activated.

I’m not an engineer, but I suspect there’s more to making an iPhone receive FM radio than just turning on a software switch. I will let those more knowledgeable about these things weigh in on this aspect.

Streaming Audio & Data Usage

One of the reasons broadcasters cite for having FM chips activated in smartphones is that it uses less battery power and doesn’t consume your data plan like streaming does.

And the other reason is that FM radio stays on-the-air when cell towers go down in a storm, like Hurricanes Irma or Harvey.

NextRadio says it’s seen a big percentage jump in usage to their App in Florida during Irma by allowing a smartphone equipped with an FM chip to listen to over-the-air FM radio broadcasts.

Verizon’s Smallest Data Plan

I’m a Verizon customer. Have been for a long time. I was on their unlimited data plan until a Verizon rep said my data consumption was not even half of Verizon’s smallest data plan and that I could cut my monthly phone bill in half by getting off that plan. So, I did.

This past Memorial Day weekend I streamed Allan Sniffen’s WABC Rewound while driving from Massachusetts back to Virginia. I consumed almost all of my 1GB plan due to this. I called Verizon about what I could do and was told they would switch me to their new small data plan at no charge. It’s now 2GB, plus any unused data rolls over.

I have something like 4+GB now and it grows because most of my music streaming is done when I’m connected on WiFi and not over-the-air.

I expect that this will be expanded again by Verizon due to competition from other wireless carriers.

T-Mobile Unlimited Music Streaming

Back in July 2016, I wrote a blog article titled “SiriusXM Radio is Now Free.” That article still sees lots of traffic from people searching for this service. I think they thought I wrote that it was now free, but the nature of the article mused what if they made some of their music channels free and then sold commercials in those nationwide free music channels. It’s actually something that’s been kicked around by America’s only satellite broadcaster.

But in 2014, T-Mobile introduced “Music Freedom.” T-Mobile wrote, “With Music Freedom, T-Mobile Simple Choice customers can stream all the music they want – without ever touching their high-speed data – at no extra charge.”

Then in 2016, T-Mobile expanded this to more than 100 music and video services. T-Mobile CEO and president John Legere vlogged: “Music Freedom and Binge On have radically changed the way T-Mobile customers watch video and listen to music.”

T-Mobile & Sprint Merger

CNBC says that T-Mobile and Sprint are in active merger talks. If they do become one, they would become America’s second largest wireless carrier. Can you see how both Music Freedom and Binge On would provide a very competitive stance to AT&T and Verizon?

Radio’s Streaming Effort May Be Screwed

Then Mark Ramsey published part one of a two-part blog post titled “Radio’s Streaming Effort May Be Screwed – Part 1” and showed Triton streaming activity for broadcasters and pureplays year-over-year. It’s not pretty. Pureplays up 16.2% and broadcasters down 1.6%.

Radio is not getting more important in the streaming world.

I believe it’s because, like most people, I listen to OTA radio using a device designed for listening to this service, a car or home radio set.

When I stream, I go to things I can’t get over-the-air, like Smooth Jazz music.

I put two new Smooth Jazz radio stations on the air in my radio career. Both of them are gone, as is the format in most radio markets in America today. Streaming is about the only way to listen to this genre of music.

Streaming Audio & NetFlix

Streaming audio teaches people to expect a different listening experience as Netflix taught people to expect a different viewing experience. Like getting an entire season of a show (House of Cards, for example) released on the same day and not dribbled out one episode per week, like broadcast TV.

Dave Van Dyke’s Bridge Ratings just showed how broadcast radio is being impacted by streaming: “New behavior by on-demand streaming listeners has accelerated time-spent-listening attrition because radio has not been able to accommodate the volume of songs released by popular artists.”

Broadcast radio can now sympathize with broadcast television with the way new product is released to the listening/viewing audience.

JJJRH

In my broadcast capstone class, one of the books my students read was by Gary Vaynerchuk called “Jab, Jab, Jab, Right Hook: How to Tell Your Story in a Noisy Social World.”

Gary skillfully shows how you can’t take your message and just paste it across all the various forms of social media. That each platform is like a different radio format. Your message to be effective and cut through needs to be molded to fit the social medium. Facebook is different than LinkedIn that’s different from Twitter, that’s different from Pinterest et al.

I believe it’s the same with taking your radio station’s over-the-air signal and simply streaming it (with a few exceptions, like a 1010 WINS or WTOP).

When your offering can be as easily received, as every other audio offering from anywhere in the world, yours will need to be either the very best, very niched or one-of-a-kind.

 

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