Tag Archives: WKU

Is Your Iceberg Melting?

94This past week was another tough one for the wonderful people who work in radio. Most people who get into radio do it because they’ve caught the “radio bug” and the work becomes their life’s passion. I know that’s how it is for me.

When I caught the “Radio Bug”

From my earliest years, I knew what I wanted my life’s work to be. I built a radio station in my parent’s basement and broadcast to the neighborhood (about a 3-block radius) on both the AM and FM bands using transmitters I bought from Radio Shack.

When I started high school, I earned my 3rd Class Radio/Telephone Operator’s License, Broadcast Endorsed from the Federal Communications Commission in Boston. I wasn’t old enough to work, so I had to get a Massachusetts Work Permit. They didn’t have a category for disc jockey, so they branded me as “talent.” (I never told them I had to take meter readings every half hour in front of a transmitter that put out 1,000-watts of electromagnetic power. If I had, they would never have given me my work permit.)

College Radio

In college, it was radio that paid for my bachelors and masters degrees. I took my college’s carrier current radio station, got an FM broadcast license and was the first general manager.

Radio was in my blood.

RIF’s

After the Telcom Act of 1996, radio began its road down the consolidation path funded by Wall Street. It was during this period of time a new acronym would come into radio’s every day lexicon, RIF’s, or Reduction In Force. In other words, people were being terminated in huge numbers.

This past week, I sadly read about another round of RIF’s taking place among our country’s biggest owners/operators of radio stations. It breaks my heart.

RIF’s from the Manager’s Perspective

We all feel sorry for those that have unexpectedly lost their job. What we often don’t read about is the perspective from the other side of the desk, what the management is going through when these decisions are made at corporate.

I lived through it in 2009 as a Clear Channel Market Manager.

It’s NOT FUN.

With each corporate meeting, I would come home with a flash drive that could not be opened until a specific date/time with who I would have to RIF next.

I RIF’d my entire news and promotions departments.

I RIF’d DJ’s and PD’s.

I RIF’d my national sales manager, my director of sales and local sales managers. With each round of RIF’s I got more hats to wear. The work still needed to be done, it didn’t go away with each round of RIF’s.

I hated my job.

Then my regional manager showed up unannounced and RIF’d me.

His manager showed up after he had RIF’d all of his designated market managers and RIF’d him.

The company president RIF’d the senior regional managers.

Then the CEO RIF’d the president.

It was not a happy time, but believe it or not, being RIF’d to me was better than being one of those that found themselves with more and more hats to wear, with more and more responsibility, without a penny more in pay.

There were many folks who told me to find another line of work, but they didn’t know that broadcasting was the only thing I ever wanted to do.

Except for one other thing, teaching and mentoring the next generation.

My education was in teaching. Both my bachelors and masters degrees were in teaching.  My best teachers were those who worked in the field first and then came into the classroom to teach.

Paying It Forward

My long term goal was always to one day teach at a college or university the very things I had done all of my professional life.

My big opportunity presented itself at Western Kentucky University’s School of Journalism & Broadcasting in 2010.

When I was RIF’d by my regional manager, I had met or exceeded every goal I had been given and was paid bonuses for my accomplishments. I was even named one of radio’s Best Managers by RADIO INK magazine. The issue of the magazine with me in it came out almost the day after I was RIF’d. Funny how life is: good things happening at the same moment as bad.

One Door Closed, Another Door Opened

When my last management job came to an abrupt end with Clear Channel, my broadcast professorship door opened at WKU.

Let me tell you, going from being a radio market manager to broadcast professor is a steep learning curve. But with the help of Charles H. Warner at NYU, John Parikhal of Joint Communications and others, I successfully made the transition and became successful at teaching. In fact, my new broadcasting educational work branch opened my eyes to all kinds of new and exciting learning opportunities.

I started this BLOG and a column for RADIO WORLD magazine during this time.

Those have lead to numerous invitations to appear on podcasts, Vlogs, articles, and broadcast interviews with others sharing stories of my work and experiences.

I’ve done research on the radio industry and their employment needs in the 21st Century. I’ve presented panels every year at the national conference in Las Vegas as well as been an invited broadcast expert on many panels at both BEA and NAB.

I’ve presented seminars at state broadcast associations and done training sessions for broadcast companies.

In short, I’ve been more active in broadcasting on so many levels than I ever was as a radio manager.  And I’ve loved every minute of it.

But I’m not going to candy coat what’s happening, not only in radio but in all ad supported media. It’s a revolution.  Not an evolution.

In revolutions the first thing that happens is destruction of the old. We’re still living through that period right now and it’s not fun. I get it.

Our Iceberg Is Melting

Back in 2008, many people picked up a copy of Ken Blanchard’s book “Who Moved My Cheese?”  I know I did. It’s a great read.

But maybe the book everyone in broadcasting should be reading today is “Our Iceberg Is Melting” by John Kotter. Kotter is an award winning author from the Harvard Business School.

Like Blanchard and Johnson’s Cheese book, Kotter writes a simple fable about doing well in an ever-changing world.

The fable is about penguins in Antarctica that discover a potentially devastating problem to their home – an iceberg – and it’s melting away.

It’s a story that will resonate with anyone in broadcasting today.

Read about how the penguins handle their challenge a great deal better than many broadcasters are doing today. Kotter’s book walks you through the eight steps needed to produce positive change in any group.  You will not only enjoy the read, but will be guided with valuable insights to deal with our 21st Century world that is moving faster and faster every day.

The Big Take Away

When corporate, middle management and all employees are on the same page with regards to change, it is amazing what can happen, despite adverse conditions.

These are lessons for people who already are in broadcasting, for broadcast students, enlightened colleges are already teaching the concepts, skills and providing the tools that will be needed going forward. My students know that the future is not bleak. They understand the history of broadcasting that brought us to where things are today and they are as pumped as you and I were when we were their age to craft the future of broadcasting in the new century.

I’m excited.

They’re excited.

The best is yet to be.

 

 

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Bucket Lists

79Life gives us lots of fears. When we’re very young, we’re fearless. Not because we are so brave, but because we aren’t smart enough to know what to be fearful of, yet. That, however, changes quickly and life gives us a heaping helping of stuff to be afraid of.

Growing Older

I think one of the best benefits of growing older is overcoming a fear of failure. When you have some decades under your belt, you know that success isn’t lasting and failure isn’t terminal. Life is a series of hills and valleys.

Joy in Life

I just re-watched the movie “The Bucket List” with Jack Nicholson and Morgan Freeman. It’s a classic.

IMDb gives this storyline, if you’ve never seen this film, as follows: Corporate billionaire Edward Cole and working class mechanic Carter Chambers have nothing in common except for their terminal illnesses. While sharing a hospital room together, they decide to leave it and do all the things they have ever wanted to do before they die according to their bucket list. In the process, both of them heal each other, become unlikely friends, and ultimately find joy in life.

What Were You “Meant” to Do?

I’m very grateful for the life I’ve lived. I worked in a career for over four decades that I loved. I then transitioned into teaching at a university, which was the next career move on my short career “bucket list.”

I’ve mentored so many engaged students and gotten lots of positive feedback on my classes. A recent note said “I just wanted to thank you for your awesome class. I really enjoyed it and you as a professor.”

No job can get more rewarding than when you receive notes like that!

Good Times & Bad

There’s an old saying about good times and bad that goes like this: ‘The bad news is the good times never last. The good news is, neither do the bad.’

Change is in the wind at my university. Uncertainty and anxiety runs high.

I will now check off my career “bucket list” teaching at a college or university with the completion of I my seventh year of being a broadcast professor in May 2017 at Western Kentucky University. I didn’t have a career goal beyond college teaching.

Next Life Goal

These past two years, I’ve found that this “radio guy” loves to write. I’ve got both a weekly blog as well as a quarterly column in a national magazine. I’ve done podcasts, vlogs and radio interviews/shows in addition to my teaching/advising/professional activities/university service and consulting. I’m obviously not one to just sit on a couch and eat bonbons.

Excited About New Possibilities

One of the decisions I’ve made at this point in my life is that I wish to move closer to my family and grand kids. All of my life, I’ve let my career determine where I’d live. Then I was challenged to keep in touch with my family. With the passing of the last great grandparent, the torch has been passed, so geography just became more important to me than in the past.

I look forward to leveraging my experience in media, advertising, consulting and teaching in new and exciting ways. I have so much wisdom to pay-forward. I’m a passionate person looking for his next place to make a positive impact.

Think you and I might work well together? Reach out to me: Dick.Taylor@wku.edu

Just Say “No”

Megyn Kelly’s move from the FOX News Channel was made not to make more money but for Megyn to be able to spend more time with her family. Her reasons for making the move really resonated with me. I also want to put some balance into my life when it comes to family and career. It’s time to “just say no” to chasing an overly-demanding position that steals away my time and energy from my family. It’s time to make my next life goal be living a balanced life.

My story does not end here.

Stay tuned.

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The Lesson of High School

41Everything you need to know to succeed in life you probably learned by the time you graduated high school. Do you remember your high school days? You probably couldn’t wait to graduate and begin the next chapter of your life. We were all in such a hurry. Many of us were looking forward to going to college. College, we thought, would be what real life was like. It would be a world where real talent is what counts.

Meryl Streep once told an interviewer that she thought life would be like the life she lived in college. Only it wasn’t. “Life,” Streep said, “is like high school.” Life, it turns out, is a popularity contest. The competent and likeable person will soar in life whereas the intelligent but socially inept won’t.

Real Life Doesn’t Give Written Tests

Education revolves around the test. Tests produce grades. Grades are compiled into GPAs. GPAs are part of the process to measure a person’s intelligence quotient or IQ. Not to burst your bubble, but the world’s most successful people are those that often finish in the bottom half of their class but were probably the best known and best loved.

What’s Your EI?

This begs the question, why don’t we measure what’s important? Or better yet, why don’t we teach it? Marc Brackett, a senior research scientist in psychology at Yale says “we know from doing dozens of studies, that emotions can either enhance or hinder a person’s ability to learn.” Emotions impact our memory, our attention and our ability to focus. EI is Emotional Intelligence. EI is something we talk about in my broadcast sales class. Great media sales people score high in emotional intelligence skills.

We Are Controlled By Our Emotions

Whether you are in sales, a television/radio performer or running for political office, just like in high school, you will be judged by if people like you or feel good about you. The world works not by logic and reason, but on emotions and feelings. Radio and television are a people business. It is all based on relationships. Relations are all about feelings.

Academics & Success

Our educational system is built upon the premise that if a student achieves academically they will be employed, healthy and everything else in their lives will be a bowl of cherries. The reality is something quite different. Turns out academic success predicts very little about the future outcome in these metrics.

Talent Assessments

Can emotional intelligence be taught or do we all start out emotionally intelligent and have it beaten out of us by our home life, our friends – or most likely – the educational system? In my broadcast sales class, I have my students take a talent assessment. These tests give insight into how a person is wired. Unlike most tests students take, there is no pass or fail. The results give insight into a person’s emotional intelligence and make-up. These tests were developed from the research of people like Sigmund Freud. They came into widespread use during the Second World War. The goal was to quickly place people into jobs that they would naturally excel at doing. After the war ended, many companies continued to use these tests when hiring. They are another tool in the tool box for evaluating a person.

Can An Old Dog Be Taught New Tricks?

What is not known is at what ages these emotional intelligence skills can be taught and if there comes a point when the cake is baked and can no longer be changed. Few studies in this area have been conducted. Plus the deck is stacked against this area of education by people who take the “that’s not the way we’ve always done it” approach to anything new and different. At this point, it would appear these “emotional habits” get baked into a person’s personality early in life and it is a mixture of home-social-school environments.

Life Is Like High School

So maybe Meryl Streep is right. Success in high school and life is basically a question of one’s personality. Zig Ziglar put it this way, “people don’t care how much you know, until they know how much you care.” In a world that is wired for reciprocity, going first and showing you care is always good when it comes to building relationships.

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Real Possibilities

AARPBefore I get into the meat of this week’s post, I first need to walk you through a bit of a preamble. Also, this week’s post is a continuance of last week’s post about Millennials vs. Baby Boomers, so if you missed it, you might want to read that first here before you read this week’s. Now please bear with me while I set-up the story for this week’s post.

I’ve been a card carrying member of AARP since I turned 50. When you hit this milestone birthday, don’t worry the folks at AARP will find you and solicit you to become a member.

When I became a member, AARP stood for the American Association of Retired Persons. But at age 50, I was a long way from actually retiring.

AARP was founded in 1958, so this organization could be classified a “Baby Boomer” just like me. And just like me, AARP has changed over the years. It officially changed its name from the American Association of Retired Persons to just AARP. AARP no longer requires members be retired but they must be at least 50 years of age.

In 2013, AARP launched its “Life Reimagined” program that sub-labeled the “RP” part of AARP to mean “Real Possibilities.” You see, AARP realizes that today people aren’t thinking about retiring when they hit 50 as much as they are thinking about tackling a second, or maybe a third career or endeavor.

At my university we started a wellness program in 2013. I was a charter member. Our university self-insures employees for healthcare and one of the ways to control costs is to incentivize employees to be as healthy as possible.

My university office is on the third floor of the Mass Media & Technology Hall building. We have three elevators in our building. I never use them. I prefer the stairs for two reasons: 1) they are much quicker than the elevator and 2) I use the stairs as a part of my wellness fitness program.

When a student says they’d like to meet with me for a moment in my office after class, I often find them a third of the way up the stairs when I reach the top floor (I take stairs two-steps at a time). They are also huffing and puffing. I just wait for them to catch up.

Now here’s the point of this week’s post…

Millennials Don’t Know What Age “Old” Is

Millennials are today’s media buyers. Millennials are today’s creative’s. Millennials are today’s planners. Heck, Millennials are probably the people running the place too. So if they have a warped concept of age, it is going to affect their advertising placement decisions.

Millennials now populate today’s media properties. They are the programmers, air talent, sales management, sales people and possibly the senior management.

I just met the director of Cox Digital Media in Las Vegas this past April and he is 28 years old.

Millennials Describe What Old Age Means to Them

Well AARP did some research into this question of what Millennials think “old” is. Then they asked them to show them what they thought “old” looks like. Then they introduced these same Millennials to some real “old” folks. Best of all, AARP recorded everything on video.

Watch the four-minute long video and then continue reading.

https://www.youtube.com/watch?v=lYdNjrUs4NM

See the problem now?

If you are wondering why more radio stations aren’t programming to Baby Boomers, or if you are wondering why more media buyers aren’t buying the BIG MONEY demos, now you have a better understanding of the problem. They think you and I have one foot in grave, instead of one foot away from the summit of Mount Everest.

Corvette Buyers

I live a short distance away from the only place Chevrolet makes the Corvette in the world. The average age of a Corvette buyer is 59. Boomers and people even older are the people who are buying Corvettes. They are NOT the Geritol-set.

We Are Part of the Problem

We call them Millennials, Generation X’ers and Baby Boomers etc, but another way to look at these generations is as tribes. Seth Godin has written extensively about this concept.

Seth says that sooner or later tribes begin to exclude newcomers. So each of these groups operates in their own little silo because it is easier than to keep breaking in newbies and because it could threaten the existing power structure.

Consolidation

The consolidation of media hasn’t helped either. RIFs (Reduction In Force) mainly dismissed the highest priced employees (Boomers) and left an organization of low cost employees (Millennials) all in the pursuit of increasing Shareholder Value.

Recent studies have shown that private companies out-perform public companies. The reason, they operate on the Peter Drucker principle that the only valid purpose of an enterprise is to create a customer. Privately owned radio companies also out-perform their publicly traded radio company counterparts. Same reason.

Turns out delighting customers is simple, clear and measurable, moreover it is the genuine path to successfully operating any business.

Leadership

The first question of a leader always is: “Who do we intend to be?”

NOT “What are we going to do?

BUT “Who do we intend to be?”

In other words, says Max De Pree of Herman Miller “What are we here for?”

Napoleon put it this way “Leaders are dealers in hope.”

Tom Peters says “The leader is the person who inspires us, sends us on quests to places we had never imagined.”

Think Thomas Edison, Nikola Tesla, Steve Jobs, Elon Musk and so many more just like them.

To paraphrase the title of Lee Iacocca’s 2008 book:

“Where have all of the radio leaders gone?”

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Evolve or Lose Relevance

23In two months, the world’s largest radio meeting will once again be taking place in Las Vegas; the 2016 NAB Show. Ironically, since leaving the radio industry and entering academia at Western Kentucky University, I attended my very first NAB show in 2011 and have every year since. So as visions of massive crowds and very sore feet dance in my head, I thought I’d look back over those past years and see how the theme of these meetings has evolved.

In 2011, the NAB highlighted that media consumption had become more digital and connected. TV everywhere strategies, mobile TV, the connected TV and the use of social media dominated the show.

In 2012, everyone was shouting about 4K video, ISP content delivery and the evolution of special effects technology. Everywhere you went you were shown 3DTV (I didn’t care for it, personally.)

In 2013, the NAB show hosted its first ever 2nd screen Sunday and the impact of more than one screen (the television set) vying for the viewer’s attention was fully recognized if not totally embraced by broadcasters.

In 2014, the NAB show wasn’t so much memorable for what it had but for what it didn’t have 3DTV. What had once been prolific throughout all the convention halls was now nowhere to be seen. 4K video & TV was now all the rage with Japan’s NHK demonstrating 8K video & TV. NHK said they will be recording the Rio Olympics in 8K and plans to televise (in Japan only) the 2020 Olympics in 8K. When you see TV pictures this detailed, you can instantly see why 3DTV bit the dust. 4K and 8K feels three dimensional and you don’t need any funky glasses.

Which brings me up to last year’s NAB show in 2015 where the theme was “Evolve or Lose Relevance” voiced by NAB President/CEO Gordon Smith. Smith urged broadcasters to embrace the new technologies like ASTC 3.0 & 4K for TV, and NextRadio’s mobile app for FM radio on mobile devices. Smith also talked about the spectrum auction which begins in March 2016 and characterized the auction as both “exciting and daunting.”

What may have been most daunting and certainly not exciting was to have been an AM broadcaster at this meeting – or any of the meetings of the last five years. Move along guys and gals, there’s nothing for you to see here. HDRadio was there every year and I think they had more cars outside of their convention hall than any previous year featuring their spiffy HDRadios, a technology that has been better embraced by the automakers than radio broadcasters for the most part. And of course, there were drones. Lots & lots & lots & lots of drones. Big drones, little drones…a drone for every size and budget. I’m wondering if the FAA will start coming to these meetings along with their friends from the FCC.

The only thing I haven’t seen addressed over these past five years is what seems to me to be the elephant in the room. Everything is supported on a business model that has been around since commercial broadcasting began in 1920, that being the selling of advertising. The covenant with the consumer of radio/TV programs was we will give you the programming for free if you allow us to expose you to our advertisers; a business model that worked extremely well through the birth of the Internet and dial-up connections. It would be the introduction of broadband and its rapid expansion that would challenge everything.

Blockbuster vs. Netflix is a good example. 2004 Blockbuster has 9,000 stores and almost $6 billion in revenue and only 4.4% of American homes had broadband. Netflix was mailing DVDs to its customers. 2010 Blockbuster files for bankruptcy, 68% of American homes have broadband and Netflix had been streaming to their customers for three years. Today Netflix has a market cap of almost $33 billion.

That really brings home the concept of “evolve or lose relevance” doesn’t it?

So what will the business model for media be evolving to? That’s the billion dollar question. Nobody knows. But what we do know is that Apple gave up its free iTunes music streaming at the end of January 2016 and now will only offer a paid subscription model. Disney’s ESPN is suffering the “agony of defeat” as more consumers cut their cable bundle (for which it’s reported that ESPN gets $7 per sub) and is causing this revenue stream to dry up while the cost of bidding for live sports events continues to escalate. Everything appears to be moving in a direction of asking the consumer to pay for what they want – like they do for HBO, Showtime, and Netflix etc.

So what’s the plan Stan for broadcast radio and TV? Or for any advertising supported medium for that matter? I think about this a lot.

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Being Grateful

15There are times when the stresses that are part of everyday life can occupy a place way beyond their level of importance in the grand scheme of things. Its times like those that you need to take a time-out and remember all the things in your life you have to be grateful about.

 

This year, I’m grateful for three wonderful grand children that are all happy, healthy and developing into unique individuals.

 

I’m grateful for their parents who make their children their first priority and love them with all their heart and soul.

 

I’m grateful that my two sons have set exciting and meaningful goals for their lives and in so doing are working hard to make our world a safer and better place for all of us.

 

I’m thankful for my two older brothers that always have been there for me through ups and downs, thick and thin.

 

I’m grateful that I’ve come to accept myself for exactly who I am, while still having boundless curiosity and a desire to never stop learning and growing.

 

I’m grateful that I’ve learned how to slow down. Life is meant to be savored. It’s not getting to the finish line first but about enjoying the journey.

 

I’m grateful for having enough. Less is more. Too much of anything is usually toxic.

 

I’m grateful for each day when I can add more value to the world than I consume.

 

I’m grateful for learning that every situation provides an opportunity to learn something; even the difficult ones, life goes by so fast.

 

I’m grateful that a career in radio that I started in the 10th grade in high school would allow me to pay for my college education, graduate school and raise a family. It’s a career that was all I ever wanted to do besides one day paying-it-forward through teaching the next generation of broadcasters.

 

I’m grateful that I finally started a blog this past year. It’s been one of the most personally rewarding and enriching things I’ve undertaken this past year.

 

I’m grateful for all the wonderful people I’ve met on this journey called life, people who were only strangers until we said “hello,” and then became friends for life.

 

One of my mentors, Zig Ziglar said: “You can get anything in life you want, if you will just help enough other people get what they want.” I’ve tried to live those words every day.

 

I have so many things to be grateful for this Thanksgiving 2015. I’m sure you do too.

 

Remember you may make a living by what you get, but you make a life by what you give.

 

Today, I’m grateful for YOU.

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Seems Like We’ve Been Here Before

I teach a course called the “History of Broadcasting in America” at the School of Journalism & Broadcasting at Western Kentucky University. It’s from this background I’m writing this week’s blog.

Broadcasting began with the U.S. Department of Commerce, Bureau of Navigation issuing KDKA the first commercial broadcast license on October 27, 1920. Let’s be clear, there was lots of broadcasting going on in America before this date, but this license marks the beginning of radio broadcasting that would be ad-supported.

Think about it. This period in American history was called the “Roaring 20s.” It would be a time the first tabloid newspaper would appear along with publications like Reader’s Digest, New Yorker magazine, and TIME magazine. This would be the world that commercial radio would be born in.

It was a time in America of unprecedented economic prosperity and social change. It was also a time of a strong backlash of racism, fear of immigration and morality.

Radio would be the new kid on the block in the 1920s. Broadband wireless Internet is the new kid today as we live in a period of time giving birth to the “Internet of Things (IoT).”

Déjà vu

Let’s compare the issues of then and now. In the 1920s, immigration was feared. America got tough on immigration with a stringent set of restrictions embodied in the Immigration Act of 1924 designed to limit the flow of immigrants from Europe primarily. Today we hear all about how we need to build a great wall between the American and Mexican border.

In the 1920s, the focus was segregation and discrimination of African-Americans. These same sticky issues are still with us today. Think Charter Schools. Gay Marriage. Muslims.

While women had earned the right to vote by the Roaring 20s, they still couldn’t go to college, most professions excluded women, they couldn’t own property, couldn’t establish credit or get loan to start a business. Women? How’s it going today besides your fight for equal pay, equal rights and women’s health?

The 1920s had the 18th Amendment, which brought about Prohibition. Today we have the “War on Drugs.” It’s been about as successful as Prohibition was, but it appears America learned nothing from its past.

The 1920s saw a technology revolution. American-made films not only captivated Americans, but the world. Every American city would have a movie theater by the end of the 20s. Today, virtually every American home is connected to the Internet, most with Broadband service.

Radio would grow up to be an ad-supported medium. It still is today. The Internet pursued the same ad-support path.

The 1920s were the best of times and the worst of times. Society was made up of the haves and the have-nots. The wealth-gap was huge. Today, that gap is bigger than it was a century ago.

The 1920s saw modern corporations and the federal government in a close alliance. And everyone thought that was a good thing, until October 29, 1929. A day known as Black Tuesday, the day stock market crashed, which would mark the beginning of the Great Depression. After that happened, Americans weren’t so sure about the big corporations’ influence over their government.

The equivalent (and hopefully the extent of it) comparison in our time would be “The Great Recession of 2007 – 2009.”

America 1920, commercial radio was born in America. It was the start of a mass communications revolution. It would kill Vaudeville.

Déjà vu All Over Again – Yogi Berra

Today, we are living in a period of world history that is undergoing a new communications revolution brought about by the creation of the Internet and the smartphone. And what the Internet of Things is doing is challenging the business model of just about every business.

When TV came along in the 1950s, it took the entertainment that radio had stolen from Vaudeville and stole it from radio. But radio, unlike Vaudeville back in the 20s, didn’t die. It re-invented itself into a new form of mass communication.

The challenge for radio today, unlike back in the beginning, is that broadcasters and the government understood they had to make a choice. Have lots of broadcasters and poor quality of broadcasts – OR – have fewer broadcasters but ones that could support the economics of high quality broadcasts.

Broadcasting in those early days was all live programs. Live music, live drama, live comedy, live variety, live everything. This requirement to do only live programming is what separated the big boys from the amateurs and that’s how those corporations got the best signals and the most power to broadcast on.

Operating in the Public Interest

 The requirement for gaining access to the public airwaves for these big broadcasters was that they operate in the “public interest, convenience and/or necessity.” The Radio Act of 1927 would embody these principles:

  • Access to the public airwaves would be restricted to a few quality broadcasters vs. lots of mediocre ones

  • They would operate in the public interest

  • They would be regulated by the government

  • They would be a commercial medium operated by private entities

Today, the government is licensing Lower Power FM stations and Translator FM stations like Johnny Appleseed planted apple trees. Today there are 22,970 radio stations broadcasting in America as of June 2015. Add to this the infinite number of streaming radio stations on the Internet and you can see how this challenges today’s radio owner to fulfill operating in the “public interest, convenience and/or necessity” and make a profit.

While some may make the case that radio is not living up to the original covenant, you also need to realize that neither is the government. Less radio stations enabled broadcasters to provide more services to their communities of license.

Nielsen Audio says radio still reaches over 92% of all Americans 12-years of age and older on a weekly basis. It’s the #1 reach medium today. It has always been the #1 frequency medium. That powerful combination of reach & frequency is the one-two punch of effective advertising. American’s still love their radio.

But today, places to advertise on radio are infinite. The advertising budgets, however, are finite. The advertising pie has never been cut thinner.

And that’s the problem.

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