Tag Archives: XM Satellite Radio

Less Is More

When I was a market manager for Clear Channel, the company president introduced a new concept for reducing our commercial load, he called it “Less Is More.” It sounded good on the surface, however instead of reducing on-air clutter it introduced shorter length commercials. Each of my radio stations now aired ads that were as short as 5-seconds down to 1-second in length. This meant more ads could be run in a spot break. For example, the time it would take to run four minute length commercials, with Less Is More stations could now run six half-minute commercials or twelve 15-second commercials etc. Listeners don’t consider the length of a commercial break, but the number of different elements that air in a break.

Radio Commercials

If there’s one thing radio listeners tend to always agree on, when it comes to improving the radio listening experience, it’s reducing the number of commercials. That means the number of ads that air in a single commercial break, as well as the total number ads broadcast each hour.

Clear Channel recognized this listener issue, but by introducing shorter length ads, the “Less Is More” initiative added more elements to each stop-set. To the radio listener, the amount of clutter increased and in essence, made their favorite radio stations less listenable.

Commercial Free Radio

It was in 2008, when New York’s CD 101.9 WQCD dropped its Smooth Jazz format to switch to playing rock music with the new call letters WRXP.  Not finding any radio station in the greater New York City area that programmed the Smooth Jazz format, I would search online and discover Sky.FM.

They offered more than one flavor of Smooth Jazz music programming and it quickly filled my appetite for this musical genre. They only stopped the music twice an hour, once to tell me that I could hear this music without interruption by becoming a premium subscriber and the other announcement was about how they were looking to hire more IT personnel.

Those were the only two announcements and they lasted about 30-seconds in length, but over time, it was like Chinese water torture; so, I went online to find out how much it would cost to become a premium subscriber, learning it would cost me only $49/year. But that wasn’t all, that fee also increased the audio quality of the stream .

I was hooked and remained a subscriber, only leaving the service when I got my first Amazon Echo and Radio Tunes (formerly known as Sky.FM) wasn’t available on the service.

Recently a reader of this blog, told me that he listened to commercial free Radio Tunes on his Amazon smart speakers and I’m a subscriber once again.

My wife Sue loves Pandora and for Valentine’s Day 2022, I bought her Pandora Premium. This is their top service, it’s commercial-free and offers listeners the ability to ask for any song and immediately hear it. Plus she still can listen to any of Pandora’s wonderfully curated channels and skip any songs she doesn’t like.

Repetition Breeds Acceptance

I often hear people say they get tired of hearing the same songs over and over. Yet, successful radio stations often employ strategies that can seem counter-intuitive. They achieve the more variety music position by playing fewer songs. They reach a larger audience by targeting and focusing on a more narrowly defined audience.

By subscribing to Pandora and Radio Tunes we didn’t eliminate music repetition, we eliminated the programming elements that interrupted the music. It’s the music repetition of our favorite songs that actually attracts us.

In fact, I remember when Sirius and XM were still two separate subscription satellite radio entities, the most listened to commercial free music channels on both of them were HITS 1 and Top 20 on 20; both of which had the highest music repetition.

Dave Van Dyke, the President & CEO at Bridge Ratings Media Research, said that globally there are 3.6 music streamers for every paid subscriber. So, don’t completely count commercially supported radio out yet.

Great Radio Ads

When I was managing radio stations in Iowa back in 1999, my two sons came to visit. Before they left, they made what you might think is an unusual request, they wanted to know if I could make copies of the radio commercials my stations aired and put them on a cassette to bring back with them to New Jersey.

I also remember being at a house party and the radio station providing the music entertainment was largely background, until they stopped the music to play some commercials, and everyone would hush the conversation so they could listen. Yes, the radio ads this station created were that good.

I’m a graduate of The Wizard of Ads Wizard Academy in Austin, Texas. Roy H. Williams has been teaching radio folks for years about what makes an effective radio ad. Following Roy’s lessons, my advertisers have been very successful.

Radio commercials aren’t bad.

Bad radio commercials are.

Radio’s secret ingredient is the radio personality. Great radio talent has been effectively telling their listeners about all types of businesses, products and services for decades.

I need go no further than radio’s greatest salesman, Paul Harvey.

I own two BOSE Wave Radios because of Paul Harvey. What makes this so amazing is that I listened to him broadcasting on an AM radio station, but Paul was selling me a radio that would play FM stereo and CDs with the highest fidelity.  

While Paul Harvey was a news commentator, he called himself a salesman. His audience knew that he used the products and services he advertised. Harvey personally wrote the radio commercials he would broadcast.

Among his many accolades, the one Paul Harvey was most proud to have received was being named “Salesman of the Year.”

Paul Harvey loved his advertisers, saying “I am fiercely loyal to those willing to put their money where my mouth is.”

Creating great radio, means leveraging the power of the medium to deliver an engaged audience for its advertisers. That means reducing the number of ads in a commercial cluster and reducing the number of ads per hour, making sure every ad is about the listener and their life.  

Tomorrow has always been better than today.

And it always will be.

-Paul Harvey

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HD Radio – The Answer to the Question No One Was Asking

I was reading about how HD Radio was celebrating its 15th birthday recently and that had me scratching my head as HD Radio is older than that. In checking the records, I saw that the Federal Communications Commission selected HD Radio as America’s digital standard in 2002. By comparison, Steve Jobs introduced Apple’s iPod in October 2001, XM Satellite Radio began service in 2001 and Sirius Satellite Radio in 2002.

Radios Go High-Definition

This was the headline that appeared in the Baltimore Sun on January 7, 2004. Unfortunately, unlike HDTV (High Definition Television) HD Radio never stood for “High Definition.” And possibly that was the first mistake. HD Radio was simply a name they chose for the digital radio technology, but even today, many people still think it means “High Definition” or “Hybrid Digital.”

Sadly, by 2004, America’s digital radio was late to the party and if the industry is now marking the date of 2006 as its moment of birth, it was really late!

Remembering 2006

In 2006, Facebook opened up its social network to everyone in the world. The original requirement that you be a college student enrolled at a specific university was eliminated and the only requirement now was that you were over the age of 13 and had a valid email address.

In just 15-years, Facebook has grown to over 2.85 billion active monthly users.

Let’s look at what else was born in 2006 that competes for our attention:

  • Twitter was launched in 2006 and today enjoys 199 million monetizable daily active users.
  • Wii game system was introduced with its handheld motion controller that got families off the couch and in motion doing all kinds of sports in front of the TV.
  • PlayStation 3 came online to provide strong competition to XBOX 360. (Video gamers spent about eight hours and 27 minutes each week playing games, which is an increase of 14% over 2020. The video gaming industry predicts revenues of $100.56 billion by 2024)
  • Google bought YouTube in 2006 and now has over 2 billion users, the channel grosses over $19.7 billion in revenue and users are uploading videos at the rate of 500 videos per minute with over a billion hours/day spent watching videos on the platform.
  • The one billionth song was purchased from Apple’s iTunes, the dominate source for music lovers in 2006. (Two years later Spotify would arrive and not only disrupt how music was sold but how it was listened to in general.)

When we look at 2006, it becomes easier to understand why HD Radio wasn’t such a big deal to the average media consumer.

Solving a Problem That Didn’t Exist

What HD Radio did for FM radio stations was solve a problem that listeners to FM didn’t feel existed. No one who listened to FM radio was complaining about the quality of the sound, they were complaining about other things, like too many commercials. And for AM radio stations, it meant people buying radios for a service that didn’t offer anything they really wanted to hear or couldn’t get elsewhere. AM radio was now the service of senior citizens who already owned AM radios, who grew up with AM radio’s characteristics and whose hearing was not the best now anyway. So, HD Radio for AM wasn’t anything they were asking for and worse, AM radio stations that put on the new digital signal found it lacked the benefits of skywave and often interfered with other company AM radio stations as the industry quickly consolidated radio ownership.

Industries Most Disrupted By Digital

In March 2016, an article published by Rhys Grossman in the Harvard Business Review listed “Media” as the most disrupted by the growing digital economy. Turns out, if you’re a business-to-consumer business, you’re first being most disrupted by digital. The barriers to be a media company used to be huge, but in a digital world they are not, meaning that the business model that media companies depend on has not adapted well to the digital economy.

Elephant in the Room

But the elephant in the room remains the broken media business model. Newspapers, magazines, radio, and television – any media that is ad supported – will be challenged to find a way to capture revenue to continue operating.

Walt Disney famously said “We don’t make movies to make money, we make money to make movies.”

Broadcasters of my generation had that same attitude about creating great radio.

Do the people owning and operating today’s radio stations still embrace that concept?

* In 2021, it’s estimated there are 3.78 billion social media users worldwide.

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