Tag Archives: YouTube

Why I Stream ALL My Radio Listening

Twelve year ago, radio broadcast engineer Tom Ray, penned these words: “Unless we give Joe Consumer a reason to go out and purchase an HD Radio for his car – until he can obtain it easily and at a reasonable cost, and a device that works – I fear HD Radio is going to go the way of FM quad and AM stereo, relegated to the scrap pile of history.”

Tom Ray wrote his article for Radio World when he was the vice president/corporate director of engineering for Buckley Broadcasting/WOR Radio in New York City. He was a strong and vocal supporter of HD Radio and his WOR was one of the first AMs on the air with an HD Radio signal. So, any broadcaster that read Tom’s article, “HD Radio Shouldn’t Be This Hard,” should have taken it as a wake-up call about steps the radio industry needed to take to stay relevant in their listeners’ lives.

Buying a New Car in 2010

Tom is a loyal Ford customer, so when his Explorer went to the automobile graveyard with 230,000-miles on it, Tom wanted to get a new Ford Escape, equipped with HD Radio. The only problem was, Ford wasn’t putting HD Radios into their Escapes, instead, they were pushing Satellite Radio. (Tom noted that his wife listened only to Satellite Radio in her car, saying “in her opinion there is nothing worth listening to in New York’s Hudson Valley, 50 miles north of New York City.)

This should have been yet another radio industry wake-up call about its future.

I encourage you to click on the link and read what Tom Ray wrote a dozen years ago about how difficult it was to put an HD Radio into a new car which, at that time, didn’t offer OEM HD Radios and how he, as a broadcast engineer, was totally frustrated trying to install an aftermarket one.

Streaming Radio at Home

Since Christmas 2017, when my wife gave me my first Amazon Echo smart speaker, our Echo family has quickly grown to four of these devices. There is nowhere you can be in our home and not ask Alexa for something.

Since 2017, all of our in-home radio listening is via streaming.

While we also occasionally streamed radio in the car, on all of our road trips from 2018-2021, SiriusXM always seemed to be offering a 3-month free listening trial that I can honestly say we enjoyed the listening to. But, I’ve never been a subscriber, because other than road trips I spend very little time in the car.

Streaming Radio in the Car

In October, while enjoying my latest free 3-month trial for SiriusXM radio, I decided it was time to bring my in-house streaming radio habit into both of our cars. We own a 2006 Subaru Forester and a 2009 Honda Accord.

The Subaru doesn’t have an AUX input, the Honda does.

Streaming in the Subaru was accomplished with a Blue Tooth receiver that will broadcast on any FM frequency (88.1 works best). In the Honda, this same device’s output was plugged into an AUX receptacle.

The result is, as soon as either my wife or myself enters one of our cars, the Nulaxy KM18 immediately pairs with our iPhones. I installed the AINOPE Car Phone Holder Mount to hold our phones, and keep them easily assessible to control whatever we would like to listen to.

Total cost for each car: $33.43. Time to install, virtually nil. I just plugged the Nulaxy KM18 into a power port and it was operational. The AINIOPE holder easily clamps to an air vent on the dashboard and holds any smartphone.

Unlike the nightmare that Tom Ray experienced back in 2010 trying to put HD Radio into his car, this installation by me, a non-engineer, was a piece of cake.

A Call to Action

I recently sat in on a Radio World webinar called “A Call to Action, radio’s existential battle for the dash.” Paul McLane, Managing Director of Content/Editor in Chief of Radio World at Radio World/Future U.S., hosted the webinar and did an excellent job. However, one particular piece of information shared during the presentation that I thought was crucial was, how Mercedes Benz was equipping their vehicles’ radio screens with the following pre-sets: SiriusXM, FM, AM and TuneIn Radio.

TuneIn Radio is the App I use for most of my radio listening, but why was it chosen by Mercedes Benz? Turns out the answer is, “TuneIn’s radio stations can be accessed worldwide in 197 countries on more than 200 different platforms and devices.” TuneIn says it “provides the displaced radio listener a connection to home with local, national, and international stations anywhere they go and on any device.”

In other words, why would any audio consumer need DAB, DAB+, Digital Radio Mondiale, HD Radio, AM or FM when they can receive any radio station in crystal clear audio via streaming?

With the exception of the proprietary content offered by SiriusXM, everything else is available via streaming at no charge.

Cellular Plan

Now it goes without saying, that streaming consumes data. Each cellphone service provider offers different plans and different price rates. My wife and I are on Verizon’s unlimited phone/text/data plan. We have no landline phone in our home and our iPhones are our lifeline to being connected with each other, our family, our community and the world.

I’ve found streaming radio in our cars provides us with audio quality that is pristine. There’s no buffering or dropout, and it’s been a more reliable signal than AM, FM or SiriusXM radio, especially when traveling through tunnels.

Streaming Apps

I thought you might be interested in knowing what streaming Apps I have on my iPhone, here’s the current list:

  • TuneIn Pro
  • Audacy
  • Pandora
  • Spotify
  • Amazon Music
  • NPR ONE
  • YouTube
  • Simple Radio
  • StreamS
  • Apple Podcasts
  • AccuRadio
  • 650AM WSM
  • Stitcher

Why I Prefer Streaming My Radio

We live far enough away from Washington, D.C. that radio signals for WTOP or WETA experience lots of noise and dropout, depending atmospherics, sometimes making them totally unlistenable. However, their streams are always crystal clear.

This fall Sue and I escaped to Cape Cod for a week and when I get on the peninsula, I love turning on WFCC – Cape Cod’s Classical station – 107.5 FM. Now with streaming radio, I can dial up WFCC on my TuneIn radio App and listen when we’re back home in Virginia.

Full disclosure, I am the midday DJ on WMEX-FM in Rochester, NH. But even if I weren’t on the station, WMEX-FM would be my #1 pre-set for streaming. Gary James, the station’s morning man and program director, puts together a music mix that I find absolutely fabulous. It’s the music of my life.

Which brings me to another important point, radio today is global. No longer is your radio station competing just with other local stations, but radio that is streaming from anywhere on planet Earth.

Streaming also makes it possible for ON DEMAND spoken word radio, also known as Podcasts, to be easily available in the car.

Simington on Streaming

FCC commissioner Nathan Simington recently addressed Ohio broadcasters saying, “content delivery power had shifted away from broadcasters – stations and networks – and toward ‘online platforms,’ something he thinks the FCC needs to recognize in its quadrennial review of media ownership regs.”

He warned that:

  1. “Online media platforms are growing rapidly and threaten dominance over traditional media platforms; and
  2. Broadcast advertising revenue has flatlined, having been siphoned off from higher margin online platforms.”

The Future is Streaming

88% of the world’s population now uses mobile broadband as its main source of internet access, and nearly 90% of homes in the United States now have internet streaming. 2021 saw an estimated 22% ad industry growth rate, which Magna Global said was “the highest growth rate ever recorded” by this agency, beating a 12.5% growth rate recorded in the year 2000. The caveat however is, digital dominated traditional advertising raking in 64.4% of the growth in ad spending.

RAIN reports “The U.S. recorded music industry will exceed a 48-year revenue record set in 1999 (based on current estimates),” all coming from revenues paid by streaming music services.

The Harvard Business Review recently published “4 Principles to Guide Your Digital Transformation,” by Greg Satell, Andrea Kates and Todd McLees. In it, the authors wrote, “digital transformation is not just about technology. We’re desperately in need of a shift in focus. Leaders must inspire and empower their entire organization to boldly reimagine their work environment, customer needs, product offering, and even the purpose of the enterprise.”

Tom Ray was the proverbial “canary in the coal shaft” back in 2010, with few paying attention. Sadly, based on the early news coming out of the 2022 CES in Las Vegas, nothing has changed.

We’re living in a communications revolution,

bringing about changes that will be both

permanent and irreversible.

Revolutions never maintain or preserve the status quo.

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Oh, The Insanity

The National Association of Broadcasters (NAB) submission to the Federal Communications Commission for the FCC’s 2018 Quadrennial Regulatory Review is eye-opening.  You can read it for yourself HERE. It left me shaking my head.

The NAB told the commission that “’local radio stations’ Over-The-Air (OTA) ad revenues fell 44.9% in nominal terms ($17.6 billion to $9.7 billion) from 2005-2020.” Local 2020 digital advertising revenues by stations only increased the radio industry’s total ad revenues by $0.9 billion bringing them to $10.6 billion.

The NAB’s solution to the problem is for the radio industry to become more consolidated.

The definition of insanity is doing the same thing over and over

and expecting different results.

-Albert Einstein

Say What?

Back in the mid 90s, the radio industry was telling anyone who would listen that the problem with the state of radio broadcasting in America was that the industry was made up of little “ma and pa” radio stations/groups which could not scale and if the ownership caps weren’t lifted the radio industry would perish.

Excuse me, but I’ve already seen this movie and how it ends. So, why would doing more of what didn’t work, result in a different outcome.

The Media World Has Changed

I don’t think anyone would contest that the media world we live in has changed dramatically since 2005. Facebook, the world’s largest social media company with over 1.84 billion daily active users, opened its doors on February of 2004. YouTube began in 2005 and Twitter in 2006.

Google, the dominate search engine on the internet, began in 1998 and internet retailing behemoth, Amazon, began in 1994.

The new internet kids on the block that dominate our day are WhatsApp (2009), Pinterest (2009), Instagram (2010), Messenger (2011), SnapChat (2011) and TikTok (2016).

The Top 10 internet companies at the end of 2020 raked in 78.1% of the digital ad revenue ($109.2 billion).

All Ad Dollars Are Green

While we like to break money spent on advertising into distinct categories like digital media, traditional media etc. the reality is the total number of advertising dollars is a finite number and in the end you can’t tell a dollar from digital from a dollar from analog advertising.

“You can’t handle the truth!”

Colonel Jessup

(played by Jack Nicholson in the 1992 film “A Few Good Men”)

Since 2005, many young entrepreneurs have created a better mousetrap to capture those advertising dollars. No one ever made a regulation or a law that prevented the radio industry from doing what any of those internet companies did. The passenger railroad industry never thought of themselves as being in the transportation business but only the railroad business. That’s why it found itself challenged by other means of people transportation, namely the airlines.

The radio advertising industry was born by entrepreneurs that learned how to create a product that attracted a large listening audience, which in turn enabled them to sell audio advertising to companies wishing to expose their product or service to these consumers.

Unfortunately, we found ourselves challenged by new media competition. Initially, it was television, but transistor portable radios, along with car radios, allowed our business to reinvent its programming and flourish once again.

With the advent of the internet, radio was caught flat-footed.

If that were its only problem.

Radio Stations (2005-2020)

In 2005, America had 18,420 radio signals on the air.

  • 13,660 AM/FM/FM Educational radio stations on the air
  • 3,995 FM translators & boosters
  • 675 Low Power FM stations.

By 2020, those numbers increased to 26,001 radio signals.

  • 15,445 AM/FM/FM Educational radio stations
  • 8,420 FM translators & boosters
  • 2,136 Lower Power FM stations

18,330 vs. 26,001

That’s a 41.8% increase in the number of radio stations.

While radio folks were busy trying to steal radio advertising from the station across the street or consolidating with their former competition, the internet folks were focused on selling more advertising. From 2005 to 2020, the sale of digital advertising grew from $12.5 billion to $139.8 billion. That’s an increase of 118.4%.

But during that same time, radio grew its digital advertising footprint by $0.9 billion.

Quantity vs. Quality

When radio regulation began in America under the Federal Radio Commission (FRC) the decision was made by that regulatory body to focus on the quality of radio programming versus the quantity of radio stations they allowed to broadcast. Only people or companies with the economic capital to operate a radio station in the “public interest, convenience and/or necessity” would be allowed to obtain a radio broadcast license.

I believe you could say that the radio industry’s downfall began when we ceased worrying about quality and went with the more signals we license, the better for radio listeners mantra.

Sydney, Australia

Sydney is a major city in the country of Australia with a population of 5.312 million people. There are 74 radio stations on the air in Sydney.

By comparison, Los Angeles (America’s second largest city) has a population of 3.984 million people and 158 radio stations serving its metro.

In July 2021, radio revenues in Sydney were up 11.3% year-on-year according to Milton Data.

The Benefits of Pruning

Gardeners know that pruning is the act of trimming leaves, branches and other dead matter from plants. It’s by pruning a plant that you improve its overall health.

A beautiful garden is one where the plants have been trained to grow properly, to improve in their health/quality, and even in some cases to restrict their growth. Pruning is a great preventative gardening and lawn care process that protects the environment and increases curb-appeal.

The irony of gardening is, the more fruit and flowers a plant produces, the smaller the yield becomes. Pruning encourages the production of larger fruits and blooms.

Why do I share this with you?

I believe that everything in the world is interconnected. You can’t for a moment think that what makes for a bountiful garden would not also make for a robust radio industry.

Today’s radio industry is so overgrown with signals and other air pollution, that it has impacted its health.

Doing more of the same, and expecting a different result is insane.

It’s time to get out the pruning shears.

Less Is More

I believe that the way to improve the radio industry in America, to have more advertising revenues to support quality local services including news, sports and emergency journalism, along with entertainment by talented live performers, is by reducing the number of radio signals.

AM radio is the logical first place to start.

Elsewhere in the world we are seeing that not only the AM band being sunset but the analog FM band as well. The world has gone digital.

American radio has one final chance to get it right by correcting for past decisions, hurtful to radio broadcasting, in creating a new and robust digital broadcasting service.

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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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Could 2021 Be the Year SiriusXM Adds FREE Channels?

Back in July of 2016, I wrote an article wondering what might happen if AM/FM radio broadcasters woke up one day to the headline “SiriusXM is Now Free.” What made me think about this happening, was I had just read how Angie’s List had announced they were pulling down their paywall and making their service free and available to everyone.

Pay to Play

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 members that they  experienced when doing business with certain businesses or services. But now, everyone could have free access to those same rather substantial reviews, while enjoying the website’s strong, trusted and valuable content.

Why did Angie’s List Tear Down Their Paywall?

Angie’s List is a publicly traded company. Their stock had been down seventy-five percent from the previous three years and management was under pressure to get the stock going back up. By tearing down their paywall, they would increase page views. When page views go up, revenue goes up.

SiriusXM Under New Leadership in 2021

On January 1, 2021, Jennifer Witz takes over from James Meyer as CEO of SiriusXM. Meyer has been leading the satcaster since May of 2004. During his tenure, SiriusXM has grown to having its service playing in 132 million cars, but with only 34.4 million paid subscribers.

Its stock price all-time high was back in February of 2000, over twenty years ago, when it hit $66.50 a share. This past year the stock has traded between $4.11 and $7.40, for an average price of $6.05 a share.

Do you see an Angie’s List type of problem?

Walking a Tightwire

Incoming CEO Witz knows she will be walking a tightwire by making part of SiriusXM free to all radios capable of receiving the satcaster’s signal. The challenge will be to monetize those non-members through ad-supported free channels without cannibalizing paid memberships. SiriusXM grew revenues 7% in 2019 to a record $6.2 billion.

AM/FM radio revenues are projected to fall 17% in 2020, largely due to the COVID-19 Pandemic, but quickly rebounding in 2021 and growing in the years beyond.

Audio Advertising Works

With the dynamic growth of smart speakers, fueled in the United States by Amazon which controls 70% of the home smart speaker market, new interest of advertising goods and services via audio only has increased dramatically.

This should be a boon to AM/FM radio advertising, except for one caveat, the way people consume audio today is vastly different than even ten years ago with eMarketer saying there are 204 million digital audio listeners in the United States today. In fact, listening to digital audio makes up two-thirds of all digital media consumption, second to only digital video viewing based on time spent on this activity.

Moreover, digital audio advertising has been growing at a double digit rate.

Competition for Your Ear

The competition to be in your ear has never been greater. Spotify, Pandora, Amazon Music, Apple Music, YouTube, podcasts, and audio books are all looking to get a piece of your time and attention.

With this increased focus on digital audio by consumers, advertisers are following in lockstep.

SiriusXM

Which brings us back to where this article started, SiriusXM. The satcaster has long seen AM/FM radio as its main competition and that two-thirds of AM/FM radio’s revenue stream is due to dominance on car radios. It’s simply too tempting not to want to utilize the chip it’s paid to have installed in your vehicle’s dashboard and monetize it in a new way. Doing so would mean an increase in revenues for its shareholders and at the same time the ability to elevate the company’s stock price.

If Apple has taught the world anything, it is that you can’t be afraid to cannibalize yourself if you want to grow your company.  Also, you don’t always have to be first to the party, to come away a big winner. You simply need to provide a superior product.

SiriusXM also enjoys the advantage of knowing who’s listening to what. Here’s how the satcaster puts it:

Jul 6, 2020 — “TRACKING” YOUR ACTIVITIES ACROSS DEVICES AND APPS We receive Listener Usage Data automatically from Internet-enabled devices. If you have a Sirius XM account, we may match the Listener Usage Data we receive to the device or devices associated with your account and thereby with you or your household.”

It’s an obvious advantage over audience estimates provided by a third party ratings company when a digital audio service can tell an advertiser how many people actually were exposed to their advertisement.

For radio sellers in 2021, it’s like bringing a knife to a gun fight.

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Our New Normal

Normal?We are living in a surreal time. The birds are singing, the trees and flowers are blooming and yet, life is anything but what we used to call normal.

Huge changes are in the wind, in ways that we hadn’t predicted as 2019 was coming to an end.

If You Had More Time, You Would…

Funny how we fool ourselves about the reasons we haven’t gotten around to doing some tasks.

Example: A person on Facebook wrote, “After years of wanting to thoroughly clean my house, but lacking the time, this week I learned that wasn’t the reason.”

I’m sure similar thoughts are conjured up in your mind.

Normal Routines

I’m retired but I still had a daily routine. I got up every weekday with my wife, had breakfast, saw her off to work and then poured myself another cup of coffee while watching a morning television news program.

Then I’d start my day.

The media I used consisted of streaming TV and streaming audio. Over-the-air radio was something I played in the car when I went shopping for food or supplies.

Then COVID-19 invaded everyone’s normal life.

Disrupted Routines

With my wife now out of work, we didn’t have a need to rise with an alarm. Watching the morning news with that second cup of coffee was now a memory. Going out for the daily food and supplies is now something done much less frequently. Streaming movies on Netflix, Amazon Prime, Hoopla and YouTube now make up more of our day, as has Face-Timing with our kids and grandkids, as they too are all home now.

I can only imagine, how even more disrupted the lives of parents are, they now find themselves trying to work from home, plus home school their children.

New Normal

On average it takes a person over two months to form a new habit, 66-days to be exact. That’s the length of time, most of us, will be staying-at-home. What will we be like after that time?

Will we immediately make plans to dine out, go to shows, be in large crowds or will we cautiously proceed?

Will we maintain some of those new habits, never to fully return to the way things used to be?

Will we begin to maintain a basic stockpile of necessities, like toilet tissue, to be sure we never find ourselves looking at bare store shelves when we’ve run out?

Will we find that saving more money in our bank accounts is prudent for times when we may find ourselves out-of-work again?

Will the new media choices we’ve found during our time of forced hibernation become the ones we now depend on in our daily lives?

How Has Your Life Been Changed by COVID-19?

In the comments section of today’s blog, I hope you will share your COVID-19 stories about how your lives have been changed by this virus. How you are adapting and how you are surviving. Maybe there’s something you’re doing we might all enjoy doing as well.

We’re all in this together.

Stay safe, stay home.

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Choice Paralysis

57 channelsI sat in on Radio World’s presentation about “Digital Sunrise for AM Radio” hosted by editor-in-chief Paul McLane. The webcast lasted almost two hours and was technically informative.

The question Paul kept asking the presenters about going all digital on AM, was a question he hears numerous people asking him, “has the horse left the barn?” In other words, has the world moved on and does anyone really cares about AM radio anymore.

But that’s not the question that was running through my mind.

Too Many Choices

We live in a world with infinite choices when it comes to audio & video entertainment. Twenty-eight years ago, Bruce Springsteen released his song “57 Channels and Nothing’s On.” The lyrics are very telling of the condition we find ourselves in today.

I bought a bourgeois house in the Hollywood hills
With a truckload of hundred thousand dollar bills
Man came by to hook up my cable TV
We settled in for the night my baby and me
We switched ’round and ’round ’til half-past dawn
There was fifty-seven channels and nothin’ on
Well now home entertainment was my baby’s wish
So I hopped into town for a satellite dish
I tied it to the top of my Japanese car
I came home and I pointed it out into the stars
A message came back from the great beyond
There’s fifty-seven channels and nothin’ on
Well we might’a made some friends with some billionaires
We might’a got all nice and friendly if we’d made it upstairs
All I got was a note that said “bye-bye John
Our love is fifty-seven channels and nothin’ on”
So I bought a .44 magnum it was solid steel cast
And in the blessed name of Elvis well I just let it blast
‘Til my TV lay in pieces there at my feet
And they busted me for disturbing the almighty peace
Judge said “What you got in your defense son?”
“Fifty-seven channels and nothin’ on”
I can see by your eyes friend you’re just about gone
Fifty-seven channels and nothin’ on

It’s not unusual for people to spend an entire evening going through the program guide on Netflix only to finally retire for the evening having not watched a single program. We’ve all done that.

On just Netflix alone it was estimated in 2015 that it would take a person 34,739 hours to watch everything available on the streaming service. I’m sure that number has grown considerably when you consider in 2019 Netflix introduced 371 series and movies to view.

Add to Netflix more television streaming services like Amazon Prime, Hulu, Apple TV+, Disney+, YouTube and it means choice is not the TV viewer’s problem, it’s choice paralysis. (And maybe also how to pay for it all.)

ALL DIGITAL AM

The question running through my mind about investing in building out an all-digital AM radio service in America is, “why?” When I scan the AM band now, I can hear the same talk shows on station after station. The FM band is no different when it comes to everyone doing the same type of programming.

It has me humming Bruce Springsteen’s song in my head, only with a lot more channels of programming attached to the “nothing’s on” part.

Digital AM seems to be the answer to a question, that listeners aren’t asking.

Less is More

Many businesses fall into the trap of thinking that more products equal more sales and radio certainly can be accused of falling into that trap.

HD Radio was designed to offer a higher quality broadcast signal for AM and FM radio stations. FM station owners didn’t really get interested in HD Radio until they learned they could feed FM translators with HD2, HD3 signals and put more FM analog signals on-the-air in their market.

I learned that the all-digital AM service offers the opportunity for an HD2 signal that could feed another FM analog translator.

What Al and Laura Ries tell us from their research is how this strategy of adding more and more choice becomes a trap and can lead to negative consequences in the long term.

Just One Thing

In media sales, we try to have our clients identify what one thing makes them special and unique. What makes their business so different that consumers will want to come to them instead of their competitors. You may know this process as finding a business’s “unique selling proposition.”

One Good Reason

Back in the day, 66-WNBC put up a billboard that gave radio listeners one good reason to turn their radio dial to 660 AM. It simply said “If we weren’t so bad, we wouldn’t be so good.”

56

This one simple sentence captured the essence of both Don Imus and Howard Stern. It was this radio station’s one good reason to listen. It was this radio station’s one good reason to advertise on it.

And speaking of one, I was told by the WNBC Sales Manager that it only took one commercial on Howard Stern for an advertiser to see immediate sales results.

That’s the power of a unique brand.

Misplaced Priorities

Radio had a choice to make in the last decade, to either develop unique powerful brands localized to the marketplace the FCC licensed them to serve, or build out more signals with programming that was virtually hard to tell apart from one another. Unfortunately, the radio industry chose the latter and as a result has turned the business into a commodity.

Something for everyone equals nothing for nobody.

Economics defines a commodity as goods or services that have fungibility, or in other words something the marketplace treats as everything being nearly equivalent to each other, with little regard for who produces it.

This is why radio sales people will often hear advertisers says things like “all radio stations sound the same, now let’s talk about your spot price.”

Perception is reality.

Or should I say that the listener and advertiser’s perception is accurate with the reality today being all radio stations do sound the same.

Elections & Radio Listening

I read an article the other day that said what changes the outcome of any election is turnout. That the way someone wins an election is by getting people, who normally sit it out on the couch, engaged and out to the polls. It’s not getting people to switch party affiliations.

I think radio may have a similar problem.

For the radio industry to be growing again, what radio needs to be focused on, and investing in, are its people and programming, not putting more signals on the air with nothing to hear.

 

 

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Great Expectations

OR FMI read with great interest the five part series by Matt Bailey on “The Alexa Effect.” In the 5th and final installment Matt shared what he called the “radio weapon Spotify will never have.” What is it? The radio personality. He wrote:

 

  • “A radio personality can tell you the backstory of a breakthrough artist that makes you want to hear her work.”

  • “A radio personality can point out that crazy line in the second verse to stay tuned to hear.”

  • “A radio personality can engage you to smash or trash a song on the station’s social media.”

  • “A radio personality can give you the chance to be among the very first to hear a new song by a star artist.”

“A radio personality can add context that will make listeners excited to hear a song that otherwise would simply be weird and unfamiliar. It’s a deeply personal and emotionally engaging weapon no algorithm can match. When we stifle their voices and their role in introducing new music simply to avoid potential tune-out, we might win a few tenths of a point in the PPM battle, but we will lose the new music war to Spotify.”

Consolidation & Voice Tracking

I don’t disagree with Matt, but I lived through the ramifications of the Telcom Act of 1996 and the consolidation of radio stations, along with the rollout of voice tracking.

Clear Channel called it “Premium Choice,” and we were told it would replace our local personalities with big market talent.

I watched in market after market as radio personalities, who were like members of the radio listener’s family, were sent to the unemployment lines. Relationships that took years, even decades to establish, wiped out in an instant.

Early Media Expectations

I grew up at a time when the family television set received a signal from a couple of antennas on the roof. We had two channels, which meant we received two television networks, CBS and NBC. If you wanted to change the channel, you had to get off the couch and change it. There was no remote control.

Our radios had both the AM and FM bands, but I remember wondering why. I often scanned the entire FM band to hear nothing at all with only the AM band picking up radio signals.

My early media expectations were two TV channels and AM radio stations. The radio provided a lot more variety, plus I had a radio in my room and our family had a single TV located in the living room. I controlled my radio, my parents controlled the family TV.

Media Expectations Change

In time, I would come to expect television to be in color, to be connected to a cable and have a remote control to easily change the multitude of channels I could now receive, from the comfort of my couch.

Radio would expand to the FM band and a whole new type and style of radio was born. The one thing that connected AM and FM radio was the radio personality. Every station had them and the decision to listen to one station over another was because of the radio personality.

In fact, I wrote an article on the power of the radio personality back in 2015 entitled “We Never Called It Content.”

I wrote this article after reading about the latest round of “forced retirements” in the radio industry.

And if you thought this type of downsizing was only occurring in large radio metros, the movie “Corporate FM” told the story of how in the 80s, ninety percent of mass media in America was owned and controlled by about fifty different companies, but after the Telcom Act of 1996 it was down to just six corporations.

New Media Brings New Expectations

Let’s fast-forward to today. I cut the cord on cable TV two years ago and all of my television viewing is streamed. Netflix, Amazon Prime, Sling TV and YouTube provide me with more hours of television entertainment and information than I could ever have time to watch, and I’m retired.

Amazon Echo provides me with all of my audio entertainment and I do mix it up between stations via TuneIn and the pureplays like Pandora and Amazon Music.

I also read a lot and subscribe to several online newsletters that all link to the original source of the material.

Which leads me to this conclusion, my calendar age did not cement my media habits. They’ve been fluid all of my life.

My 21st Century Great Expectations

  • I expect NPR to open up my world to things I should be aware of, that I might not have been. I expect them to also provide me with more depth to the stories in the news. I expect them to have all of this posted online for almost immediate access. They don’t disappoint.
  • I expect my television viewing to be On Demand and commercial free.
  • I expect my music listening to match my mood and be there by simply asking Alexa to play my favorite channels when I want to hear them.
  • Finally, I expect I’m not alone in these “21st Century Great Expectations.”

Rewound Radio DJ Hall of Fame

On Saturdays, I enjoy asking Alexa to play Rewound Radio so I can hear another fabulous radio personality featured in the weekly “DJ Hall of Fame.” The other weekend they featured WOR-FM out of New York City and the air personality was Johnny Donovan. OR-FM air checks are all in stereo and the music mix has plenty of variety. It was a time when Music Radio 77 – WABC dominated the world’s airwaves on the AM band. But the one thing I notice in these weekly trips down memory lane is how integral the radio personality was in the total program. They were a constant companion. They really were radio’s “secret weapon” to attracting faithful listeners.

The question I ponder often is, was this period of radio history akin to the vaudeville period of theater. It filled the right hole at the right time but won’t ever be coming back again.

I welcome your thoughts.

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Don’t Let Radio End Up Like Yahoo!

49I just finished listening to Jason Jennings’ podcast about how Yahoo went from being a company worth $120 Billion to its sale to Verizon for $4.8 Billion. I think the wisdom that Jason shared is very applicable to the radio industry’s journey through consolidation since the Telcom Act of 1996.

Jason says the selling of Yahoo is like a train wreck; you don’t want to look, but you just can’t help yourself. I know many who’ve said similar things as Wall Street invaded radio with its goal of “increasing shareholder value.”

So how can radio learn from Yahoo’s mistakes? What are the lessons Jason shared that apply to radio? Let me share with you the Top 5 Lessons of Yahoo:

#1) Know What You’re All About

Yahoo never really defined itself and the revolving door of CEOs contributed to this with each one bringing a different vision – or no vision – to Yahoo. Or as Jason puts it, the company didn’t have a purpose; they never knew what they were all about.

As radio was deregulated and its original mission of serving the public interest, convenience and necessity was abandoned, nothing replaced radio’s reason for existing except for “increasing shareholder value.” Not surprising as radio people were replaced by Wall Street investors.

#2) Have a Set of Guiding Principles

Radio’s guiding principles were first established by the FRC (Federal Radio Commission) and then by the FCC (Federal Communications Commission). Under President Ronald Reagan – and his government is best that governs least approach – radio’s deregulation began. President Bill Clinton would open the flood gates of consolidation with his signing of the Telcom Act of 1996.

With no guiding principles, investors were free to move in all directions; and they did, buying up not just radio stations but many of its manufacturers and service providers for radio.

It’s like the old saying, if you don’t know where you want to go, any road will take you there.

#3) Using a Business like a Personal Piggy Bank

Radio investors and many top radio executives began using radio as a personal piggy bank, only taking care of themselves and focusing on the immediate quarter with no long term vision, strategy or investment. Too many just lined their pockets and left.

#4) Trying to Be All Things to All People

Jason says “great companies stick to their knitting. You can’t be all things to all people.”

Radio was originally about serving their community of license via over-the-air broadcasting. It delivered local news, local sports, local community events, local bands and more by local radio personalities who lived in the communities they served. It was focused like a laser beam on local, local, local.

#5) Don’t Copy the Competition

Radio today is trying to copy Pandora, Spotify, Apple Music and others. Radio today is trying to also copy YouTube, Facebook, Pinterest, Twitter and SnapChat. Radio is trying to copy just about every other business advertising model and without any guiding principles has been economically treading water.

Yahoo’s SVP Brad Garlinghouse wrote his infamous “Peanut Butter Memo” in October of 2006 that pleaded with the company to narrow its focus and clarify its vision.

Brad felt that Yahoo was spreading its resources too thinly. Business Insider recently wrote “This internal memo from 10-years ago shows Yahoo still hasn’t solved its biggest problem.”

If Yahoo had a culture problem, radio by way of mass consolidation had an even bigger one. First, as Wall Street money flowed in and radio stations were bought up, each of those stations represented its own culture that would need to merge into a larger culture. Then these new larger radio groups would try to change the culture from a local scope to a national scope. National radio personalities like Ryan Seacrest, Rush Limbaugh and many others would replace local personalities. National radio contests would replace local ones. Live and local for the most part would soon only appear in the history books on radio.

Culture is created at the top. Over the last twenty-years, radio’s consolidation has seen a revolving door of top leadership. The culture of radio has been a moving target for both industry professionals and listeners alike. Culture is built over time. There is no “quick fix” for building culture.

Absent a company culture, what fills the vacuum is one of everyone for themselves.

Now twenty-years later, there are signs of new growth as people who believe in live and local, and operating in the public interest, convenience and necessity are entering the business.

In many small markets, this way of operating never got sucked into the vortex of consolidation.

Even some of our country’s biggest radio companies are focused on getting back to the core principles radio was built upon.

Radio, the first broadcast transmission system to reach a mass audience, almost 100-years later is still the leading way to reach a mass audience.

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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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The Choices We Make

You are what you are; you are who you are, by the choices you have made. You can change what you are, you can change who you are by changing the choices you make going forward.

To make things simple, let’s break down the choices into large choices and small choices. Large choices would be things like changing careers, getting married or divorced, having kids, picking a college/course of study etc. Small choices are exercising or sitting on the couch watching TV, having that extra cookie or not, going to the football game or listening to it on the radio etc.

Both large and small choices impact our lives. The difference is immediate with large choices but the small choices, over time, can be just as impactful. We just don’t see the change all at once, so they give the appearance of not having any impact, but that’s what makes them so deceptive. The reality is both are as important.

So what does this have to do with radio and TV? Listening to the radio or watching a TV show is a choice we make. We do it often to feel good. Feeling good releases endorphins in the brain that stimulate the pleasure center. It can become an addiction.

Today’s entertainment consumer has lots of choices. They also want to feel good. So it’s only natural that they are going to seek out those entertainment choices that stimulate their brain’s pleasure center.

Netflix and YouTube are two video services that are doing a better job of providing this video pleasure than broadcast TV. YouTube and Pandora are two audio services that are doing this better than broadcast radio (in the opinion of their users). YouTube, as you can see is a double threat, as it is strong in two different media areas and is a real force to be reckoned with. New habits are being formed; new entertainment addictions.

Once upon a time, people jumped through lots of hoops to receive a radio or TV broadcast. Today, all of those choices are quickly and easily available on their smartphone or tablet. Mobile is the fastest growing segment of media in the world. Mobile advertising holds unlimited potential for those service providers that get chosen and make themselves a habit.

The consumer is making little choices each and every day. Broadcasters have ignored them because they seem small and insignificant. But I’m here to tell you that those little choices are just as impactful to your future as if they were of the large variety.

Broadcasters too, have a choice. Accept the new reality and embrace change or let the change happen to you.

Remember, death by a thousand cuts is still dead.

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