Ijustfinishedreadingthepublicradioresearchreport“AnAudienceGrowthStrategyforPublicMedia”preparedbyJacobsMediaandMarkRamseyMediaforMainePublicradioservice.Whatreallystoodouttomewashowclearlythisreportshowswherethefutureisforalltraditionallinearmedia.
LinearIsInTheRear-viewMirror
Broadcastradioandtelevision–traditionalmedia–wasbuiltonalinearprogramschedule,deliveringtothemediaconsumer,informationandentertainmentonascheduledeterminedbythebroadcaster.TheVCR(videocassetterecorder)developedin1956becamewidelyavailableinthelate70sandbytheearly2000swasinvirtuallyeveryAmericanhousehold,givingtelevisionconsumerstheabilitytonowwatchshowsontheirschedule,nottheprogramprovider’s.
“Itispainfullyobviousneitherbroadcastradionortelevisionisgrowing,especiallyasitconcernstraditional(terrestrial)usageandlinearprogramschedules,”writesJacobs/Ramsey.
Today’sMediaConsumer
Americacontinuestobecomemorediversified:72%ofBabyBoomersarewhitebutonlyabouthalfofMillennialsarewhiteandfour-in-tenofGenZsarewhite.
Millennialswerebornbetween1981and1994,soVCRshavealwaysbeenapartoftheirlifeandGenZswereborn1995and2009,whichmeansalsohavinganiPodtypedevicehasalwaysbeenpartoftheirlife.Bothofthesedevicescontributedtothehabitofhavingwhatyouwant,ON-DEMAND.
In2007,theiPhoneintroducedustoamediadevicethatmadeON-DEMANDmediaconsumptionubiquitous.
ListeningOptions
Today’snon-radiolistenershaveaplethoraofmediaoptions:
…justtonameafew.
Jacob/Ramseysays“Linearprogramschedulescommontoover-the-air[broadcast]stationsarenotinalignmentwithnewmediaconsumptionhabits.”Today’sconsumerisincontrol,notthemediaprovider.
ON-DEMANDDigital
Intoday’sworld,thefutureis“GoDigital,orGoHome.”
Today’straditionalbroadcasters(Radio&TV),musttakeadvantageofdigital’sabilitytoservetheiraudienceswithwhattheywant,whentheywantitandonthemediaplatformtheywantiton.Thesameattentiongiventoover-the-airbroadcastswillneedtobegiventoalltheotherwaysofcontentdistribution;aseachisofequalimportancetothemediaconsumer.
“Broadcastradioandtelevisionwillremainthecorebusinessforyearstocome,butafocusontraditionalmediacannolongerbeconsideredagrowthstrategy,”writesJacobs/Ramsey.
Peacock&Netflix
NBC’sPeacockstreamingservicepaid$100milliondollarstoexclusivelystreamthewild-cardplayoffgamebetweentheKansasCityChiefsandtheMiamiDolphins,settingarecordforthemost-streamedliveeventinAmericanhistory.ComcastChairman&CEOBrianRobertsconsideredthestreaminggambleasuccessandaveryproudmomentforthecompany,butforconsumersitwillmeanhavingtopayforplayoffgamesinthefuture.
ThisweekNetflixannouncedithadstrucka10-yeardealwithWWEtoair“MondayNightRaw”onitsstreamingservice.Thisprogramhasbeenonlineartelevisionsince1993;31-yearsago.
PeakListeningOnAudioPlatforms
Thispatweek,whenEdisonResearchpublishedtheirarticleonwhichmediaplatformcommandsthemostlisteningindifferentdayparts,itwaseye-opening.
Theonlydaypartthatbroadcastradiocommandsismorningdrive(6-10am),whichjusthappenstobetheonedaypartthebroadcastradioindustrystillinvestsinliveairpersonalities.Fortherestofthedayparts,consumersutilizestreamingaudioorpreviouslydownloadedcontenttotheirmediadevice.
Myfavoritetimetolistentoradiogrowingupwas7pmtomidnight.Someofthebestknownandlovedairpersonalitiesbroadcastduringthisdaypart;BigRonO’Brien,JohnRecordsLandecker,WolfmanJack,CousinBrucieamongothers.However,todaytheresearchshowsthatYouTubeiswhatpeoplelistentoatthistimeofday.
Justbeforetheendoflastyear,SiriusXMannouncedthedebutofitsnewstreamingApp.Itoffers“discoverabilityandpersonalizationattheforefront,[so]listenerscanquicklyandeasilyfindanddiveintothecontenttheyloveacrossSiriusXM’s400+channelsandtensofthousandsofhours[with]on-demandcontentandpodcasts,[allowing]fanstogodeeperintotheirpassionsandgetclosertotheirfavoritemusic,artists,personalitiesandsports;[providing]aseamlesslisteningexperienceacrossstreamingdevicesthatreflectslistenerpreferencesandinterests,[ensuring]subscribersnevermissamomentwherevertheyareandwhenevertheywanttolisten.”
Don’tyouwishtheNAB(NationalAssociationofBroadcasters)
wasworkingonsomethinglikethis,insteadoffocusingonlinearAMradio*
WhenIwas15yearsold,AMradiowasmyconstantcompanion.Myfirsttransistorradio,withasingleearphone,wastheZenithRoyal50(pictured).Itreceivedallthelocalradiostations(thereweretwo,WBEC–AM1420&WBRK–AM1340)andthebigTop40radiostationsfromAlbany-Schenectady-Troy(WPTR-AM1540&WTRY–AM980).
Whenthesunwentdown,thislittleradiowouldpickupWKBW–AM1520,WLS–AM890,WCFL–AM1000,CKLW–AM800,anddependingonatmospherics,lotsofotherAMradiosurprises.ListeningtoradiowhenIwasgrowingupwassoexcitingandeveryradiostationsoundeddistinctanddifferent.Theirairpersonalitiesallseemingtocompetetoout-dooneanotherincreativity.
My15YearOldGranddaughter
Sue&Ispentthispastweekendwithour15-yearoldgranddaughter.She’sengaging,smart,funand,likeme,agoodtalker.
Oneoftheplaceswedinedathadajukeboxwithasongselectorterminalineverybooth.Mygranddaughterbroughtwithherastackofquarterstoplayherfavoritesongs.
Whatmostamazedmewerethesongssheplayedandsangalongwith.Songslike,“BeMyBaby”bytheRonettes,“IWannaDanceWithSomebody”byWhitneyHoustonand“AmericanPie”byDonMcClean,tonamejustafew.
Herplaylistofsongs,matchedallthesongsIgrewupwithatherageandisbasicallytheplaylistofthesongsIplayonmyradioshowoverWMEX-FMeveryday.
So,Iaskedifshehadaradioinherroom.Shesaid“No.”
Istherearadioinherparent’shouseSherespondedwrinklinguphernoseandforehead,“Idon’tthinkso.”
Today’sRadio
NowIwassupercuriousastowhereshefoundthesesongs,andtheanswerwas“Spotify.”Yes,thatstreamingserviceisher“radiostation.”ShetoldmethatSpotifysuggestssongsshemightenjoyhearingbasedonsongsshealreadylikes.ThisexposeshertoevenmoreofthemusicofMYlife.(IfeellikeI’m15again!)
TheMusicofYOURLife
AlHamcreatedanewradioformatin1978,hecalledit“TheMusicofYOURLife.”In1979,theradiostationIearnedmyfirstGMstripesat,WUHN–AM1110,beganairingAlHam’sformatwithgreatsuccess.TonyBennett,whopassedawayonJuly21,2023,wasthesingingvoicethatdeliveredaverydistinctjingleimageforHam’sformat.
HereIwasthemanagerofaradiostationwho’sprogrammingwasdesignedtoreacha50+listeningaudienceandIwasonly27.TheinsidejokeofusyoungfolkwasonedayTheRollingStoneswouldbeplayingontheMusicofYOURLiferadiostations.
Well,nowI’m70yearsold,MickJaggeroftheRollingStonesjustturned80andwhiletheradiostationIvolunteeratcallsthemusicweplay“TheMostAmazingOldies”thatdayhasindeedarrived.
IsCommercialRadioMissingOut
WhenIspinthebroadcastradiodials,AMorFM,it’salmostimpossibletofindthismusicbeingplayed.However,whenyouhaveastreamingservicelikeSpotify,Pandora,Amazon,AppleorSiriusXM,youcanfinditwithease.
Infact,myrecentpurchaseofanewMacMinicomputercamewithasixmonthfreetrialofAppleMusic.Apple’sselllinetomewas“DiscoverRadioReimagined.”
PuttingQuartersintheJukeBox
Therearesomethingsthatseemlikelytoneverchange,gettingyourpictureinanewspaperormagazine,playingyourfavoritesongsonajukeboxorhearingyourfavoritesongsplayedontheradio.
99.1–JOYFMisacommercial-free,listener-supportedFMradiostationlicensedtoClayton,MissouriandservingtheGreaterSt.Louislisteningarea.It’saChristianContemporaryradioformattedradiostation.
Thecurrentstateofthebroadcastindustryis“somewhatchallenged.”
It’s“challengedontheaudiencesideandit’schallengedontherevenueside.”
-CarolineBeasley,CEOBeasleyMediaGroup
ThecommercialbroadcastradioindustryisalsolikeElonMusk,abandoningitsbrand;“Twitter”for“X.”It’sworthnotingthatMuskisalsofacingchallengesonboththeaudiencesideandrevenueside.
SpotifyRadio,PandoraRadio,AppleRadio,RadioTunesetc.areallpureplaystreamersthatembracethepowerfulimagethattheword“RADIO”conveys.
Havingateenagertellyoutheirfavoriteradiostationis“Spotify”
shouldsendachilldownyourspine.
IsAMradiodisappearingfromnewcarstheissuetheradioindustryshouldbefocusedon
Ithinknotandhere’swhyIsaythat.
WBZ1030AM
IgrewuplisteningtoWBZAMoutofBostononmydailycollegecommuteinWesternMassachusetts.CarlDeSuze,DaveMaynard,LarryJustice,MeanJoeGreenintheBZCopterwithBostontrafficreportsandGaryLaPierrewiththenews.Itwastruly“TheSpiritofNewEngland.”
So,whenSueandIwereheadedtoBostonforthegraduationofourson-in-lawfromBerkleeCollegeofMusic,IputonWBZasweleftourhotelinSpringValley,NewYork,andwelistenedtothisstationonourthreehourdriveintoBoston,wedidn’tlistentoiton1030AM,butviaitsstreamontheStreamSapplication(App).Thestation,whichisnowanall-newsoperation,soundedfabulous.
ThefidelitywasofhigherqualitythanFMandtherewasnobufferingordropoutofthesignal.
OnceinBoston,ItriedlisteningtoWBZovermycar’sAMradioandthequalitywaspoor,withnoiseandinterferenceemanatingfromoursurroundings.
WhatDoesaRadioLookLike
BackinJuneof2017,Iwroteablogarticleaskingwhataradiolooksliketodayandthemostlikelyanswertothatquestionwasasmartphone.Ialsoaddressedinthatarticleofsixyearsago,IwasnoticingthathotelswerereplacingthosecheapAM/FMradioswithchargingstationscontainingadigitalclock,perfectforchargingsmartphones,tabletsandlaptops.
CarRadios&TheFuture
TheninSeptemberof2020,IwroteabouthowradiosfirstcametobeanoptionforbuyersofnewcarsinJuneof1930.Buttoday’snewcarbuyerwantsBluetoothcapabilitiesmorethantheywantanFMradio;AMradioisnotamust-havein2023accordingtothelatestJacob’sMediaTechsurvey.WhatdopeopleconnectinthecarwiththatBluetooth,theirsmartphones.
WhatIRecentlyWitnessedAboutRadioUse
AfterCOVIDbegantofade,SueandItookatripouttothewestcoasttovisitourchildrenandgrandchildreninthatpartofthecountry.WhatwenoticedineveryhotelroomwestayedwasagiantflatscreenTV,butnoradios,justmoreofthosechargingstationswithdigitalclocks.
Thispromptedanotherarticlethatsameyeartitled,“IsRadioUpSchitt’sCreek”SueandIbecamebigfansofthisseriesoutofCanada,thattakesplaceinafictionaltowncalled“Schitt’sCreek,”andtakesplaceprimarilyinTheRosebudMotel,wheretheshowscharactersusetelevisions,computersandsmartphones,butneverusearadio.
WhenwatchingmoviesandTVshows,Ioftenlooktoseeifthere’saradioinsight,noticinginBritishproductionstheyoftenare,butnotinAmericanones.
OnceItWasRadio
WhenSueandIstayedinBethlehem,PennsylvaniawevisitedthemuseuminsidetheHotelBethlehemandfoundthatfiftyyearsago,ahotelhavingaradioinyourroomwascuttingedge.
TheHotelBethlehemopenedin1922,twoyearsafterthebirthofcommercialradiointheUnitedStatesandin1953,itannouncedthatpatronswouldenjoyabrandnewAMalarmclockradioineveryroom.
Nowseventyyearslater,HotelBethlehemfeaturesfiberopticWiFi.
WhereAretheRadios
Lastyear,SueandItookaroadtripthroughAtlanticCanada.WestayedinhotelsandBed&Breakfasts(B&Bs)throughoutourtrip,andfoundWiFihastotallyreplacedtheAM/FMclockradios.
InMontreal,ourroomattheHtelWilliamGray,hadaBang&Olufsen(B&O)BluetoothspeakerthateasilyconnectedtomyiPhone.ThefidelityofB&OequipmentislegendaryanditwasajoytobeabletoconnectanyofaudioAppsonmyphoneduringourstay.
RadioSetOwnershipintheHome
InAmericanhomestoday,39%don’thaveasingleradiosetinthem,andradiosetownershipgetsworseforyoungAmericansage12to34,wherethatnumbergrowsto57%accordingtoEdisonResearch.
Toputthisintoperspective,theFederalCommunicationsCommission(FCC),saysonly6%ofthepopulationstilllacksaccesstofixedbroadbandserviceatthresholdspeeds.Meaning,theinternetismoreaccessiblethanbroadcastradio.
AreBroadcastersinDenial
ValerieGeller,whowrotetheexcellentbook“BeyondPowerfulRadio,”recentlysaid
“Youcansitdownwithabroadcasterwhorailsagainstpodcastinganddigitalaudioandartificialintelligence(AI).Thenyougetinthecarwiththem,they’reusingGPS,they’relisteningtoapodcast,they’vegotSiriusXM,they’vegotSpotify.Podcastingandradioco-existnow.That’sourtruth.
Radioisitsownworstenemy.Wehavenotspentorinvestedindevelopingtalent.Everyotherbusinesshasresearchanddevelopment(R&D)andtheyspendonitbecausetheyareinvestinginthefuture.Iloveradio,butIhatethestateit’sin.
Alotofthevoice-trackingI’veheardalreadysoundslikeAI.There’snothinghumanaboutit.It’sjustabroadcasterplayinganactorplayingabroadcaster.AIisjustasgoodasthosevoice-tracksbecausethere’snothingrealbeingsaid.”
AMRadioLeavingtheDashboard
AutomobilemanufacturersremovingAMradiofromthedashboardoughttobealertingtheradioindustrytoBIGGERPROBLEMS.TheAMsituationisasymptomofwhatweshouldbefocusedon,andthat’screatingGREATRADIO.
Ifyouthinkitwon’thappentoFMnext,youhaven’tbeenpayingattention.
AM/FMradiosetsarevanishingfromhotels,B&Bs,Americanhomesandbigboxretailers.
Ifyourlistenersaren’tupinarmsaboutthat,thenlosingAMradiointheirdashboardwon’tbeabigdealtothemeither.
ToparaphrasethegreatsalestrainerDonBeverage:
Makeyourradiostationsovaluabletoalistener,
thattheywanttohearyourprogrammingmore
thanyouwanttobroadcastittothem.
Backinthe60s,itwasn’tunusualforaradiostationtohaveanoperatingprofitmargingreaterthan50%.(Operatingprofitmargincanbedefinedasthepercentageofrevenuethatacompanyretainsasincomeafterthedeductionofexpenses.)
WhenItookoveramajorradiopropertyinAtlanticCity,NewJerseyinthe80s,ouroperatingprofitmargintargetsweregreaterthan30%.
Beingintheradiobusinessatthattimewasoftencalled“havingalicensetoprintmoney.”
Thatwasthen,what’sitlikenow
RadioProfitMargins2022
Asweendedlastyear,thetradeswerecarryingreportsofoperatingprofitmarginslike8.73%(RadioOne),0.8%(BeasleyBroadcastGroup)anditmademewonderaboutthefutureoftheradioindustry.
Townsquare
ThisweektheCEOofTownsquarewassayingthattheywere“nolongerabroadcastradiocompany,”becauseTownsquarewasnowderivingmorethan50%ofitstotalrevenueandprofitsfromdigital.
Infact,digitaldeliveredaprofitmarginof30%.
Borrell
InaFebruarywebinarwiththeRadioAdvertisingBureau(RAB),GordonBorrelltoldradiostationstheyshouldconsiderhiringdigital-onlysalesrepresentatives.Gordonpresentedresearchshowingwhereadvertiserswereincreasingtheirspending,anditwasheavilyinthedigitalrealm.
EdisonResearch
Thismonth,LarryRosinofEdisonResearch,showedtheirresearchfrom“TheInfiniteDial2023”reportshowingthat75millionofAmerica’s214millionage12+populationwerenowlisteningtotheiraudiocontentonlineeachmonth.
ThebigwinnersinthisdigitalonlinestreamingmusicmarketplaceareSpotify,YouTubeMusic,Pandora,AppleMusic,AmazonMusicandiHeartRadio.
WhileAM/FMradiostillwinsinthecar,itsaudienceisshrinkingduetopeoplelisteningtotheirowndigitalmusiclibraries,orlisteningtopodcasts,orlisteningtodigitalonlineaudio;muchofitmadepossiblebyconnectingtheirsmartphonetotheircar’sdashboardentertainmentcenter.
Comscore
Intheirannual“YearinReview”webinar,ComscoresaysthatinAmericatherearenow239milliondigitalusersovertheageof18.That’s91%ofthetotalpopulation,upfrom88%threeyearsago.
Whilewe’vecometothinkof“digital”asthefuturefortechnologyandinnovation,therealityisit’salreadymatured,andassuch,isnowinaperiodof“consolidation,rent-seekingandregulatorycapture,”saysdigitalresearcherGregSatell.
TheMonetizationChallenge
Twenty-fiveyearsago,EdisonResearchrecognizedhowtheAM/FMradiodialwouldbechangedbyinternetstreaming,whenitbeganitsresearchreportcalled“TheInfiniteDial.”Buttothinkoftheworldonlyintermsofradiooraudiomissesthebigpicture;forwhilethefutureofmediaandentertainmentisdigitalstreaming,thechallengeofmakingmoneyinthisinfinitecontentmediaworldhasbecomeincreasinglydifficult.
AnklerMediaCEOJaniceMinputitthiswayforAxios:
Certainly,thequalityofradiocontenthasgonedownwithalltheReductionsInForce(RIFs),asfewerpeoplenowhavetoproducemorecontentformultipleradiostations;plus,podcasts,blogsandsocialmedia.
BobIgerisbackasDisney’sCEOandfocusedhowtomakethemouse’sstreamingbusinessprofitable;he’snotalone,aseverymediacompanyisinthesamesituation.
Noonehasacrystalball,butonethingisclear,
Twelveyearago,radiobroadcastengineerTomRay,pennedthesewords:“UnlesswegiveJoeConsumerareasontogooutandpurchaseanHDRadioforhiscar–untilhecanobtainiteasilyandatareasonablecost,andadevicethatworks–IfearHDRadioisgoingtogothewayofFMquadandAMstereo,relegatedtothescrappileofhistory.”
BuyingaNewCarin2010
TomisaloyalFordcustomer,sowhenhisExplorerwenttotheautomobilegraveyardwith230,000-milesonit,TomwantedtogetanewFordEscape,equippedwithHDRadio.Theonlyproblemwas,Fordwasn’tputtingHDRadiosintotheirEscapes,instead,theywerepushingSatelliteRadio.(TomnotedthathiswifelistenedonlytoSatelliteRadioinhercar,saying“inheropinionthereisnothingworthlisteningtoinNewYork’sHudsonValley,50milesnorthofNewYorkCity.)
Thisshouldhavebeenyetanotherradioindustrywake-upcallaboutitsfuture.
IencourageyoutoclickonthelinkandreadwhatTomRaywroteadozenyearsagoabouthowdifficultitwastoputanHDRadiointoanewcarwhich,atthattime,didn’tofferOEMHDRadiosandhowhe,asabroadcastengineer,wastotallyfrustratedtryingtoinstallanaftermarketone.
StreamingRadioatHome
SinceChristmas2017,whenmywifegavememyfirstAmazonEchosmartspeaker,ourEchofamilyhasquicklygrowntofourofthesedevices.ThereisnowhereyoucanbeinourhomeandnotaskAlexaforsomething.
Since2017,allofourin-homeradiolisteningisviastreaming.
Whilewealsooccasionallystreamedradiointhecar,onallofourroadtripsfrom2018-2021,SiriusXMalwaysseemedtobeofferinga3-monthfreelisteningtrialthatIcanhonestlysayweenjoyedthelisteningto.But,I’veneverbeenasubscriber,becauseotherthanroadtripsIspendverylittletimeinthecar.
StreamingRadiointheCar
InOctober,whileenjoyingmylatestfree3-monthtrialforSiriusXMradio,Idecideditwastimetobringmyin-housestreamingradiohabitintobothofourcars.Weowna2006SubaruForesteranda2009HondaAccord.
TheSubarudoesn’thaveanAUXinput,theHondadoes.
StreamingintheSubaruwasaccomplishedwithaBlueToothreceiverthatwillbroadcastonanyFMfrequency(88.1worksbest).IntheHonda,thissamedevice’soutputwaspluggedintoanAUXreceptacle.
Totalcostforeachcar:$33.43.Timetoinstall,virtuallynil.IjustpluggedtheNulaxyKM18intoapowerportanditwasoperational.TheAINIOPEholdereasilyclampstoanairventonthedashboardandholdsanysmartphone.
UnlikethenightmarethatTomRayexperiencedbackin2010tryingtoputHDRadiointohiscar,thisinstallationbyme,anon-engineer,wasapieceofcake.
ACalltoAction
TuneInRadioistheAppIuseformostofmyradiolistening,butwhywasitchosenbyMercedesBenzTurnsouttheansweris,“TuneIn’sradiostationscanbeaccessedworldwidein197countriesonmorethan200differentplatformsanddevices.”TuneInsaysit“providesthedisplacedradiolisteneraconnectiontohomewithlocal,national,andinternationalstationsanywheretheygoandonanydevice.”
Inotherwords,whywouldanyaudioconsumerneedDAB,DAB+,DigitalRadioMondiale,HDRadio,AMorFMwhentheycanreceiveanyradiostationincrystalclearaudioviastreaming
WiththeexceptionoftheproprietarycontentofferedbySiriusXM,everythingelseisavailableviastreamingatnocharge.
CellularPlan
Nowitgoeswithoutsaying,thatstreamingconsumesdata.Eachcellphoneserviceprovideroffersdifferentplansanddifferentpricerates.MywifeandIareonVerizon’sunlimitedphone/text/dataplan.WehavenolandlinephoneinourhomeandouriPhonesareourlifelinetobeingconnectedwitheachother,ourfamily,ourcommunityandtheworld.
I’vefoundstreamingradioinourcarsprovidesuswithaudioqualitythatispristine.There’snobufferingordropout,andit’sbeenamorereliablesignalthanAM,FMorSiriusXMradio,especiallywhentravelingthroughtunnels.
StreamingApps
IthoughtyoumightbeinterestedinknowingwhatstreamingAppsIhaveonmyiPhone,here’sthecurrentlist:
WhyIPreferStreamingMyRadio
WelivefarenoughawayfromWashington,D.C.thatradiosignalsforWTOPorWETAexperiencelotsofnoiseanddropout,dependingatmospherics,sometimesmakingthemtotallyunlistenable.However,theirstreamsarealwayscrystalclear.
Whichbringsmetoanotherimportantpoint,radiotodayisglobal.Nolongerisyourradiostationcompetingjustwithotherlocalstations,butradiothatisstreamingfromanywhereonplanetEarth.
StreamingalsomakesitpossibleforONDEMANDspokenwordradio,alsoknownasPodcasts,tobeeasilyavailableinthecar.
SimingtononStreaming
FCCcommissionerNathanSimingtonrecentlyaddressedOhiobroadcasterssaying,“contentdeliverypowerhadshiftedawayfrombroadcasters–stationsandnetworks–andtoward‘onlineplatforms,’somethinghethinkstheFCCneedstorecognizeinitsquadrennialreviewofmediaownershipregs.”
Hewarnedthat:
TheFutureisStreaming
TomRaywastheproverbial“canaryinthecoalshaft”backin2010,withfewpayingattention.Sadly,basedontheearlynewscomingoutofthe2022CESinLasVegas,nothinghaschanged.
We’relivinginacommunicationsrevolution,
bringingaboutchangesthatwillbeboth
permanentandirreversible.
Revolutionsnevermaintainorpreservethestatusquo.
Let’sfaceit,somethingsinlifearewhattheyare.Giraffe’shavelongnecksandelephantshavebigears,bigfeetandtrunks.Justaspickuptrucksweredesignedforadifferentpurposethanspeedboats.So,whydowethinkthatradiocansomehowdefythenaturalorderandbecomesomethingthatitwasneverdesignedtobe
WorkonYourStrengths,NotYourWeaknesses
OneofthelessonsIlearnedinclassesatClearChannelUniversity*washowpeopleoftenfocusontheirweaknessesandtrytoimprovethem.However,studieshaveshownthatwhenwefocusonourstrengths,wegrowfasterthanwhenwetrytoimproveourweaknesses.Addedbenefitstofocusingonourstrengthsarethatwebecomehappier,lessstressedandmoreconfident.
Thecureforconstantlyfallingshortofyourgoalsistoworkonimprovingwhereyou’realreadystrong,ratherthanonareaswhereyouareweak.
WhyDoesn’tRadioFocusonItsStrengths
EntercomchangeditsnametoAudacy,saying:
“Wehavetransformedintoafundamentallydifferentanddramaticallyenhancedorganizationandsoitistimetoembraceanewnameandbrandidentitywhichbetterreflectswhowehavebecomeandourvisionforthefuture.Audacycapturesourdynamiccreativity,outstandingcontentandinnovativespiritasweaspiretobuildthecountry’sbestaudiocontentandentertainmentplatform.”
AudacyisthefourthlargestradiocompanyinAmerica(basedonthenumberofradiostationsowned)andjustlikethetopthreeradiooperatorsaheadofthem,noneusetheword“radio”intheirname.
Itwasin2010,thatNationalPublicRadioannouncedthatitwouldbeusing“NPR”asitsbrandname,eventhoughitslegalnameremainsthesame.NPRcelebratedits50thbirthdayin2020,thesameyearthatAmericancommercialradioturned100.
Whatisitaboutthename“radio”thathasradiostationownersandoperatorsdistancingthemselvesfromthisword
FindingYourStrengths
Radio’sAnalogAudience
LeeAbramspostedashortYouTubevideobackinAugust2020thatyoumighthavemissedexplaininghis“PSYCHOGRAPHICCHART.”Ifyou’reinradio,youshouldwatchitnow.
Leemakesclearthatyoucan’tsatisfymorethanonequadrant.Pickoneandsuperservethosepeopletothepointofmakingwhatyoudoappallingtopeopleintheotherthreequadrants.
Thebottomlineisthatyoucan’tbeallthingstoallpeople,butyoucanbeeverythingtosomepeople.ThisisreallyMarketing101.
ButtheFutureisDigital
Yes,thefutureofmediaisdigitalanditcan’tbeignored.Butyoucan’tmakeradiointosomethingit’snotandneverwillbe.It’sapowerfulone-to-manymediaentity;leveragethat.
TheAustralianRadioNetwork’sNeuroLabisdoingsomeinterestingresearchintohowalistener’sbrainrespondstoaudio,whetherit’scomingfromtheradio,apodcastorstreamed.
AllAudioisNotCreatedEqual(intheBrain)
Dr.ShannonBosshard,theneurosciencespecialistwhoconductedthisgroundbreakingresearchsaid,“Thisisthefirsttimethatanyonehasdemonstrated,fromtheperspectiveofthebrain,thatradio,podcastingandmusicstreamingareprocesseddifferentlyandshouldbetreateddifferently,inthesamemannerthataudioandaudio-visualmediumshavebeen.”
RadioFinancedTV
Itwastheincrediblerevenuestreamsproducedbybroadcastradiothatwereusedtobuildoutthemediumofcommercialtelevision.TValsostoleradio’sstarsandprograms,leavingtheradioindustrytoreinventitselfandcompetewithtelevisionforadvertising.
Today,radioisonceagainfindingitselfthe“moneymule”chargedwithfundingthebuildoutofdigitalinitiatives,havingtosacrificetheverythingthatmakesradiouniqueintheprocess;itspersonalities.Andthen,justlikewithTV,radiohastocompetewithdigitalforadvertising.
Butthisshouldn’tcomeasasurprise.Forgenerations,theradiopersonalityhasbeentheprimaryattractiondrawingaudiencestooneradiostationoveranother.Athispeak,DanIngramonWABCinNewYorkwassaidtobemorepopulartothestation’slistenersthanTheBeatles.
GreatRadio
Intheend,greatradioisn’tanyoneelement,it’sallofthem–personalities,jingles,promotions,stationimaging,communityinvolvementandcompanionship–thatmakesaradiostationpartofalistener’sfamily.Peoplehavefavoritemovies,butnotafavoritemovietheater;theyhavefavoritetelevisionprograms,butnotafavoritetelevisionstation;however,peopleDOHAVEfavoriteradiostations.
Bydefinition,radiois,a:thewirelesstransmissionandreceptionofelectricimpulsesorsignalsbymeansofelectromagneticwaves.b:theuseofthesewavesforthewirelesstransmissionofelectricimpulsesintowhichsoundisconverted,accordingtoMerriam-Webster’sdictionary.
Yourcellphonesendssignalsto(andreceivesthemfrom)nearbycelltowers(basestations)usingRadioFrequency(RF)waves.ThisisaformofenergyintheelectromagneticspectrumthatfallsbetweenFMradiowavesandmicrowaves.
MyFirstFCCLicense
WhenIstudiedforandpassedtheFederalCommunicationsCommission(FCC)testtoobtainmy3rdClassRadio-TelephoneLicense,Iinitiallywonderedwhyitsaid“telephone”onit.
Telephonesin1968wereallwireddevices,likeinmyparent’shouseinwhichourfamilyphonewasconnectedbyacopperwireandboltedtothekitchenwall.
WhenIbegantostudythehistoryofradio,Ilearnedthatanearlyexperimenterinradiobroadcasting,KentuckymelonfarmerNathanStubblefield,wantedtobeabletotalktohiswifewhilehewasdrivinghisautomobilewhileawayfromtheirfarmhouse.Inthoseearlydays,noonehadacluewhatthisnewtechnologywouldbecome.
Radio’sMetamorphosis
GordonaskedEricaifshemeantpodcastingandstreamingaudiolikeSpotifyandPandora,towhichshesaid“Yes.”Whenmightthishappen,Gordonasked,towhichsheresponded,“maybetoday.”
Farberexplainedhowshefeelsradioisaheadofthecurveinnotjustdeliveringcontent,butindeliveringservicestoo.Radioisnolongerjustaboutsellingthirtyandsixtysecondspotsbutit’saverydifferentbusinessnow,withradio’scoreproducttodaybeing“deliveringresults.”
AudioAdvertisingBureau
MighttheRadioAdvertisingBureauchangeitsnametobecometheAudioAdvertisingBureau
Ihopenot.Here’swhyIsaythat.
RadiosuffersfromtraditionalbroadcasterthinkingthatitneedsanFCClicense,radiotower,antennaandtransmitterwhichsendsasignaloutovertheAMorFMradiobands.Butifyouaskayoungperson,whatisradio,theywilltellyouabouttheirfavoritestreamorpodcastwhichtheylistentothroughtheirsmartphone.
Radioisnotadatedidentifier,it’sverymuchinvogueinthe21stCentury,butwhatimaginecomestomindwhenonesaystheword“RADIO”willdifferdependinguponaperson’sage.
AppleMusicRadio
Beats1,hasbeenApple’sflagshipglobalradiostationsinceitslaunchin2015.Fiveyearslater,it’sbeenrenamedAppleMusic1.OliverSchusser,vicepresidentofAppleMusic,BeatsandInternationalContent,explained
“AppleMusicRadioprovidesanunparalleledglobalplatformforartistsacrossallgenrestotalkabout,create,andsharemusicwiththeirfans,andthisisjustthebeginning.Wewillcontinuetoinvestinliveradioandcreateopportunitiesforlistenersaroundtheworldtoconnectwiththemusictheylove.”Beats
NowisNOTthetimeforAM/FMRadiobroadcasterstoabandonthesonicbrandknownas“RADIO.”
AdaptorDie
WhenpeoplestartedstreamingovertheInternetandcallingit“radio,”traditionalbroadcasterslookeddowntheirnosesinmuchthesamewaythatprintjournalistslookeddowntheirnosesatthenewmediaplatformslikeBuzzfeedandViceMediainvadingtheirworld.
Traditionalmediasurvivorswilllearntoacceptandembracethenewplatformsthatdisrupttheworldasweknewitandarecreatingtheworldthatwillbe.
Aninabilitytoadapttonewplatformsiswhatcausesbothpeopleandindustriestofail.
AM,FM,internetstreaming,smartphones,connectedcarsareallplatforms.Radio,newspapers,magazinesandthelike,areallmediaproducts.Understandingthisdichotomyiscritical.
Andso,thechallengeforradioisnotchangingitsname,butadaptingitsproducttotoday’splatforms.
BackinJulyof2016,IwroteanarticlewonderingwhatmighthappenifAM/FMradiobroadcasterswokeuponedaytotheheadline“SiriusXMisNowFree.”Whatmademethinkaboutthishappening,wasIhadjustreadhowAngie’sListhadannouncedtheywerepullingdowntheirpaywallandmakingtheirservicefreeandavailabletoeveryone.
PaytoPlay
Callitasubscription,amembershipfeeorapaywall,whathappenswhentheyareeliminatedInAngie’sList’scase,lessthanonepercentofAmericansweremembersatthe$40/monthfeethathadbeeninplace.Payingthatfeeletpeopleseethereviewsofmembersthattheyexperiencedwhendoingbusinesswithcertainbusinessesorservices.Butnow,everyonecouldhavefreeaccesstothosesamerathersubstantialreviews,whileenjoyingthewebsite’sstrong,trustedandvaluablecontent.
WhydidAngie’sListTearDownTheirPaywall
Angie’sListisapubliclytradedcompany.Theirstockhadbeendownseventy-fivepercentfromthepreviousthreeyearsandmanagementwasunderpressuretogetthestockgoingbackup.Bytearingdowntheirpaywall,theywouldincreasepageviews.Whenpageviewsgoup,revenuegoesup.
SiriusXMUnderNewLeadershipin2021
OnJanuary1,2021,JenniferWitztakesoverfromJamesMeyerasCEOofSiriusXM.MeyerhasbeenleadingthesatcastersinceMayof2004.Duringhistenure,SiriusXMhasgrowntohavingitsserviceplayingin132millioncars,butwithonly34.4millionpaidsubscribers.
Itsstockpriceall-timehighwasbackinFebruaryof2000,overtwentyyearsago,whenithit$66.50ashare.Thispastyearthestockhastradedbetween$4.11and$7.40,foranaveragepriceof$6.05ashare.
DoyouseeanAngie’sListtypeofproblem
WalkingaTightwire
IncomingCEOWitzknowsshewillbewalkingatightwirebymakingpartofSiriusXMfreetoallradioscapableofreceivingthesatcaster’ssignal.Thechallengewillbetomonetizethosenon-membersthroughad-supportedfreechannelswithoutcannibalizingpaidmemberships.SiriusXMgrewrevenues7%in2019toarecord$6.2billion.
AM/FMradiorevenuesareprojectedtofall17%in2020,largelyduetotheCOVID-19Pandemic,butquicklyreboundingin2021andgrowingintheyearsbeyond.
AudioAdvertisingWorks
Withthedynamicgrowthofsmartspeakers,fueledintheUnitedStatesbyAmazonwhichcontrols70%ofthehomesmartspeakermarket,newinterestofadvertisinggoodsandservicesviaaudioonlyhasincreaseddramatically.
ThisshouldbeaboontoAM/FMradioadvertising,exceptforonecaveat,thewaypeopleconsumeaudiotodayisvastlydifferentthaneventenyearsagowitheMarketersayingthereare204milliondigitalaudiolistenersintheUnitedStatestoday.Infact,listeningtodigitalaudiomakesuptwo-thirdsofalldigitalmediaconsumption,secondtoonlydigitalvideoviewingbasedontimespentonthisactivity.
Moreover,digitalaudioadvertisinghasbeengrowingatadoubledigitrate.
CompetitionforYourEar
Thecompetitiontobeinyourearhasneverbeengreater.Spotify,Pandora,AmazonMusic,AppleMusic,YouTube,podcasts,andaudiobooksarealllookingtogetapieceofyourtimeandattention.
Withthisincreasedfocusondigitalaudiobyconsumers,advertisersarefollowinginlockstep.
SiriusXM
Whichbringsusbacktowherethisarticlestarted,SiriusXM.ThesatcasterhaslongseenAM/FMradioasitsmaincompetitionandthattwo-thirdsofAM/FMradio’srevenuestreamisduetodominanceoncarradios.It’ssimplytootemptingnottowanttoutilizethechipit’spaidtohaveinstalledinyourvehicle’sdashboardandmonetizeitinanewway.Doingsowouldmeananincreaseinrevenuesforitsshareholdersandatthesametimetheabilitytoelevatethecompany’sstockprice.
IfApplehastaughttheworldanything,itisthatyoucan’tbeafraidtocannibalizeyourselfifyouwanttogrowyourcompany.Also,youdon’talwayshavetobefirsttotheparty,tocomeawayabigwinner.Yousimplyneedtoprovideasuperiorproduct.
SiriusXMalsoenjoystheadvantageofknowingwho’slisteningtowhat.Here’showthesatcasterputsit:
Jul6,2020—“TRACKING”YOURACTIVITIESACROSSDEVICESANDAPPSWereceiveListenerUsageDataautomaticallyfromInternet-enableddevices.IfyouhaveaSiriusXMaccount,wemaymatchtheListenerUsageDatawereceivetothedeviceordevicesassociatedwithyouraccountandtherebywithyouoryourhousehold.”
It’sanobviousadvantageoveraudienceestimatesprovidedbyathirdpartyratingscompanywhenadigitalaudioservicecantellanadvertiserhowmanypeopleactuallywereexposedtotheiradvertisement.
Forradiosellersin2021,it’slikebringingaknifetoagunfight.
Ifyoureadaboutthiswebinarintheradiotrades,youwouldhavelearnedthat55%oftheseyoungpeoplelistentoAM/FMover-the-airradio.What’snottolikeaboutthat
Therealitywas,thisdailyradiolisteningwasonlytoOver-The-AirFMradio,noneoftheseGEN-ZpeopleevermentionedlisteningtoAMradio.That’sstillapositive,right
Itis,ifyouronlyfocusisontheimmediatefuture,notfuturetrends.
GenerationZ
Today,peopleaged8to24makeupover65-millionAmericans.Theyarethefirsttrulydigitalnatives,nothavingknownaworldwithoutfulldigitalaccesstocontent.GEN-Zpeoplearealsooftencalled“ZOOMers.”Theywouldrathercreatetheirowncontentthancurateotherpeople’scontent.
EdisonResearchpointsoutthatGenerationZhasonlyknownaworldwhereeverythingisONDEMAND,andit’sthegrowingupinanONDEMANDworldthatmakesZOOMersachallengeforOTAradio.
ZOOMerTrends
WhenEdisonResearchranclipsofpeopleinthisagegrouptalkingabouttheirmediahabits,itwasclearFMradiowasn’ttheirfirstchoice,butthefactthatitwasavailableinthecartheywereridinginoritwasplayingonaradiothateveryonelistenedtowhiletheywereworking.
ThingsRadioCanDotoAttractZOOMers
EdisonsuggestedthattheseprogrammingideasmightbeawaytoattracttheGEN-Zaudience:
Thislastpointisreallyaboutengagingthelistener,andshowingthemyoureallycare.Inreality,74%ofyourlistenersprobablydon’tcare*ifyourFMradiostationdisappears,becausetheydon’tthinkyoureallycareaboutthem.Radioneedstocreatesharedexperiencesforthisagegroup.Radioneedstoshowtheycare.
SharedValuesandSharedPurpose
ChristianbroadcastersandNPRbothunderstandthesharedvaluesandpurposeoftheirlistenersandbasetheirprogrammingdecisionsonthem.Thesebroadcastersunderstandthattheirmissionisnottoattracteveryonetotheirprogramming,buttobuildaloyalaudiencewiththosewhosharetheirvisionoftheworld.
UsingtheEdisonResearchonGEN-Z,howcanyourradiostationinspireandempowertheZOOMersinyourcommunity
HowdoyoulearnwhatthesharedvaluesandpurposesoftheGEN-Zlistenersare
Askthem.
FormaGEN-Zadvisoryboardtolearnwhat’sontheirmindsandwhattheirvisionforthefutureis.Bewillingtofocuseveryaspectofyourradiostationonwhat’simportanttoTHEM.
Changedoesn’tbeginwithaslogan,itbeginswithsharedvaluesandpurpose,whichtheninspirespeopletocometogetherandcreateaworldthatisbetterthantheyfoundit.
IWasaNielsenFamily
WhenIwasaradiobroadcaster,itwasn’tunusualforArbitronRatingstoaskmeaboutkeepingaradiolisteningdiaryforaweek.EachtimeIdeclinedbecauseIwasactivelyworkinginradio.
WhenIwasabroadcastprofessorattheuniversityinKentucky,IwasapproachedaboutkeepingatelevisionratingsdiaryandNielsensaidthatbeingabroadcastteacherwasnotadisqualifier,soIsaid“yes.”
Iknewthattheexperienceofkeepingaten-daytelevisionviewingdiarywouldbeoneIcouldsharewithmystudentsincoveringthetopicofradio/TVratings.Iwasthrilledtobea“NielsenFamily,”eventhoughthatthrillquicklydissipatedoncethesurveydiaryandinstructionsarrived.
ThefewdollarsNielsensenttomewiththematerialsseemedsmallpotatoesfortheamountofinformationtheywantedtoextractfrommyviewinghabits.
Bytheendofthetendays,IwassureI’dneverwanttodothisagain,anditmademesadbecauseIwasapersonwhoshouldbepassionateaboutdoingsuchwork.
ARelative’sFamilyWorePPMs
AmemberofmyfamilylivingoutsideofBostonwasaskedtoparticipateinPPMradioresearch.Therewardsbeingofferedenticedthemtosay“yes.”
Themembersofthefamilyrangedinagefrom44to6.
Irememberlookingatthis6-yearoldplayingonhisswing-setandthinking,Bostonradio6+radioratingsdepended,inpart,onlittlekidslikethis.Itsentachilldownmyspine.
Well,thefamilygrewtiredofparticipatingveryquickly.Inthenutshell,theydidn’tfeeltheinconveniencewasworththesmallrewardpaidforwearingthePPMdevices.
TheysaidtheexperiencehardenedthemfromeverparticipatinginfutureradioorTVratingsresearch,besidesnowtheyrarelylistentoradioanymorewithSpotifybeingthefamilychoiceforstreaming.TheSpotifyAppkeepstrackofeachmemberofthefamily’slisteninghabits,servingupjustwhattheywanttohear.
RatingsLikelies:Rare&Vital
InlateJune2020,NuVoodoofieldedtheirsixteenthRatingsProspectsStudyandtheywrite:“wedrilleddowntothesmallsegmentofradiolistenerslikelytoacceptameterordiaryfromNielsen.AshasbeenthecaseineverypastNuVoodoostudy,whenwemodelforthesubsetofrespondentswhowouldsay‘yes’toNielsen,theopt-inrateevenamongouralreadyresearch-inclinedsampleisstaggeringlylow–withthepercentageoflikelyratingsrespondentswhospendanhourorlongerwithradioeachdayevenrarerstill.”
That’sprettydisturbingtohear.
ShareofEar
It’sanothercaseoftheinevitablehappeninganyway,butCOVID-19iscausingchangestooccuronanacceleratedtimeframe.
EdisonResearchalsofoundintheirlatestInfiniteDialresearchthatnewmusicseekersareusingYouTubeformusicdiscoveryversusAM/FMradio,68%to46%.
DanArielyExplains
Danexplainsthat“theinterruptionofeverydaylifehasbeenanexperimentshowingthathabitsaren’tjustdesires;they’rebehaviorscuedbyremindersinourenvironment.Whenwechangethewayweinteractwithourenvironment,alotofseeminglyingrainedhabitsfadeaway.Someofthemwearebetteroffwithout,likethoughtlessconsumptionandspending.”
Sincethepandemicmorepeoplewhousedtocommutetowork,beganworkingfromhome.TheAM/FMradiocueforlisteningwastheirvehicle’sdashboardradio,butsincetheywerespendinglesstimeinthecarandmoretimeathome,thedeviceforaudioconsumptionusedinthehomenowbecamedominant.
Whileonehopesthatoncepeoplebegintocommutetoworkagain,ifthatevenhappens,theoldroutines–includinglisteningtothecar’sradio–mightreturn.
However,manycompanies,especiallythehightechoneslikeGoogle,Amazon,Twitter,andFacebook,aremovingtoapermanentWFH(WorkFromHome)model.
Dr.EdCohen
OneofthemostrecenthighprofilelayoffswasthatofDr.EdCohenfromCumulusasitsVPforRatingsandResearch.
RadioInkaskedhimaboutthefutureofAM/FMradiotowhichheresponded:
“It’saquestionofwhether(theradioindustryis)cuttingboneandmuscleratherthanfat.Iftheradioindustrycontinuestocut,canweputourbestfootforwardtonotonlykeepcurrentlistenersspendingasmuchtimewiththemediumastheyhaveinthepast,butcanwealsoconvertlightlistenerstospendmoretimewithradioCommercialradioisnotacharityandfacedwiththerevenuechallengesof(COVID-19),layoffsandfurloughsareinevitable,butlistenersdon’tunderstandthatanddon’tlikelycare.Theywanttobeentertainedandinformed.Iftheyperceiveadegradationofwhattheyexpectfromusinaworldofincreasedcompetitionfromothersources(streaming,podcasts,etc.)somewillgoelsewhere,acceleratingadownwardspiral.IhatetosoundpessimisticaboutamediumwhereI’vespentnearlymyentirecareer(evenmyPh.D.dissertationwasaboutradio)andhavenoclaimstobeNostradamus,butthat’sthelogicalconclusion.IhopeI’mwrong.”