Over the weekend, the temperatures nearly hit 80° in the Detroit area with blazing blue skies…in mid-April. I popped the top on my old Mazda Miata, turned up the radio, and was yearning for a Beach Boys song. It was just that kind of day.
But the truth is, hearing the Beach Boys on commercial FM radio (and not an HD2 station) has become virtually impossible even in a market the size of Detroit. Same with Motown. Even the Beatles are becoming endangered, despite their huge impact among the streaming population which we talked about in a blog post earlier this month.
The explanation is simple, and it speaks volumes about the radio industry in 2016. These performers simply don’t test well with the advertiser-mandated 25-54 demographic. While they continue to be loved, remembered, and embraced by aging Baby Boomers, “radio think” dictates they become even fewer and farther between in order to win in the money demos.
So here’s the ironic part. What do companies like Lionsgate, Amazon, Netflix, and Goldenvoice (organizers of the Coachella Music Festival) have in common?
Yes, they’re all highly successful media and entertainment brands. And yes, they’re all investing in ‘60s-based artists and icons, according to The New York Times and Rolling Stone.
Consider:
- Netflix is launching “Beat Bugs,” a cartoon series that leans on Beatles tunes (sung by Eddie Vedder and other contemporary pop stars) to carry the plots.
- Amazon has greenlighted “Time Out Of Mind,” a one-hour drama set to the lyrics of Bob Dylan, developed by Lionsgate.
- Netflix is also working on a Motown-flavored show (the theme song is “ABC” by the Jackson 5), and will highlight songs in the catalogue.
- Goldenvoice is rumored to be in talks with the aforementioned Dylan, Paul McCartney, the Stones, Neil Young, the Who, and Roger Waters for a three-day festival at the Coachella site in October. If they pull it off, it could prove to be one of the greatest rock concert events of all time.
Even though most of these artists are no longer near the top of the spreadsheet in music tests among the coveted 25-54 radio demo, these aggressive, creative, and highly profitable companies have concluded that Boomer Bucks spend the same as Millennial Money. Why not cash in on the 50+ audience with money to spend in search of great memories and game-changing experiences?
As we’ve seen over the past several decades, ad agencies, movie companies, TV production houses, and of course, concert promoters all have made fortunes off the ‘60s Pop/Classic Rock social and cultural phenomenon.
And when you think about it, the millions of people spending money and time enjoying these acts, films, shows, and concerts first heard this music on the radio. They’d still like love these songs today, but instead, broadcast radio chases them off to SiriusXM, Pandora, Spotify, and personal music collections.
So why does radio struggle to embrace, much less monetize this core music and these heritage artists – rather than giving away these franchises to other media and entertainment companies?
Because the industry simply doesn’t know how to sell and market this wave of musical popularity without the help of a decent 25-54 rating book. The irony is that Oldies and Classic Rock started on the radio. It’s where everyone first heard it. Today’s TV producers, agency account executives, concert promoters, and other entertainment impresarios all grew up listening to this music on radio stations in hometowns all over America. They all watched radio launch this musical wave. As savvy media analysts and smart pop culture watchers, they’ve seen the appeal and they’ve heard the cash registers ring – at the box office and in online sales.
Most gold-based FM radio stations are running away from this music, while major media companies are cutting big deals to bring this music to audiences in the U.S. and around the world.
Puzzling, isn’t it?
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Fred: Once again you’re right in every sense of the word. But, again, the radio “business” (bosses, consultants, salespeople and advertisers) will all determine it doesn’t matter. According to the advertisers, people die as soon as they hit their 55th birthday, and the world belongs to the young and beautiful. But does this music resonate? Absolutely. Ask a guy like me…who has a hybrid 1950’s-1980’s “Classic Hits” format running as the “base format” on 3 successful LPFM’s right now. (I say “base format” because, being LPFM’s, the stations offer a wide variety of programming for different tastes given the non-commercial nature of the stations.) The Beatles, Stones, Beach Boys, Monkees, you name them…they’re all there. And they work. Too bad commercial radio won’t figure it out.
Kevin, thanks for the kind comments. As Classic Rock stations dominate in the 35-64 cell, but struggle in the “must-have” 25-54 world, they’ve been forced by the corporate sales realities to adjust their programming. It is a classic case (no pun intended) of the sales tail wagging the programming dog. Rather than make an effort to influence agencies (hey, many of their products use a Classic Rock song as their soundtracks), they capitulate and alter successful stations to try to fit that 25-54 paradigm. All the while, everyone else is making money, while radio runs away from successful franchises.
Fred: This is why I’ve said that non-commercial stations searching for an identity are crazy NOT to consider the “Oldies” or “Classic Rock” formats to be used either as feature programming, or a standalone format. (Hey, they do jazz formats and classical, why not?) The older demo will support stations that support them. Or another way to look at it…how many financial donations go to the local PBS station when they run all of those oldies concerts?
Interesting thread here. I manage a non-commercial Triple A station and we embrace and celebrate the classic artists who our audience loves and who heavily influence and inspire so many new and emerging bands. And this article makes the perfect case for why the non-comm rock format has unique value in today’s media environment. Half our revenue comes from individual donation and we don’t allow the quest for the advertising dollar to dictate our programming. And Kevin, you are correct that the older demos of our audience support us generously and they love that they can hear The Beatles and Dylan and The Kinks mixed in with Alabama Shakes and the Avett Brothers. Its just great music and that’s what matters.
Abby, thanks for telling the non-comm story. And for pointing out that truth that the music has truly stood the test of time. Thanks!
Very relevant comment, Mr Fodor. You are possibly among the forerunners of the live and local movement that may just be the way back for radio. Btw, how does one listen to your stations? I’m a Low Power newbie.
Fred, this is the hard truth. The lack of a sales department that can sell this format. Spells the death of this music. The baby boomers still control the majority of the spending and that generation doesn’t age out. I am one.
As am I, and it seems as though I’m contributing more to the economy more than I did when I was in my twenties. Thanks for the comment.
The world carried the boomer’s water when they were 25-54 and I have to say I enjoy watching the discrimination that they invented and perpetrated unleashed on them. This has been a problem for radio since I can remember – and not just for 35+. The lack of 12-34 based programming grew out of the same issue. I’m not sure that there is a macro answer to the “Agencies are happy to use other media for demos other than 25-54 but not radio” problem. With the solution to the big fix likely “blowin in the wind”, I think the way to combat this is one business problem at a time.
I don’t see any agency, or group of them just saying, “yeah, thanks for the presentation, you’re right, we’re gonna readjust everything and start using radio for older and younger focused products.” But if a radio seller uncovered a marketing problem or headache for a younger or older skewing advertiser, they might be able to sell a radio based solution…as long as that solution addressed the underlying issue with more than just 18 spots a week for 4 weeks on their cluster of stations.
Success stories breed success stories and I think the answer to this (and many of radio’s other problems) is on a micro level – really listening, setting a problem solving process in motion and developing a plan that addresses that problem.
What if every radio cluster manager, regional and CEO met with a stakeholder at a large agency or advertiser, not to “tell radio’s story” but just to find out what problems they can’t solve then enlisted their best sales and creative assets to solve it. Do that enough and you never know what would happen.
Bob, good points as always. Radio – as an industry – has great success stories, especially for the Oldies and Classic Rock formats. Thanks for taking the time to comment.
SHHH! That’s why Scott Shannon has started his own 24/7 syndicated Oldies radio show. He’s going to sell it back to some of the stations =D
Ha.
In the late 90s/early 2000s as we saw the Huge Consolidators roll up stations and groups, not a few of the stand-alone FMs in Top 25 markets were valued in excess of $100 million. I think a few of the stations in LA now owned by iHeart and CBS were valued over $200 million. In order to have a shot at capturing the revenue needed to service the debt used to acquire these stations, they must be programmed to appeal to those in the PPM panel which at any given time can number maybe 2 or 3 or 5 thousand in a Top 10 market. This has resulted in, as you say Fred, in the “running away from” formats like Classic Rock. Irony is Consolidation was supposed to lead to diversity in formats. Just the opposite! Classic Rock stations have been flipped to all forms of CHR and Hot AC right and left
Thanks, Gary. Radio format popularity goes in waves – think Jammin’ Oldies. Appreciate the comment.
Another aspect at play is the idea of 18-34s seeking Classic Rock as a form of music discovery. From the “rebirth” of The Beatles around the 50th anniversary of their arrival in America, to their digital debut a few months back, their popularity is only growing. In addition we’ve seen the Stones, Doors, CCR, and a handful of other 60’s based material be a driving force behind consistent ratings success with the younger demos.
You make a great point, Brian. The music is so powerful that younger generations have discovered it. Thanks for the comment.
Excellent article, Fred. And thank you for giving me more ammunition in my quest to get 50’s & 60’s music back on commercial radio. This is more then “just” playing the Beach Boys, not that that isn’t a good reason in and of itself. This is also about serving a group of people (seniors) who have been ignored and pushed aside by radio. How ironic that a business that claims it wants to make money should push aside a demo that could virtually fill its coffers to the brim with cash. The airwaves are supposed to belong to the people. ALL the people, not just those under 55.
The irony is for real, Curt. Makes me crazy, too. Thanks for the comment and reading our blog.
The cobbler’s sons go without shoes?
Makes us “unrated markets” look pretty fun, don’t it?!!?
Yes, it does.
And then there’s “Brown Eyed Girl.”
Still testing…
Yup, all demos, too.
Half of me is sad. It’s crazy that salespeople can’t be found who know how to sell 50+. And guess what? You’ll also get a nice minority if under 50s who grew up listening to the music on 80s-90s dies stations. The other half of me says, yeah! Come on over to my oldies station, popgoldradio.com…..
I understand the schizophrenia, Don. It sadly underscores the ongoing radio gap between programming and sales. Thanks for the comment.
In light of your article Fred, you may be happy (and somewhat relieved) to know that the #1 station in Denver/Boulder (Market #18) 12+ is one that embraces the Icons!
#1 in the Market: KQMT, 99.5 the Mountain. The jocks are loaded with rock and roll trivia and pertinent information about the artists they play. No wild wacky & zany morning show – just good rock and roll hosted by a personality who obviously read every word of every LP cover he ever held. You can expect to hear everything from the Eagles & Elton to Yes, ELP, and the Beatles, Buffalo Springfield, Tom Petty to Guns & Roses & ACDC. I’m 51 and it hits me between the eyes!
It is one fine radio station. It’s just another example of radio embracing a wonderful position and focusing on it. Mike Casey and the other staffers are great hosts, providing the “color” to those Mt. Rushmore artists and their iconic catalogues. Thanks, Randall.