The deteriorating relationship between radio and the music industry during the past several years has been a mystery to me. We used to refer to it as symbiotic, but psychotic might be the better term.
Seldom have there been two major entertainment entities that have needed each other more than radio and, well, records. Yet, the latter has consistently looked at the former as a last-grasp sugar daddy. And of course, the former will do whatever it takes not to shell out another dime to the music business.
But the need for cooler – and smarter heads – to prevail may have finally overpowered the bizarre intractability of both industries. Clear Channel’s announcement of a new kind of financial performance deal with Big Machine (Taylor Swift’s label) is groundbreaking, and could be the start of a thaw that rebalances the relationship, while leading to others.
The research that we’ve conducted for years – our Techsurveys – has never been clearer about the value of FM radio when it comes to music discovery. We acknowledge that our sample leans heavily toward radio’s core. But aren’t those the kind of consumers the music industry wants to reach – engaged, passionate music fans?
The word cloud below depicts the primary source of new music exposure for consumers. Slightly more than half select FM radio as their go-to place, followed distantly by friends and other people. And darlings like Pandora and SiriusXM are below 3% (see those tiny red pushpins?).
Among Country listeners (obviously of interest to Big Machine which specializes in Country artists), FM radio is an even bigger factor. During our Country format webinar a couple weeks ago, we revealed that a whopping two-thirds of our respondents look to their broadcast radio stations as the place to find out what’s new musically. That’s a lot of Country music sales.
Pittman is sending out an important message to both industries that it’s time to get creative, seek out partnerships, and start moving the ball down the field – faster. And he sent a not-so-subtle message (or shot across the bow) to his radio CEO brothers in a New York Times story yesterday.
Game on.
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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