Finally, the big day is here when we say good-bye to the past year, and welcome in a new one. But not without a look back to one of our most-read blog posts of the past 12 months. And this was an unusual one – our response to Eric Rhoads after that famous Convergence panel about AM/FM radios in cars. It turned out to be an important event this past March because it became the launching pad for our DASH conference the following October – with Eric and Radio Ink in partnership with us and Valerie Shuman. Together, we created something that we hope will have lasting value to the radio industry. Eric – as you know – is a huge fan of radio, and his intentions from the onset were honorable. So while his reaction at Convergence was a bit over-caffeinated, he did the industry a favor by putting the “connected car” issue on everyone’s radar screen. Here’s how it came about. – FJ
The fireworks started on Friday as Radio Ink’s Eric Rhoads ran a controversial blog post and emailed it to his database – “A Cold, Harsh Reality For Radio.” It’s all about the “connected car” and Eric’s “intervention” at last week’s Convergence panel that dealt head-on with this issue. Below, I’ve linked Eric’s post, and then followed it up with my response.
I heard from many broadcasters after Eric’s post went live – from big commercial radio owners, public radio broadcasters, and small market operators who are concerned about where this conversation is headed. This is an important issue for radio and one that JacoBLOG readers and jacAPPS and Jacobs Media clients have heard a lot about over the past two years as we have tried to raise awareness and add perspective.
We’re glad it is on the “radar screen,” but we also want to be sure the industry – YOU – understands what’s at stake here and why it is critical that radio charts a smart path down the automotive infotainment highway. Please read both of our “takes” on this issue and respond accordingly. – FJ
Read Eric’s post here.
And my response:
Eric, you must have had a Venti Bold from Starbucks Friday morning.
I applaud you for raising an issue that Jacobs Media has emphasized for the past two years – the “connected car” – starting with our annual treks to the Consumer Electronics Show.
First, this issue may have actually gotten rolling at Convergence back in 2012. I was honored to be on that “digital dashboard” panel, also moderated by Buzz Knight, because it helped put this issue on the map. Since then, other conferences have picked up the torch and are paying attention to the “connected car” and radio’s place in the “center stack.”
Second, Jacobs Media has been collecting video interviews from automotive specialists for two years at CES and other industry conventions with the goal of educating the radio industry about the stakes involved. I have even joined the Society of Automotive Engineers and have attended their conferences – one of the benefits of living in Detroit.
We have updated versions of our “digital dash” videos that will be shown at the NAB Convention in Las Vegas later this spring, and at state broadcaster conventions around the country. Many saw the initial series at the Arbitron Client Conference back in December, thanks to Dr. Ed Cohen.
In every one of these interviews, we have asked automotive execs the same questions – what type of research are the automotive companies doing, how are content decisions being made, and where is AM/FM’s place in the dashboard of the future.
Third, we are working closely with Valerie Shuman of the Connected Vehicle Trade Association. She was a panelist in two of your Convergence sessions last week, including the one in which you intervened. Valerie is a thoughtful, rational voice in the automotive wilderness. She knows this space inside and out, and understands the context of how radio can play an even greater role in the “digital dash” story to come. The industry would do well to listen to her because she brings much-needed perspective and experience in a “non-partisan” way.
Fourth, your suggestion for stations to partner with providers like iHeartRadio and TuneIn are well-intentioned, but so is the need for brands that have their own apps to earn their place in the “center stack.” As you know, jacAPPS’ partnership with Ford allows any station or personality the opportunity to adapt their apps to be compatible with the voice commands and feature sets of Ford’s SYNC AppLink system – a great opportunity for individual local radio brands to ensure their place on the “digital dashboard.” Greater Media went first, and now other broadcasters are joining in, ensuring their place in the hottest new Ford vehicles.
Your “take” on the extreme urgency of this situation, however, is overstated. I have personally interviewed many of these engineers, executives, and marketers from the major car companies. Yes, they are evaluating the content and options that are available to consumers via research – market research, speaking with dealers, and other information they gather.
Based on all our involvement with the automotive industry on this issue, we don’t see an agenda or conspiracy to eliminate AM/FM radios from the cars and trucks of the future. But the automakers will also tell you that they are on a quest to provide consumers with great infotainment options in a safe environment. That’s where radio must play a role – ensuring that its content, its offerings, and its personalities are relevant, entertaining, and essential in today’s ever-expanding infotainment offerings.
If you had been at CES a couple months back at the big Ford press conference that included the jacAPPS announcement, you would have seen a global auto company excited about broadcast radio. The entire Ford team showcased several Greater Media stations – AM and FM – in a presentation that included several thumbs-up references to the power of LOCAL broadcast brands, their talent, and everything that makes hometown radio great and valued in the car.
Since the days of the Corvettes, DeSotos, and El Dorados, radio and the car have had a special relationship. But radio’s entitlement to dominance in the dashboard is now being tested. Can radio owners, managers, and programmers craft programming offerings that differentiate themselves from the myriad options that consumers will find on the “digital dash?”
As the thought-leader Clayton Christensen might ask, “What job are consumers hiring broadcast radio to do in cars and trucks?” This “jobs to do” orientation is at the epicenter of radio coming to grips with what it provides to consumers via the auto industry.
Does this mean cutting back on voicetracking, re-emphasizing live and local real-time programs, and proprietary personalities and hosts that consumers cannot get anywhere else? What kinds of unique local experiences can radio provide that will resonate with both consumers and auto dealers? These are questions the radio industry needs to ask of itself.
When the auto companies ask their questions – in consumer market research studies and in dealership questionnaires – it is essential that they hear positive reports about the value of broadcast radio in their vehicle infotainment systems. There is no initiative to remove AM/FM radio from these “center stacks,” but this is an area where broadcasters have the ability to control their destinies by producing content that matters. This is radio’s game to lose.
This issue goes beyond hardware, technology, and systems like SYNC, CUE, Entune, and the others. It goes right to the heart of radio’s purpose and mission, and it is something that is bigger than any station, cluster, or company. This is an industry challenge best addressed by the biggest players – the RAB and NAB.
It also means that radio needs to recognize that its storied partnership with the auto industry is changing. It now requires presence at important gatherings like CES, as well as attendance and participation at local and regional auto shows as they make their way around the country. And it also means interfacing with car dealerships – not just showing them rankers and asking them for the buy, but listening to these local automotive enterprises, and better understanding their needs, priorities, and goals.
The automobile industry is essential to radio for the revenue it generates and because the car is the most important listening location. Radio needs to protect and grow both of these areas, and it won’t do so without re-thinking its approach. But I fully expect that my next car . . . and the one after that will allow me to listen to broadcast radio wherever I go. The challenge is that my next car will also allow me to listen to an infinite number audio streams and apps, as well as services like Pandora, and Sirius much easier than ever.
That’s what broadcasters should be thinking about – how do we make radio essential in light of all of this competition? That’s something to think about whether you’re considering cars – or workplaces, homes, schools, and all the other places where consumers entertain and inform themselves with audio.
Eric, take a deep breath and chill. Your concern is understandable, and you are an unabashed friend of radio. You are correct that this issue needs to be front and center on radio’s radar screen, and we applaud you in your efforts at Convergence and in your blog to make it even more of a “conversation piece.”
But we also need to heed the words of the legendary coach, John Wooden, who urged his players to “Be quick, but don’t hurry.”
Radio needs to get the story straight, conduct some research, do some listening, make a plan, and get it done. This is not the time to panic, but to get real and get serious about the future.
This is a challenge, but it is also an opportunity.
Let’s drive.
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