The decision last week by the FCC to end the Main Studio Rule comes at a curious crossroads for broadcast radio. The rule, implemented nearly 80 years ago, was designed to ensure local radio stations and the communities they serve would be connected.
Over the weekend, a post from fellow blogger, Dick Taylor, detailed the history of the rule. As he noted, it was clarified in 1988 to require broadcast stations to maintain a main studio in their communities. That ended last week when a straight party-line 3-2 vote (what else is new in Washington?) decided to end the regulation. The logic behind its elimination, of course, is about cost-saving, given technological advances that facilitate digital and satellite delivered broadcasts.
Proponents of this decision have argued the savings from not having to build, maintain, and operate in-market facilities will be applied back to programming and content creation. But anyone who’s worked in radio for more than a few years realizes that’s tantamount to a “fat chance.”
Instead, the demise of the Main Studio Rule allows radio broadcasters to function more like the digital radio operators they are now competing against using tech to deliver content from afar, thus leveling the playing field.
But does it? Will broadcast radio end up giving away one of the steel swords it still has?
Every year in our Techsurveys, we ask about the value of “local” to the broadcast radio experience. The chart below underscores the perceived importance of radio’s community connection, as nearly eight in ten respondents who took our survey agree: local matters. And a look at the demographic information provides one of those rare moments revealing a common perception among most groups, including those who live in major markets like New York City, and dwellers in small markets like Nome.
The two Democratic FCC Commissioners who dissented – Jessica Rosenworcel and Mignon Clyburn – each was vocal about their disagreement with this rule change. Mentioning that oft-cited train derailment in Minot, North Dakota back in 2002, Rosenworcel argued that empty studios and robotic voicetracking conspire to distance local radio stations from their communities – especially during times of stress, such as weather emergencies or civil disruption.
President Trump has embraced the term “optics” of late. And that’s precisely what makes you wonder why the broadcast industry was so eager to get this rule quashed. At a time when broadcasters are pointing to hurricanes and other natural disasters as an impetus to mandate turning on FM chips in cell phones, the elimination of local studios would seem to be a counter-intuitive move.
Rosenworcel also referred to the absence of local radio information in Beaumont, Texas when Hurricane Harvey roared through that community just a couple months back. In places like Key West, San Juan, Las Vegas, and other communities thrust into emergency situations, having a hometown radio brick and mortar presence would seem to be an advantage for broadcast radio, rather than a liability.
One thing is for certain – there will sadly be more local tragedies, weather emergencies, and other unforeseen calamities in local towns all over the U.S. in the future. How will radio broadcasters respond when there is only the requirement for a local or toll-free phone number during normal business hours so listeners can call in? Will broadcast radio become as reliable as Pandora and “Howard 100” during these turbulent times when a nervous or shaken community is in need of reliable information and calming reassurance?
Ironically enough, one of the best examples of a strong, local studio presence is WGN‘s famous “showcase studio” in the Tribune Tower in downtown Chicago. For years, passers-by have been able to peer through the glass and see radio being made right before their very eyes – and ears.
But next year, Tribune Broadcasting will move WGN to a new nearby location. However, that iconic “showcase studio” on Michigan Avenue will be no more, removing Chicagoans that much more from this legendary station – and local radio.
Physical visibility in markets from Syracuse to San Francisco may, in fact, be more symbolic than substantive. In an age where it’s a rare local radio station doing any outside marketing on TV or billboards, radio will slowly but surely disappear from the hometown landscape.
And as digital media grows, matures, and innovates, won’t radio’s “secret sauce” end up being its “original recipe?”
The local piece.
While many brick and mortar businesses are struggling to compete with Amazon and the ecommerce explosion, it’s never been more important to establish unique and meaningful levels of face-to-face customer service. For radio, this means eye contact with listeners, while fostering and strengthening that engaging local connection. Yes, oddly enough, that means more “showcase studios” rather than fewer.
What is it that truly connects audiences to stations? And stations to their communities?
Woody Allen once famously said, “80% of life is showing up.”
So now that this next level of deregulation is being implemented, will radio continue to show up?
In the end, it may indeed come down to brick and mortar radio.
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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Thank You Fred for adding your annual research into the discussion. The radio industry needs to look in the mirror and be honest about what they see.
Radio stations with a strong, visible, local, relevant presence, will be the winners.
Perry Ury once told me the way he ran WTIC-AM1080: “Find a parade and get in front of it.” The best advice never gets old.
I get that “Corporate Radio” may abandon their local studios, but here’s the other side of it. I work for a mom and pop radio station in DFW and this rule change is a “Godsend” for us. To really survive in a major market like DFW, you have to have a DFW studio address. BUT, when your city of license is on one of the suburbs of the metroplex, that means you have to have 2 studios one within the city of license radius and another within DFW. That means paying for 2 spaces, twice the utilities, and twice the equipment because you have to route all your audio through the main studio BEFORE it goes to the transmitter. It Gets EXPENSIVE. Now once this rule change goes in effect, a mom and pop like ours will only have to maintain one studio, cutting costs and maybe allowing staff to make a little more since less of the profits will be going to maintaining a second studio.
I totally get that, Chuck. But for stations part of big companies and mega-clusters, this rule change is a license to mail it in – or beam it in – rather than have a physical presence in their local communities. How can the industry say – on the one hand – that we’re there for our local communities in emergencies. But we actually won’t be.
I appreciate your position, as well as the expense involved, but like many things these days, there are lots of different ways of slicing and dicing it. Thanks for chiming in. I’m sure there will be more comments throughout the day.
I would check the information of the Miniot Nouth Dakota incident there are conflicting reports on what really took place with the radio stations. I have two stations in rural markets. We have to be tied down each week watching a studio phone that when, and if it rings is forwarded to my phone and I can help the individual instantly. It is crazy to have someone take a message (which many stations do) and say “No one is here now, can I take a message (so much for that main studio argument). I have two individuals that have looked at our FCC files at the stations I’ve been at involved with in 30 years. Both were from the FCC. I’ve had about 6 visitors this year at our main studio. 99% of our inquiries are via phone, text or email. My air staff has other obligations in this competitive world. They can voice track their show and still cover all the local news, sports, weather, lost dogs and update those track with breaking news and events in an instant. A brick and mortar presence doesn’t make a radio station. It is the time and effort that is spent putting content on the air and getting out into the community. Today with technology that can be done at any location in the comfort of a home studio or other location (such as the emergency operations center in town during a crisis). Most of the main studio elimination complaints are from those who long for the days of sitting behind turntables and talking after each record. That ended in the 90’s (and at some stations before that). Guess what, radio is still here. As a independent operator, a main studio has very little to do with the day to day operations at our stations. I’ve yet to have one listener mention or address it. I’m not a corporate station, or a bean counter. The elimination of the main studio will have no impact on many local stations. In fact, it might save a few stations who are just surviving. I consider this ruling optional. If doesn’t mean a station has to do away with it. Some will, some won’t.
Damon, regarding Minot, I was just passing along Commissioner Rosenwarcel’s dissent. I was not there nor do I know anyone who was. But if her claim is false, I would have expected to have it clarified and corrected 15 years later.
I’m not suggesting a brick & mortar presence is the deciding factor between a station truly serving its community and shirking that responsibility. But as the post pointed out, radio’s survival (IMO) is to super-serve local communities at a time when most of our competitors are global. And the optics fly in the face of the desire to mandate firing up those FM chips in smartphones so that local radio is available in local emergencies.
I totally see and respect your point, and appreciate you reading our blog and taking the time to leave this comment. I’m hoping to hear from more others.
For the record, when the train derailed in Minot, ND, I watched from my condo on the South Hill as the cloud of gas moved up the valley. I went back in the house and turned on KCJB Radio. The overnight announcer, Jerry, was pleading with listeners to stop calling the station, so he could get a line out and call the police department. The KCJB studio was not “empty” – but everything that could go wrong that morning did. There was a direct line between the police station and the Radio station too, but it had not been tested or maintained and it failed too.
Again, this story may have become part of the urban legend of radio consolidation. And if it’s wrong, the record should be set straight.
Thanks for the Dakota-eye’s view, Charlie.
As a station owner, and someone who in theory would benefit from this rule change, I still filed comments against removal of the main studio rule.
The idea that main studios aren’t used in small markets by the public only makes sense if a station isn’t very connected to the public at all. I’ve spent much of my career in smaller markets, and on a daily basis, advertisers would visit to be a part of producing their spots, guests would come in for morning show interviews and to discuss local events and otherwise interact with the station. I’ve seen in many cases MORE interaction at the main studio with smaller market stations than the larger market corporate clusters.
I don’t buy the oft-repeated cliche (with no evidence) that suddenly we’ll see an outpouring of capital reinvested in local programming or news. We’re told that with every rule change, and it invariably isn’t the case.
In my filing, I supported need based waivers. For those independent operators serving a wide geographic range with limited resources, for example, or to keep a local service viable, the FCC could have granted waivers instead of removing the entire rule. It’s sad the Commission chose to use a sledgehammer instead of a scalpel here.
Some of us will do the right thing and continue to maintain active and engaged local presence in our markets. But I’ve always believed if you truly believe in public service, and the terms under which you are granted a license to use, not own, the public airwaves, then there is an obligation of service and commitment that comes with that license, and far too many in this industry would rather rewrite the rules than honor their intent.
Matt, these comments very much reflect that way I see the reverberations of the demise of the Main Studio Rule. As you so eloquently point out, broadcasters will react very differently. Waivers (if evaluated fairly) would allow stations with bona fide needs to get a pass, while everyone else would be tethered to their local communities. I wrote this not thinking about Q4 but 2020 and beyond. Radio’s future will rest on its ability to serve local markets.
Thanks for taking the time.
One take: any 80 year old rule should be looked at with fresh perspective. That’s fair to say? Politics aside .. In the finance world, I have seen how certain well intentioned regs will sting an unaware public. Same with media.
Perhaps we feel programmed in our arguably misinformed and out of touch D.C. -to strongly react these days to about anything, rightly so.
After thinking about this one; in itself it allows for more business freedom. No station with a meaningful local facility needs to change anything. The Chicago office doesn’t have to close.
The museum for B&C History in Bev Hills is one place to think about. The fact is for many decades technology allows for a remote ‘local presence’ in a manner any station feels best for their circumstances & operations. (Profit).?Syndicated TV operates remotely globally, in hundreds of formatted languages with a 1-2 person staff. They could have nobody on site… but one mistake taught them not to cut it down to 0 on site; and that’s global.
Arguably, there has never been more ‘local’ content available. When including how people connect today. But others can make the case otherwise.
Time spent on You Tube to E-Sport hours, the latter implications not understood yet by a majority IMO – over 25. Its a big deal millions of younger people ‘watch’ billions of hours of games, as they are almost like narrated cartoons & interactive, vs the older day GI Joe into Heman block. There is music content & choice involved, though. On demand sources, playlists… telling itself as is.
Back to The Local ‘Emergency’ case: Any kit should include inexpensive short wave, crank battery radios (now built with Rambo Survival Kits, grills, gaming, solar array, a fridge).
No matter if you are living in a city or farm; emergency communications have dramatically improved. Think about 80 years..
Amber Alerts, PSA emergency testing, severe weather. The train derailment example is good.. but a radio would need to be on? Today that’s a smartphone taken over via emergency band alerts.
I’m trying to say.. Our phones, internet & computers are now the always on medium. Local radio, local resources are still important. But communication tech does not have to include the cost redundancy of a ‘local’ brick garage or station facility plant. If it is a burden.
Take the weather service example; when they issue a storm warning. To your home, office alarm system, phone app, phone, text, email, tweet.. local tv alerts. Add to the list all of the newer apps parents must download, for educational & safety. These really do all trigger, the emails are sent, all phones do ring, cells are opted in… We are notified 8 times about a 2-4 inch snow, or a wind gust. There is no technological need for the extra costs if a burden. If a true local disaster and communications are a problem – the local notification policy is the issue.
At first, I also thought oh no!
Not that the older rule was made for bad reasons. The times were moving fast. The glorious new electrical age. The period at Disney’s Epcot exhibit that shows grandpa on the rocker, slippers on, paper and pipe in hand; while grandma looks on using anmodern kitchen, the ironing equipment and the new oven.. the great big radio dial is still glowing… the stage turns… eventually a TV appears.
I’m in a major city market, radio here is still ‘institutional’ part of the fabric; no matter what people truly listen to. It’s perhaps due to sports and the local musical heritage. The football games on FM promote radio more than anything else, long held concerts or events don’t hurt.
End of day, FCC is making a series of important changes, from foreign ownership rules and soon, charging for 4K OTA will impact how all media firms position. The local radio facility change helps clear one rule from adding to the costs. As local media firms have an opportunity to use newer 2 way tech in the same manner as everyone can, come new dash tech; this ability will be important. The data from new auto world to come is a new industry. Who is better with media; GM or established media/radio? Interesting…
It comes back to individual processes and performance.
Everyone can use technology & radio clearly needs to keep up. Feels like the industry will…
Very much appreciate your blog articles as of late; thoughtful topics, good writing.
Josh, thanks for the thoughtful comment. The FCC can decide whatever it wants – and so can broadcasters. The elimination of the rule leaves operators with decisions about what kind of operation they wish to run. Appreciate the perspective.
Fred,
I’ll share with you a comment I left on Dick Taylor’s blog concerning my thoughts on the elimination of the msr.
One of the ways to make the new main studio rule work against the broadcasters who will use it to shut down local offices and studios is take the offensive to the local advertisers. Compile a list of all of the local advertisers on the stations that are abandoning their communities of license, go to those advertisers and urge them to reconsider their support of businesses that do not support and serve the community.
Take the time to explain to them that when the broadcaster abandons the community of license it means no one’s home when the next disaster strikes to bring vital life-saving information to the community. It means no one’s going to broadcast from the local supermarket for the annual Holiday Food Drive. It means no one will broadcast the local high school football, basketball games etc. It means there’s no weekly public affairs programming. It means national PSA’s will take the place of announcements focused specifically on the local community.
Go to your county office of emergency services, explain to them that station(s) XXXX owned by corporation XXXX no longer have a local presense, and that means they can no longer be counted on by his office to be a “first informer” during emergencies. Ask the OES to notify those offending broadcasters last and to provide them with the lowest level of official cooperation. Point out the broadcasters that maintain a studio presence in the community. Make it easy for these first responder officials to contact those stations and ask they contact them first when need arises to inform the public.
The broadcasters who maintain local offices and studios need to remind their listeners every day that they are there for the community. When you promote your local presence, be sure to mention in the same announcement that “…unlike our competitor (station XXXX) we here at station XYZ have a local office, studio and staff that is always ready to serve our community…” Keep hammering away at that message and eventually the drip, drip, drip of constant repetition of this fact will turn to a flood that will ultimately benefit your station and likely make it impossible for your now out-of-town competitor to do business in your community.
Those broadcasters abandoning their local communities are doing so to save a buck and nothing more. They think this cheapskate attitude will result in higher profits for them, but if they end not being able to sell airtime in the communities they’re abandoning, they really won’t be saving any money at all will they? And they will likely end up at some point either re-establishing their local studios or they will be forced to sell those facilities (at stick value let’s hope) to someone who will.
L.J. Alexanderson
L.J. I don’t love the tactics but I respect anyone’s right to boycott or patronize advertisers as they see fit. I would hope that most radio stations that truly matter in their markets are smart and savvy enough to continue their focus on their communities. It’s good business, and competitively, it’s still part of what makes broadcast radio different from the rest of the digital pack. Thanks for the comment.
What most people forget in our polarized “us and them” political world is that “regulations” are protections for “we the people.” You, know, the folks that actually own the broadcast spectrum and lease it to broadcast facilities to “serve in the public interest.” 80 year old rules that have stood the test of time have done so with good reason.
You can’t be a “local” broadcaster without being in a locality! Even a station located a county away doesn’t feel as local as those right in the town. Showcase studios like WGN, WIFE, and many other made a statement by the station, “we are here, we are part of our community!”
When was the last time any regulatory lift by the feds resulted in any money being returned to a local station? How many people have lost their jobs and minimized a station’s “local” effectiveness since deregulation passed in 1996? No, with rare exception, any “savings” go to profit first and absolute necessities second, while programming and promotion are somewhere on the tail end of the list of recipients.
It might not happen right away but I can foresee a day when local stations will be nothing more than national megaphones for some agenda or cause or someone trying to secure enough band-width to do something we can’t even imagine yet. It’s sad because in so many ways this is a death toll to great local stations. This rule includes both radio and television, thereby clearing the way for Sinclair to become terrestrial Fox News, only worse.
And what about the natural disasters and local events that require attention and true service by dedicated broadcasting professionals? We just experienced Harvey in Houston. Many broadcasters were knocked off the air or their studios flooded. But many stations like iHeart’s KTRH, the CBS cluster, and others provided incredible live, round-the-clock, accurate coverage that you expect from LOCAL broadcasters. National Pandora-like music services or round-the-clock propaganda voices will not provide the same essential local service in the event of an emergency.
Since the emergence of “corporate radio and television” the one hedge good small business operators have had is being live and local up against tracked competitors. How long can the brave local operators survive against a wave of technocrats looking to minimize what they see as an outdated service?
Oh, and then there’s that inconvenient, “licensed to serve in the public interest and convenience” clause in every license. How do you serve “in the public interest of a town 1,000 miles away? Wonder how long it will take Pai and his clan of corporate raiders to claim that clause?
Lee, you’ve said it well. Live, local, brick, and mortar is the recipe to keep radio vital, relevant, and unique in the digital media age. Thanks for making a powerful case.
Thanks Fred for an excellent Monday topic.
Our company made the strategic decision that after 69 years we would move our studios and offices back downtown into our co-owned Print and Digital offices. Two weeks ago we moved our third and final station to join its two cluster mates in each station’s brand new street level showcase studios.
How interested was the community in our move? Our morning team started their final show from the old studio and began a 2.5 mile trek downtown. Along the way they made a point to stop in at virtually every morning show advertiser on the route and thanked them on the air for their support. The markets leading morning television show asked to cover the event live by walking with team. One Facebook post (non boosted) was seen by 93,000. That helped drive over 10,000 Facebook Live viewers who caught all or part of the walk.
Brick and Mortar where we still have a “live” person in our studios 24/7. It’s all about delivering on listener expectations in Champaign-Urbana Illlinois.
Mike, this is a great story – so good I published this comment on today’s follow-up post. Thanks for the inspiration from Champaign.
The first thing we need to do is figure out what the main studio actually was and was not . The main studio rule as it has been applied in the last 20 or more years was not a “local origination rule” or a “local talent rule”. Literally not one word was required to be spoken into a microphone at the main studio. ( there was a time when something like three hours a week was supposed to been originated at the main studio, stations used that to have somebody go out to the city of license and play American Top 40 on Sunday mornings. If IHeart, Cumulus, et al had wanted to close all of their local offices and studios last year, five years ago or 10 years ago, Would have been literally nothing to stop them. The only real requirements were somebody to babysit the public file, in the unlikely chance somebody came by to see it (or the FCC showed up). You had to have the capability to go on the air, but you didn’t have to actually go on the air from there. By the way, the dissenting commissioner voted in favor of online public files. If she still wanted staffers babysitting a file cabinet, she could have voted no. Minot, and all the mess that go with it, had absolutely nothing to do with the main studio rule. Stations were in full compliance, and there was never any rule about staffing at 1 o’clock in the morning, or even being on the air at 1 o’clock in the morning. I believe in live and local radio, but not so much by having antiquated FCC rules that make radio stations pay redundant rinse and staffing but do nothing toward operating the radio station. We seem to have a lot of people in our business who want radio to operate by the rules of the 1970s, while all of radio’s competitors operate under the rules of 2017. I know a lot of people who listen to K-Love, and to a person don’t care that the DJs they listen to aren’t sitting in a little room downtown. I really don’t believe, however, all the stations are going to be mothballing their studios. The rule change will allow the smaller operator to go out and sell, and leave for lunch without worrying about the FCC your van in their driveway when rhey get back. The “main studio” of the distant rimshot that’s sitting in the Chamber of Commerce Office will, of course, go away.
Brad, thanks for the perspective. The rule change will, in fact, give more stations options. As we’re seeing here in other comments, those committed to local presence, live talent, etc., aren’t going to change their game plan because of the demise of the rule. I think those of us concerned about this FCC move is what it symbolizes. And as mentioned in yesterday’s post, the “optics” are a tricky given the industry’s penchant for mandating FM chip activation in cell phones. Thanks for reading our blog.