As more and more young consumers consider the iPod as the "go anywhere" medium, while radio is perceived to be tethered to cars and nightstands, the Steven Jobs assault continues. The big news coming out of the auto industry is the announcement that iPod access will become even easier. Ford, GM, and Mazda have teamed up with Apple to integrate the iPod technology into new 2007 vehicles.
So forget your iTrips. This makes iPod access in cars even easier. And consider that we’re now talking about the owners of GM products and Fords – obviously an older demographic as a rule. Now, they too will become introduced to iPods, as Apple’s wildly successful mp3 players will become even more mass market.
And it also means that if you’ve had any questions about the validity of podcasting, move onto being skeptical about something else. Aside from entertainment oriented podcasts (like from your morning show or your local band program), more and more companies will start thinking about including podcasts as part of their business strategy. Want to disseminate a new procedure or make sure that everyone is up to speed with new HR policies? Create a podcast and make sure employees listen to it.
Meanwhile, this is a blow to HD Radio (and satellite radio, too), but it also is a reason for the Alliance and radio in general to pause and consider what it all means. The iPod is driving changes in the way vehicles are equipped because it’s hot, it’s unique, it’s personal, and it’s cool.
If HD Radio has any chance of success, it’s going to come from some of these same emotional avenues. And it starts with the programming. Are HD2 offerings compelling and different enough from what radio already offers? Are they so unique that consumers want to run out and buy a radio? Are they so much better than current FM radio offerings that they’re telling their friends?
We need to reaffirm that HD Radio is worth the effort, and that means not just running commercial time. It means investing in programming that stands apart from "The Best Mix of the 80s, 90s, & Today." It means radio that doesn’t sound like everything else. It means appealing to demographic segments that currently find little that is stimulating on FM radio.
That’s what’s going to drive demand. And that’s what’s going to turn the heads of the guys who run the auto companies. Apple sold 8 million iPods in its most recent quarter. Meanwhile, the U.S. auto companies continue to lose market share. It’s a simple equation of trying to make vehicles hipper and more popular by integrating devices that are cool and ubiquitous.
Terrestrial radio needs to learn these lessons – quickly.
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