If you’re reading this after eating a big meal, think about coming back later. For those of you with courage, continue reading, because I have a focus group story that will make radio people very uncomfortable.
Recently, we conducted some focus groups among teens and listeners in their 20’s, trying to get a better fix on new technology and how it’s impacting terrestrial radio. In the course of the discussion, respondents were comparing radio to iPods. Some pointed out that the iPod offers control, while music on the radio is "pushed" at them. Others mentioned that radio has commercials, but the iPod is "commercial-free." And a couple of group members pointed out that radio is free, but it costs money to download music (if you do it legally).
But then one young guy said to me, "The iPod is portable, and radio isn’t. I can take my iPod with me anywhere."
That comment stopped me down, because if you’ve worked in radio for any length of time, portability has been a radio advantage since the early days of the transistor in the 50’s. But when you step back from our day-to-day radio wars and think about it, radio has all but lost its portability, especially for the young. When was the last time you saw someone walking around with a Walkman radio? While we’ve been consolidating, Apple’s iPod has all but stolen our portability right out from under us. It’s cool to walk around with an iPod with those signature white ear buds, but carrying around a Walkman? Please.
To make it worse, this comment came up in subsequent groups. As respondents explained to me, the radio is tethered to cars or clock radios, while you can take iPods anywhere. There simply isn’t a cool piece of hardware containing an AM/FM radio that you can buy anymore. And satellite radio has figured it out. That’s why they’re working hard to market little units that get their product out of vehicles and into people’s lives. And the cell phone business represents the future of portable entertainment. Phones have games, Mp3 players, cameras, ringtones, and texting. But not radio.
Our mission just became more difficult.
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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I got up, made coffee, read this and freaked.
Of all blogs you’ve ever done, this hits the hardest.
Because it addresses a clear-and-present dilemna that
that (apparently) nobody in the terrestrial radio world
even noticed, much less addressed. And it won’t be
solved for years, because of the considerable muscle,
clout, vision and R&D money that some company still
hard-wired to the terrestrial radio world will have
to bring to the table…and quickly. You learn to be
an optimist over a decades-long radio career because
normally problems have a way (through the marketplace’s
natural tendency to see a hole, fill it, and then reap
someone a huge return-on-investment) of working out.
Chicken Little-thinking peers end up looking foolish
in the rearview mirror. This scenario is markedly
different, however, because there weren’t even any
Chicken Little alarmists screaming to “look up”. Now
we find ourselves at the very tale of the developmental
curve. I knew Tim Sabean wouldn’t jump to satellite
ONLY because he and Stern had so much mutual respect.
Thanks for pointing out this critical end-run by our
competition.
So, waning are the days where the “means” of distribution is a “key” advantage.
That’s certainly a horror story for those who think their business is inexorably tethered to AM/FM transmitters.
But for those who believe they are in the audio entertainment business, it’s probably just another day at the office.
But…not to quibble with you…Fred’s whole point
related to “those whose business is inexorably
tethered to AM/FM tranmitters”…i.e, operators
of some 12,000 terrestrial stations nationwide.
For those guys, it won’t be “just another day at
the office”, as they figure out the solution to this
lack-of-portability problem. 🙂
No “quibble” taken Dick. ,-)
There needs to be open discussion about these issues and we shouldn’t be afraid of taking on ideas. Thanks to Fred for providing a forum and sharing insights he discovers.
I think what Fred scratched the surface on is a much larger issue.
It isn’t a “portablility” problem. It’s a relevancy problem.
If there was a desire among young people to be able to get FM signals on their favorite devices and gadgets – the makers (who seem to cater to every imaginable user demand) would be putting receivers in the devices.
Broadcast Radio will likely remain the meeting place for the broadest interests for a some time to come. But the preference for individual control and the devices that provide that will increasingly dominate people’s time.
So if you want more hours with those people – you’re going to have to go to them rather than expecting them to come to you.
And that means un-tethering from the transmitter and making your content – as they say here in Silicon Valley – “Platform Agnostic” Meaning you can get it on ANYTHING – Phone, ipod, PDA, WI-FI, FM receiver – doesn’t matter.
Sure – this is upsetting for those who gobbled up loads of spectrum rights under the guise said spectrum provided the ONLY medium for audio entertainment. The value of the spectrum (if the market isn’t interfered with) will probably drop.
What can one say to those folks except – ooops. We see it coming – we have the time to make the changes and take advantage. Will we?
That’s what makes this such an amazing time to be in the Audio Entertainment busines!
Thanks for the stimulating give-and-take!
Here’s a sincere compliment for you (whoever
you are, whatever your last name is!)…
You obviously are very intelligent and have
spent some time pondering all this.
Hey Thanks Dick – didn’t mean to hide the name – it’s Jeff Schmidt.
Great to chat with ya!
I noticed in the J&R Ad in the New York Times that Sony sells a “nano” size AM/FM Reciever with earphones for $10. Why don’t radio stations give those away instead of I-pods? Why would someone rather spend $100 to $300 for an I Pod? It’s all about the content, giving people what they want.