Last week, I had the honor of moderating a session at the Worldwide Radio Summit in L.A. One of my panelists – Emmis President of Programming Rick Cummings addressed the growth curve of NextRadio. Rick’s words at WWRS were important, and in our opinion, worthy of being heard by those who were not in attendance. Your comments are welcome. – Paul Jacobs
I am frustrated at the immediate criticism of NextRadio, the FM chip in Sprint smartphones. I am mindful that HD Radio was also given a similar funeral only a year or so into its launch by many of the same industry critics, in spite of the fact that HD television, with a dramatic technological picture enhancement, took 25 years to bloom.
I’m frustrated because critics, advisors, and pundits within the radio industry tend to pounce on any new thinking or innovation as wrong-headed, selfishly motivated, or otherwise misguided.
What’s frustrating is the lack of understanding of how technology develops. Let’s take a look at a few developments that now seem to be overnight and ubiquitous:
The smartphone is the portable device of choice for seemingly everyone. Yet, it took 30 years to develop!
In 1980, there were 11.2 million mobile phone subscriptions in the U.S. Ten years later it nudged to 12.4 million. By 2002, we saw 1.1 billion subs and in 2010, 4 billion subscribers, roughly 70% of which are smartphone users. It seems like everyone we know has a smartphone right? I would submit we travel in elite circles.
How about the Internet? In 1990, there were 2.8 million users. Twelve years later, the number had grown to 631 million worldwide. And today, 1 billion people are on the Internet. That is only 27% of the world population.
I won’t get into all the reasons NextRadio makes sense for the consumer (not just for the industry). I won’t claim that NextRadio is perfect technology. Like any innovation, it has its flaws that will be addressed over time. I will say Emmis sees no profit here and neither do the top 100 radio broadcasters who have chosen to get behind NextRadio in an unprecedented way.
We are all investing to help the industry stay relevant. This isn’t financially motivated. This is relevance motivated. It’s aimed at finding portability for this industry once again. Its aim is to deliver a rich audio experience without contributing to the cost of larger and larger data plans. It works and will get better and better in the months and years ahead!
As for HD Radio, it is seen as one of the most elegant solutions for the “center stack” in the auto industry, and iBiquity continues to sign up OEMs left and right. So much for all who say it’s a failure.
Finally, a comment to the critics who feel so compelled to tear this industry down “in the name of great innovation” on such a regular basis. The quote comes from the great Teddy Roosevelt:
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes up short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails by daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”*
*Delivered at the Sorbonne in Paris in 1910
After a brief stint working for the William A. Robinson marketing services agency in Chicago, where he created campaigns for Philip Morris and Seagram's, Paul struck gold when he was hired as an Account Executive at WRIF-FM in Detroit. This experience launched his sales management career, and four years later, he became the General Sales Manager for KZEW-FM in Dallas, and ultimately, the General Manager for KHYI-FM, also in Dallas. He was lured home to run WDFX-FM in Detroit, before joining Jacobs Media as its General Manager in 1991.
Along with overseeing the day-to-day operations of Jacobs Media, Paul’s main contribution has been the addition of sales consulting services. As an expert in all Rock formats, Paul has made Jacobs Media clients’ untold amounts of money by aiding them in their understanding of how to sell, market, and position their formats via sales training seminars. He has conducted hundreds of client presentations on behalf of Jacobs Media clients, and has aided the Ford Motor Company and Procter & Gamble in improving their understanding of the youth market. Paul is a true "format champion" – someone who believes in the power of branding, and developing radio’s inherent assets.
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Hmm. Comparing FM chips in phones to the Internet or Smart Phones. Kinda like comparing cheez-wiz to the polio vaccine. And suggesting that HD radio is a success? That has to be measured by usage, not availability. By that metric it is a complete failure.
There is nothing wrong wwith activating FM chips is phones. But it isn’t ground breaking technology nor will it have measurable impact on radio listening or revenue. There just aren’t enough listening get opportunities where an FM radio isn’t already available for this initiative to be all that meaningful.
In fact, analogies of NextRadio to smartphones, the Internet and HD TV don’t advance any cause other than exposing how out of touch radios leadership is with technology, how people use it and how it does and will impact radio.
This article is right about one thing. Radio lacks forward thinking tech savvy leaders. Unfortunately, all this piece does is verify that need.
Buggywhip. Just sayin…
Obviously, innovation is in the eye of the beholder…or the team that is trying to do the innovation. Your point that NextRadio isn’t on the same scale as a smartphone is well-taken. But I think the larger point is that so often in radio when someone tries to do something innovative, the first (and second and third) reactions are almost always negative. That’s really what Rick is saying here, admitting that NextRadio technology isn’t perfect and that it won’t be a long slog to success. Thanks, Bob.
Fred,
There has never been a shortage of detractors, radio or otherwise.
https://inventors.about.com/od/famousinventions/tp/bad-predictions.htm
The “radio is dead” crowd only see what is, not what could be. Great radio content creation will drive listener engagement no matter the delivery system. I love being underestimated in a medium that passes 100% of the cars, home, and mobile.
Fig
“Buggywhip.”
Oh okay we are playing 25,000 Pyramid.
Things I use to pleasure myself with with my significant other?
( ͡° ͜ʖ ͡°)
Lenny, Bob’s playing the emcee role here, so I’ll let him weigh in your “pyramid” answer.
Sorry, I don’t get the reference
Bill, I agree. Radio has its challenges. So does NextRadio. But let’s not kill it before it has a chance.
While the Next Radio app (or for that matter the FM chip in cell phones) is not the likely to be a game changer, it CAN be accretive to additional listening and distribution. Sure, we all know that compelling content is what matters most, but every opportunity to reach our audiences, regardless of the conduit, has value. That alone, makes the FM chip effort worth everyone’s attention and support. Rick, you know better than most that the road to innovation and progress can be messy. Ignore the naysayers who always seem good at offering criticism, but never have an idea or solution of their own.
Peter
Peter, sound advice from someone who’s also been there. Thanks for weighing in.
You asked how long does it take new technology to reach the “tipping point?” LONGER THAN 6 MONTHS. In the battle between doing something fast and doing something right, it’s a lose-lose in this medium. The critics will whine about it either way you go. Who in this industry looks at millions of extra radios floating around the country and says, “No thanks, we’re good”??? I just don’t get it.
The more portals, the merrier, right? Thanks, Alex.
I think part of this cynical criticism of NextRadio is that the industry jumps from one “next big thing” to another as if there will be a technology that will “save” radio. We all know the mantra: Quad-FM, AM Stereo, AMAX, HD Radio, etc.
FM chips in phones may be an additional conduit for consumers to get content. But that’s the rub and why all of the aforementioned have not “saved” radio. It’s the content. It’s always been the content. And it will always be the content. Unfortunately, that seems to be exactly where the industry is — not — spending money outside of the noncommercial sector.
Steve, this is a well thought out comment, and I would defer you and other reading this to Peter Ferrara’s comment above. As someone who was involved with “the next big thing” – HD radio – his take on NextRadio is valuable. It is very likely not a game changer and shouldn’t be marketed that way. It is, however, something that is additive for radio, but shouldn’t be positioned as the savior. Your take on investment in content is also a great point. Thanks again.
Yes! That’s the way to do it! Keep working those angles!
“Let me repeat that for emphasis: After almost 7 months, the NextRadio platform currently services an average audience of 119 listeners.”
https://www.markramseymedia.com/2014/03/is-nextradio-growing-or-sinking/
I wonder why Mark removed this article from his blog? I wonder if he was pressured?
Not sure why you’re commenting here & questioning Mark’s attentions here. Maybe ask Mark?