You have to love all those crazy predictions about the future – especially the ones that never happened. Robots cleaning our homes and flying cars should have been here by now, right?
And yet, technology has never been more remarkable. It seems like almost every day there’s a new announcement about how the intersection of media and technology just became even more compelling. When you consider that back in the ‘70s and ‘80s, you could go years without a significant new development in the radio world, now they seem to show up with every “breaking news” alert from Mashable, TechCrunch, and the radio industry trade press.
These days, it seems like many of the biggest breakthroughs revolve around media and cars. And that made me think about Preston Tucker. If you remember the movie, Tucker, with Jeff Bridges, it was a cool biopic about the guy whose revolutionary eponymous car got “big-footed” by the major automakers. It featured innovations like disk brakes, a padded dashboard, and a pop-out windshield. Rightfully so, Tucker proclaimed it as “The car of tomorrow…today.”
Last week, Tucker might have been pleased with two of the big “digital dash” announcements that were made. Both were stunning in their potential scope and impact.
First, Ford and Spotify announced a partnership that once again broadens the consumer’s ability to entertain herself musically. Using the same AppLink technology that we’re working on with Ford at our jacAPPS division, this is Spotify’s first entry into the in-car integrated world. And because of Spotify’s popularity with younger demographics, this has to be another example of Ford successfully and aggressively courting Millennials. And AppLink is available in new Fords representing a wide variety of models – including the Fusion, Fiesta, Mustang and many others.
Then General Motors shook up the auto (and media) world with its AT&T partnership to offer Wi-Fi in vehicles, starting with 2014 models. So 4G LTE in most Chevys, Buicks, Cadillacs, and GMCs – a definite game changer, and one where you’d expect other automakers to follow.
What do these announcements mean to other media brands that depend on the car for their sustenance, like satellite radio, for example? What kind of impact does Spotify in cars or Wi-Fi in trucks mean to a subscription radio service?
And for broadcast radio, more questions continue to arise as well. Instead of spending millions researching “format holes” and burned out recurrents, isn’t it time to start considering what it is that AM/FM radio can uniquely provide to on-the-road consumers?
As the thought-leader Clayton Christensen asks, “What jobs are consumers hiring broadcast radio to do?” And how will those “jobs to do” change once there’s a virtually unlimited menu of options in that next Fusion or Impala?
Most broadcasters haven’t had to answer that question for decades, because it was always obvious. We all just inherently knew what radio was hired for in cars.
Until now.
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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Is anyone in radio thinking that far ahead? Given the number of choices that will soon be as accessible in cars as AM/FM radio, its pretty clear that radio companies will have to offer other things to consumers than their terrestrial streams to stay competitive with listeners and advertisers.
Right now, for all of their accessibility and alliances, the Spotifys and Pandoras of the world are headed for “more time with their families” without a true sea change in performance royalties. It could be a case of suppose they gave a digital media dash and nobody came?
This is a huge issue that no one seems to be applying the resources or strategy necessary to fix. What little is being done is almost worse than nothing – in that it gets media play and gives the impression that things are moving when in fact its window dressing that skirts around rather than address the biggest issues.
Terrestrial radio is the only player with the resources and clout to move the needle. Lets hope they apply them soon!
You are correct about the oncoming collision for Spotify and Pandora as performance royalties get more and more onerous as their audiences grow. Meanwhile, I have likened broadcast radio and the car as peanut butter & jelly. There’s a great traditional, symbiotic relationship that radio can build on.
But as you point out, it’s an awareness issue. Jacobs Media is dedicated to making this top-of-mind for the radio industry this year, and we’ve already spoken at a number of conventions and conferences on the topic, with more to come.
It’s a big deal, and too many broadcasters don’t drive a vehicle equipped with these systems. Given the fervor of the auto industry and their excitement about the “digital dash,” the rollout is going to be faster than we think
Thanks again, Bob, for lending your thoughts.
This is a critically important and inevitable trend. Certainly within 10 year horizon, and likely 5. It could be a massive opportunity for broadcasters, who have the relationships with advertisers who will reach those in car consumers with new forms of audio advertising. It could be an opportunity that enables broadcasters to even shift their respective market shares because it is about brand/content and sales execution vs. tower ownership.
However, that is the optimist view (challenges are opportunities!). The pessimist view should put fear of God into traditional broadcasters. For broadcasters who do not shift to prepare for the new dashboard, this is an Extinction Level threat in my opinion. (you have less than 5 years because winners will be determined before scale fully shifts).
The trends are clear, and the market (consumers) will dictate winners. The cars will be connected.
Mike, thanks for the insightful comment. It is critical that radio does not take a “wait & see” attitude toward the digital dash, but instead proactively attacks this challenge – on both the content and revenue fronts.
Very much appreciate you taking the time to weigh in this important issue.
Today Radio Ink reported at their Convergence conference that one of the major automakers is already developing a car without an AM/FM radio at all, focusing on connected apps. It is reported elsewhere that other car models will still include AM/FM radios but reduce the number of presets allocated to radio and increase the number allocated to apps.
I agree, radio cannot afford to ignore these signals. These fundamental changes to car design will create significant disruption, but there is still time to put the investment in to migrate station brands to new channels. There are third-party platforms (like Jelli, JacApps) available to start immediately, for broadcasters of any size.
Mike, as Toyota’s Wayne Powell told me at a connected car conference in Detroit last fall when I asked him whether carmakers would always include AM/FM radios, he said, “Always is a long time.”
Radio no longer has an entitlement to cars. We have to earn our place. Thanks for the comment.
First, I have two robots currently cleaning my home.
The way that predictions about the future have become technological reality and how and why the implementation has differ from prediction is even more illuminating than the assumption that flying cars and robots were a failed prediction.
My robots are tiny little things only capable of threaten to leave smudges on ones ankle should a fit of pique or an evil over lord so motivate them.
The the top 20% of US population will happily flaunt their 80% of the wealth with a Terrafugia flying car, cost $279,000 each and already 100 pre-orders.
Robert, you have got to invite me over for dinner!
Thanks for chiming in.