As readers of this blog know, we are headquartered here in Detroit, so we have a unique perspective on the role of the automobile in people’s lives. And over the past few years, the pros and cons of the Motor City’s top product have intensified.
It’s been a rollercoaster as the auto companies started to suffer in the ‘70s and ‘80s, and then again when it hit the fan just a few short years ago. Ford avoided the embarrassment of a government bailout, but for GM and Chrysler, it was a gut-wrenching experience.
As we know now, the American automakers have made a major comeback, spearheaded by Ford and its CEO, Alan Mulally. And in the process, all three companies have gotten smarter, are building better cars, and enjoying a renaissance.
But the parts you don’t see are all the other innovations that have been happening below the surface. Ford and GM, in particular, have done great things in social media. It wasn’t that long ago when the worst thing you could do was try to communicate with an automaker about a problem with your car. Mission impossible, right? Today, they are setting the pace for how global corporations are connecting with customers and fans.
And when it comes to in-vehicle entertainment and information, there’s been incredible progress, too. As we have pointed out in past Jacobs Media Techsurveys, the car is the next challenge for radio. After decades where in-car listening was an uncontested radio entitlement, there is a difficult challenge ahead.
Part of this emanates from consumer enlightenment and the desire for more and better options while on the road. You can see this in our 2011 Techsurvey. One in ten of our core radio listeners says they have a car with a system like Ford’s SYNC. And among this audience, a fifth say they’re listening to less radio.
And that bring us to a conversation that we started back in January after returning from the Consumer Electronics Show in Vegas. Back on January 18 in a post called “The Case For HD Radio,” we wrote the following:
“…at CES, it sure looked to us like HD Radio could be the path in. The avenue into SYNC, Entune, and other systems. When consumer electronics folks think about radio, they think digital. And HD Radio is often the first thing that comes to mind. Some panelists and attendees at CES appeared to be supportive. Others were concerned about a lack of consumer demand and/or broadcaster support.
Instead of thinking about HD Radio as a bunch of side channels, maybe radio needs to think about HD Radio as a potential brand portal – a simple, branded way to bundle together all that broadcast radio has to offer and place it on the dashboard to compete with Pandora and Sirius. Maybe HD Radio is the way to obtain this incredibly valuable shelf space, because I have to tell you, the car of the future (and of today) is going to have fewer pushbuttons and more icons. And “radio” must be one of those icons if it is going to maintain a viable presence in car.”
And now in an open letter to broadcasters, Ford’s Director of Global Electrical & Electronics Systems Engineering, Jim Buczkowski, urges radio executives to get going with digital. Thinking ahead to dashboards that will contain a myriad of options from Slacker to Pandora to satellite radio – not to mention an unlimited array of possibilities available on smartphones – Buczkowski refers to the tyranny of choice that radio will be facing in the not-too-distant future:
“I think it’s going to be a really competitive environment for AM/FM broadcasters. We would like to see them continue to create great experiences that would match what customers can see from other sources.”
Like others at CES, Buczkowski points to HD Radio as the technology that creates these types of experiences in the vehicles that all the automakers are rushing to produce. I know there are heated emotions about HD Radio on both sides of the aisle. And while some will flat-out disagree with Buczkowski and other automakers who point to this digital radio solution, there’s a point reached where it is what it is. In that context, radio may have to adapt to the changing ways that in-car technology is changing or find itself shoved out of another listening location that it once owned. Ford and the other automakers are heading down a path and they’re moving quickly. It is up to broadcast radio to adapt and adjust to the changing reality.
I bought a Ford Edge last winter, and when I’m driving and using SYNC, the options are tremendous. And while the system can be complicated at times, it is not difficult to see where it’s going. Hands-free, seamless, and lots of options. Traditional broadcasters are going to have to earn their digital stripes every day on a battlefield where it was traditionally handed to them.
Buczkowski is doing radio a favor. He’s providing the industry with a window into the thinking of global auto manufacturers. We should take the time to carefully consider what is in front of us.
There are many great talkers in broadcast radio. Hopefully, there are still a few good listeners.
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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Delivery systems don’t matter anymore. The dashboard is quickly becoming delivery format agnostic. The head end unit on be most cars now switches seamlessly between AM-FM, Satellite, Aux input and Bluetooth audio. There are only four wireless providers now and possibly soon there will be three. The next step will be chips that support all of them in the same head end, so streaming will added to the mix – and be just as easy to access as AM-FM.
So its about content. HD radio only matters if it can compete with the other content on its own. At the moment, HD radio is not only a content black hole, its reception is quite inferior to all of the other delivery systems. Everything will be delivered online eventually, so maybe radio should skip HD radio and figure out how to thrive in that environment.
Hey – nothin sez buggy whip like HD radio!
It always has been about content, Bob, and you’ll get no argument from a content guy. But we do need presence and a fair chance to be an in-car choice. Thanks for the thoughts.
Bob,
I absolutely agree with you concerning the many pitfalls of the HD Radio kludge. What more does it offer? Well, analog FM has tagging and RDS displays, too. So, HD Radio offers “Artist Experience” (in many cases it is simply not implemented), which most drivers won’t even care about.
Concerning that “open letter”, the Ford exec failed to disclose that Ford is an investor in iBiquity, as he was pleading for more stations to implement HD:
“Ford Begs Broadcasters to Install HD Radio”
“One thing that seems to be missing from the open letter, something mildly important called: disclosure. According to iBiquity’s own website, Ford Motor Company is an investor in the technology. I hate to keep beating a dead horse, but for as long as the iBiquity crew continues to spout disingenuous b*llsh*t about their failed technology, I’ll keep posting about it.”
https://www.engineeringradio.us/blog/2011/09/ford-begs-broadcasters-please-install-our-wonderful-hd-radio-product/
I dropped satellite radio when Howard went to three shows a week so I am back as a listener to terrestrial radio. Just yesterday I caught myself listening to an AM signal full of static just so I could hear Colin Cowherd. It’s not the signal…it’s the content. The best content always cuts through
That’s been the theme of many of the comments we’ve received here and on Twitter. Thanks, Danny.
Not to beat the dead horse, but as you say – content makes the difference, and content is what will get listeners seeking you out, in spite of less than great signal strength (remember WABX-Detroit in the late 60’s, crappiest signal on the dial but people put up with it, same as Danny Czekalinski’s comment on AM radio above). I too just got a Ford Sync vehicle with HD Radio. First off it’s impossible to know what is out there unless you just pick your way around (improbable sites on HD FM that re-broadcast AM stations!) – time suck big time, secondarily there are no where enough pre-sets available to accommodate all your preferences. All that said, now that there is enough room out there for choices, would it not be possible for programmers to put quality of content out there as a consideration? It seems that the time for Niche Programming (a satellite radio alt, no subscription) was never better, but remember to make it possible for that the people you want to reach actually are able to find you.
It will indeed come down to quality of content. Thanks for taking the time to remind us, especially from your perch as someone who’s been on the advertising side of the street. Appreciate you chiming in, Jim.