The fireworks started on Friday as Radio Ink’s Eric Rhoads ran a controversial blog post and emailed it to his database – “A Cold, Harsh Reality For Radio.” It’s all about the “connected car” and Eric’s “intervention” at last week’s Convergence panel that dealt head-on with this issue. Below, I’ve linked Eric’s post, and then followed it up with my response.
I heard from many broadcasters after Eric’s post went live – from big commercial radio owners, public radio broadcasters, and small market operators who are concerned about where this conversation is headed. This is an important issue for radio and one that JacoBLOG readers and jacAPPS and Jacobs Media clients have heard a lot about over the past two years as have tried to raise awareness and add perspective.
We’re glad it is on the “radar screen,” but we also want to be sure the industry – YOU – understands what’s at stake here and why it is critical that radio charts a smart path down the automotive infotainment highway. Please read both of our “takes” on this issue and respond accordingly. – FJ
Read Eric’s post here.
And my response:
Eric, you must have had a Venti Bold from Starbucks Friday morning.
I applaud you for raising an issue that Jacobs Media has emphasized for the past two years – the “connected car” – starting with our annual treks to the Consumer Electronics Show.
First, this issue may have actually gotten rolling at Convergence back in 2012. I was honored to be on that “digital dashboard” panel, also moderated by Buzz Knight, because it helped put this issue on the map. Since then, other conferences have picked up the torch and are paying attention to the “connected car” and radio’s place in the “center stack.”
Second, Jacobs Media has been collecting video interviews from automotive specialists for two years at CES and other industry conventions with the goal of educating the radio industry about the stakes involved. I have even joined the Society of Automotive Engineers and have attended their conferences – one of the benefits of living in Detroit.
We have updated versions of our “digital dash” videos that will be shown at the NAB Convention in Las Vegas later this spring, and at state broadcaster conventions around the country. Many saw the initial series at the Arbitron Client Conference back in December, thanks to Dr. Ed Cohen.
In every one of these interviews, we have asked automotive execs the same questions – what type of research are the automotive companies doing, how are content decisions being made, and where is AM/FM’s place in the dashboard of the future.
Third, we are working closely with Valerie Shuman of the Connected Vehicle Trade Association. She was a panelist in two of your Convergence sessions last week, including the one in which you intervened. Valerie is a thoughtful, rational voice in the automotive wilderness. She knows this space inside and out, and understands the context of how radio can play an even greater role in the “digital dash” story to come. The industry would do well to listen to her because she brings much-needed perspective and experience in a “non-partisan” way.
Fourth, your suggestion for stations to partner with providers like iHeartRadio and TuneIn are well-intentioned, but so is the need for brands that have their own apps to earn their place in the “center stack.” As you know, jacAPPS’ partnership with Ford allows any station or personality the opportunity to adapt their apps to be compatible with the voice commands and feature sets of Ford’s SYNC AppLink system – a great opportunity for individual local radio brands to ensure their place on the “digital dashboard.” Greater Media went first, and now other broadcasters are joining in, ensuring their place in the hottest new Ford vehicles.
Your “take” on the extreme urgency of this situation, however, is overstated. I have personally interviewed many of these engineers, executives, and marketers from the major car companies. Yes, they are evaluating the content and options that are available to consumers via research – market research, speaking with dealers, and other information they gather.
Based on all our involvement with the automotive industry on this issue, we don’t see an agenda or conspiracy to eliminate AM/FM radios from the cars and trucks of the future. But the automakers will also tell you that they are on a quest to provide consumers with great infotainment options in a safe environment. That’s where radio must play a role – ensuring that its content, its offerings, and its personalities are relevant, entertaining, and essential in today’s ever-expanding infotainment offerings.
If you had been at CES a couple months back at the big Ford press conference that included the jacAPPS announcement, you would have seen a global auto company excited about broadcast radio. The entire Ford team showcased several Greater Media stations – AM and FM – in a presentation that included several thumbs-up references to the power of LOCAL broadcast brands, their talent, and everything that makes hometown radio great and valued in the car.
Since the days of the Corvettes, DeSotos, and El Dorados, radio and the car have had a special relationship. But radio’s entitlement to dominance in the dashboard is now being tested. Can radio owners, managers, and programmers craft programming offerings that differentiate themselves from the myriad options that consumers will find on the “digital dash?”
As the thought-leader Clayton Christensen might ask, “What job are consumers hiring broadcast radio to do in cars and trucks?” This “jobs to do” orientation is at the epicenter of radio coming to grips with what it provides to consumers via the auto industry.
Does this mean cutting back on voicetracking, re-emphasizing live and local real-time programs, and proprietary personalities and hosts that consumers cannot get anywhere else? What kinds of unique local experiences can radio provide that will resonate with both consumers and auto dealers? These are questions the radio industry needs to ask of itself.
When the auto companies ask their questions – in consumer market research studies and in dealership questionnaires – it is essential that they hear positive reports about the value of broadcast radio in their vehicle infotainment systems. There is no initiative to remove AM/FM radio from these “center stacks,” but this is an area where broadcasters have the ability to control their destinies by producing content that matters. This is radio’s game to lose.
This issue goes beyond hardware, technology, and systems like SYNC, CUE, Entune, and the others. It goes right to the heart of radio’s purpose and mission, and it is something that is bigger than any station, cluster, or company. This is an industry challenge best addressed by the biggest players – the RAB and NAB.
It also means that radio needs to recognize that its storied partnership with the auto industry is changing. It now requires presence at important gatherings like CES, as well as attendance and participation at local and regional auto shows as they make their way around the country. And it also means interfacing with car dealerships – not just showing them rankers and asking them for the buy, but listening to these local automotive enterprises, and better understanding their needs, priorities, and goals.
The automobile industry is essential to radio for the revenue it generates and because the car is the most important listening location. Radio needs to protect and grow both of these areas, and it won’t do so without re-thinking its approach. But I fully expect that my next car . . . and the one after that will allow me to listen to broadcast radio wherever I go. The challenge is that my next car will also allow me to listen to an infinite number audio streams and apps, as well as services like Pandora, and Sirius much easier than ever.
That’s what broadcasters should be thinking about – how do we make radio essential in light of all of this competition? That’s something to think about whether you’re considering cars – or workplaces, homes, schools, and all the other places where consumers entertain and inform themselves with audio.
Eric, take a deep breath and chill. Your concern is understandable, and you are an unabashed friend of radio. You are correct that this issue needs to be front and center on radio’s radar screen, and we applaud you in your efforts at Convergence and in your blog to make it even more of a “conversation piece.”
But we also need to heed the words of the legendary coach, John Wooden, who urged his players to “Be quick, but don’t hurry.”
Radio needs to get the story straight, conduct some research, do some listening, make a plan, and get it done. This is not the time to panic, but to get real and get serious about the future.
This is a challenge, but it is also an opportunity.
Let’s drive.
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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Notice at the end how Eric plugs HD Radio – “if automakers eliminate AM/FM then stations may be forced to ‘upgrade’ to HD Radio.” It seemed a bit scripted.
Greg, thanks for commenting. I think this issue goes well beyond HD Radio. Appreciate you taking the time.
The article prompted this response from General Motors Chief Infotainment Officer Phil Abram:
Dear Mr. Rhoads:
Your March 8 article “A Cold, Harsh Reality For Radio” came as a surprise to me and the Global Connected Consumer team at General Motors. We are responsible for setting the strategy for infotainment systems across GM. While we are excited about the possibilities of Internet radio services and other emerging services, we understand that AM/FM radio is still a significant source of news and entertainment. In fact, it is an expected feature.
We can’t speak for other automakers, but to be clear, GM has no near term plans to eliminate AM and FM from GM vehicles. We are committed to providing consumers innovative services that dramatically enhance the driving and riding experience. We expect AM/FM radio to be one of the choices consumers have in our vehicles.
We know consumers want to be safely connected in their cars, and we’re enabling it with world-class infotainment platforms, telematics systems and safety services. I invite you to visit our facilities to check out our latest developments.
Sincerely,
Phil Abram
Chief Infotainment Officer
General Motors
Eric Rhoads said, “This is great news that GM is willing to step out and state that radio is still critical to their dash. We are reaching out to all the car brands in hopes of getting a simular show of support. Radio listening among youth continues to be strong, according to Abritron and RADAR, and we believe any car company’s removing AM or FM from the dash would be a misguided strategy.”
Thanks, Mike.. Radio Ink also spoke to Ford today – same result.
There may be some confusion over where HD radio lives. What marketers have named HD Radio is simply a digital encoded “channel” which is ensconced within the FM signal and is totally dependent on the FM signal to exist. Without an FM, there is no sub-carrier and therefore the HD Radio signal ceases to exist.
Great response Fred!….and much needed also. The issue should be in the forfront but pushing the panic button is a bit much.
Kathy – exactly. We have to pay attention to this, and not just keep doing the status quo. Radio needs to re-emphasize its value by walking that walk. Thanks for the comment and for reading our blog.
The car dash board is not the only place we need to worry about radio reception. Ever try buying a new radio in a store lately, you can’t find any. I went on a mission to find them in Best Buy, Walmart, Radio Shack and more. If you are lucky you might come across a bad clock radio with bad audio and limited tuning… but you can “dock” your I-phone on it. I finally found an HD radio, just locking into the HD-2 & HD-3 stations is a chore, you have to wait for the main channel to lock in first. How can a new generation of listeners get hooked on broadcast radio, when there’s no easy, good sound quality radios for them to buy? Listening to radio streaming on a computer or cell phone has limited audio quality. Have you ever tried driving around listening to streaming audio, there are constant drop outs due to weak cell signals, etc. Broadcast radio is much better than that. It’s about time we remind both the car industry and radio manufactures and yes the FCC that they need to take us seriously again. Radio needs to gain it’s respect back and stop following the path to self distruction that those big radio companies have been leading us down. Their only motives are to provide a bottom line for their investors and keep their jobs. They can only keep cutting so much before they run out, many now run multi-station groups with only a handful of employees, how can that be good for local broadcasting content?
Al, I know that HD Radio is part of this conversation. But what Eric was talking about goes to the heart of relevancy and consumer demand. The onus is on broadcasters to continue to manufacture products the public values – sounds a lot like what automakers are going through. Thanks for chiming in.
I had the pleasure of interviewing Chris Thomason in January at the North American International Auto Show – chief engineer on the Cadillac ELR (new electric vehicle unveiled at NAIAS) on local radio and it’s future:
“I can’t envision a day when there wouldn’t be that connectivity of a customer and their locale that could be bridged any other way than having that outlet and opportunity. The personalities that you become familiar with…and just the local nature and insight to what makes the city important to the listener base in that local, I think we’re still there for awhile”
This is the most technologically advanced vehicle in General Motors, and it’s chief engineer believes in the power of local radio.
Stay local people. Build the brand. Be more than a jukebox. I’m going to buy Eric a coney and some fries and tell him to believe (it’s a Detroit thing).
Thanks, Jim. For those of you who don’t know him, Jim O’Brien is a hybrid broadcaster – he’s part of the morning team at WCSX here in Detroit, as well as being a car fan. He has developed relationships with the automakers and many executives over the years, and is very engaged in this space. This quote from Cadillac continues to reinforce the notion that carmakers respect broadcasters. But as Jim points out, radio can’t just sit around and polish the furniture. A rededication to what got radio to the dance in the first place is key.
Hi Fred, As I delve deeper into the reasons and the ways that digital delivery impacts terrestrial radio going forward, I have had to recently pivot my stance a bit on the projected time-frame in which all radio will need to be digitally delivered to consumers. OK, it’s probably not going to be tomorrow. But complacency (stall) that the industry is in opens itself up to a danger of other entities getting into the music content delivery business online. The biggest problem, it seems for everyone to make money with online radio seems to be: 1. the lack applicable human marketing skills, 2. lack of advanced technologies which could enable smarter ways to reach consumers. 3. Cost to do business in the terrestrial realm like maintaining offices/real estate (Stick), staff and /or continued purchases of out-dated services and equipment. Getting all your radio business pointed toward a digital pathway is just good business sense.
It IS good business, but there’s a nasty catch – measurement and monetization. And that’s part of where the hesitation and lack of commitment comes in. If broadcasters have problems generating revenue on digital, and their traditional product continues to work pretty much as usual, there’s a disconnect. That’s a factor in this as well. Thanks for the thoughts and the observations.
The answer to much of the monetization problem is hidden in #2, above. It helps to have radio people actually design the technology because they know the types of metrics the advertiser needs. 🙂
Thanks for tone of optimism infusing what is still a cautionary tale. Too often we are looking at external threats when much of the largest problems are within ourselves.
I should note that in one of my many recent car rentals, I had a more “modern” vehicle with many options on a compact. It was a trip back north and it was a snowy day. I had an early flight. For the life of me, I could not figure out how to get the AM/FM portion of the radio to work. The console informed me that the tuner was turned off. It would not help me turn it on.
But I had my smart phone. And my own GPS. I made it in for the 6:30 am flight. I got most of what I needed and got where I needed to go. Radio would have been nice to have, but I didn’t have to have it.
Which is the whole point, isn’t it? In a media world with many choices, AM/FM is a choice (we hope). If we can’t be competitive without an artificial monopoly, the future will be hazy.
Love the John Wooden quote.
Thanks, Scott. And you raise a great point – it’s just not as EASY to listen to AM/FM radio in many new “connected car” platforms. And there is a much more level playing field when it comes to accessing many options. Radio’s entitlement to in-car dominance IS coming to an end, and that’s a challenge for all of us working in the industry, whether we are employed by commercial or public stations. Appreciate the comment and the story.
“The fault, dear Brutus, is not in our stars. But in ourselves…”
OR “The fault, dear Brutus, is not in our CARS. But in ourselves…”
Thanks, Scott!
Fred,
You are on-course with the need for essential local, live and significant program content, often eliminated in radio budgets since the last century in the name of beating satellite and having more program-available channels.
But the asleep-at-the-wheel radio industry has collectively ripped out the support walls of broadcasting’s audience positioning with redirected tons of cash and deals for out-dated and interference-creating proprietary transmission technology. Our industry,indirectly, through our own introduction of digital interference from within our transmitted content, enabled auto makers to concentrate on more on-board optional devices, previously not-cost effective without the further addition of filters and bypass circuits for protecting the delicate AM and FM receiver ‘front-ends’ necessary to deliver maximum audience contours. These noise-creating automotive optional devices located near the receiver’s antenna connection do the same damage to the digital channels.But we have no historical reference on service contours for digital, nor can we hear the effect as easily because of the 8 seconds of delay in getting the audio response to our ears.
As digital dominated the first 10 years of the new century, we implictly told the CES as long as our precious digital was included, it mattered not the number of ‘special circuits’ cutting into our former AM and FM contours and paving the way for more of those noise-producing features for today’s automotive market.
Now, even as HiDef has been rejected by the public, we have millions of poor-reception pro-HiDef auto receivers and new lowered standards for on-board car interference to AM-FM down to car chargers and wi-fi contributions we must now contend with long after the plug is pulled on much hailed digital machinery.
Jerry, appreciate the comments. But I believe it is a content issue, and it’s a consumer demand issue. The automakers and the dealers need to hear steady demand for and interest in the products WE create. Radio needs to decide why consumers are “hiring” us. This “jobs to do” orientation is at the heart of radio’s challenge.
The issue here is twofold: one is radio’s perception of itself, and the other is what consumers actually look for in content.
The first, radio’s perception of itself, has to do with the marketing campaign that radio has enacted, proclaiming itself to be necessary due to its position as “live and local.” But is that really the case anymore? In many situations, voicetracking and syndication have made that claim moot — simply having a transmitter in a city doesn’t make you local; if that were the case, Sirius XM could proclaim it’s local too because of its ground repeaters (an aspect of its technology that AM/FM radio vehemently protested). Stations can say they’re live and local all they want, but when they’re running syndicated or voicetracked talent and the only thing live and/or local are the spots and occasional local cut-ins, there’s not much local material distinguishing your product from another station hundreds of miles away running the same show. If radio wants to make the case that it’s necessary to the dashboard because it’s live and local, then every station needs to have jocks in-studio 24/7 providing relevant, timely and local content, not just claim or pretend that it is.
The other aspect is whether consumers actually care about having live and local content. Does it matter to a listener that the show they’re listening to is beamed in from hundreds of miles away if it’s good content that they enjoy? Every weekday morning, local TV stations run syndicated morning shows like “Today” or “Good Morning America,” and no one seems to argue that TV stations aren’t “serving their local broadcast base” by airing a show from New York with occasional local traffic/weather/news cut-ins. The content is what matters to viewers. We’re living in a world where content is freely available from a huge number of sources worldwide thanks to the Internet, so people can seek out whatever they want to see or hear the most, making it a top priority for broadcast media to provide quality material, regardless of where it’s from. If radio wants to provide the best content possible in order to draw listeners — and that content happens to be from another market, then radio needs to embrace that and be the conduit for the most engaging content, but not pretend that it’s coming from that particular station’s studios.
Keith, you raise some really strong points here – and I’m not sure that many people in radio have grasped this issue. Is it content, local content, or both? And is it a matter of whether people want one or the other – or is it more of a matter of doing a GREAT job presenting either. You’ve done a great job of framing the issue. Thanks for taking the time.
I saw no overstated panic in Eric’s piece. Complacency leads to reactive activity, urgency and a plan lead to proactive activity. Broadcasters need to be planning now, and not waiting for someone to drop a killer app in their lap to make the world right. The slow development of digital revenue generating services is the case in point.
I appreciate your view and totally rail against complacency and the lack of innovation in radio. But while his intentions are good, we felt his concerns were exagerrated. Thanks for commenting.
There is always “the rest of the story”. Well said. –Giff
There is always an other side, and we will continue to discuss the different points of view on this important issue – especially among those who were in the room at Convergence. Thanks.
Great response, and glad to hear that there is another side to the story, especially when that perspective is rooted in direct contact with some of the folks making these decisions. The larger concern, of course, which I’m sure many (if not most) in the industry would share, is the absolute lack of content on terrestrial radio.
One area which I think is being overlooked, however, is not how atrocious major and large-market stations are (choose your format, insert Seacrest, click ‘go’), but rather how small market radio (you know. all those places without the Whole Foods and Ikeas) is turning into nothing but what are essentially repeaters for the country format from ABC – i mean, Citadel, uh – make that Cumulus Media Networks (the syndicator, not the terrestrial division) – or the AC format from Dial Global. The technology available to us – in fact, the very same technology that is blamed for killing our industry – can and should be used to allow the mom & pop operator in Smalltown, USA to do local automation, if there isn’t a budget for a live jock staff to stick around and answer caller 5 to give away those movie tickets.
Why any operator interested in local engagement would choose to take a canned satellite format instead of buying a 400 dollar CPU, and install one of several good software programs is beyond me. Really? You think that the last song of your hour should be one chosen for time (what do I have in the library that is 2:47 so that I can time out to network news down the network) instead of a song that matters? Seriously?
Our fledgeling company believes that if we can’t spend money to have warm fannies in chairs, what we CAN do is to make sure our imaging is local, that our community events calendar is timely and well-produced, and that we’re providing the local service elements not available on The Blend, or Classic Vinyl, or on the poorly-executed syndicated formats. (And that our music list is correct – I can use the tools available to me and program a better list than some guy in Denver can, and I bet you could too!)
Not only is our ‘farm system’ gone, which leads to mediocre/atrocious jocks on the air in markets they would have been privileged to even walk into a generation ago, but our major markets sound like content-less jukeboxes, and our small markets are just nothing but useless kicker stories about Taylor Swift over intros. Happy (daypart)! It’s (minutes) after the hour – on YOUUUUUUR station. Give me a break.
I certainly hope that Eric is jumping the gun, and that Fred, you are correct, but at the same time, if we don’t shape up our game and stop potting up the damned satellite pots, we’re going to get exactly what we deserve.
Benji, good to hear from you. You raise a lot of important points in your comment. It IS about content and what radio actually provides. Again, think Clayton Christensen – what are people “hiring” radio to do? I strongly believe that Eric has in fact jumped the gun, but radio operators would be wise to view this as something of a wake-up call. Evaluations of media are being made of all platforms and outlets by the auto companies. Broadcast radio needs to “test” well.
Thanks again for taking the time to comment.
Fred — Thanks for being a voice of reason on this topic and contributing to an environment where thoughtful pursuit of radio’s future is needed, not more hysterical ranting its imminent death. Your line “this is radio’s game to lose” sums things up intelligently.
Al, much appreciated. This is an issue that we are very passionate about. But we need to stay calm and approach this challenge as the opportunity that it is. Thanks for taking the time to read our blog and to comment.
Radio doesn’t suffer from the bigger problem here- it’s the Auto Industry. Auto makers are in big trouble with Millenials and they know it. That’s why they’re hiring 31-year-old market analysts to MTV-ize their products.
In general, cars are not that important to this demographic. Younger consumers are more concerned about the environment; gasoline has been cost prohibitive for most of their adult lives; data shows they are more likely to use public transportation and/or drive a parent’s vehicle, and they view a car as more utilitarian than as a luxury item. Moreover, the demographic isn’t well monied. Agonizing under-employment lowers their prospects of buying a new car, not to mention the draconian credit standards they know are nearly impossible to attain.
Whether a car has a radio or a toaster in the dash won’t turn the auto industry around.
Tommy Griffiths
Tommy, you’ve hit on an area that the automakers are addressing, and feel that the “digital dash” – the smartphone connection – may be a way in. That explains why these systems are available on entry-level vehicles, the Ford-Spotify deal, etc. We’ll see if that can motivate a young demographic to start thinking about cars the way we did Thanks for taking the time to comment.
Two thoughts:
1- What is stopping a car manufaturer from including in the console system (which is basically a built-in tablet with some internet/cloud connectivity) from having radio built in? Like, you know, our smartphones. Press a button and you have FM radio. Yes, i know AM suffers on smartphones but it wouldn’t have to be the case in cars since there is space for the antenna. One simple button.
2- The big issue, to me, is do people want radio. Online radio, satellite, podcasts etc thrive and, to an extent exist, because of the absolute suckitude of aerial FM/AM. If what you have is basically a hard drive on shuffle you provide no value to the customer. None. As soon as it is just as easy or easier to listen to somebody else, people leave FM/AM. If you don’t curate, if you don’t have knowledgeable voices, if you lose what was human in that medium… you die.
Thanks for the comment, and I concur that your second point is the one that ultimately broadcasters have to grapple with. It’s a big picture question and it goes to the heart of “Why radio?” Just a couple of decades ago, the answers were obvious, but today’s ultra-competitive marketplace alters the landscape.
Keith Berman’s comments above also speak to determining what consumers want. Do they desire just sheer entertainment with no specific concern about its origins? Or is it truly about a local, curated experience? These are the determinations that broadcasters will need to make.
This current “issue” with the digital dash may be a blessing in that it accelerates this conversation, forcing broadcasters in all markets to grapple with their missions and their uniqueness.
Thanks for the comment, and in the future, can you please identify yourself?
Sorry to be so late on this…
Right now, it doesn’t appear that radio is making the hard choices necessary to prevail on the digital dash. Its true, there is a disconnect between Arbitron numbers and what college kids will tell you about radio listenership. The vast majority of them will say they don’t own a radio unless its in a car, yet Arbitron numbers don’t reflect that. Dumbing down in the face of increased competition that is getting easier to access seems well, dumb.
Media people tend to be ahead of the curve on media. They are jumping the gun if they say there is no interest in having radio in cars. But that could change quickly. Radio should ponder about that as they download the research from 150 miles away and update the babe of the day on their websites.
Hey, Bob, what’s wrong with the “Babe of the Day?”
Seriously, your points are similar to the exchange I had with Juepucta. The dashboard is just one listening location, but in the bigger picture, radio’s need to identify its purpose in this rapidly changing, disruptive environment goes to the heart of the issue. These are difficult issues, but ones in which the industry has to face head on.
Thanks for weighing in.
As someone who isn’t in the business I was intrigued with all this talk about ‘local content’. For the past few years, Cumulus, Clear Channel and others have been on a mission to gut every ounce of ‘local’ from a majority of their stations to squeeze out every penny to pay their massive junk bond level loan payments. While I listen occasionally to public radio (in my area, I can pick up five or six different NPR stations) where ‘local’ is still an ingredient and a Detroit sports talker for my Tigers fix, if AM/FM disappeared from my automobile tomorrow, I wouldn’t shed a tear. Of course, I’ve been a subscriber of XM(and then Sirius XM) since 2003 and would probably listen to Pandora if satellite radio didn’t exist. Worked on our house for several hours last weekend and had The Loft on for the entire time and loved it. There is NO local Ann Arbor/Detroit station I can stomach more than 30 minutes at a pop. There is no daily local newspaper, little ‘local’ content on my over-the-air commercial local station and once there is a ‘choice’ of options in the automobile, don’t be celebrating that AM/FM is still one of many options just yet. Especially when Pandora begins adding a ‘local’ component.
Alan, thanks for the bucket of cold media water. Several of the previous commenters have talked about similar themes. I think there’s more local content on AM/FM radio than you mention, but the point about gutting local content (ie. not paying for it) in order to justify syndicated national hosts and programming is well taken. There’s a point reached – and maybe we’re approaching it or have passed it – where too much “economy of scale” leaves radio without a compass. As I’ve mentioned in past comments, the “jobs to do” orientation of Clay Christensen is something that radio needs to embrace.
The industry could use a great S.W.O.T. exercise, focusing on our strengths, weaknesses, opportunities, and threats. Then, make a plan and implement it. I have the feeling that we might still be able to win back a few quarter-hours from you yet.
Thanks for chiming in.
Great response, though I note one thing people tend to spend little time on here is what appears to be one of the biggest roadblocks to switching to the infotainment package and abandoning radio altogether: Data Bandwith. Most cell phone carriers charge for bandwith and a fully connected dash will require a constant data stream. Is there enough value in online content beyond traditional radio to justify the added cost for most people, either by paying their cell provider or an automotive company for it? Further, one of the reasons Sprint is probably happy to be adding radio to their phones is to actually offload some of their data demand. The explosion of smart phones has put a strain on all of the major carriers data capacity. Imagine adding millions of constantly connected cars to the mix. It’s not just an added cost to the users, but will require a major overhaul of the current infrastructure to support it. And that is to say nothing of the many areas across the country where data is not available. I can’t see subtracting good old terrestrial radio from the dash as attractive to anyone with half a brain and I’m glad you took the fear-mongering head-on. Thank you.
Frank, thanks for taking the time to share those thoughts. No doubt that the convenience and cost of broadcast radio is a major plus. We will not know how the data mess sorts itself out until we’re further down the road.
My suspicion is that the automakers will find a way to package it into various options, much the same way they do other car features. But you raise strong points about broadcast’s ease and convenience.
As more radio reporters asked automakers their questions over the past couple days, the sentiment was consistent that broadcast radio has a solid place in the vehicles they make.
Thanks again.
Perhaps the issue is what kind of panelist Eric is getting at his conference
No sky falling at all. And many of us have been through this mill several times. TV was going to kill us. Cassettes were going to kill us. CDs were going to kill us. Music on cable, mp3s, sattelite, podcasts, iTunes, et al. So far we’re not dead… and it’s probably time we get to work fighting for what we believe in.
All with the understanding that the old monopoly of “finding music/news/entertainment on the radio” has been busted up with other options. That is not a death knell. Cable did not “kill” local TV. But, it changed.
Where Eric and Fred seem to merge is that we ought not wait to change. If the “ballsy announcer reading liner cards” is all we have to showcase – it will matter little if the AM/FM button is on the device.
Thanks, Johnny. As an industry we have work to do, but let’s not panic. What’s needed are cool heads and a strategy. Appreciate you taking the time.