“We, like HBO, are advertising free. That remains a deep part of our brand proposition; when you read speculation that we are moving into selling advertising, be confident that this is false. We believe we will have a more valuable business in the long term by staying out of competing for ad revenue and instead entirely focusing on competing for viewer satisfaction.”

Strong words.  And a rare claim by a media entity that will continue to face pressure from new and well-heeled competitors, as well as with the costs of continuing to create competitive programming in a “peak content” environment.

On this blog, we have discussed the importance of radio stations committing to keeping their words.  And the Netflix story reminded me of KNDD/The End’s “#2MinutePromise.”

The Entercom/Seattle Alternative station is now 5 years into this campaign – or better yet, its pledge of performance.  We highlighted this bold policy change when The End’s team first got the green light from corporate in a post called “Spotless In Seattle.” 

Since essentially cutting its inventory in half, KNDD has emerged as a consistent ratings winner, typically in the rarefied ranking of top 5 25-54 Adults – perhaps the most successful Alternative station in the country.  But its challenge to demand higher rates for its limited but lighter and more valuable commercial load is reminiscent of Netflix’s need to raise its monthly subscription fees, rather than hurt its product with advertiser messages.

Now, the pressure to remain commercial-free will have to be balanced with the ability to retain subscribers, while continuing to demand – and get – higher monthly fees.

For The End, the “#2MinutePromise” has become a highly promotable weapon in its marketing arsenal – a benefit that sets them apart from every other commercial radio station in Seattle.  And Entercom’s strong cluster in Seattle provides KNDD with more insulation than a “stand-alone” like Netflix, dependent on generally one source of revenue – those subscription fees, along with the “side car” of product placement.

As brands are learning in this overcrowded media landscape, there’s an “action-reaction” effect to these types of decisions.

What would happen to KNDD’s ratings (and sales) if it were to break its “#2MinutePromise?”  Chances are, the management team would have to hold their collective breath and hope the strength of the station’s programming – its music, its personalities, its community connection – would be strong enough to overcome the presence of more ads.

In Netflix’s case, perhaps the damage created by adding more commercials is more finite. A recent story in AdAge by Garett Sloane – “Netflix Pledges To Remain Ad-Free Even As Subscriptions Slips” – suggests the carnage would be considerable.

A study by Hub Entertainment Research conducted last year reveals Netflix could lose as much as 23% of its subscriber base by breaking its no-commercials promise.

That’s a stiff price to pay for any brand dabbling in the “What if’s” of adding a little inventory.

It requires research, a strong brand connection, and a cool upper management hand to navigate the roiling waters of media, advertising, content, and distribution.

For radio, more insights into commercial ad modeling and its impact on the product, the ratings, and consumers would be most welcome.  Too often, the demand on programming to “temporarily” add a minute or two in certain dayparts during particular times of the year has intensified.  All this, in an environment where no one knows with any degree of certainty what impact these moves might have.

Two long stopsets at the “bow-ties” might be an effective tactic for maximizing meters, but it could be the worst strategy possible in the quest to please an increasingly fickle audience looking for an optimal radio experience.

I do know this – when we look across our Techsurveys – we do three of them every year, for commercial, public, and Christian radio – it’s not difficult to analyze the radio stations with the strongest recommendation scores.  You might assign listener loyalty and satisfaction to many different attributes.  And you wouldn’t be wrong.  But the one feature public and Christian radio stations have is a much more limited commercial load.  That seems apparent in the chart below.

Don’t touch that dial.