These are the times that truly test some of the core tenets of the media business, and radio is at the epicenter of the debate.
Specifically, the issue of control.
Who controls the music you hear? Who selects it? Who filters it? And how can the music experience get better at a time when it’s great to be a consumer?
All arrows point to the customer being in the driver’s seat – literally – if you attend automotive/telematics conferences – and by all reports, she’s enjoying the ride.
From Pandora to Spotify to iTunes Radio, it’s about creating playlists or songs that are selected by theme (artist, song characteristic, mood) to create a unique music experience. (Remember when “playlist” was a negative word we would never use to refer to our music libraries?)
But at the core of it all is consumer control.
As we have discussed in this blog in recent weeks, radio may own the transmitters and towers, but anyone can now create their own radio station – on their phone, their tablet, or laptop. And they can do so from an infinite reservoir of songs, genres, albums, and performances.
So what does radio bring to the table? And who is really in control?
That’s why the new announcement about controlling music adds by Cumulus sets up an interesting contrast to the direction in which the rest of the music consumption train is moving. Last week, a number of industry trades reported that “adds” for Top 40, Rhythmic, and Hot AC stations owned by Cumulus would now have to be approved by Atlanta, another indication of corporate consolidated control.
To the consumer it may not matter who says thumbs up or thumbs down on music decisions. But another impact of these moves is that it contributes to making radio sound and feel less local, more formulaic, and less reflective of the communities and towns it serves. When radio starts sounding top down, it cedes one of its key attributes. It may be easier to control hundreds or even thousands of stations from a central headquarters, but what is lost in the process?
Whether it’s rampant syndication of personalities, entire formats voicetracked nationally, or music adds coming down from corporate headquarters, the radio industry is making a statement about control. It is suggesting that some companies place a higher priority on consistency and efficiency than on service and reflecting the local ethos.
And at times, it’s reminds me of the opening of Outer Limits, the ultimate statement about who’s got the power and who is on the receiving end:
>EMAIL RECIPIENTS: CLICK HERE TO WATCH OUTER LIMITS INTRO VIDEO<
It somehow seems counter intuitive to the growing trend that as consumers gain more control over the music they listen to and love, radio continues to move in the opposite direction, attempting to control the entire music experience. By removing the things about local radio that make it different and connected to local communities, a unique attribute of radio is lost, brand loyalty erodes, and consumers will simply stop caring.
I don’t know about you, but in the past decade, I’ve seen fewer station bumperstickers and logoware wherever I go. People are less willing to display their favorite stations on their cars or their bodies. I realize this is anecdotal and non-quantitative, but it matters. Radio stations used to be reflections of who we are and what we liked. Homogenizing them only serves to neutralize and corrode brand equity and fan interest.
We have discussed the issue that the proliferation of all these streaming music services may only end up confusing consumers by creating a decision stress situation. iTunes Radio shouldn’t scare us. Losing our sense of purpose as radio stations should.
How does the consumer know which pure play service is right when there are so many? And doesn’t a true alternative to all these pure plays – broadcast radio – stand a strong chance of thriving in this environment?
Earlier in the year, I interviewed Walter Naeslund, the head of Swedish ad agency Honesty. We talked about radio’s place in the new digital ecosphere, and he put it this way:
“The era where limited frequency space provided barriers of entry is coming to an end. Make the most of the time you have left to build really strong brands and addictive content and you’ll have a better chance of bringing your listeners with you into the open infrastructure era where content and brand will be your only assets.”
Control – who has it and who’s losing it?
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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I have the same conversation with Doug Erickson all the time. If so many people see radio’s problem – a large part you articulated here – why is nothing being done about it? could it be because with all the PPM paranoia that exists stations still get 3 and 4 shares and still make money? Sure, money is flowing to digital and radio is not hip to anyone…but it still exists. You are spot on about local, emotional, bonding, etc-but where are the leaders in this field? Sadly, the Cumulus situation is another example of the one-size-fits-all mentality that pervades the medium. Who will be the real leader moving radio forward?
Steve, it’s frustrating because it’s not a matter of seeing where the puck is going. It’s there – it’s moved – and consumers are speaking with their computers, phones, and tablets. That doesn’t mean that radio is finished. In fact as we’ve talked about in this blog (a lot lately), the proliferation of similar custom music services would seem to even deepen the opportunity for a traditional medium that takes a more local, personalized approach.
Granted there are economic considerations that are, at times, formidable in a changing ad environment. But it comes down to whether corporate planning is for next month/next quarter or for a longer haul. When you watch Amazon, Google, and other new media companies, they’re playing a long game. And it has paid off for them.
Radio needs a reboot. The basic components – simplicity, familiarity, brands, service, history – are all in place. Companies need to pursue this new/old model and make it work…again.
Thanks for taking the time to comment, Steve.
Another problem I see is keeping the young people who want to work in radio sticking around. After someone in their lower 20’s has an internship and gets hired part-time, they won’t be happy making $25-30k/year for the rest of their life. When the free concert ticket fun wears off and the reality that their job is no more than a computer babysitter becomes reality … how are we going to keep young radio people in the work force?
Eric, we addressed the “youth problem” last week in our “Now Firing” post. It is intertwined with this control issue because broadcasters no longer operate in a bubble that no one else can see. Advertisers, the audience, and communities can clearly see what companies are doing and how they operate. Thanks for taking the time to comment, Eric.
Ah! Just read it. Thanks Fred! Totally agree. Radio can be exciting. I just hope that the older generation of radio execs and programmers will embrace the creative ideas of Gen-Y. If you’re young and working somewhere that you have A) No control over anything creatively and B) Don’t make any money … I don’t think most Gen-Y’s are going to stick around.
Are industry leaders not reading thoughtful posts like this written by progressive radio minds or are they just in denial? Do they think they have a better idea about radio’s future? That efficiency, streamlining and homogenizing radio is somehow the long term answer. Time marches on and young creative minds in “pure play” media companies are sitting in meetings today figuring out new exciting ways to bring customize music to consumers…..while radio companies are spending their day figuring out ways to cut costs, streamline operatons and create a national programming network. It seems to me the only real advantage radio has today (because of it’s still large listening audience) is its ability to screen the massive amount of music that is produced and to make “hit” music so consumers don’t have to. When pure plays figure out a way to do that, music fans won’t need terrestrial radio.
Ric, I appreciate the thoughts. It is challenging to manage the present and future of broadcasting, so I have a certain amount of true empathy for those tasked with these jobs at this challenging times. Making it work short-term is a mega-challenge, and that’s why the long haul is often like kicking the can down the road.
Radio also has simplicity, familiarity, and other key assets. But broadcasters will need to marshal them in ways that provide a renewed sense of value to the changing habits of consumers. Why radio? Our Techsurvey has shed the light on part of this question these past two years – radio can bring a sense of emotional fulfillment to the table, but that requires talent, focus, and not going through the motions. It is a much tougher putt today than at any other time.
Thanks for providing some perspective and asking good questions.
Mr. Naesland is spot on. Unfortunately, he’s not the one at the top of the radio industry food chain making the decisions. We all know why great insights like those found in this post never truly get legs: money. It’s just cheaper and better for the bottom line (short-term) to do it the way the industry is currently doing it.
Walter may not be one of radio’s leaders, his role as an advertising exec should not be lost on any of us. He has a great POV on this, which is why I included his quote. Thanks, Mike, and here’s hoping the message gets through.
Fred,
Nice blog today…and once again, you’ve made me shake my head(that’s a SHAKE as opposed to a NOD).
Radio is soooooo missing the boat on social interaction. Especially on the MUSIC end. We’re NOT using Facebook & Twitter enough, to encourage “instant” music requests. Or how about the “bluetooth” 5 O’Clock block? TV’s done a great job with this(see Jimmy Fallon).
If you’re a MUSIC intensive station, social media has opened up a whole new WORLD of ways to present the music. But ARE WE taking advantage? Or just being paranoid of PPM?
Thanks, JC. Social is a big part of the changing nature of the relationship between consumers and the digital infotainment industry – and it opens up that transparency issue that speaks to the nature of control. Appreciate you taking the time.
Are listeners less willing to wear station logos and display bumper stickers or are stations less willing to budget those items? Each begets the other.
Ed, it’s a chicken-egg thing, for sure. I have often wondered why at a time when radio is doing so little marketing that letting consumers take that message out has been eliminated. It would be an interesting experiment – have companies support a key station in each cluster with these branding materials and take stock of the results in a year. Thanks for raising an important point, and reading our blog.
Branding materials, research, local talent, marketing, contests – radio should test the impact of all of them in small, medium and large markets in all all formats. There’s a point of maximum ROI for each – but no one in radio has any idea what that is – because no real test with control groups has ever been done. Is is more silly or sad?
The funniest part is that the COO of the company has to approve each add. Imagine the smirks that you’d get if you told 10 COOs of Cumulus sized companies (in other sectors) that a local station couldn’t put Daft Punk in light rotation without someone at their level approving it!
The sad thing is that this isn’t even really news. At many large radio companies, you can’t so much as add a link to your station’s website without corporate approval. At one of the biggest radio companies, they won’t add ANYTHING unless they put it on EVERY station in the company. How many PDs can source and implement their own imaging without someone at corporate giving their approval?
Radio seems to be hell bent on pounding nails into its “advantage over other media” coffin. Do they think that their local programming and Digital people are fools, or that they are just uber-smart?
My guess is that the people making these decisions just aren’t fluent with the devices people use for entertainment, what’s available on them and how easy they are to access. If they were and still wanted to centralize decisions like adds, then if nothing else, they would verify that they aren’t as smart as they think they are.
I also wonder why the top analysts don’t confront the companies on their regular conference calls they follow with obvious contradictions. How can they (analysts) be so clueless as to the importance of the product side of the equation and how virtually no other similarly sized industry centralizes decisions in the way that radio does? It would be one thing if radio was building its audience in the face of growing competition, but it isn’t.
At some point they’ll have to horse down to one grain of oats and it will die. Brackets anyone?
Yes, you wonder why high-ranking corporate execs would be monkeying with issues like weekly adds. Even Steve Jobs delegated once the key design elements were established and set. The industry needs to start applying strategic thinking to its content – and that doesn’t mean what it takes to beat the station down the dial. The industry needs to start taking a wider view of the competitive arena while it’s still a horse race. Thanks, Bob.
What are the Program Directors at these stations really “Directing” anymore?
“Jock” schedules and Ticket giveaway promos?
Where will the Programming Jedi go to ply their craft?
https://jacobsmedia.com/2013/06/12/what-me-worry/
Pure Plays have already reached out and hired a great many talented sales people from radio.
Programming/Creative talent is next. It’s ripe for the picking.
Jeff, I have often asked myself that same question. In these situations, what are program directors programming? Perhaps this goes to the core issue of growing today and tomorrow’s PDs. But it also begs the question of why companies that trust their programmers and provide them with the latitude to make decisions aren’t exploiting that advantage. Assuming you’re a PD who values the ability to program, where you’re rather work would be implicit. Thanks for the comment.
Fred –
As usual thanks for leading the discussion and sharing your platform. Bob Lefsetz wrote about radio today and everyone in radio needs to read it…he has 20 points and here’s one of them.
18. If you want to gain the most eyeballs, you must be controversial, tweet-worthy. If I can listen to your station and have no opinion, not hate or love your deejays or hate or love your music, if you give me nothing to talk about other than the same damn thing, then I’m not gonna talk about it, I’m not gonna bring new people in, you’re going to be living in an echo chamber.
https://lefsetz.com/wordpress/index.php/archives/2013/06/12/radio-3/
Mike, thanks. Bob is always worth the read. Here’s my favorite from his list:
7. Most people under age twenty have never experienced good radio. So when baby boomers and Gen X’ers start waxing rhapsodically about their old time favorites, wanting them to come back, it’s the equivalent of wishing that music videos would come back to MTV. Music videos are now an on demand item. No one is going to sit and wait for their favorite. And this is the same challenge facing all radio outlets, from terrestrial to satellite to Pandora to… They’re all based on an old model. Which is you’ll sit through what you don’t like to hear what you do, paying for the experience, whether with cash or by listening to ads. At this point, ads on Pandora are limited. But it’s the ads that will kill terrestrial…