HD Radio = Bad Engineering

And that's where this story begins. Add that to the fact that HD Radio does not fulfill a [consumer] need or solve a real problem [for consumers] and now we are witnessing a technology struggling to find a reason to exist.

Can it be saved? Maybe, but I think the odds are long.

Two things that might have made a difference:

1. A different interface. Instead of frequency extension i.e. 102.1-2 the IBOC system should have been marketed as a NEW band with new channel numbers. AM, FM, and the new DM (digital modulation). Even those under 25 might have been intrigued to sample this new DM radio broadcasting. This still doesn't address the signal issues related to low power and topography.
   
2. New, original, and unique programming that is not solely dependent on music programming. Music channels are cheap and easy. Entertainment programming is expensive and certainly not easy.
   

Can these issues be addressed now? Seems to me that it might be too late on the engineering side of things and it's never to late to produce great programming.

Let me share with you a great column I read written by Brad Burnham on the Union Square Ventures website (a venture capital firm in NYC). It is talking about computer technology and its applications, but I think the article applies nicely to HD-R. Read the entire piece here.

In the old days, electrical engineers focused on getting computers to work not on getting people to engage with the systems built on top of those computers. The folks that built enterprise software were vaguely aware that their systems had to be accessible to the humans that used them but they had a huge advantage. The people who used them did so as part of their job, they were trained to use them and fired if they could not figure them out.

Today, no one tells you to use Facebook. There are no employer sponsored training sessions on the use of del.icio.us. The burden is on the designer of the system to meet a need, entertain, or inform their users. They also have to seduce those users, hiding complexity, revealing one layer at time, always enticing, never intimidating, until the user one day finds they are intimately familiar with power and the pleasures of the service.

Designing a system that does that is not an electrical engineering problem. It is a social engineering problem. The best social engineers are working today on consumer facing web services. They understand that there is enormous potential leverage in those services. The creators of these services recognize that services like theirs will ultimately disrupt the economics of many, if not most, parts of the global economy in much the same way that Craigslist collapsed the multi-billion dollar classified industry into a fabulously profitable multi-million dollar web service.

Starbucks Brand Watered Down?

Recently Starbucks announced is was shuttering 600 under-performing locations to try to get their sagging balance sheet back in order. The premium coffee brand is feeling the heat from investors and customers alike.

Not only are things not going so well for Starbucks, but there are people who are rooting for their downfall. How could this be happening to Starbucks--arguably one of the hippest, coolest, well respected brands ever? Was it the rapid growth, the soft economy, new competition, product issues, or the natural cycle for what amounts to a casual dining restaurant brand?

A recent Reuters article on the subject illustrates how consumer sentiment has turned on the coffee giant. Here are a few quotes:

• "I'm so happy. I'm so not a Starbucks person," said Melinda Vigliotti, sipping iced coffee at the Irving Farm Coffee House in New York. "I believe in supporting small businesses. Starbucks, bye-bye."
• "Amen," chimed in Keith DiLauro, a local caterer. "They went too big, too fast."
• "Starbucks was a cool brand, and then all of a sudden it's not a cool brand," he said. "There's this new global consciousness that is out there that can suddenly shift."
• Indeed, said Pye Parson, who hails from Seattle and works at Birmingham's Crestwood, "Once it went corporate, it wasn't Starbucks anymore."
• "The people that work there are very pleasant, but the stores are devoid of any kind of real charm or personality," he said. "They push a button, and a machine does everything from grinding the beans to brewing the drink."

They found some positives comments too:

• "It's convenient," said Anthony Castro, sitting in a Starbucks near his job at New York's Museum of Modern Art. "I know what to expect."
• In Birmingham, Crestwood regular Gary Adkins said he felt Starbucks gave employees good salaries and benefits. But now Starbucks' plans call for cutting up to 12,000 full- and part-time positions.
• Not everyone felt strongly. "It's just coffee," said Marc Poulin, a systems administrator at Zibetto Espresso Bar in New York. "If I was an investor, I'd care."

Here's the link to the complete article.

I couldn't help but think as I was reading this story that radio station call letters or companies could be substituted for "Starbucks" and we would not be too surprised. Let's face it, if Starbucks can fall out of favor so can radio. This quote is worth repeating:

• "The people that work there are very pleasant, but the stores are devoid of any kind of real charm or personality," he said. "They push a button, and a machine does everything from grinding the beans to brewing the drink."

Now, let's change it up a little:

• The DJ's are very pleasant but are devoid of any kind of real charm or personality. They push a button and the computer does everything.

The good news is that radio stations and their on-line stablemates are living and breathing entities that start every day with the opportunity to deliver content that was better than what was on yesterday. Or we can be just another provider of audio entertainment in a sea of audio entertainment providers.

What's better about your radio station today?

Consumer 2.0

There's no shortage of advice on how to reach young consumers and a recently released report from Mr Youth and Rep Nation boil it down to this Top 5:

(click on the image and it will open a larger and easier to read picture)

These findings have implications and offer opportunities for both the programming and sales sides of our business.

Our challenge: radio, by its very nature is a mass appeal entity. Our entire system is built upon a platform of gathering as many listeners to our frequencies as possible and enticing them to listen for as long as possible. Therein lies the great paradox for broadcasters. How can we be personal, hyper-niched, and be a flexible brand all wrapped up in a singular mass-appeal broadcast signal? That is where our live interactions (on-air and in your communities), our websites, social networking, and mobile strategies come into play.

Some things for you to ask yourself:

• Do you and your staff have a clear understanding of what your brand means to your listeners; and is it strong enough as the power of the brand (all brands, not just radio) erode?
• Are your outward messages, across all your platforms, real and genuine?
• When was the last time you used your real listeners to endorse your radio station?
• What do your messages communicate to your listeners; and do you say anything that won't be filtered out?
• Are you enabling your listeners to create their own content?
• Have you planted the seeds for your listeners to form an active community centered around your station?

More and more, these are the type of conversations I have with clients and perspective clients. These discussions tend to be ongoing since things are moving very fast and not much is static for very long.

Share this list with your co-workers and then add to it. I would not be surprised if you came up with 3 or 4 times the number of questions worthy of asking.

I found this report thought provoking. If you would like to read the entire presentation simply click here.