The New FM

Many have talked about HD Radio being in the same spot FM radio was in the late 60's--still early, with the potential for exponential growth coming. Sadly, this is very far from an accurate comparison. In truth, for reasons you've read and heard a thousand times, HD is miles behind in a race that it is not likely to win. From weak programming to signal and interference issues to very few radios sold this venture is a "tough putt."

However, a real growth story is beginning to develop--[streaming] on-line. I can't say I'm surprised to hear that in PPM markets New York, LA, and Chicago a growing cume story is emerging. Inside Radio had that story this morning:

Streaming makes a bigger showing in PPM ratings. Stations meeting minimum reporting standards for online listening more than tripled last month, as 11 stations in the first 13 PPM markets had enough listening to “make the book.” The webcast of New York AC “Lite FM” WLTW had a 0.6 cume rating while sister CHR “Z-100” WHTZ reached a 0.7. Both stations did better in suburban embedded markets, even topping a 1.0. In Los Angeles AC KOST and modern rock KROQ both had a 0.5 cume rating. Chicago’s WLS hit a 0.6 — with a big spike in online listening during Rush Limbaugh’s show. Arbitron SVP Bill Rose says while online listening remains primarily an at-work medium, it is proving to be more of a 25-54 phenomena than first thought. Last month, more than one in ten working Men 25-54 (11.4%) listened to a station online. For working Women 25-54 it was 10.9%. That compares to 7.5% for Persons 6+. Rose says “Streaming has been around a little while and it’s gotten a little older.”

It's a very optimistic story, one that is closer to the early FM comparison.

Now, streaming is more about "easy" and less about buffering, dropped connections, and bad audio. Mobile and dashboard access are upon us and will become easier and easier in the months and years ahead.

Five reminders I think are vital for successful streaming initiatives:

• Open access--streams need to be available outside of proprietary players.
• A clean stream in which the music, talent, spots, and promos create a seamless listening experience. No dead air during a spot break or that hideous "we'll be right back" music!
  
• Decent audio quality (btw, Orban has a great sounding plug-in to help in this area).
• Begin thinking about specialty streams--continuous morning show replays, interview and news maker channels, single artist channels, local event channels, etc.
• Creative marketing initiatives designed to help listeners easily access your streams.

If You Went Out of Business Tomorrow, Would Anyone Miss You?

What a great question. It speaks to the need to have a great product and great people. And part of a presentation that outlines how to grow a better and more successful brand and how to grow a better team.

If you are pressed for time (and who isn't) simply fill in the blanks of this question:

Should be easy, right? Maybe not as easy as it used to be. And it was never easy.
What's your unique - definable - position?

If you have a little more time I encourage you to read through this slide show. It is worth your time.

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Can Radio Be A Growth Industry Again?

I was blog surfing and came across a very interesting blog, AVC, (this guy is in the venture capital biz and seems to be very involved with media and tech) which had a post that included this EBITDA chart from Goldman Sachs:

No surprise to anyone who has ever followed this stuff-slower growth leads to lesser valuation. So costs are cut in order to preserve profits. Slowdowns are inevitable in every industry, but the hope is that within a period of time conditions will improve and expansion will return. Will that be the case with radio? I'd like to think things will turn around, but will it be enough to arrest the trend of cuts and stagnation we have been witnessing for last few years? I have my hunches.


Many a company or industry has been left for dead only to surprise everyone with a monumental return to prominence. One obvious example is Apple which had declining sales and products appealing to a narrow segment of consumers. We know what happened next: refreshed leadership, innovation, and a little bit good luck.

Getting lucky is nice, but should not be counted on. Refreshed leadership coupled with innovation; now were talkin'!

What will be next? That's the 15x multiple question. I can tell you this, we can continue to do things as we have been doing them for decades and hang on for dear life as things move past us at warp speed or we can learn some things from those meteors passing us by.

This is hard. Our natural inclination is to do what we know to be right. But the definition of right has and will continue to change. There are still people who believe that talk radio belongs only on AM because FM is for music. You see what I mean.

What if talk and music radio were to come together? What if you couldn't research such a hybrid? And most likely you can't. There's no bigger supporter of audience research than me, however, traditional research is not likely to be sending a station down this path anytime soon. In the past (and present) we test our hypothesis and formulate a plan based on the results of the survey. But, what if?

Who has the courage to call or write me for more information on this harebrained (read: innovative) idea?

Bottom line: we can play "all the hits" and be "the classic rock station" for many years to come. The tried and true will still do OK and we as an industry do a pretty good job of programming traditional radio formats. But we would like to be a growth industry again and that is going to require some innovation.