Tuesday, April 01, 2008
The Future of Radio
by Sonny Menendrez
Special to RadioDailyNews.com
                                                                                
I received a note from Don Barrett of LARadio.com this week, that read:


Many Los Angeles Radio People have concerns about the current state of L.A. radio - hiring freezes, layoffs, one company losing $850 million last quarter, another company on the cusp of going private for $19 billion or not, and another multi-entertainment company unhappy with the performance of the radio division.
If you were in charge of L.A. radio, what would you do?

Here is my reply:


Dear Don,

For many, it is no surprise that radio is in trouble. Those of us who are proud to have shared the airwaves in Los Angeles when radio still commanded a sizable audience, know what hard work it takes to attract and keep a listener entertained.

Perhaps, therein lies the whole problem. In that one word: Entertainment.

No matter the format, if what comes out of the speakers is not compelling enough to cause those sit-in-your-driveway moments, then it's not good radio.

A story I heard recently comes to mind that applies. It seems two businessmen came across a small diner that made fabulous soup. People came from far and wide, it was so good. The pair bought the place and made it bigger. As their business grew, so did the profits.

Then one day, they decided that they could increase their revenue even more by adding just a little water to the soup. Before too long, people stopped coming. They upped their prices to make up for the losses and eventually, the restaurant went out of business.

Somewhere along the way, in Los Angeles, and markets across the country, someone started adding water to our radio soup. Profits soared, but listeners stopped coming around.

iPods didn't wound radio. Neither did the Internet. It happened because someone panicked and needed to show a quarterly increase to those who weren't radio people.

So, how do we fix it?

LA station owners can begin by letting Program Directors live up to the title.

Let them "direct the programming," not sell it.

Give them the power to, once again, be able to say, "That's not good enough for our radio station."

Let them proclaim that, "This radio station is not an infomercial. We are broadcasters before we are salespeople and our standards apply 24/7, weekends included.

Let them hire the best talent they can find, no matter the price, and let them grow these superstars by giving them space to take flight. Let the excitement continue after the morning show.

Let them cook up and serve radio promotions that have the whole town talking and contests that "compete" with, rather than "compliment" other stations in the cluster. May the best chef win.

Radio in Los Angeles is not dead. It is in intensive care and there are "doctors" just waiting to be asked and given permission to save it. This is brain surgery, but we have surgeons who have given their lives to attending to this magical medium.

As long as the ears on the other side of the microphone still belong to living, breathing, human beings who laugh, cry, and respond to live entertainment, we have a chance.

I say we do it! If only to leave our children with something worth becoming: A broadcaster.

No publicly owned broadcaster is going to forego 30-40% profit margins for the old Private broadcaster days of 5 to 11% margins.  Even if it kills the whole business, the current group of CEO's will never change the model based on a pollyanna approach to "saving the industry."  

Imagine if we had the option of paying $5 a litre for an environmentally neutral fuel, versus $2 a litre for a something we know will eventually destroy the planet.

We're doomed.

I personally think if we can keep the radio life raft afloat for another 5 years, the current generation of Baby Boomers will step aside leaving room for a younger generation to fix the problem.  The same for the music industry.  The trick is the keep it going for at least 5 more years!!  You will see a shift in power and new ideas on how to sell a brand will emerge.  If you're just getting into the radio business, please don't let these threads discourage your dream of being a famous broadcaster.  The radio industry is just going through a period of stupidity.

Quoted from VU meter

I personally think if we can keep the radio life raft afloat for another 5 years, the current generation of Baby Boomers will step aside leaving room for a younger generation to fix the problem.  The same for the music industry.  The trick is the keep it going for at least 5 more years!!  You will see a shift in power and new ideas on how to sell a brand will emerge.  If you're just getting into the radio business, please don't let these threads discourage your dream of being a famous broadcaster.  The radio industry is just going through a period of stupidity.

I sure hope you're right.

What are you thinking the new radio guys,  who never heard "real" radio,  will come up with?

What I think will make the difference is when the Company that owns the station is the Brand and radio is the result of the brand.  Think what would happen if you had a rock station in the city of Calgary owned by Maxim.  The focus is put more on the lifestyle of the listener and not what a consultant from Toronto thinks.  What if Apple iTunes owned a new music station?  The brand is the key to great radio.  A classic rock station owned by Harley would be killer!! If these companies would let the programmers build the station around the brand and lifestyle with a focus on the local community we could see radio lasting along time.  Maybe I'm an idiot but I'm sure it will work....people of ALL ages could be part of it.  No longer worry about being an 18-34 male driven radio station rock station...but instead...let the lifestyle of the brand bring the listeners and their money to the table.  The last time I looked at Harley they have guys and gals buying bikes aged from 12-90.  One other thing would be to tell the CRTC to F%$# Off and let us do our jobs!


Sorry I know this idea sucks and be nice with hurtful replies.  Ha Ha.

Quoted from VU meter

... for a younger generation to fix the problem....  

The problem is not generational.  Young managers with the same profit-growth mandate will continue adding water to the soup.  Study the evolution of Clear Channel Communications in the USA with its 1,200 stations, some of which don't even employ local jocks.  That is the road along which radio is proceeding in Canada.

The industry as we have known and enjoyed it is doomed without elimination of centralized ownership that pays little attention to the uniqueness of each marketplace.  Phase out multiple station clusters, networked and pre-recorded programming.  Return broadcasting to broadcasters - even on weekends - and let them compete freely against each other.

Quoted from 654

The problem is not generational.  Young managers with the same profit-growth mandate will continue adding water to the soup.  Study the evolution of Clear Channel Communications in the USA with its 1,200 stations, some of which don't even employ local jocks.  That is the road along which radio is proceeding in Canada.

The industry as we have known and enjoyed it is doomed without elimination of centralized ownership that pays little attention to the uniqueness of each marketplace.  Phase out multiple station clusters, networked and pre-recorded programming.  Return broadcasting to broadcasters - even on weekends - and let them compete freely against each other.

Be easy on Network Radio.  Network can be really cool if done to the maximum... and offers this broadcaster hope that one day I too can make 7 figures in radio

Plus, for advertisers, its good.

***
Network radio bucking trend
By Katy Bachman, MediaWeek

March 31, 2008

Network radio is undergoing a renaissance. At a time when the economy is squeezing local advertisers and local media, the medium -- with its attractive efficiencies, targeted reach and greater accountability -- is thriving.

Up 4% in 2007 to $1.2 billion, the health of network radio stands in stark contrast to the rest of the on-air radio business, which declined 3% to $18.5 billion. Net radio is nearly sold out through May, buoyed by retail, financial services, telecommunications and cable and TV tune-ins. "It is a sort of hot new medium," said Maja Mijatovic, director of national radio at Horizon Media.... (click the link to read more if you care).

http://www.hollywoodreporter.c.....dc4bbd5346772ccac75c

Good luck in reaching 7 figures and may they be to the left of the decimal.

I argue that big radio networks sweep many, many good dollar jobs off the table. Again, look at Clear Channel in the USA. They give every market a surfeit of Rush Limbaugh, Sean Hannity, Glen Beck, Dr Laura, Jim Rome, Delilah, Rick Dees, Blair Garner, etc. Whose programs do they replace?

The syndicators anoint a handful of very well paid national stars but all that comes at a cost for local staff.  If Jim Rome runs on 200 plus stations, does not that mean that 200 other broadcasters lose a chance to be heard?  The industry becomes top loaded with a few stars and bottom loaded with newbies chasing the hope for a time at the top.  What happens to the journeymen, the ones who learned the trade very well but never found that moment to grab the brass ring.  Maybe they are the ones who moved the family too often, rented instead of buying and spent too much time in the bar.  Or, more likely, they now sell mutual funds, cars or real estate.

A few years ago, NW gave David Berner a chance to talk about things like the Vancouver arts scene.  Now David is gone but we get Mike McIntyre from Winnipeg, talking, as he did last week, about 5 ambulances being called out at the same time because Winnipeg had a traffic accident and a crime scene at the same moment.  Egad, I'd rather listen to CBC talk about Quebec or ESPN jock sniffers talking about division 2 NCAA basketball.

Public control of airwaves should be exercised to promote quality radio.  Instead, regulations are wielded to guarantee a profitable environment for the small group of license holders.

And here I thought I was the only nutbar.

What was the real reason Rick Dees left KIIS FM ?  How are his numbers at Movin ?

I think that what VU Meter has to say makes a lot of sence.  When Xfm was on the air in Vancouver, they were letting consultants from LA tell them what to play.  What happened to the local scene?  They also were missing the demographic that they were shooting for with the music they played.  U2??  Last I checked they aren't considered alterantive rock by any standard.

Quoted from 654

The problem is not generational.  Young managers with the same profit-growth mandate will continue adding water to the soup.  Study the evolution of Clear Channel Communications in the USA with its 1,200 stations, some of which don't even employ local jocks.  That is the road along which radio is proceeding in Canada.

The industry as we have known and enjoyed it is doomed without elimination of centralized ownership that pays little attention to the uniqueness of each marketplace.  Phase out multiple station clusters, networked and pre-recorded programming.  Return broadcasting to broadcasters - even on weekends - and let them compete freely against each other.

That's what old people say.