Broadcasters hope MP3s and satellite radio won't kill terrestrial market

[Cornflake the Destroyer]

Will technology save radio or bury it???? New article in the Baltimore Sun gives radio a fighting chance.


http://www.baltimoresun.com/entertainment/bal-al.eye26aug26,0,7435523.story


August 26, 2007

With all these new gadgets for listening to music -- from MP3s to state-of-the-art cell phones and laptops, not to mention satellite radio -- it's a wonder anyone is listening to good old-fashioned terrestrial radio.

One theory says that so many listeners are spending money on newfangled technology that the ones left tuning in to terrestrial radio are doing so only because they can't afford the new toys.

As a result, Pettit said, national advertisers are not turning to the old medium the way they once did, leaving the field to cheaper, and often local, ad buyers. In turn, the stations are obliged to charge less money because their demographic is poorer, he said, leaving the stations with less revenue.

But other people in the business consider that view heresy, and point to many ways in which the traditional broadcasters are holding their own. While they admit that radio audiences are declining, and that the amount of time people spend listening has fallen, they say that 230 million people, or about 93 percent of the U.S. population, still listen to some radio during any given week -- down from 96 percent a decade ago.

 

[KevinFodor]

Time spent listening is down a bit...so, too is the overall audience. Slightly. Very, very slightly.

With more competition comes compression of the "market". That's why no station leads its' market with
a 22 share anymore! More stations means lower overall share. More listening outlets means compression. So, that we're seeing compression of the audience with internet, i-Pod and (to a very small degree) satellite radio isn't remarkable.

But for advertising to leave radio in droves (not the case) to "chase" 6 percent of the public would be outrageous, silly and a disservice to clients.

I just see this as a reason for advertisers to try and pressure radio for lower rates. And, the way some radio companies drop their pants at negotiation time only makes the problem worse.

Terrestrial radio is still healthy (listener-wise) and I expect will be for a long time to come.

I've seen the enemy...and he is us.

 

[radionut925]

Terrestrial radio is still healthy (listener-wise) and I expect will be for a long time to come.

I've seen the enemy...and he is us.

In order for terrestrial radio to remain viable, it must do what satellite radio can't: focus on live, local content. And most stations can't do that as long as they're hooked up to a computer and/or satellite dish.

 

[davideduardo]

In order for terrestrial radio to remain viable, it must do what satellite radio can't: focus on live, local content. And most stations can't do that as long as they're hooked up to a computer and/or satellite dish.

The term "localism" is one of the most misused in radio. Gratuitously reading church bazaar PSAs is not localism... localism is relating to the local audience with thigs that are relevant to them. Often, better localism can be done from 1000 miles away by being relevant and entertaining than by having somebody mindlessly repeating the local weather over and over.

The reason why there is no "local" show beating Leno at night is that Leno is "local" to the viewership... he relates to them, in their home, in their lives, and no "local talent" who is not as entertaining despite talking about "hometown things" is going to beat him.

This is all about being relevant and entertaining, not about localism.

 

[wgliradio]

The term "localism" is one of the most misused in radio. Gratuitously reading church bazaar PSAs is not localism... localism is relating to the local audience with thigs that are relevant to them. Often, better localism can be done from 1000 miles away by being relevant and entertaining than by having somebody mindlessly repeating the local weather over and over.

I guess this line helps you during license renewals.

 

[grantchester]

Localism IS more than just local weather and church bazzar PSA's. It's a connection.
Leno connects because of the context, which is a decades long show presented by a local channel.
Syndicated programming has to be VERY compelling to gain traction with an audience, because it is very hard to make a connection with a listener. Musical chair announcers at a voice track station leave the listener not even giving thought to "Who the fump is that". They don't even register.
The best local personalities are much like politicians. They campaign for their listeners, one on one and in small groups. They learn what resonates with their audience, and play to that. It's impossible to do that if your only connnection to your audience is a wave file sent down a fiber-optic line.