Demise of Mom and Pop radio

[vigodsky]

From Radio World (as indicated in the url). A well written, thoughtful account about the dire straits of small market terrestrial a.m. operations. Worthwhile read!


http://www.rwonline.com/article/92672

 

[bnaivar]

When did GST start playing "oldies"? (RTFA)

 

[vigodsky]

During the early '70's just before Meredith took it all news.

 

[lilburncommunityradio]

Its too bad that most MOM and POP radio stations are dying on the vine.. BUT internet radio will take its place.. No matter what anyone says, Internet Radio is moving forward..!

 

[Goat Rodeo Cowboy]

Its too bad that most MOM and POP radio stations are dying on the vine.. BUT internet radio will take its place.. No matter what anyone says, Internet Radio is moving forward..!

Is Internet radio financially in better shape than the station in the story with all the equipment sitting on saw horses and plywood? How man i-stations are based in Atlanta that I would walk away after visiting with them saying: "Wow! This operation has it's act together. I wish I had one doing this well."

 

[taylorengineer]

To put a internet radio station "on the air" requires practically no capital investment and minimal time. Compare that to a traditional radio station which requires MUCH $$$ to aquire and maintain.
There are still MANY small stations on AM that are viable - look at Art Sutton's stations. Art would probably tell us things are getting tougher for a stand alone AM but he also did the smart thing - all his AM's are paired up with FM translators. Many(not all) AM's could do the same.
There are operators like Art who will always be OK because they understand the radio business paradigm. Others will fail because they can't change with the times. Many have no business buying a radio station to begin with because they don't understand the business.
I agree with Lilburn.....internet radio is coming like a screamin' freight train 'round the bend. $64K question: Will the 4 C's figure out a way to grab it for their own.....or will Obama, Pelosi, Frank et al. figure out a way to "manage" it?

 

[vigodsky]

Definitely a strong point about keeping the conglomerates at bay because the last time around, we "wuz" robbed!

 

[CompleteGame]

Days from receiving the license for a 1kw AM in a small NE Georgia town - in the teeth of a brutal economy that is worse per capita than Atlanta's -, I can tell you that business is still alive and encouraging, if not kicking. WCHM has both loyal buyers and serious propsects and despite the incompetence of the last owner, I can see the path to break-even and profitability. Once the cloud of economic doom lifts, we've got several dozen prospects ready to spend.

I write this in every post, but the key is good people, particularly good salespeople. The sales manager and ops manager are active chamber members, leads meeting attendees and entrenched in the community. Terrestrial radio is still - along with newspaper - meaningful to a small community. The small counties need them and want them to succeed. No small town advertiser turns the local AM down, saying "local AM isnt relevant anymore." It is still respected.

I cant speak to the future of big city internet radio. Money and marketing will be the main ingredients. (I run an internet station too with all kinds of original and relevant sports programming and our audience is anemic. The future is certainly not here yet.)

But, as naive as it sounds, I think there's something more "real" about the car dealer coming by to cut his spots in a building with a satellite dish on the roof, a college football game on the air and a call letter on the door.

 

[Powell]

Jeff is right. So is Art. I work at a small stand alone AM in SC and we do very well.

The only thing that irks me is the name of "Internet Radio". Well it's NOT radio. If everyone in town turns the radio on to your station everything is fine and dandy.HOWEVER if EVERYONE in town tried to listen to your so called Internet Radio Station what would happen???? And you have to have high speed internet and a computer or some device and pay GOOD money for it to ATTEMPT to listen to most streams. HMMMMMM ???? Where I live there is NO high speed internet out here in the country. I get 24K dial up, and satellite internet is too expensive and they put a CAP on what data you can run every month, and it's not very high if you want to listen to a lot of "STREAMING" . Cell phones sorta kind work here if you stand in a certain location.


When I turn on any of my radio..... they just work.


Powell

 

[TheBigA]

To put a internet radio station "on the air" requires practically no capital investment and minimal time.

Putting it on the air isn't the hard part. Getting people to listen is. And that's where internet radio has a lot of trouble. If anybody can do it, what makes you different or special? Why should people listen if an operator is putting in no money or time? If he's just a hobbyist. Sure, he can attract a few like-minded people. But even though interenet radio stations aren't limited by geography, they are restricted by awareness. Even artists with the appeal of Kenny Chesney, who started his own NoShoesRadio last year, has an average of 5,000 listeners at any given time, down from 30,000 when it launched in September. The lowest rated terrestrial radio station in Atlanta has at least ten times as many listeners. That's not good.

Then there's the royalty issue. Digital media (internet radio, satellite radio, etc) must pay performance royalties to artists and labels, in addition to songwriters and publishers, regardless of whether or not the station makes money. If the station makes money, they must pay a percentage of the gross (not profit). Those music royalties have killed hobbyist internet radio, and have hamstrung most professional internet stations.

All this gets back to mom & pop radio. Back when Atlanta only had twelve stations, and only five had any audience, it was easy for a small radio station to make money. Now, with more than 50 AM & FM stations in the market, competing against TV, the internet, and other entertainment options, it takes greater resources to get attention. In the US, every American has the right to speak his mind. But that doesn't mean anyone has to listen. Being HEARD is what broadcasting is all about. You don't need a tower, a transmitter, or anything else to speak your mind. But it takes a lot of resources to be heard. That's why mom & pop radio can't compete in today's marketplace.

 

[jerry367]

Not only is there exponential fragmentation with internet "radio", but it all, for the most part, sounds amateurish.

To be honest, even when some radio pros do internet broadcasts, it sounds amateurish. I don't know why this point is often not brought up in these discussions, but I enjoy hearing polished pros on well produced stations---not sloppy fly-by-night nonsense. A lot goes in to making a station sound good---resources internet "radio" won't have the advantage of.

All because everybody can set up a theatre in their garage, doesn't mean they're just as good as those on Broadway.

 

[taylorengineer]

I'll bet the lowest rated radio station wishes it did have 50,000 listeners every quarter hour!
I agree that internet based radio, as of today, is not anywhere near ready for prime time. And Powell makes a good point - the infrastructure to provide "the big pipe" is not even dependably available in large metropolitan areas much less rural areas. In the near future radio will still be the dominate force in the mobile enviroment.
But change is coming just as certain as tomorrow's sunrise. And as Littlejohn pointed out, those who adapt will survive.

 

[TheBigA]

I'll bet the lowest rated radio station wishes it did have 50,000 listeners every quarter hour!

The 5K figure I gave for NoShoes Radio.com was not AQH, but for a week, which is cume. The lowest rated station in Atlanta has more than 100K cume per week.

 

[Goat Rodeo Cowboy]

All this gets back to mom & pop radio. Back when Atlanta only had twelve stations, and only five had any audience, it was easy for a small radio station to make money. Now, with more than 50 AM & FM stations in the market, competing against TV, the internet, and other entertainment options, it takes greater resources to get attention.

I found it interesting that someone would start a thread about Mom and Pop Radio on the Atlanta board. Now if you will get about 100 miles out of town like Joe has done with Clarkesville, Ga, then there is room for intelligent discussion. Even markets like Macon and Savannah are not good environments to operate classic "Mom and Pop Radio". Big market opportunity and potential call for big capitalaization.

In the hay-day of Mom and Pop radio, you could throw a tower up out in Podunk and you had immediate "attention". Today you better bring a big bag of attention-getting techniques to the party for even Podunk is full of towers and cable tv and multi-screen theatres and SPORTS BARS out the wahzoo. Radio? "Who needs radio?" will be the response of too many people unless you can produce attention-getting content.

And we who gather here as enthusiasts along with pros can't begin to agree on what constitutes attention-getting content.

 

[oaktree]

Books could now be written about this topic, alone.

Let's begin with this very thread as starters -- first, without mixing "Radio" with "Internet" metaphors.  That's an entirely different understanding.  Important, yes, but without bearing on the demise of mom and pop radio.

Take a look at this entire forum on R-I. Are we really surprised at the demise of AM radio? Today, even here -- if not especially here -- we focus more on "why I can't dx AM radio anymore," or "how far out does this station get?" or, it's not fun listening to AM on the Internet because, well, it's just not the same."

It's NOT about AM content. AM content has been deteriorating for years and years and years.  It's as near death as an "ancient modulation" to the very demo played here -- the young audience of listeners who has grown up since they were born with cellphones in one hand, texting with the other, the Internet, FM radio (if that), HDTV, mp3 players, iPhones, iPod, iPod Touch, laptops, tablets (the computer type), Hulu, YouTube, dowloading (legal and illegal,) iTunes and what did I leave out?

We've long ago forgotten about "content." It doesn't exist anymore. National syndication on mom & pop AM & FM is about under capitalization, way too many radio stations and signals and a staunch refusal to change. "I've made it before, I'll make it now," -- all in the face of changing demographics, lifestyles and economics in markets so small to markets so large.

It's happening everywhere, not just in teeny tiny suburban umbrella markets -- but everywhere.  I live in a community of 237,000 souls -- served by, in-market, 28 radio stations that are "home" to this market.  28 radio stations.  How many are making money? Only two "conglomerates" -- and only because they own a dozen stations between them.  And even those are making huge sums of money.

Take a look, as an experiment, something I've just done.  go to the R-I "Ratings" page.  Pick 5 markets around you -- both large and small.  Figure in the "suburban stations" that are may be in their own rated markets.

Go ONLY to the top 5 stations -- the ones where, in this economy, end up with 80% of the billing and revenue punch in the market.

Now, look at the rankings, be they the forgiving and uncountable 6+ or 12+ or the "saleable demos" of 18-49 and 25-54 (which is now dropping as the leading sales demo.)

Then, watch what happens:  FM, FM, FM, FM, FM.  For every WSB, there are FIVE FM's. And the AM's that are making are the heritage AM's with big signals and huge power. Plus, the upper end demos that mass together to make a huge audience with huger time-spent-listening averages.

The "mom and pops" don't stand a chance -- with the exception of those outlying areas that are virtually unreachable by outside signals (and I count over 80 in my market) or still suffer from the demo spread that is solidly in the 60s or 70s.

My local AM (I don't work for them anymore,) is tied for 6th or 7th in the 28 stations listed.  But, its demo average is 68 years -- older females and only slightly younger males.

And the situation is widespread.

The county to the south of me -- (I'm in San Luis Obispo, CA) -- is the same.  Santa Barbara County, top 5 FM. Monterey County to the north -- top 5 FM. Santa Cruz - top 3 FM, followed by out-of-market monster, KGO, at #3, then the next group of stations in the top 10, all FM. Fresno -- of the Top 25 stations in the market -- only ONE station - KMJ-AM -- is not only #1, but the ONLY AM STATION in the top 24 stations.  The ONLY AM.  And it is a 50kw news/talk blowtorch with a lot of nationally syndicated content, as well as an FM sister that is also Talk known as "The FM KMJ."

And Bakersfield, has the same situation. In LA - of the top 12 stations -- only the "More Stimulating Talk Radio" of monster KFI/640 makes it to the top 4 ... and the ONLY AM station in the top dozen, followed by all news KNX.

Is is, or can it change?

Too many stations, to much growth away from AM radio, now, a migration of those AM signals to FM, HD2 or HD3 and still not much of a blip on so-called (incorrectly) "HD Radio."  So, it's your guess.

And small town mom and pops are not the "breeding ground" of talent as they once were.  Ever heard the airchecks on the employment opportunities board?

Add to that, the thousands of talented broadcasters "on the beach" -- and I don't mean merely the cutting edge "shock jocks" who have, in many cases, weaker ratings to show for their "creative ingenuity," be it on FM or AM.

Will it change?

Not quickly.

And not as long as Clear Channel, Citadel, Cumulus and others "import" programming from their other markets in "cost savings" to appease their banker/owners or their shareholders.

Mom and pop radio is in critical condition.  Be thankful for those who really are making it -- not by speculation or wild guesses -- but really and truly making it.

I bet the numbers will amaze you .  

 

[jabba17]

Too many comments to respond to individually...

1) There are a lot of "businesspeople" who don't know squat about business. They think that if they have a great product (if only in their own minds), people will beat a path to their door without them lifting a finger. Or they might be penny-wise and pound-foolish, or spend too much money on the wrong things, or be chintzy and not spend enough on the right things. Or they might be ignorant of cash flow--it limits what you can do right out of the box, unless you have a bunch of seed money, and next thing you know they're bankrupt because they tried to get too big too quickly.

2) Internet Radio will not take off until wireless broadband takes off. People won't gather around a computer to hear a stream--unless they are on the computer for something else--any more than they will gather around the tube console radio in the living room. People expect radio to be portable.

But once wireless broadband becomes as prevalent as radios, then watch out.

3) AM will be hamstrung by the inability of many smaller stations to deliver meaningful night signals. But IP radio can serve as a supplement.

4) The AM receiver installed base is mostly garbage (both in terms of fidelity and reception), with exceptions like old tube equipment, GE Superadios, some car radios, and the like. It makes a bitrate-choked stream sound like Dolby Surround in comparison.

5) When it comes to programming, you can't make chicken salad out of chicken scratch.

I'm wondering, again, if the AM band needs to be cleaned up to add more clear channels so the remaining players can play to AM's strength, which is coverage over very large areas. The regional channels are a mess. The local channels are viable as such, but they won't ever be able to hang with the big boys. The FCC should go back to requiring non-class-A stations on clear channels to sign off at sunset and to heck with pretending to serve local communities with <100W power after dark.

 

[TheBigA]

2) Internet Radio will not take off until wireless broadband takes off.

One of the reasons why this won't happen is that ISPs also own telecom. They would rather people stream over their cell phone rather than wimax or wifi. So universal wifi is dead.

The FCC should go back to requiring non-class-A stations on clear channels to sign off at sunset and to heck with pretending to serve local communities with <100W power after dark.

There is a very long history with the FCC and Congress that will not let this happen. The FCC agenda is for localism and diversity. Their goal is to cram lots of small radio stations into an already overcrowded band. They don't care that this has destroyed the profitability of small AM and will result in stations going dark.

 

[JoshuaC]

The metaphor of a theater in the garage is a good one. Anyone can theoretically run an Internet Music Station, or if they really have the time and energy they could run an Internet Talk station. The question is: is it any good? The more important question: Does it make enough money to be worth your time?

I was having a conversation with a colleague while watching online coverage of CES. We were not particularly impressed with the quality of the particular coverage we were watching when comparing it to some of the more professional (albeit more advertiser-driven) outlets. It sounded and looked amateurish. There is a reason why a lot of things we as professionals do look and move the way they do (be it on AM Radio, FM Radio or TV): They work. Raw and rough broadcasts may be fun for you and your 10 friends and maybe a couple hundred or so fans, but so are some of the bands I see at the local pub and I would hardly say they are "the future."

Like it or not, we are in the making money business and, on average, polished and professional looking and sounding broadcasts make money better than amateur-hour. How often are people on this board complaining that Radio or Television doesn't look professional enough, now in the same breath saying hobbyists are "our future?"

That polished and professional broadcast costs more money to do, and Internet media is not at the point yet (and I don't believe it's even on the cusp yet) of making that sort of money.

Now... when you're talking podcasts or downloadable "on-demand" type media the metric may be quite different, but for streaming live... I just feel there's quite a ways to go.

 

[Goat Rodeo Cowboy]

All because everybody can set up a theatre in their garage, doesn't mean they're just as good as those on Broadway.

This morning's reference to "theatre in garage" sent me on a scavenger hunt for the insertion of that language into our conversation. Sometimes we have read something a second time for it to get "center stage" in our mind. (If that qualifies as a pun, it was intentional.)

My reaction is this: If you live a thousand miles from Broadway, you may learn to enjoy and settle for "theatre in someones garage". If you don't get to Broadway more than maybe twice in a lifetime, how would you know whether the little theatre troupe in the neighborhood is a dog, or is performing about three levels above what is expected.

When I lived in the North, we sent one of our young managers to a Southern state to be the administrator of a health facility. When he would come back to town for mandatory meetings he was quite the show mocking the Southernisms in his Yankee speech pattern. The one that stuck with me: "I have now learned the difference between a Good Ole Boy and a Bubba. The Good Ole Boy pretends he is dumb."

If you live a thousand miles from Broadway, do not assume your audience expects to hear Broadway. It may be that they thrive on figuring out when you are talking "Good Ole Boy" and when you are just plain being "Bubba".

 

[trusty]

I am coming across more (should be left daytime) AM stations transmitting battery power at night that are streaming live. It almost seems like they have to broadcast - even at such low power - to be able to stream. (Sometimes actual call letters will get more attention on a streaming directory than a group of words identifying a station.)