If not, how should it go forward as a format? There is always a demand for something different than what is played on the radio, but how should programmers go about creating a station for those audiences? I'm thinking maybe leaning on classics might be the best way to go, unless there is a way for new music to resonate. Your thoughts?
The only times when there is such a "demand" is when there is something on the street that is not being reflected on the radio.
The perfect and massive example is disco in the mid-70's. The music came out of clubs, and radio did not instantly create all-disco formats. Some stations added disco songs; even some AC stations at the time added a few of the more melodic releases. But radio was relatively fast in upping the spins and, eventually, creating all-disco stations.
While that movement was actually a short-lived fad, it created a format of its own.
This is what has happened with rhythmic Urban or Churban formats in markets with lots of Hispanics when a reggaetón station came on: the Hispanic listeners found something better than hip hop and left. New format, old formats that could not react get dinged.
There are few programmers who have actually created a brand new format.*
The rest look for better versions or new blends of existing formats.
* Several programmers have claimed they created the disco format, but mostly it was a reaction to an exploding trend in NYC that just spread all over. Frank Cody and Owen Leach created the Smooth Jazz format, but it had an element of trial and error. Top 40 was created by Todd Storz and Bill Stewart who observed the same songs being played over and over again on a jukebox at their favorite coffee and lunch place.
AC was an evolution from Top 40 where the "hard stuff" was left out for adult appeal. Country and Urban both evolved from formats or block programming going back to the 30's and 40's. Beautiful Music came out of the need to put something unique on new FMs around the time stereo FM was created and soon after stereo disks started coming out. Progressive rock was the un-format: lots of random plays of random album cuts. AOR was simply the applying of Top 40 formatics to rock... a brilliant move by Lee Abrams at a medium market station in the Carolinas.
Even rap and hip hop are simply evolutionary influences on Urban stations, although the influential factor turned out to be the tail that wagged the dog.
So few new formats are "creations". Most are evolutionary or spontaneous when a new kind of music with a huge following appears. That does not happen more than once a generation, it seems.
And new formats are born in the music industry, not in radio.
Here is an example: In the later 80's in Puerto Rico, a failing FM owned by an eccentric and unusual local broadcaster noted club activity by a new kind of music being called "reggaetón" and added it to his formerly rock-based FM. Groups recorded in home studios or less costly pro ones, and they were selling their work on cassettes and CDs in the underground economy at swap shops and the like. The station that latched onto the new wave struggled for years, but got enough revenue from head shops and beachwear retailers and the like to survive, and eventually, it exploded and became the biggest youth format in all Latin America and US Latin markets; its discovery, though, was accidental and risky. But it took about 20 years, from the late 80's until well into the 2000's, for the format to be widely accepted and profitable to stations engaging in it. In fact, an effort to do the format too early in NYC was a total failure.
So don't ask us to create new radio formats when the source of those formats is in the music industry and music trends.