NY Times 11/26/08: Radio's Revenue Falls...

[umtrr-author]

http://www.nytimes.com/2008/11/26/business/media/26adco.html

Some takeaways (so as to not violate "Fair Use"):

Radio advertising down 10 percent in October vs. October 2007.

Small markets were roughly flat, 10 biggest markets down 12 to 15 percent.

"Soundalike stations" mean less relevance, says one analyst.

Radio executives hoping HD will catch on-- but only 500,000 sets in use so far.

 

[SirRoxalot]

"I've Fallen, and I Can't Get Up"

"Soundalike stations" mean less relevance, says one analyst.

Which is why "corporate" is cutting more live talent and replacing them with VT and syndication...

Radio executives hoping HD will catch on-- but only 500,000 sets in use so far.

Why? So they can dilute the product even further for their ever-shrinking audience?

 

[ThePickleReport]

Radio executives hoping HD will catch on-- but only 500,000 sets in use so far.

A quick scan of my HD radio reveals most of the Buffalo HD channels are off the air or simulcasting the main channel. HD is pretty much D.O.A..

 

[Element9]

The marketplace has no use for HD, at least at this time. I find it interesting that the only station that really promoted HD and alternative programming was/is WBFO. Unfortunately, even WBFO's HD channels are problematic and their Alternative HD2 is programmed out of Philadelphia. We talk about how commercial radio is getting its ears pinned back, but Public Radio is facing challenges as well. These are not easy times in which to manage, own or operate a radio station.

 

[SirRoxalot]

HD-Doh!

I think that corporate's biggest problem with HD radio is that they don't know what to do with it.

If you program "companion" programming to your main channel - i.e. "Adult Album Alternative" next to "Classic Rock" - you take the chance of losing audience on your main channel.

If you use HD to counter-program the competition - i.e. "Contemporary Country" next to your "Classic Rock" station - you take the chance of reminding your audience of (much better) programming elsewhere on the dial. There's also the possibility in diary markets that any audience you get will write down "the country stations" slogan or calls and get credit even if they're listening to your programming.

Buffalo's NPR station brings up an interesting case. WBFO is very successful with many hours of Blues on the weekend. Yet, what did they offer up on HD2? "Alternative" rock, a format that's unlikely to motivate most of their listeners, who are 45+, to reach for their HD dial. On the other had, Star, a "Hot" AC that's targeted toward 25-45 females, put Blues on their HD-2. Somehow, I don't expect a lot of 45+ males, who are the core Blues audience, to discover Star's HD-2 channel.

Which brings us to what might be the correct stance. Whatever age/sex demographic target you have on your main channel, stay in the age group, but skew toward the other sex on your HD-2 channel. If you're targeting Whiny 18-34 Women on your main channel, target Emo 18-34 Men on your HD-2. If you're Classic Rock on your main channel, go Classic Singer-Songwriters (OK, all Carole King, James Taylor, and Jackson Browne) on your HD-2.

See? It's easy.

Note to corporate: "You're Welcome". Send consulting check to, uh, DAMN THIS ANONYMITY IS ANNOYING.

 

[Steven21]

Re: HD-Doh!

HD radio is about as "inside baseball" as it gets.

Nobody cares.

It will not catch on because there is nothing interesting or useful about it.

Radio execs are just trying to distract themselves with this HD nonsense so they can feel they're doing SOMETHING to battle all these other audio opitons popping up.

Here's an idea: Dance with the one that brought you! Meaning: Stop destroying your main product line for the sake of short-term savings---because in the long run, you will not have a product anyone is interested in hearing.

Is there a more misguided crowd than the radio braintrusts?