The Sinking Economy And It's Impact On Radio

[JustPastBuffalo]

SOUND

This is one of the components that makes NPR and its affiliates so attractive to many listeners. The SOUND of the human voice and the substance behind it is a special treat. Features like "Story Corps," "This American Life" and many others are particularly enjoyable because of the way they use the sound of the human voice.

I get where GRC is coming from, especially as it might apply to local radio and AM radio in particular. A moderate laptop computer with Adobe Audition, WavePad or Audacity is capable of going places and recording people and sounds that years ago would require massive amounts of audio gear.

But here's the rub; it takes human beings to produce SOUND to make it interesting and compelling when it airs on the radio. And as we well know, human beings have to be paid. There's always a catch, isn't there.
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Say what you want about car dealers, but when the automotive industry goes south, it affects a lot of other businesses, including radio, TV and newspaper advertising. GM closed at under $5/share today. Ford is around $2. This is not good. Billy Hew-jah may be annoying, but the guy loves radio and knows its strengths. Same for the West Herr and Northtown groups as well as Mike Barney Nissan. Smart car dealers use radio because its very effective and it's fairly priced, especially as compared to print. Notice the automotive content in The Buffalo News lately? Layouts are much smaller.
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As to what kids listen to: Like many posters here, I've had the opportunity to observe radio listening habits as my sons progressed from childhood to teen years and now adults. Radio still has a place, but radioTSL has been severely cut into by iPods mp3 players and CDs... to say nothing of video games. I'd guess that the "iPod to radio" ratio is 70-30.

As 20-somethings, they'll readily tell me what (sports) talk show hosts are fools, what stations suck and what songs are burned out ("what's with that Brown Eyed Girl song... I hear it in bars and on every radio station, except the stations I like...") They prefer Alternative and Urban, and an occasional taste of Classic Rock. Not surprisingly, AC stations aren't on their pre-sets. "I might listen to your station if you played the new Cold Play or Akon CDs."

I'm extrapolating from my observations and it's not a scientific survey, but it seems radio has an uphill fight attracting college-educated professionals in the 21-34 demo, especially men. These are guys who know the intricacies of the CBA in sports as well as why the Fed made a quarter point reduction in its overnight funds rate and how mortgages might be affected by the change in treasury notes. To them, Rush and some local talk show hosts as well are viewed laughable as parodies of themselves. Shredd & Ragan "get it" although there isn't a lot of loyalty to any one station.

This demo texts often, moves around the Internet at a dizzying pace and digests news and information easily and voluminously. When cell phone radio becomes available, it wouldn't surprise me in the least if 18-34s and 14-34s gravitate to it and put CHR and Active Rock stations further behind the 8 Ball.

By extension, stations that cater to 35-54s/35-64s may become more in vogue with large radio companies. Country seems to be a universal can't-miss format; Oldies-Classic Hits or some form of that, may not be as dead as some industry people a few years ago thought.

Then again, it may be that the average 40 year old in 2008 has more breadth of music awareness (thanks to hearing songs on his/her kids' iPods, CDs and radio) than a 40 year old may have had in 1988 (yes I know, that person is now 60) and may now have a greater affinity for different songs, as long as those songs are bonafide hits.

Or not. You tell me.

 

[Goat Rodeo Cowboy]

I get where GRC is coming from, especially as it might apply to local radio and AM radio in particular. A moderate laptop computer with Adobe Audition, WavePad or Audacity is capable of going places and recording people and sounds that years ago would require massive amounts of audio gear.

Sit still. Think outside the box. "We can't afford "going places...."

What if you can get THEM to come to YOU? Have a weekly or monthly festival at the station. Get some ladies club to sell refreshments and sandwiches as a fund raiser. And you sit there for at least a couple of hours playing the "Story Corps" game. You'll stay up late that night editing, but your automation machine the next morning will be like a cookie jar at grandma's house overflowing with fresh, local sounds.

As you finish each interview, hand them a slip of paper like the guy at the dry cleaners. You will be on the air at the following three times:... ... ....

You will have a small army of people telling and calling all their friends to turn on the station at ... ... ...

Your grandma may make pitiful cookies... but if it is YOUR grandma, the cookies will still taste good.

Your station may sound pitiful... but if it is THEIR station and voices they know, the cookies will sound good.
.

 

[The Voice of Reason]

Getting back to the topic of this thread; I can tell you that my company is cutting back on the number of ads we are purchasing on radio and television.
Pretty soon I predict that the number of auto dealership and attorney ads will also be reduced, which will leave a lot of blank air time.
As for the economy's impact on Public Radio, only time will tell if people will be calling in with donations during upcoming radio drives. A friend of mine in Boston told me over the phone yesterday that WBUR has been interrupting programming more and more in order to ask for donations. WXXI normally has its pledge drive on this month. I will be listening at the end of the drive to see if they make their goal.

 

[Bob1370]

landtuna asks, "What would you do to reinvigorate radio?"

In a short phrase, humanize it. Present programming with warm, likable, live human voices who relate to a listener one on one. And reach out to the target and ask them what they need, and take it seriously. No satellite, computer or voice-tracking system run from a remote central corporate office can do that.

In a way I guess I'm suggesting radio go "back to the future" and approach programming the way we did it in the '70s and '80s, before the conglomerates came forward to gobble every radio property in sight. They're now having to sell it all off at a discount. Some stations will go dark. Others will sell at bargain prices to new owners, and many of the new owners will decide to do what people always did at other crucial junctures in radio's past...reach out for talent and present something live, local and relatable to the people within their signal footprint. The owners that do that will do OK even if good times take a while to return, and they'll BOOM if the good times return sooner rather than later. Stations that continued doing that during the wave of consolidation over the last 15 years, have continued to thrive even as competitors have faded and times got tougher. Stations that have returned to that path lately have shown growth in a shrinking business. That should tell us something.

 

[cee]

What if there's a Depression?

I can tell you that my company is cutting back on the number of ads we are purchasing on radio and television.

Earlier this week CNN released a poll showing 6 out of 10 people feel a depression is either somewhat or very likely to happen(the adjoining article noted most people aren't exactly sure what constitutes an actual economic depression). But if we have post 1929 stock market crash conditions(including unemployment at 25% or more) what happens to radio? Could stations ad revenue tank down to practically nothing in some cases? Will most on-air staff become unemployed or maybe a few agree to stay on at minimum wage? Speaking hypothetically, what if Clear Channel cannot pay Wease his huge salary when he returns next month?

Who would be most likely to stay on the payroll? In a worldwide economic meltdown, would live news suddenly be radio's most valuable commodity?

 

[Mark Giardina]

Re: What if there's a Depression?

Earlier this week CNN released a poll showing 6 out of 10 people feel a depression is either somewhat or very likely to happen(the adjoining article noted most people aren't exactly sure what constitutes an actual economic depression). But if we have post 1929 stock market crash conditions(including unemployment at 25% or more) what happens to radio? Could stations ad revenue tank down to practically nothing in some cases? Will most on-air staff become unemployed or maybe a few agree to stay on at minimum wage? Speaking hypothetically, what if Clear Channel cannot pay Wease his huge salary when he returns next month?
Who would be most likely to stay on the payroll? In a worldwide economic meltdown, would live news suddenly be radio's most valuable commodity?

If world markets continue to tank, you can expect to see major layoffs at most if not all broadcasting operations because of a Catch-22 situation.

People won't be purchasing big ticket items; therefore companies that normally blanket radio, like car dealers, will reduce their ad buys. That in turn will mean less revenue for radio and thus force management to make personnel cutbacks.

As for news being a valuable commodity; remember a news operation is one of the most expensive formats there is. You need actual people in house to gather and report news. It would be helpful if they had transportation to and from media events or news conferences. And don't forget the recording and editing equipment needed to produce news. I would think the first thing to go at a radio station would be news.

When it comes those announcers making big salaries, again you have that Catch-22 situation. If the station isn't making money, how then can they afford to pay these people? Another thing to consider is that some stations shell out big bucks for syndicated programs. Will they continue to do so?
When push comes to shove it actually would be cheaper to have local help rather than pay for someone like a Rush Limbaugh.

 

[Goat Rodeo Cowboy]

Re: What if there's a Depression?

In a worldwide economic meltdown, would live news suddenly be radio's most valuable commodity?

Conventional wisdom is that radio experienced a "Golden Age" at the time of the Great Depression of 1929. The simple answer to your question is: "Yes, live news would be a valuable commodity for radio."

Where you gonna get it? Do we have the trained talent to search out and deliver live news? How many radio stations today have room to house a live news operation?

And in this de-regulated age what is going to keep a few individuals who survive a meltdown from swooping in, taking financial control of radio, and seeing to it that ONLY their view of the news is presented?

In the 1930s most broadcast properties were owned locally, and without cheap long distance and without interstate highways, communities were much more inward focused.

I know you didn't say LOCAL news.... you said LIVE news. As long as TV and Cable continues to deliver a national platform for LIVE news, where would radio fit into the equation in a current meltdown scenario. I make the assumption radio would have to focus locally, or it has no unique function.

However, since so few people get TV today via off-the-air, and the cable system might be beyond budgets if we are truly talking about a meltdown scenario, it could drag radio kicking-and-screaming all the way into a whole new 21st century function.

 

[aaronread]

landtuna asks, "What would you do to reinvigorate radio?"

In a short phrase, humanize it. Present programming with warm, likable, live human voices who relate to a listener one on one. And reach out to the target and ask them what they need, and take it seriously. No satellite, computer or voice-tracking system run from a remote central corporate office can do that.

I don't think that's a bad idea, but I fear that ship has sailed.

My opinion? Don't focus on the esoteric, focus on the real: get out and interact directly with listeners. Don't expect the mountain to come to Mohamed. In other words, do a lot of live, local, remote broadcasts. Radio...especially music radio...can't possibly compete with an iPod in most aspects, except that you can go up to Joe Sixpack and hand him a mic and say "you're on the air, tell me what you think of that song". Even if Joe Sixpack's thinking isn't exactly Rhodes-Scholar level, who cares? Joe's ego will be stroked and he will be happy and like your station.

 

[Mike Sheridan]

landtuna asks, "What would you do to reinvigorate radio?"

In a short phrase, humanize it. Present programming with warm, likable, live human voices who relate to a listener one on one. And reach out to the target and ask them what they need, and take it seriously. No satellite, computer or voice-tracking system run from a remote central corporate office can do that.

I don't think that's a bad idea, but I fear that ship has sailed.

My opinion? Don't focus on the esoteric, focus on the real: get out and interact directly with listeners. Don't expect the mountain to come to Mohamed. In other words, do a lot of live, local, remote broadcasts. Radio...especially music radio...can't possibly compete with an iPod in most aspects, except that you can go up to Joe Sixpack and hand him a mic and say "you're on the air, tell me what you think of that song". Even if Joe Sixpack's thinking isn't exactly Rhodes-Scholar level, who cares? Joe's ego will be stroked and he will be happy and like your station.

Have you seen how remotes are done in this day and age? Jock with mic standing around like a doofus doing his break going in to spotset. Not showcased, and not much interaction with the public so no one cares. This was just a couple of years ago at Carrowinds Amusment Park in Charlotte. Our jock got requests for directions to the restrooms. I'm not bombing your idea but programmers never want to do anything that gets in the way of the music. Programmers have told jocks for years "While you're pleasing one listener you're boring the rest and they'll hit the button to go to a station playing music instead of talking." I don't agree but that's the thinking.

While I'm on a roll the remotes done for sponsors now are even worse. All of the remote breaks are done in advance and then played back in the Audiovault. Why you ask? Because the delay required by HD radio transmission. You have to delay the analog for when listeners radios switch back and forth between digital and analog when the signal is weak. The station I worked for was also in profanity delay since it's owned by the network involved in that famous "wardrobe malfunction" we all remember. The station is always in delay 24/7 you can't monitor the air signal when you're on the air. Oh the talent is there at the remote but they aren't talking on the radio live.

Just more things that radio gets away with because no one notices or cares.

 

[Element9]

Potpourri for 100.

Jock at remote. Fatassed, clueless 62 year old male or female waddling around (c'mon, you've seen them a-plenty at the Eries County Fair, lapping up the fried dough and looking for the Elvis impersonator), "Where's da rastrooms?" Jock: "They're all closed for maintenance today." Stupid jock. Stupid radio station. Stupid remote. Hey, Gary Goodvoice, here's a card table, a prize wheel, a Shure SM58 and a Marti, go out and "do a show." Just make sure your breaks are short and don't stop the music. Oh, and be a personality. Just do it in 11 seconds on the song intros... and don't forget to do those promo liners.

-9- Stupid wise-ass poster.

And about local news. Gimmie NPR Morning Edition any day of the week over what I hear on WBEN, WHAM and some of the droners on the local Class D's doing local newscasts that feature two minute stories about Flotsam City firemen being called out to save a tree'd cat on Shnizzle Street. I don't want to hear the same stupidity on the radio that I hear in the barber shop when I get my hair cut (by a very good barber, BTW) who thinks he knows all the answers to all the world's problems but sounds like he has at best, a 6th grade education. Hmmm... come to think of it, that does sound like what passes for commercial talk radio in this country.

 

[The Voice of Reason]

I read with great interest Scott Fybush's column today regarding Entercom's stock and the number of layoffs at that company. It's just a matter of time that other broadcasting companies will get out the ax and start chopping away jobs. What's interesting is that I never read about high-paid corporate executives losing their jobs. Wonder why? :