FMQB THINK-TANK SYMPOSIUM FMQB… Still Thinking After 40 Years!

During our 40^th Anniversary Event on April 10, 2008, FMQB hosted an afternoon Think-Tank symposium crafted as a brainstorming session with no barriers. Over 175 radio and music industry people attended the highly spirited afternoon session, held at the Loews Philadelphia Hotel.
FMQB’s preface to the session was our belief that the current generation of radio and music executives is a generation of deep thinkers and creative problem solvers, as exemplified by the panelists we selected. Our goal was to stimulate positive energy about forward thinking ideas and develop a theme of resolution through a partnership of the two industries.
The session was co-moderated by FMQB CEO Fred Deane and (multi-media consultant) Mel Taylor, the latter providing an outside-in perspective that served to perpetually challenge both industries throughout the session.
Our panel of experts: Tom “Grover” Biery, EVP Warner Bros.; John Ivey, PD KIIS/LA & CC CHR Format Director; Greg Thompson, EVP Promotion Capitol Music Group; Tom Poleman, OM Z100 & SVP Programming & Marketing CCNY; John Reynolds, OM WNKS & WKQC Charlotte;Ron Cerrito, WB SVP Promotion; Doug Podell, Greater Media Dir. Rock Programming Detroit;Jim Ryan, CC SVP AC Programming; Erik Olesen, IDJ SVP Promotion; Mark Abramson, Roadrunner VP Promotion.
A mere fraction of the symposium appears in today’s e-QB. Comprehensive full session coverage publishes in our May Magazine issue.

Mel Taylor excerpts:
On referencing his radio career and his personal triumph of converting his skills to the new media world… “It wasn’t easy last decade keeping your job as a disc jockey with advancing technology. About ten years ago I was a mid-day jock at WYSP/Philadelphia following Howard Stern and felt I had it all. But when I was told by some higher-up that I was an expense item, I started questioning my own future.” 

On reinventing himself… “I needed to re-write my résumé because there were components that weren’t relevant anymore. I started to study, understand and appreciate all of the technological changes going on, and where I could go in this new world. Where would I fit in given this wave of change? Do you fight the wave or ride it?  Our discussion today will substantiate that grabbing a surfboard is the only solution we have.”

On where the next big idea is coming from… “Inside some garage there’s some pesky 17-year-old building something that may change our business drastically…again. We don’t know what it is. But every time we stand around and admit we really don’t know where things are going, there’s some kid somewhere figuring it all out. He’s developing something that the heads of Google or MySpace haven’t figured out, nor have the heads of radio and music companies.  It’s called innovator dilemma. We want to find ourselves on the right side of this dilemma…the problem solving side.”

On the disruptors of business… “It’s the disruptive force of business that creates the new ideas and new frontiers. The internet has been a great disruptor to traditional business models like the music and radio industries. The disruptors cause change. The new entry models are a more suitable societal fit to the consumer. It’s our reaction to the change that will determine our recovery time and get us back on track.”

On what incumbent industries should do… ”Traditionally we wait and watch. We tend to ignore the start-up. But the start-up doesn’t go away, and that niche market begins to grow. The incumbent industries finally wake up and react to the disruption. We do everything we can. Meanwhile, our core business begins to shrink. At the end of the day, in the technology world we live in, the new model usually wins.” 

On lessons to be learned… “It’s not hard to come up with disruptive ideas within your own company. Lend an ear to that crazy guy down the hall. He may be the tech guy who eats, sleeps and breathes this stuff. He might just throw on a switch that ignites something truly special in your company. You really have to embrace the freaks in your organization. Think like a start-up and act differently. This may be the only way to insure success going forward.”

Tom Biery…“I totally believe you have to think like a start up to survive. Key things need to happen to facilitate this thinking. One is to somehow figure out how you can have your bosses and corporations find a different level of success and redefine what success means. Because when starting a new company, you’re not judged the same way as a company that’s been around for decades. The second and most crucial of all, as you’re developing and moving forward, you have to put like-minded people around you, so your ideas get placed into action very quickly.”

John Ivey… “Although our jobs constantly evolve, it may be more about the type of people we hire. When I first got to KIIS I had jocks who thought it was their job to talk for four hours, collect their paycheck and then go home. My mid-day girl is 23-years-old and I don’t have to explain to her the importance of web presence and texting. The evolution’s happening naturally. The big part for me is to stand aside and let it happen. I feel more invigorated about coming into work these past few years than ever, because everyday you’re thinking completely different. If you’re doing the same thing, you’re wrong. You have to look in all directions.”

Greg Thompson… “If you don’t challenge yourself everyday and open your thinking, you’re going to fall into a trap. Clearly our industries are redefining themselves right now. I just took a position with a similar job title to what I’ve had in the past, but the job description is almost completely different. Our private equity (new) owners have a totally different view of my industry. We get challenged in everything we do. It’s brilliant in a way because we know that our industry’s core objectives have to be re-evaluated. They constantly ask, are you doing that because you’ve always done it, or because it’s what you need to do? They really want us focused on the consumer.”

Tom Poleman… “Many of the solutions are going to come from focusing on the consumer. One thing I’d like to ask the room to think about: is what you’re doing every day in the best interest of the consumer…because in all of our daily lives we are probably involved with things that don’t mean much to the consumer. We think they are because we’ve set up our industry that way. We focus on things that at the end of the day, I wonder how much is truly going to impact the consumer. We have to keep our industries relevant to them.”

John Reynolds… “From a broad perspective, we’re affected by reinvention just like other industries. It’s been a revolution of communication and information. Some call it an earthquake by deregulation on the radio side which has caused a lot of change in our industry. The job titles may be the same, but our roles are changing. We have to start losing the traditional definitions. We have to keep up with the rapid technological changes and arm ourselves with the proper ambition to move forward. We have to embrace new and different thinking people and the ideas that accompany them.”

Ron Cerrito…“We have to think like the consumer and like a music fan. Watch how they consume and experience music, and throw everything else out the window. We try to focus on that everyday. It’s hard, because we’re not 16-years-old anymore. But the challenge is to think like those fans, and then build your company around that premise. It’s a lot easier to build a start-up based on the ideals of what you think the music fan of today really is, than to change a big company in a big industry. You have to be bold; not timid. Napster was probably the biggest opportunity of our industry and we blew that, largely because our industry didn’t completely understand the cultural experience.”

Doug Podell…“We can’t forget about HD radio. The hardware is coming out, and considering everything we’re talking about today, this is the best case scenario for radio. For music, HD radio is wide open. It’s the wild frontier. It’s everything new and adventurous. It’s also useful in helping us develop new personalities and helps us reach a younger audience. The problem is us. If radio could align itself, the way Google, Yahoo and Microsoft are about to do soon, we would be much better off for it. If we can get this alliance to align itself as one, instead of 1,001, it would be a very potent force for the radio industry.”

 

Jim Ryan… “One of the problems when you have a giant radio company that has a billion dollars in profit, as Clear Channel did last year, is when you see our major market margins of clusters drop from 65% to 60%.  Because you’re a publicly traded company you have that pressure to perform and increase revenue. You have a tendency to keep your eye on what’s in front of you. Is HD radio the answer as Doug says? I believe it’s a good idea to deliver sub-brands through wireless devices, but making that investment is tough for a publicly traded company. It’s much easier when you don’t have a 60% margin to maintain and are owned by private equity guys, or you’re a niche start-up looking to do things differently.”

Erik Olesen on role reversal…“Speaking on behalf of all the record guys we’d like to see callout used differently. It just seems to be the end-all-to-be-all, all the time. I’d love to see programmers use more of their gut. Utilize street teams in what’s happening in the clubs, with sales in the digital space. Look more favorably on these factors. It’s tough to live with one major factor all the time determining the fate of our artists. The labels place all their marketing plans, much of which at the right time revolves around radio airplay, and then you find a station or group of stations shifts from playing a record ten times a day to a lot less because of an off week in research.”

Mark Abramson on preserving the brand… “We’ve created this monster in the music business right now. It’s like the politics of fear where more people are afraid of losing their jobs than anything. We’re seeing brands disintegrate. If you create the brand, whether it’s a label or radio station, there should be people dying to get in there to work. Why aren’t people dying to get in? Because they are dying to get into video games and other facets that are far more exciting to them.  We’re just not cool right now. If I watch one more radio station that had a brand throw it away and start chasing their tail, it’s ridiculous. Don’t devalue your brand. If you create the fun exciting place, you’ll create the brand, and kids will want to work there.”

** QB Content by Fred Deane **