Radio’s ultimate fate depends on radio’s collective belief in itself. If broadcasters don’t believe in radio, it is just a matter of time before listeners stop believing in radio. Radio is facing a difficult challenge and to succeed it needs believers. If you sincerely believe that digital is going to roll over radio and there is nothing radio can do to stop it, move on. You will feel better, and you’ll make room for someone that believes radio can win.
Richard Harker
by Richard Harker
Harker Research publishes a blog called Radio Insights. From time to time we report on new radio research studies. We’ve noted that research consistently shows radio’s continuing strength and relevancy. The studies we highlight are conducted by credible companies like Nielsen, Pew, Rasmussen, and other nationally recognized organizations. Yet each time we report on a positive study, we invariably receive negative comments and criticisms questioning the accuracy of the studies.
Writers insist that it can’t be possible that people still like and regularly use radio. For example, Nielsen recently found that over 70% of Americans cume radio on a daily basis. Usage of radio far exceeds usage of any other audio medium. But large numbers of critics question numbers like that. They point out that with Internet streaming, iPods, and other alternatives, it can’t be possible that so many people would still use radio.
The fact that new media supporters constantly attack radio and question any study that shows radio’s strength doesn’t surprise us. What surprises and deeply disturbs us is that radio people are just as critical. Too many radio programmers no longer believe in radio and instead believe that it is just a matter of time before new media consumes terrestrial radio.
We realize that the last few years have been difficult for radio. Many fine broadcasters find themselves out of work. Too many radio stations have been stripped of essential resources, working with skeleton staffs (or no staffs) and few (or no) tools to effectively program. For those who became a victim in one of the recent financial implosions, it must be hard to continue to believe in a future for radio.
More surprising is the attitude of those who still work in radio. We hear from programmers who come to work every day rooting for new media. They see themselves as the “mop-up crew,” killing time and taking home a paycheck until someone shows up to turn off the transmitter.
Radio’s ultimate fate depends on radio’s collective belief in itself. If broadcasters don’t believe in radio, it is just a matter of time before listeners stop believing in radio. If programmers sleep-walk through the day not caring what their station sounds like, then it is just a matter of time before listeners pick up on the lack of concern and drift away.
The advertising recession will end one day. Some believe things are already picking up. Forward thinking owners will soon realize that cutbacks have hurt their stations and start adding back some of the resources they cut. As dark as things seem today, things will get better.
A change in attitude will take longer. Programmers, beaten down with bigger work loads and fewer tools will remain suspicious and skeptical long after the turn has begun.
This coming period will create an opportunity for those PDs and stations that managed to maintain a positive attitude during these dark days. If you believe that radio’s glass is half full, not three-quarters empty, then the opportunities will be even greater than before radio’s near death spiral.
Keeping a positive attitude…
Radio faces challenges from Internet radio and other new media. Having an upbeat attitude regarding radio recognizes those challenges, but also recognizes radio’s strengths against those challenges.
Here are some ideas on how to maintain a positive attitude and turn it into an advantage for your station:
- As we mentioned earlier, over 70% of Americans listen to radio on a daily basis, and over 90% cume radio weekly. This pervasive use of radio gives radio a tremendous advantage against new media. We can’t lose sight of that advantage. Remind yourself of these numbers and make sure the air staff knows it.
- Stay aware of digital developments that might compete with radio, but recognize that many promised advances evaporate before they ever make it to market. Internet radio appliances are announced on a weekly basis. Try buying one at BestBuy. Understand that buzz about the latest hardware and software is just buzz. It does not translate into an advantage to new media unless it is adapted by large numbers of your listeners. Remember that over 95% of Americans do not own an iPhone.
- Don’t let pontificating new-media pundits get inside your head. They talk a good game because everything they say sounds so wonderful. Free unlimited wireless streaming in your car? Sounds great, until the rubber meets the road. People won’t pay for it. Three million songs streamed to your computer for free? Sounds great, but somebody has to pay for it. Advertisers won’t.
- Recognize that radio manages to pay its bills with its advertiser based business model. Some radio groups are in financial trouble because consolidators borrowed too much money and then spent it on over-priced stations. However, most radio stations continue to generate positive cash flow which means they can pay your salary.
No one has shown that an Internet audio service can generate a positive cash flow. Slacker, Pandora, and others are burning through cash reminiscent of the last Internet bubble. For these companies, a subscription model can’t generate enough cash, nor can an advertising model. Remind yourself of that each time you hear that Pandora is the future of radio. It is just a matter of time before they run out of money. - Radio stations have always won by innovating better than their competition. We now compete with more than just the stations across the street, but the importance of innovation remains the same. Use digital tools such as social networking, but don’t forget about local radio’s biggest advantage. Only radio stations can come in contact with listeners on multiple levels, both traditional as well as digital. National services such as Pandora exist in an Internet bubble devoid of human contact. Find ways to make listeners appreciate their proximity to you.
- Change something about the station every day. Boredom is a dangerous thing, whether it is programming boredom or listener boredom. Vow to change the station’s programming in some small way every day. Throw in an unexpected surprise now and then.
- We’re all in the same boat, but don’t let the sales department’s funk get you down. When sales suck, it is that much harder to maintain a positive attitude in programming. Share your small victories with the sales department and encourage them to share their small victories with programming.
And finally, decide whether you really want to program. Radio is facing a difficult challenge and to succeed it needs believers. If you sincerely believe that digital is going to roll over radio and there is nothing radio can do to stop it, move on. You will feel better, and you’ll make room for someone that believes radio can win.
Richard Harker is President of Harker Research, a company providing a wide range of research services to radio stations in North America and Europe. Twenty-years of research experience combined with Richard’s 15 years as a programmer and general manager helps Harker Research provide practical actionable solutions to ratings problems. Visit www.harkerresearch or contact Richard at (919) 954-8300.
