WHAT IS THE REASON FOR RADIO?

[TheBigA]

It's the one thing I dislike about radio as a business - they take away the good stuff from time to time.

But that's why Congress created public, non-commercial radio, to provide an alternative to radio as a business.

[Goat Rodeo Cowboy]

Maybe I'm missing something but none of the companies you listed, from Facebook to Google to GE to even Adobe has really entered the content business.  Perhaps they've realized there's no money in it.  People get content for free.  That's why OTA radio has survived.

I used those company names as "placeholders" in a concept I am proposing.  Those are companies who have madebreak-through business changes in the areas of business where they choose to play.  Google has eaten the lunch of the old time search engine companies.

In another topic there is a discussion of what a break-through guy Gordon McClendon was in this industry... what... 50 year ago now?  Though they play in the non-comm sand-box,  I look upon NPR as an innovative pace setter and 30 years from now people will look back and realize NPR ended up leaving tell-tale marks on the commercial broadast world.

I look upon CC and Cumulus as setting new marks in operations and business efficiency.  I don't see them generating new programming directions.

I assume there will be new players recognized in the next 15 to 20 years who may change radio the way Steve Jobs changed the industries he chose to bring innovation to.  Who ever these people are, whoever this one person is,  we may not recognize him/her coming until he bursts onto he market with a commanding lead that no one else can catch up to.  I would argue that the breakthrough is likely to happen in a non-broadcast methodology because such a visionary will see the need to move fast and the FCC will choke his/her innovation to death before it can be born.

[PirateJohnny]

...As I said, even after all the staff cuts, Clear Channel is still doing pretty well in the ratings.  So that might be what you're talking about....

Well, when I get in the car, I don't have much choice if I want to listen to the radio.  The radio is already there with the push of a button.  It takes extra effort to bring CDs with me or program an iPod and plug it into the system.  Radio is more convenient.

And, yes, I posted the link to Coyote Calhoun at WAKY circa 1973.  I posted that as an (extreme) example of a DJ offering something more than the music and being different compared to the competition.  It's the "Life of the Party" thing I have mentioned, either in this thread or another thread.

[TheBigA]

And, yes, I posted the link to Coyote Calhoun at WAKY circa 1973.  I posted that as an (extreme) example of a DJ offering something more than the music and being different compared to the competition.  It's the "Life of the Party" thing I have mentioned, either in this thread or another thread.

Today that would be seen as something for people to vote on in a reality TV show. 

It wasn't really very different...everyone in the format was screaming.  It was the core of the famous Howard Hoffman "Nine" tape that came out around that time. 

[secondchoice]

Radio is simply that - a business. If they don't make money with it the stations either go off the air or they sell to another broadcaster.

Not really because OTA there are limited number of stations for listener. For example Atlanta has 8 FM C0 or C1's (full power) that cover the whole market.  106.7 will become 106.5 and make 9. Counting movins at the most 20 Commercial FM signals.

http://www.radio-locator.com/cgi-bin/locate?select=city&city=30303&state=GA&band=FM&is_lic=Y&is_cp=Y&format=&dx=0&radius=&freq=&sort=freq&sid=

even New York only has 30 viable commercial FM signals.

http://www.radio-locator.com/cgi-bin/locate?select=city&city=New+York&state=NY&band=FM&is_lic=Y&is_cp=Y&format=&dx=0&radius=&freq=&sort=freq&sid=

This is not like the retail or food business, where if you can raise the capitol, you can usually put up a store and do business and compete.  In Atlanta Cox and Cumulus both has 4 (20%) of the quality FM signals.  In NYC, CBS and CC control 5 each almost a third of the quality FM signals.  other forms of media aside, where is the reason for any of these clusters to innovate?  By default they do not have to be great just a little better that the other (if there is one) station in their format. 

[TheBigA]

other forms of media aside, where is the reason for any of these clusters to innovate?  By default they do not have to be great just a little better that the other (if there is one) station in their format. 

But you can't exclude other forms of media, because the consumers don't.  That was proven during the hearings on the Sirius-XM merger.  They determined that the public sees all media as the same, and satellite competes with OTA and other forms of radio. That finding is what justified the merger, and determined that one company owning all of satellite radio is not a monopoly.  As for being "great," that has never been the motivation of commercial radio.  The purpose is to get ratings.  Innovation, such as it is, is motivated by attracting more people and making more money in the overall media marketplace.

[secondchoice]

That is the problem with OTA radio, we do not "worry" about the other forms of media just the direct (if there any) market other station. If we do not take care of the listeners then they will leave.  Right now a lot of the industry is more worried about debt than listeners

[TheBigA]

Right now a lot of the industry is more worried about debt than listeners

I don't see anyone "worried about debt."  Clear Channel just spent $12 million to buy a station in Boston.  Cumulus is spending lots of money on stations and programming.  All of this spending is about attracting listeners.  And they ARE worrying about other forms of media.  That's why they're spending money on things like iheartradio and radio.com. 

[Goat Rodeo Cowboy]

A few hundred years ago there were a lot of people who worried about sailing too far from shore and falling off the edge of the earth.  Some people did sail into waters too treacherous for their skill-set and they suffered a fate different than falling of the edge of the earth, but with the same outcome:  We never heard from them again.

There was this guy named Columbus, and there were others,  who had a vision of how the world was put together, and they ventured out to sea.

It matters not whether you are Romney building an empire known as Bain, Mulally bringing Ford back from the edge of the earth,  Steve Jobs coming back a number of years ago to build Apple into what we know today, or the Melvin Simon organization owning, operating and building shopping centers near where you live,  DEBT is just part of business.  In fact,  for most of us, DEBT is just part of personal life.

From a RADIO point of view  (a listener, a fan, a team-member of the industry) we love to get CC down on the floor and stomp on them like some kind of college hazing event.  If no one would loan CC all that money,  they couldn't RUIN the tradition and memory we want to cling to.

From a business point of view,  from the MBA point of view,  borrowing money to acquire enterprises and to revamp enterprises is about a natural as some young couple having an extra fling at sexual activity on a long holdiday weekend.  If you truly want to understand radio... The Big Picture...  get over this fundamentalist view of debt!   

[secondchoice]

  If you truly want to understand radio... The Big Picture...  get over this fundamentalist view of debt!   

 Debt is good? Tell that the Citadel employees.