There is no one in high management in the traditional (terrestrial) Radio business - who at least privately - wouldn’t concede that there is worry about the future.
Two recent events reveal this concern: Clear Channel’s “Less is More” move aimed at increasing listenership by reducing the volume of commercials on its radio properties while increasing their quality. And the new “JACK” format which is a direct reaction to the popularity of iPods and mp3 players.
A Quick History Lesson
When the government changed ownership rules through the Telecommunications Act of 1996, it lifted the cap on the amount of total radio stations a company could own (although there is still a cap in a specific market or geographical area).
Never less, a buying spree ensued and many individuals or very small companies that owned one or a handful of stations grabbed a profit and exited.
We were left with fewer companies owning many stations who proceeded to cut costs by eliminating staff, consolidating duties, instituting automation and voice tracking, and reducing in many cases promotion budgets and even promotion departments.
And do you know which of the latter has had the biggest impact on Radio’s competitiveness?
The lack of promotion budgets and promotion departments run by talented Promotion Directors with a staff to execute those promotions properly.
It’s Show Business, Baby!
When a typical radio market had say, 15 stations, run by 7 or 8 owners, it was imperative to promote and advertise stations. A full-time promotions department was necessary because everyone knew we were in SHOW BUSINESS.
I’ll say it again: Radio is not just any business, it’s SHOW BUSINESS.
(cont...)
