Thursday, January 22, 2009

Radio Heard Where?

Did you know that on the same day that Clear Channel culled 1,500 radio employees, Bose, the high-end radio manufacturer, laid off 1,000? The reason? No one’s buying radios anymore.

So, let’s read the room and ask this question: Could anyone choose a more inappropriate time than the National Association of Broadcasters (NAB) and the Radio Advertising Bureau (RAB) did to jointly release their 2008 year-end report?

Let’s be thankful that neither David “Fumbles” Rehr, President/CEO of the NAB nor Jeff “Ka-Ching” Haley, President/CEO of the RAB were in charge of a cable film channel in 2001. They would’ve scheduled The Towering Inferno the day after 9/11.

The report claims that their cooperative Radio Heard Here campaign is “an unprecedented, comprehensive initiative to reposition radio for a vibrant and successful future” and that it's “off to an incredible start."

Impressive. Fumbles and Ka-Ching must’ve graduated from the same “how to be mendacious” class as Lyin’ Diane Warren.

You’ve seen those much promised Radio Heard Here billboards, haven’t you? How about those colorful full-page Radio Heard Here print ads? I’m surprised that servers throughout the U.S. haven’t crashed considering the heavy traffic the Radio Heard Here streaming audio web site is receiving.

I have no problem with these two being loyal to their cause, but it shouldn’t require having them check their brain at the door.

Let’s review the Radio Heard Here report:

Technology: We sought to promote the expansion of new technology and increased integration with devices like digital music players and mobile phones.

Just because streaming audio is going mobile doesn’t mean its users are listening to terrestrial radio streams. In fact, just the opposite is true. It’s opened a – pardon the pun - Pandora’s Box for Internet radio listeners.

Content Diversity: We encouraged new innovations in programming.

How many more times can one homogenize, pasteurize, and de-contentize radio and expect it to survive through the next decade?

Let’s see. Clear Channel is moving toward fifteen nationally programmed formats and escalating its dependence on nationally syndicated programming and multiple market voice-tracking. Is that what’s meant by “less is more?” CBS Radio and Citadel collectively fired over 1,000 employees last year and now rely on increased automation and syndicated programming. That translates to less content and diversity. Click here to check out CBS’s Fred Jacobs-consulted jockless and robotic “Radio” (yes, that’s what they call it) format. How innovative!

Education: We agreed to increase education within the industry and among advertising professionals and other influencers.

The education ad pros are getting on radio comes from Arbitron. To paraphrase Pete Seeger - where have all the average quarter-hours gone?

Consumer Engagement: We aimed to engage consumers and increase awareness of the personal, emotional connection that listeners have with radio.

Judging from Arbitron and other sources, consumers are disengaging from radio.

Then there’s HD Radio.

Let Fumbles and Ka-Ching talk the talk: As this report is being published, we’re witnessing an avalanche of new radio-related technology announcements coming out of the Consumer Electronics Show 2009. HD plays a significant role in radio’s advancement of technology. HD is available from a growing list of traditional as well as online retailers and it is offered as standard equipment or an option on an increasingly robust list of new vehicles. As a result of this and HD advertising efforts, consumers are learning more about the benefits of HD technology and embracing it.

When Radio Shack stops selling HD Radios its over. They stopped selling HD Radios. It’s over.

Bob “Booble” Struble and Lyin’ Diane Warren haven’t figured out that robbing isn’t the toughest part of heisting. The getaway is. That’s what separates the pros from the cons.

More from the report: At a panel discussion in Los Angeles in January, Jeff Smulyan Emmis chairman and CEO said, “We’re not hiding from new technology, we’re driving it. One of the hottest-selling features for the iPod is an FM tuner.”

I went to the Apple accessories page. No such animal. I called the Apple retail store. The clerk never heard of it but asked if I meant the accessory that would allow me to listen to my iPod on a car radio. That one is a big seller. When asked the clerk if anyone else had ever asked about an AM-FM radio accessory for an iPod he said “no.”

Still more: The Microsoft Zune made news when it introduced its “buy from FM” feature enabling users to discover, tag and purchase songs directly from its built-in FM radio. Nine of the country’s leading radio broadcasters committed to broadcasting programming on FM stations that include song tags. Every Zune portable media player allows consumers to wirelessly download or stream songs on the go from wireless hot spots around the country. “Radio is one of the primary ways people discover new music, which is why we have built an FM tuner into every Zune portable media player,” said Chris Stephenson, general manager of global marketing for Zune at Microsoft. “The leadership of these radio broadcasters has played an integral role in enabling millions of Zune users to tag and purchase songs directly from FM radio.”

One problem. Zune is history. That’s from Microsoft CEO Steve Ballmer. He admitted that Zune will be phased out and the brand, if it does survive, will be a feature of Windows Mobile rather than in Microsoft-designed hardware.

The NAB and RAB have earned a reputation for hitching their wagon up to the wrong horse time after time.

Their Radio Heard Here report was seasoned with quotes from industry cheerleaders on how healthy the radio industry is. Too bad cheerleaders don’t win the game. The players do. And where are they?

What the report did was convince me that the NAB and RAB exist in a world where the nuts hunt the squirrels.

Now, let me draw your attention to a report you must read. It’s from the Center for Sales Strategy and titled Why you might not make It. It’s direct, to-the-point and illustrates why the present sales course taken by Clear Channel, CBS Radio, Citadel, and others will fail.

The one question every one in our industry should ask: When we finally hit bottom and begin to climb out of this economic black hole, will radio still be viable?


Anonymous said...

"RAB, NAB Report On 'Radio Heard Here'"

"The report goes on to say that HD Radio is playing a significant role in radio's technological advancement and is available from a growing list of online and traditional retailers and adds, As a result of this and HD advertising efforts, consumers are learning more about the benefits of HD technology and embracing it. The report also cites the growing popularity of streaming sites, radio on iPhones, and the Buy from FM feature on Microsoft Zune audio players."

HD Radio is the industry's savior - but, wait a minute:

"Clear Channel Plans to Trim 1,850 Jobs"

"In October, Clear Channel introduced an iPhone app, iheartradio, which allows iPhone customers to listen to live radio. And it is working to help promote HD Radio, but that has not caught on as the industry executives had hoped."

These assholes can't even get their lies straight! Right, Bob? Thanks, for another great post, John!

Anonymous said...

"One of the hottest-selling features for the iPod is an FM tuner.”

"It’s the Device, Stupid!"

"The NAB/RAB Radio 20/20 initiative has made AM/FM inclusion on MP3 players and cell phones a top priority, and Microsoft’s announcement that it will have an FM tuner (with ‘Buy from FM’ capability) in the next generation Zune is a big win... I got a bunch of thought provoking comments on The Long Tail column, and the usual suspects questioning my sanity and family background."

"Will radio ever be built into an iPod?"

"And what's peculiar about that is that such gadgets are indeed on the market. But they aren't manufactured by Apple and they don't have 75% of the mp3 player market, the way the iPod does... Thus there is no chance - none whatsoever - that Apple computer will ever in a million years add an FM (or HD) radio to their shiny little miracle child."

"The FM-Free iPhone"

"The NAB Board meeting in Washington this week has FM on cellphones as a big agenda item. Too bad the NAB and most radio CEOs do not understand Apple CEO Steve Jobs' thinking in continuing to exclude FM radio from the increasingly popular iPhone."

Right - $50 for an external FM-tuner accessory for the iPod. Good luck. Struble, give it up - HD Radio and FM-tuners will never be on the iPod, or iPhone. Yea, your Zune is a big win!

Anonymous said...

I actually had one for awhile but then returned it. It was quite disappointing in a number of ways. I was grateful that they gave me a refund.

Anonymous said...

To continue the previous post, the FM sounded just fine. In fact on local stations I couldn't tell the difference between the regular FM signals and what digital signals I could receive (using a separate radio connected to the same speakers and switching back and forth), that is when I could hear a digital signal at all. On distant stations where the FM signal was a little noisy and I thought the digital might offer some improvement, try as I might there was no digital signal to be found.

Anonymous said...

The reason your Apple store employee was ignorant about the fm tuner is because its no longer needed. In July, Apple launched the App store, giving iPhones and iPods radio access without an adapter. You'd have a hard time finding an iPhone without radio these days.

Anonymous said...

So Microsoft laid off 5,000 employees. By your logic, this means nobody's buying computers anymore. Got news for you Johnny, everybody is laying off employees. Have you missed the press about the worst global downturn since the great depression?

Anonymous said...

"So Microsoft laid off 5,000 employees. By your logic, this means nobody's buying computers anymore. Got news for you Johnny, everybody is laying off employees. Have you missed the press about the worst global downturn since the great depression?"

"Bose Layoffs Job Cut: fires 1000 employees"

"Which employees are affecteed by the Bose Layoffs? Many areas may be affected but primarily it will be manufacturing area where the jobs will be cut."

Let's see - less consumer purchases, less radios needed.

Anonymous said...

John - hard to believe you've made your living as a media consultant or won awards in the broadcast industry given your vitriol and degradation of the radio industry. When insiders continue this kind of rhetoric without any discussion of the strides the industry is making, we all lose.

Small Market Daytimer said...

2008 was actually a good year for our listeners. After 35 years of daytime operation only, our small independent AM station was granted special temporary authority to operate a pair of FM translators, which cover the local population quite well.

Now, we can start our live and local morning show at 6 AM year-round (instead of waiting for sunrise) and provide evening high school sports and local news past sunset. (Yes, we still have a fulltime local news director and real people in the studio every day.) We're expanding our staff, rather than cutting back. Response from the community has been quite gratifying.

All of this was enabled not with expensive and questionable HD Radio technology, but proven, reliable FM, combined with an intelligent decision from the FCC.

Anonymous said...

Consider this. You're driving a car with John Gorman sitting in the seat next to you. You make a wrong turn. John points out that you made a wrong turn. You insist it's not a wrong turn, but a new and improved route that will revolutionize the future of travel itself. John tries to simply tell you the road you are taking will not not lead you where you want to go. Hours later you're completely lost. You're ego and immaturity will not permit you to admit your mistake and get back on the right track. John begins to scream at you and tries to explain how to put the car back in the right direction. Is it vitriol on John's part? No, just maturity and common sense.

Anonymous said...

Gorman would have us take a right turn off a high cliff.

So how is is taking a wrong turn to integrate radio with iPhones? How is it taking a wrong turn to encourage fresh content? Isn't this a good thing for radio?

Gorman continues to talk about how radio is dying because nobody is listening. But they are listening and some of us are in the business of serving them, and we want to stay in that business, because we love radio.

Those of us who are still in the business are aware that radio can be better. We're doing just that.

Gorman isn't helping steer the car, he's throwing eggs from the curb.

Anonymous said...

For the record, Microsoft is laying off 5,000 due to the failures of Vista and to a lesser degree, Zune.

Bose is laying off 1,000 because their radios are not selling.

It is not just the economy just as radio's misforutnes started long before the economy fell apart.

Anonymous said...

To paraphrase the Clinton campaign (Bill, not Hill): "It's the content, stupid." Successful radio is built on compelling content. Cable is pulling audience from the broadcast networks because of content, not technology. And while the Big Three still do very well, there are only three of them. How many radio signals are in your market, and how many alternatives do potential listeners have? Um, thousands? So success for terrestrial radio begins and ends with content. If what comes out of the speakers is not of greater interest than other options available, you lose. Having program directors oversee five stations, firing production and promotion people, syndication and voice tracking, are all ways to remove quality and creativity from content. Not only has radio made a wrong turn, it's done it while driving in reverse.

Anonymous said...

You would rather have Gorman lie about the state of the industry? Did you click on the link and read the outright lies about the radio industry from the RAB and NAB? Read that "annual report" then tell me Gorman is wrong! This industry needs facts not lies. To use the driving analogy. I would rather see Gorman DRIVING the car. Dan Mason, John Hogan and Farid Suleman have already driven this industry off the cliff. Please read the "radio heard here" link and also the other one about sales he suggested. He is right. CBS Radio, Clear Channel and Citadel eliminated content and now they are eliminating sales. They will have nothing to sell. Don't you get it?

Anonymous said...

In answer to your last question, broadcast radio is, in fact, dead. But the concept of people aggregating an audience and supporting their work through advertising sales is very much alive. And when the recession ends, we will see it revive as it always has.

Smart companies, including radio broadcasters, that understand that content is king will win out as they transition away from the traditional airwaves. Those run by spreadsheet jockeys and glad handers will fail.

What's happening in the industry is very simple: the barriers to entry are gone. It used to be you needed one of the limited number of federally granted licenses and the money to build a broadcast facility to get into the radio game. That allowed the politically connected and the financiers to thrive by limiting the choices of their captive audience. Those days are done. Anyone with a PC and internet connection can now get in the game. And now maintaining the legacy requirements of the broadcast business - the regulatory compliance and broadcast equipment costs - has gone from being the key to success to being the drag on business that will destroy you. If you let it.

During this recession, the best advice I have for radio execs is go ahead and kill off your on-air audience by milking it for all its worth with the cheapest possible programming. It's going to go away anyway. But spend whatever you have on investing in developing the new business model. Develop the programming that will capture the desirable customers who are looking for programming that satisfies their needs. Aggregate that killer audience that will be the key to your recovery when the over-the-air broadcast model finally dies.

Anonymous said...

I partially agree with the previous comment except that I believe terrestrial radio will not die because it will be a conduit to internet radio. Surviving terrestrial radio will be local and regional. You will have the option to listen to the AM-FM signal or the on line stream. There will be fewer stations because we now have a glut which goes back to the 80/90 scam. Radio values are going to take beating. There is no way around that. Those in the business now will get out. Broadcasters and innovators will get in. A perfect world it will not be. You will have winners and losers like anything else but it will be a better system than what we have today and eventually, yes, AM and FM will become a thing of the past as the 'great convergence' is fulfilled. Those that understand content and how to sell it are tomorrow's leaders.

Detroit Diesel said...

John, Did you know that the Cleveland "Radio" format you linked is one that the old coot ripped off from Clear Channel in Philadelphia? This station came in and kicked both WMMR (Coot's new station) and WYSP's (Coot's station he was fired from) ass with a gold based alt rock format. So just like he ripped off The River in Windsor for the Globe in Washington for CBS he is doing the same again for CBS in Cleveland. Dan Mason must love copycats. That Cleveland station sucks. Schedule and print. He will be just as successful with this one as he was with his "River" imitation Globe.

Hilarie K. Ryals, MBA said...

Another well-said blog, Mr. Gorman - you really nailed it. The point that radio executives are failing to get is that homogenized, boring, canned radio isn't appealing to consumers, especially the younger generation. One of the newer marketing buzzwords is "customization", meaning that you cater directly to an individual customer's wants and needs. Canned radio is the opposite of customization, and an iPod is the epitome of it. Nobody cares if "radio is heard here" when Radio doesn't care what YOU want to hear!

Anonymous said...

There are two factors here. One is the economy and the other, the state of radio. Radio's decline started in the late nineties when consolodation eliminated in-market competition. No one likes to use the word collusion but most markets ended up with clear dividing lines. One group had men, the other had women. Or one group was music, the other was talk. Creativity was replaced by efficiency but without attention paid to product. The groups could never figure out sales. Should every sales person sell every station? No, because sales people take the path of least resistance and will sell what is easiest to. Then sales people were assigned and that didn't work and that lead to the philosophy of you can never had enough sales people. The problem there was that radio did not train the new sales people on how to effectively sell radio. Meantime, programming content was weakened and homogonized by national playlists and consultants who were getting paid by the labels to suggest new product. Then the economy fell apart. It was a recipie for disaster and now the radio groups are eating it.

Anonymous said...

Latest Deaths

Radio, Terrestrial. Terrestrial Radio, 88, died this week after a long illness. After a series of setbacks, beginning with consolidation, followed soon after by severe cutbacks and the destruction of the local ties to the communities they served, Terrestrial Radio succumbed to complications from lack of content and an opportunistic infection with HD , Terrestrial Radio had a long and colorful history, providing an outlet for coverage of news, sports, community affairs and events, and, of course, exposure of all forms of music to an eager audience. Highlights of Terrestrial Radio's life include broadcasts of Presidential Election Results, the crash of the Hindenburg, Major League Baseball games, the careers of Glenn Miller, Frank Sinatra, the Beatles, to mention only a few, and thousands of other events, too numerous to name here. Terrestrial Radio is survived by Broadcast Television, Recorded Music, and the Internet. Funeral services will be held at the Museum of Broadcasting. Services will be led by David Rehr. Pallbearers include Mark Mays, Dan Mason, Farid Suleiman, Jeff Smulyan, Jeff Haley, Fred Jacobs, and Lee Abrams. Interment will be at a landfill just outside of San Antonio, Texas. Please, no flowers. Gifts may be made to the Fund for Unemployed Broadcasters, Hollywood, California.

Anonymous said...

Except for local sports and news why would anyone want a radio on their iPhone? Even then I can listen to the on line stream. I have thousands of songs at my disposal and if I do want to hear radio I have the choice of thousands of stations worldwide with every conceivable format. I'm sorry, Mr. Smuylan. Not only do I not believe you, I am insulted that you would tell such a blatant lie.

Anonymous said...

I don't need Gorman or the NAB to tell me that radio is in trouble. But don't even begin to tell me that something that 95% of the American public does every day (albeit not as much) is dead. Are you kidding me? No doubt the product has suffered and no doubt that things look more bad than good. But I agree with Anonymous that guys like Gorman do not help, they just bitch and complain. Just what IS John's idea about fixing the issues? I haven't read any as all I seem to read is how dumb everyone else is (and yes, some of the people -- though far from all -- that are mentioned are morons). And anyone that thinks that Fred Jacobs (or any consultant) actually ADVOCATES a jockless format is equally a moron. That was a corporate decision. NO consultant is anti-jock, anti-content, anti-personality. Anyone who believes that truly is in the wrong business.

Sly Fox said...

Whoever wrote that Death Notice on radio is to be commended. That was beautiful and well done.

It should be reprinted on the cover of every radio trade magazine.

The pallbearers are the ones that should be buried.

Anonymous said...

To the complainer: If you read through Gorman's blogs you see that he does provide answers to the problems radio faces. Read the other blogs on this page and prior pages. There are plenty of people making comments that offer creative solutions to radio's ills, too.

Jim Lieble said...

To the poster that lumps Gorman in with NAB and says he offers no solutions I offer you just a few comments he has made on how to correct radio ills -----

***Radio isn’t dying as much as it’s disappearing. Instead of finding new ways and means of being essential and engaging, it takes the opposite tack, which will result in further alienation with the declining radio audience.

As the great convergence to the Internet moves forward, the modern world will leave terrestrial radio behind. The second decade of the 21st century will hold little promise for terrestrial radio unless there is massive change in leadership, attitude, and direction.***


***We can either evolve or devolve. Lately, it’s been the latter. For 2009, we have to make it a conscious attempt to do the former.


Stop attacking “new media” as the enemy. Learn how to work with it – not against it.

How did radio reinvent itself when television achieved traction in the fifties?

It became the “last great illusion.”

Like the written word, radio learned how to engage one’s imagination by creating audio masterpieces through creative production and proficient writing.

I've mentioned this before.

Fifty-one years ago, Stan Freberg successfully sold radio’s cinematics to the ad community with an effectual audio promo.

By utilizing ingenious writing and sound effects, he drained Lake Michigan’s water and replaced it with hot chocolate and a mountain of whipped cream. Then six helicopters in formation dropped a giant maraschino cherry on that summit of whipped cream.

The closing line? Let's see them do that on television!

That spot was produced with a reel-to-reel, tape, a razor blade, and round pots. No multi-track, no digital read-out, no Pro Tools.

Why doesn’t radio do that today? Could it be because there’s no “creative” line-item? Who has the time to measure creativity’s role in generating revenue?

And that’s why creativity – radio’s most essential component - has gone from an asset to a liability in just one decade.

The only way radio can be saved is to entertain its listeners and sell its clients’ products to them. To do that it must restore the art of playing to one’s imagination. and, dare I say it, throw in some localism.

Let me ask the question because I really want to know the answer.

When was the last time John Hogan, Dan Mason, Farid Suleman, Peter Smyth, and Jeff Smulyan spent a day – without distraction - listening to their own radio stations?

I rest my case.

Potential radio listeners don’t want or need more radio stations – they want better stations on the frequencies they can hear. And they definitely don’t want the HD Radio and its smorgasbord of insipid formats and auditory mediocrity.

Look, Sirius XM may be imploding in debt – but there’s rationale for the millions that chose to BUY what they listen on the radio over the choices they can receive free.

Engineers are s-p-r-e-a-d so thin they can’t focus on detail; in particular radio’s delivery mechanism. How many stations have you heard with pitiable audio processing and pitch escalation?

And don’t get me started on how radio has ignored the programming and sales potential of the Internet.

Potential listeners want quality music, not a quantity of variations of “classic hits” on stations that believe they can be on a first-name basis with its listeners.

The younger ones demand their own musical soundtrack – not one playing the outmoded crap the major labels persuade your present decision makers to play.

The iPod is today’s turntable. There was a time in the not to distant past that radio programmed music that people would buy and listen to on vinyl or cassette or CD. Today, it’s MP3. Tell me what’s changed other than radio no longer being influential in motivating music sales? Calling the iPod competition is a poor excuse.

Listeners want quality news but get quantity news. Radio’s convinced it’s fulfilling those needs with truncated, facts-optional, newscasts with murder on the ones, weather on the twos, traffic on the threes, sports on the fours, and armed robberies on the fives.

How about talk shows that aren’t crammed with hate or stupidity or both?

Face facts. We’re in a hyper-competitive world.

Maybe deregulation softened-up radio. Is this medium so emaciated that it can no longer stand up to its competitors?

Radio has been living in a world where competence is expected and only flawless execution is acceptable – and it hasn’t been able to pull off either very well.

Most importantly, the ultimate competitive advantage is passion.

When passion is unbridled, it drives convergence, encourages mastery, leverages spontaneity, cultivates ingenuity, and enhances instinct. The pieces of the puzzle come together and intelligibility transpires.

The outcome is quickened and unmitigated product that otherwise would never have been possible.

Start by investing in yourself. It’s the most important thing you’ll do in the coming new year. ***

That is just on this page of the blog. Go back to previous pages and you will find more. Gorman isn’t the only one offering solutions. Read the comments made by readers throughout this blog.
Before you shoot off your mouth next time, check the facts.

Anonymous said...

You're kidding me right?
I decided to take you up on past blogs and looked at the last 14 that John posted. Besides the nice tribute to Bill Drake, here's a key word or words in each one of them, all of which are negative:
11/17 - "High Deception"
11/25 - "Happy Thanksgiving?"
12/7 - "Two Losers Join Force"
12/9 - "Road To Zell (meaning Hell)"
12/14 - "Profiles In Discouragement"
12/15- "Bush's Broken Boy Toy"
12/18 - "Grim Reaper"
12/29 - "Doggie Downer"
1/4 - "Das Klear Khannel"
1/6 - "Lyin Diane"
1/12 - "Skinned In The Game"
1/18 - "Firing Squad"
1/22- "Radio Heard Where?"

If you can honestly say this is a POSITIVE discourse then you have issues with the English language. If "It's A Wonderful Lifes'" Mr. Potter had a blog it would look like this -- a warped frustrated old radio hack

Anonymous said...

who is mr. negative here? he says you don't offer solutions then when someone proves that you do he resorts to reprinting your 'headlines' as humorous as they are. talk about no sense of humor!

Anonymous said...

Yes the headlines are humorous but in a gallows humor kind of way. Clearly however there are people who just want to read all about the bad stuff and, hey, that's fine it's a free country. In fact subject lines are crucial to a good blog and while I'm not suggesting there's never a substantive solution here (though I have to admit "massive change in leadership" and "evolve" are thoroughly generic terms anyone can say) the vast majority of issues discussed are all about how dumb/evil/stupid/full of it/ everyone else is.

Anonymous said...

08 was a tough year for everyone. Radio is a mature business and has stopped growing. Any increases are minimal. Sales revenues are flat and decreasing. The story is traditional media dollars are being shifted to new media.. And for the first time, online beat radio during 07. Trends show online will continue to grow, where radio will remain flat,show minimal growth and decrease. That is unless the industry changes…

07 - -2.0% down year.
06 1% change minimal growth..
05 Flat
04 .02% minimal change

2007: $1,153.0 $3,343.0 $15,133.0 $1,681.0 $21,310.0 -2.0%
2006: *1,112.0 3,553.0 15,478.0 1,522.0 21,669.0 1.0%
2005: 1,053.0 3,384.0 15,634.0 1,384.0 21,455. 0 0.0%
2004: 1,081.0 3,453.0 15,479.0 1,398.0 21,411
.0 2.0%

Online/Radio Advertising Revenues Millions

Online 07: 21.7
Radio 07: 21.3

Online: 06 16.9
Radio: 06 21.7


Anonymous said...

It seems this country has "Ponzied" itself to the top of the pyramid, and there is no where left to go but down. Radio, like much of U.S. Industry, has bought itself to the point of no return, and we are out of money. Now the blocks will come tumbling down.

Our whole economy is set up for a resetting of valuations. Once that happens, we can finally get back to work. Unfortunately it looks to be a long, ugly wait.

Until then, let us radio people that love this biz so much be angry and mourn a bit, o.k.? I pray future owners are watching this whole fiasco, and learning WHAT NOT to do.

Anonymous said...

The death of radio does not mean the death of audio only entertainment. It's not the current sad state of radio's content that is going to be the final nail in it's coffin. It's the fact that radio an obsolete form of distribution. It wasn't boring mail that killed the pony express as a form of mail delivery, it was progress. Radio is to media what the horse was to planes, trains and automobiles. John we love you, but the old wife if dead and life goes on.

Anonymous said...

>> It wasn't boring mail that killed the pony express as a form of mail delivery, it was progress. <<

True enough, but had there been a certain kind of high-demand mail type that only Pony Express carried, then there would be reason for keeping Pony Express. Content matters.

Anonymous said...

I believe we can agree on the two chief components: content and sales. You need something to sell and someone to sell it. Radio is failing on both ends. Clear Channel, CBS Radio and Citadel push for more voice tracking and syndication and homoginization. Radio is in the entertainment business first and foremost which means content is extremely important along with WHO you are selling what to. The evolution of radio must include content and sales - not just method of delivery.

Anonymous said...

Bose sells many other items besides radios so your contention that the layoffs happening are because "no one's buying radios anymore" is a stretch at best. As you noted, Bose radios are very expensive but nowhere in the Bose press release about the layoffs is there any mention of poor radio sales as a driver of these layoffs. Their exact statement: "Bose is restructuring its operations in response to the decline of the global economy and its impact on consumer spending. These actions include total workforce reductions of approximately 10 percent (or about 1,000 positions) from select areas, including manufacturing. We have been staffed for a growing economy, not a global recession. As a global company, we are responding to these challenges."

And while I'm no fan of Clear Channel, there's also no confirmation that they will soon be distributing 15 national formats to their stations. In fact, Mark Mays denied this in an interview with

Q: There are a lot of rumors that the changes in programming will lead to hub & spoke programming where music decisions are centralized, and no longer taking into account for individual market tastes. Will this be taking place?

A: There is no absolute approach. CLEAR CHANNEL RADIO is focused on delivering the best and biggest audience to our advertisers. We have no room for low performers. That’s true all across the company – whether in Radio or Outdoor.

Anonymous said...

"True enough, but had there been a certain kind of high-demand mail type that only Pony Express carried, then there would be reason for keeping Pony Express. Content matters."

You mean like the super high demand content called Howard Stern, that's creating a satelite radio boom? Making it a technology nobody can do without? See buddy, there is no super-high-demand content type that only radio can deliver. New media can do everything that radio can do, faster, cheaper and with greater
C-O-N-V-E-N-I-E-N-C-E! Content is king only when all other elements are equal and radio cannot be technologically equal to the internet as a method of deliver. Sorry.

Anonymous said...

The Boston papers mentioned that Bose radios were not selling. Home theater sets were doing a better business. Their press release is the same gooblygook every company puts out when they have to lay off staff.

Would you believe anything that Mark Mays says? I wouldn't. He is the master at saying one thing and doing another just like his father. Just like his earlier release about taking a pay cut when all it did was rejigger the bonus structure. It also said nothing of the money Bain and Lee will pay them for the company in a few weeks. Clear Channel is anything but.

Gepetto said...

I think you picked the wrong names for Fumbles and Ka Ching.

You should have called them the Pinocchio Twins.

Someone, anyone please tell me if that Annual Report put out by the NAB and RAB will do anything positive for the radio industry.

If you are in the radio industry you know it's a lie.

If you are in advertising you know it's a lie.

If you are in new media you know it's a lie.

Why not be honest and admit that radio has to roll up its sleeve and get to work on reinventing itself instead of promoting dead issues like HD Radio and terrestrial stations on iPhones?

Anonymous said...

"It seems this country has "Ponzied" itself to the top of the pyramid, and there is no where left to go but down. Radio, like much of U.S. Industry, has bought itself to the point of no return, and we are out of money"

Thanks, Bob Struble! Thought that you and the big guys could get away with jamming the smaller community radio stations off the dial - right?

"Why not be honest and admit that radio has to roll up its sleeve and get to work on reinventing itself instead of promoting dead issues like HD Radio and terrestrial stations on iPhones?"

Absolutely! With Pandora and Slacker now appearing more-and-more on portable devcies, such as the iPhone and Blackberry, NO ONE is going to be interested in listening to somone else's crappy programming on testicular radio!

Vic in Long Beach, CA said...

Hey Mr. Gorman,
Have you seen this:

I got it from the CGC Communicator. An engineering newletter.

Anonymous said...

"now rely on increased automation and syndicated programming. That translates to less content and diversity."

How is that less content? Have they cut the number of hours in a day? No. So it's the same amount of content.

You want more diversity? How about the Iraqi hour. Today's hits in Farsi. Nobody cares about diversity. Just play the hits I want to hear.

Radio has enough problems without you creating new ones.

Anonymous said...

"Is it vitriol on John's part? No, just maturity and common sense."

No, it's annoying and obnoxious, like a backseat driver. Hey, Gorman is my mother in law! You're driving too fast. Squawk. Get out and walk!

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Of course Bose radios aren't selling. They're TABLE radios, people. I have ten radios in my house. None of them are table radios. Where is the best place to put your table radio? In the 1940s. Or better yet, in the garbage.

Who came up with this idea that people want to buy table radios? Back when I was in college, I worked in a store that sold radios. You know how many table radios we sold? Hardly any. This was in the 80s. Back when Gorman wa still programming radio. People want portables, car radios, and home theater systems. Not table radios. Fire the whole damned company.

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So you are admitting that radio is dead? If no one wants table radios that is. I bought a Bose Wave many years ago at a Bose store. I used to use it to listen to radio, now I use it to listen to CDs. I just added a docking device to listen to MP3s, too. I almost never listen to the radio.
Maybe Bose should make docking stations without the radio? Is that your business plan recommendation?

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To "hit man" - Ratings prove that radio is not playing the hits. If radio played what people wanted to hear you would not have the disgraceful ratings suffered by most contemporary music format stations today. Radio has not done real music research in years. No wonder the RIAA is going to clean your clock with new royalty charges to play music. You think Spitzer wiped out payola? Ha! The junkets, free tickets for clients, NTR. What has changed? If radio played music its listeners wanted to hear people would still listen to radio. You have only yourself to blame. Enjoy all the talk formats when the RIAA wins this battle.

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Hey NAB, RAB, HD Radio Alliance.

Did you read this in rbr.COM today?

Yesterday I was in the neighborhood of Austin’s huge electronics store, Fry’s, so I had to stop in. In it they sell everything from refrigerators to alligator clips. It’s so big they’ve put a restaurant in the middle of it. I forgot to count, but there must be 50+ checkout stations.

As I wandered the aisles, I thought it might be interesting to see what they had done for HD radio. I asked for directions to the display of freestanding HD radios. There was no display. There was one radio, an off-brand, at $199. The salesman said there was a Sony somewhere, “but it was more of an Ipod dock.” When I picked up the control to try to find an HD station to hear it, he said, “reception in here is really bad.” I extended the FM antenna which seemed to help. I got two stations before I gave up. This little “Sangean?” radio has two 4? inch speakers, and when the tone control preset was set to flat, it sounded terrible.

How many millions of dollars in ads have been used to shill this technology?

Successful marketers BOSE had several end cap displays, for headphones, home theater, and Ipod dock. Very simple – push a button and the demo starts. That’s what HD should have.

Anonymous said...

If you want to continue to listen to the NAB and the RAB and believe their hype and fairy tales go right ahead. Most of you have which is why you are in your weakened position.

Radio cannot blame the economy. Radio lost listeners and revenue when the economy was red hot. It could not deliver customers to clients.

At a time when social networking was just coming into its own what does radio do? Go voice tracking and automation THUS ELIMINATING the IMMEDIACY and REAL TIME radio was known for.

When radio realized it could not afford to service incurred debt it made payola "legal" and changed music radio from being a soundtrack for its audience to a juke box for the record companies.

When radio realized it could not afford to service incurred debt it cut its news and information and fed entire states from one newsroom THUS ELIMINATING THE IMMEDIACY the format needed to be competitive.

I can go on but why bother. I hope Gorman is right about the fire sales. Put radio in the hands of the right owners and embrace new tech/new media and radio MAY have a future.

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Anyone -- and I mean ANYONE -- that accuses ANYONE of ripping off The River in Detroit, a station that ranks 24th and has a whopping 0.7, is insanely dense. Not only wouldn't a radio person worth his salt rip this kind of station off, a real radio person would spend time with stations that actually matter. Rip off a station that's Detroit? Whatever you're smoking you should try and make it last -- that's some good stuff you have there.

Lastly, since when is it a crime or a shameful act to take tactics that have been used against you in one market and adapt (fine, if you prefer steal that's your call) it in another market. I'd say that's SMART and odds are there isn't an industry out there where this kind of thinking wouldn't be highly valued. I would think anyone in the military would agree too. Consultants are the ones hearing tons of stations, being in tons of markets, talking to tons of smart people. Stations pay for this because they are so over-focused on their own markets (and rightly so)that they're not aware of what's going on "out there."

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To Jacobs Media fan club member:
When Fred Jacobs gets an original idea please tell us.
He did copy Radio Philly for Radio Cleveland. RFF like many alt rockers launch hard and fall apart. After hearing his Cleveland station on line I bet he will never even reach a 2 share with that automated dated alt rock jukebox. He did copy the River for the Globe and it was a disaster. Now he is in his comfort zone with active rock. He adds a free classified when no one is hiring. Brilliant man. Does he believe no one can see through his b.s. He copies an internet radio promotion Spacial Audio announced a week earlier but does it half assed. The man is a livingbreathing xerox machine and has never had an original idea in his life. If you are going to steal steal from the right people. Jacobs would rob a gumball machine over a bank. He takes credit for WRIF when it is Doug Podell who deserves all the credit. Podell takes over WCSX and the station sounds much better. Had nothing to do with Jacobs. One of these days Peter Smythe will wake up and smell the skunk from Southfield AKA the Coot who loots.

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