Monday, March 10, 2014

Major Changes Coming for Radio

The digital revolution has had an impact on most every facet of modern media: we read newspapers on tablets and Kindles, watch television on our phones and make video telephone calls with our laptop computer.  Absent from this list is radio.  Sure there are some apps for radio stations but up until now radio stations and our consumption of radio programming today is not all that different from our great grandparents.  In fact, if you found an old radio in the attic dating back to the 1930s and you could get it to turn on, that radio could receive most every local radio station now operating today. 

We are likely to soon witness a change in how and where we receive radio programming and that change might well be more revolutionary than what we all experienced with television.  This revolution could change forever the economic model of radio broadcasting.

Radio stations have operated in such a way as to cover a specific geographic area.  Anyone driving cross country has experienced the frustration of listening to a baseball game or interesting talk program only to lose the signal as you drove further away from the station’s tower.  Radio stations based the cost of their advertising spots on the coverage area and the number of people who listen. 

Most stations have for several years streamed their programming on the internet and those with an internet connection could receive the station no matter where they were.  There are even internet radios that can receive most any streamed station in the world.  The popularity of these devices and services has been modest since most people listen to radio in their automobile and, up until now, internet access while driving down the highway has been elusive.

Close attention to advertisements for new cars will show that this is changing and changing fast.  The dashboard now is becoming a multimedia center for getting email, instant messages, map direction and, yes, internet radio.  A driver on the Santa Freeway will be able to listen to a station in Cincinnati as effortlessly as a commuter on I-75.  Services like iTunes radio, Prodigy, Spotify and iHeart Radio will show up on the dial along with WLW and WKRC.

In essence it makes every radio station a potential global station.  What it will do for the advertisers is uncertain.  Will Mr. Gilkey want to spend money to advertise his windows to thousands of homeowners who can’t buy them?  How about local news and weather? 


Managers of radio stations have a lot to think about as another facet of our media faces extraordinary change.  Stay tuned.

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