Right, Wrong, Not Defined in New Rules for Radio
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When it comes to showing signs of stress, industries are like people. Some show it. Others don't.
What stress? Change is at the top of this list. The radio industry is going through a change unlike any in history. This change, by far, is bigger than radio's fight against television in the 1950s (when automobile-meets-highway gave reason for radio to stay relevant). Today's change is much greater than radio's shift from middle-of-the-road programming to the format-specific demo chasing of the 70s & 80s. And, today's movement, in a world with this new online distribution and communication system, is undoubtedly more disruptive than the radio industry consolidation of the 90s.
To deny radio is undergoing stress is to place yourself in jeopardy. Feeling your station is but one of only a few chosen outlets of entertainment and/or information is an indicator that denial is present. Believing that radio's current approach to meeting audience and advertiser needs is adequate is another indication that you don't know the landscape yet. (Radio industry leaders all suffer with this last symptom.)
Assuming the radio industry is doing everything it can to morph into meeting next generation demands will set you up for something much rougher than the stress being denied today: the crash - defined as when it's discovered you no longer carry the skill sets needed to compete.
Radio is going through multiple stress-inducing gyrations. Performance royalty fees and the Mercury Radio Awards stance of not recognizing a "station produced" category winner this year are only the latest, very significant, waves rocking radio's boat. Before discussing these, consider the following:
When the Wall Street Journal writes an article on HD Radio, it's newsworthy and mentioned in radio trades. However, again, there's no mention - from any publication - about the quality of programming found on HD Radio. Now we eagerly await "NAB Accepting Entries For HD Multicast Award" news. How many entries are going to be submitted, and how will their "quality" be determined?
We also have another positive move, as reported by radio industry trades: "Greater Media Urges Listeners To Help Save Radio."
There are only a few words to offer for the performance royalty issue facing radio. Stations will soon pay. The radio industry is now fighting for parity, not tradition.
About the Mercury Radio Awards issue, where we heard cries from radio owners and managers to abandon RAB because it stood firmly behind a panel of judges who thought there wasn't a station-produced radio commercial to praise. Can a more incredulous argument be made than what we are hearing now? Questioning the judges ability to judge, calling for measuring the "effectiveness" of a campaign over esthetics, and making sure "radio people" are on the judging panel because they can be more fair are all ludicrous actions stemming from a stressed-out radio crowd.
What's next? Taking box office figures into consideration before awarding an Oscar?
There is a seismic shift in how radio audience and advertisers respond when a radio station comes knocking today. For radio managers, handling the stress of change means taking dramatic actions to alter how you operate. Remain the same, and risk becoming extinct within five years.
We are all operating under new rules where right and wrong have yet to be defined.
If a station is still selling "radio," having a conversation with its rep is like watching someone with a knee that keeps bouncing. You know their stressed-out, but they don't.
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