At IF we like to listen to the songs on the radio as much as the next blogger, but recently we’ve started to get distracted by new fangled things like podcasts and shuffle. We decided to ask an industry insider, Scott McKenzie – Editor In Chief of Billboard’s Radio Monitor, to give us his view on trends facing the radio sector.
We’re watching a transformation in the radio sector with the take off
of satellite radio. How do you see distribution of radio evolving over
the next 18 months?
There is indeed a transformation underway but I
don’t necessarily agree that it’s being led by satellite radio.
Satellite is just a piece of it. Less than 10 million total subscribers
against a hundreds and hundreds of millions of terrestrial radios
already out there receiving free radio is not something going away in a
hurry. Instead, radio will mean different things to different people.
Internet listening, cell phone listening and similar emerging or
expanding experiences may become more of what radio is about if you
cast ahead several years.
Do you think we’ll see the evolution of premium content with premium pricing like we we’ve seen on TV (e.g. HBO)?
As high def radio rolls out and the possibility for subscription models, especially for niche side channels is discussed, is discussed it seems unlikely that free radio will become paid radio. Most of the major radio groups oppose a paid model. Satellite is experimenting with its paid models against a backdrop where subscription radio has not been successful anywhere in the world. It will all boil down to whether there is content that is popular enough to force people into their wallets.
How will the global reach of satellite radio affect local stations?
The national reach of satellite can be both a plus and a minus. If you’re listening to one of the national services such as ESPN on satellite, it probably doesn’t matter where you are, but if you’re looking for a sense of community and local knowledge then local radio can do that very well if it does it preperly.
Podcasting – threat or opportunity?
Podcasting is very much an opportunity. Major radio groups are already having strong success with podcasting and individual shows, particularly talk radio shows, are finding financial models to support them. For music in podcasts, there are still substantial rights issues to be resolved and that needs to happen quickly.
What type of content will radio stations tend to podcast?
We’re seeing some very popular podcasts like the WCRS shows in NYC – how will commercial radio stations monetize this medium? We’re already seeing commerical radio monetize podcasts. Some offer additional content to paid subscribers, others begin their podcasts (like Z-100 in New York with the Phone Taps) with sponsor branding. Podcasting is cheap to deliver and mostly relies on existing content so the upside comes fairly easily.
Thank You.
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