When Fred Jacobs’ presented TechSurvey 2022, he prophetically warned, “The more I look at the data, the more I come back to…SiriusXM remains a prime threat to broadcast radio.” The companies that own radio stations threaten AM/FM radio far more than SiriusXM. Nonetheless, the two have been in a Cold War for a while.
The war heated up recently when SiriusXM began including the tagline, “Why waste your time with AM/FM radio,” in its marketing. The RAB and NAB fired back with salvos touting broadcast radio.
The battle was over before broadcasters realized they were in a fight. AM/FM broadcasters allowed themselves to be redefined by SiriusXM when it hung the modifier “terrestrial” on radio, and the industry acquiesced. We don’t refer to SiriusXM as just “satellite” but accepted identifying AM/FM radio as “terrestrial” or “broadcast radio.”
Many broadcast companies dropped the word radio in favor of “audio” or “media,” SiriusXM said thanks and used “SiriusXM satellite radio.” If the word “radio” is unhip, nobody told SiriusXM. Conceding a word people have used for one hundred years to SiriusXM suggests radio lost the fight long ago.
SiriusXM went too far, explicitly attacking AM/FM radio. The RAB responded by showing how many people use AM/FM compared to the satcaster. While true, the RAB misses the point of SiriusXM’s marketing. In addition to advertising clients, broadcast radio has a second client base, listeners. SiriusXM is directing its message to broadcast radio listeners, not its advertisers.
NAB President and CEO Curtis LeGeyt defend broadcast radio in a blog post. He makes several arguments about the importance and relevance of broadcast radio. The essence of his case is this passage:
“Broadcast radio continues to be the leading platform for people to tune in to hear hit music, their favorite DJs, the latest songs by today’s hottest musicians, and new tracks from emerging artists. Yet, what truly sets us apart is the connection we provide listeners to their neighbors and communities. No other audio platform is locally based in the cities and towns we serve. Broadcast radio is the voice of local communities, providing news, information, and programming that meet local needs and interests.”
That’s so 20 years ago.
Jacobs Media TechSurvey shows listeners’ attitudes about radio and music have changed. In the 2014 TechSurvey, 70% said music was one of the main reasons they listen to their favorite station, while 57% said personalities were one of their top reasons. In 2019, personalities overtook music among the main reasons for listening. Music continues to decline as a primary factor for listening. In 2022, 82% say personalities are a top reason, while 55% say music is a primary reason.
Fewer say music discovery is a key reason they listen to the radio now. In 2014, nearly four out of ten respondents said music discovery was a primary reason for listening to their favorite station. This year it’s down to less than one out of four.
Is anyone surprised music has diminishing importance for radio? Today, it’s not unusual for music stations to play 18 minutes an hour or more. If a music station limits commercials to 14 minutes per hour, it’s showing restraint. SiriusXM, websites, apps, and most cable TV systems, offer a hundred different highly specialized music channels with no commercials. Of course, fewer people are using the radio for music.
LeGeyt makes a point about “favorite DJs” and personalities in general. This advantage continues to narrow, however. Over the years, due to budget cuts, many listener favorites have migrated to SiriusXM, and other online projects, where they continue to attract audiences.
Radio stars continue to leave the medium nationwide. In Philadelphia, Ray Didinger retired; Angelo Cataldi will step down at the end of the year, and Mike Missanelli was let go ending a 12-year stint with his more recent station. In Minneapolis, Tom Bernard announced the end of his program at year’s end. David Lee recently wrapped a 32-year run at WCCO-AM. Matty Siegel hung up the headphones after 42 years in Boston. Peter Boyles in Denver, Tom Tangney in Seattle, and other personalities who have been market leaders for decades are exiting radio. It’s impossible to replace these performers.
Magnifying the departures of big names is the failure of the radio industry to develop new talent, which was foreseeable. Never-ending budget cuts meant less investment in young talent while cutting and consolidating experienced programmers to coach them. The advantage broadcast radio enjoys from local personalities continues to shrink.
LeGeyt mentions the local connection between broadcasters and their communities, but budget cuts again change the dynamics. An ever-increasing number of hours are voice-tracked from far away DJs.
Promotion staffs have shrunk, where they haven’t been eliminated. The staffs at stations I programmed were proud of how often we were out and how omnipresent we were in the community. Have you seen many radio station vans cruising the streets of your city lately?
How long after an unplanned event, not on a weekday between 6 am and 6 pm, until stations cover it? Newsrooms are dark much of the time at many stations – even stations with significant news images – it’s not uncommon for it to take hours, even until the next morning, before discussing a weather event on the air. By then, listeners might receive dozens of notifications on their smartphones.
Expect stations to become less involved in local communities. In 2017, the FCC eliminated the main studio rule. A studio with program origination capability in the local community is no longer required. Neither is having management and staff present locally during business hours. We can identify the cities where future broadcasts will originate right now.
LeGeyt also emphasizes that AM/FM radio is free. Sometimes 18 minutes of commercials an hour seems like a high price to pay, especially with so many other sources with fewer commercials. Many people are willing to pay for at least a couple of subscriptions with limited or no commercials.
Not all stations have fallen into these traps. I applaud the owners, market managers, and programmers who have maintained the standards that built great stations and brands. If only there were more of you.
Twenty years ago, LeGeyt arguments would have been valid. Today his points no longer hold water.
The RAB, NAB, and many broadcasters are indignant over SiriusXM’s chutzpah. But SiriusXM is saying what many listeners have already concluded. If management continues the course of the past 15 years, increasing numbers will answer SiriusXM’s rhetorical question, if not by subscribing to the satcaster, at least by finding different sources for audio entertainment than the AM/FM dial.
If broadcast radio ceases to be a commercially viable business, the post-mortem will rule the death a suicide.