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Introduction to Electronic Media
Outline: Week 5, Radio Today
Outline: Week 5, Radio Today
1 Three Cs
1.1 Competition
1.2 Consolidation
1.3 Control
2 Competition
2.1 Audience
1930s: talking movies
1950s: television
1980s: home video
2000s: digital media
2.2 Advertising Revenue
TV gets the most (36%)
Newspapers and magazines (26%)
Custom publishing (9%)
Online, Yellow Pages, Alternative (20%)
Radio (8%)
3 Radio Stations
14,500
AM: 33%
powerhouse stations cater to older listeners
focus on news/talk/sports
dependent on local advertising
FM Commercial: 45%
supermajority % of all radio listening
most profitable stations
major advertisers dominate
FM Non-Commercial: 22%
funding from public sources
4 Consolidation
Deregulation
National Association of Broadcasters lobbyists for the broadcast industry
radio group owners should be able to operate multiple stations in a market
Telecommunications Act 1996
eliminated the seven station rule
no ownership caps
44-station market: 8 (no more than five on each band)
30-station market: 7 (no more than four on each band)
15-station market: 5 (no more than three on each band)
supergroup
Clear Channel
most radio stations
biggest potential audience
Cumulus
Citadel
ABC Radio Network
CBS Radio
most profitable
highest billing
all-news duopoly in New York, Los Angeles, Chicago
Entercom
Duopoly
in-market control of listening and revenue by a single company
lease management / local marketing agreements
programming
sales
operations
pros
economies of scale
better profitability
cons
insensitive to local concerns
corporate control
5 Control
highly targeted
intensely researched
Metropolitan Statistical Area (MSA)
Arbitron
cities/regions in radio business
Audience
age
gender
music preferences
lifestyle
ethnicity
Format
program strategy designed to attract the desired audience group
delivers audience
qualitative: aggregate size
quantitative: tastes and preferences
6 Programming
News/Talk/Sports
large presence on AM radio
tops all radio formats
NYC: WABC 77
Country Music
1600 stations
tops in FM and second on AM
almost absent from large metropolitan areas
Adult Contemporary
700 stations
NYC: WLTW 106.7
Contemporary Hit Radio
NYC: WPLJ 95.5
Hispanic
NYC: X96.3
Black/Urban
NYC: Power 105.1
Adult Hits
Classic Rock
Jack
Album and Active Rock
7 Non-Commercial Radio
Community Radio Stations
WMNF Tampa
WFMU 91.1 Jersey City
College Radio
WFUV 90.7 Fordham University
Public Radio
also known as CPB-qualified stations
WNYC 93.9 New York
8 Satellite Radio
Launched in 2001
XM Radio
Sirius
Specialized Programming
80+ music channels
pop
rock
hip-hop and R&B
dance
country
jazz
classical
17 professional and collegiate sports
MLB
NFL
NHL
NBA
Cricket
golf
auto racing
news and talk
9 Programming Sources
Local
Syndicated
National
10 Radio Formats
10.1 Format Hole
find an opportunity to connect advertisers and audiences
create a radio format
10.2 Audience Analysis
target audience
demographics-psychographics
10.3 Format Change
if the advertising market has changed, a format change will likely occur
11 Hot Clock
11.1 music
11.2 commercial spots
11.3 news/weather
11.4 DJ chatter
12 Format Wheel
12.1 talk radio
12.2 commercial spots
12.3 news/weather/sports
13 Dayparts
13.1 Morning Drive Time
13.2 Afternoon Drive Time
13.3 Daytime
13.4 Evening
13.5 Overnight