Juan Monroy — 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