Powerful Insights For Profitable Radio

Wednesday, November 17, 2010

THE BEATLES ARE ON iTUNES: IS RADIO’S TURKEY COOKED?


WITH THE ”FAB FOUR” ON BOARD, APPLE EXPECTS HEAVY DOWNLOAD ACTION FOR THE HOLIDAYS—WHAT DOES THIS MEAN FOR RADIO?

Prior to 10 AM EST yesterday (11/16/10), Apple’s iTunes music download store contained many power groups and most of music’s iconic names. But one group whose music customers could never download was The Beatles. Now, they can. The Fab Four’s music is available in the iTunes store for the first time and it’s likely customers will burn up the bits grabbing everything from individual tracks to iTunes albums to the entire Beatles boxed set between now and Christmas. For radio station managers, the development again raises the question: “Is owning a radio station going to become the equivalent of owning a livery stable? The answer: of course not.

Apple’s iTunes venture has certainly changed the way music fans acquire their tunes. All it takes now is a couple of clicks, a credit card and an mp3 player and nothing but favorite tracks will spew into those little white earpieces all day long. No further need for music radio, right? That’s what a persistent Greek Chorus of radio’s naysayers intones. It’s easy to jump on their bandwagon and some in the industry have already done so.

Not the smart ones, though.

LOOK AT THE LAST 80 YEARS

Eighty years ago radio was cutting-edge technology. It provided instant (as soon as the tubes warmed up) and free (at least in the U.S.) access to entertainment and information. No technology since has been able to kill it off.

Talking movies didn’t do it.

Television didn’t do it.

Color television didn’t do it.

Movies on VHS and DVD didn’t do it.

The Internet didn’t do it.

The radio industry hasn’t even managed to kill itself off, although some might say it has tried.

iTunes won’t kill it off, either. Not even close.

WHY RADIO IS ALWAYS IN PLAY

Look at what iTunes can do that you can’t:

  • Offer millions of tracks on demand
  • Get paid directly when someone downloads one
That’s a lot but that’s all.

Here’s why even music freaks who load hundreds of tunes on their iPods consistently say they still turn to radio:

  • Entertainment, as opposed to just music—meaning interesting, funny, relevant air personalities and program material
  • Information—you can’t download up-to-the-second news, weather and traffic information
  • Companionship—any idea how many people are listening to your station(s) right now because they have no one to talk to, are ignored or just plain bored? The number is huge
So here’s the question: What have you done to make your music format relevant? Is it entertaining beyond simply playing the music?

Do you provide local news and other information, not just recorded community calendars and PSAs?

Can listeners tune in someone who sounds like an actual person or is it Segue City with liners in between?

THE MANAGER’S BOTTOM LINE

No music download system—no matter how customized, no matter how convenient—will replace radio providing that radio keeps itself entertaining, informative and companionable. iTunes can’t be that—only your stations can.