what’s up with radio 2016?
TRANSCRIPT
2016 Medium Overviewin 15 Slides
Radio Reality
What’s Up With Radio?“Radio is the 800-pound gorilla right now. When they
leave our service, they aren’t going to a streaming service. They’re going to listen to AM/FM radio.”
- David Frear, Sirius XM EVP and CFO at a Bank of America investors conference (quote from November 2015)
What’s Up With Radio?According to a Jacobs Media study in 2015, radio has a
Net Promoter Score of 44
A NPS of 0 is neutral
A NPS of 50 is outstanding
For context, Jacobs Media has a flourishing “App” development business
What’s Up With Radio? According to the Spring 2015 Nielsen Rockford Metro survey, 93% of
Winnebago and Boone County residents listened to the radio on a weekly basis.
3 of 4 Americans in car are listening to AM/FM radio and spend 53 minutes per day listening to the radio according to Westwood One’s independent research in late 2015.
94% of Pandora monthly users listen to AM/FM radio on a weekly basis, according to Scarborough Research
Radio Perception
What’s Up With Radio? The common perception is that radio is dying
“I only listen to my phone in the car”
“I love my XM”
“Pandora is it – especially with the kids in the car”
This is a HUGE challenge for our industry – BUT one we’ve faced since the first television was sold
What’s Up With Radio? Radio has always faced challenges AND adapted
In the 50s and 60s, The Highway Hi-FI
What’s Up With Radio? Radio has always faced challenges AND adapted
In the 80s, the Six-Disc Car CD Changer
What’s Up With Radio? Radio has always faced challenges AND adapted
NOW:
Satellite
Streaming Pure Plays
“Owned” Music
Others like video games, Netflix, YouTube, and more
It’s less about “Radio” and more about “Audio”
What’s Up With Radio? Audio in 2016
M-A-P: Material, Audience, Presentation
Material: Music, Talk Topics
Audience: You and all others available
Presentation: How It’s “Curated” (or not)
What’s Up With Radio? Audio in 2016
M-A-P: Material, Audience, Presentation
Material: Easy to duplicate
Audience: Everyone is after same people
Presentation: Competitive Separator
What’s Up With Radio? M-A-P:
Material
Owned Music (iPOD): You Picked It
“How did this song get in here?!?!”
Pure Plays (Pandora): Algorithm
Did it take a Stanford PhD to figure out that if you like Pearl Jam, you may like Nirvana?
Radio & XM: Curated and pre-programmed
Aimed and targeted at specific audiences
Researched and studied to varying degrees
What’s Up With Radio? M-A-P:
Audience
Owned Music: You
Pure Plays & XM: Subscribers, One-to-One
Radio: Infinite Number of Listeners (Scale)
What’s Up With Radio? M-A-P:
Presentation
Owned Music: Play button
Pure Plays: Algorithm based on the station “created” based on the audience of one
Radio & XM: Pre-programmed and curated format based on a specific audience of many
What’s Up With Radio?Where does Radio separate a competitive advantage
in 2016?
Create “raving fans”
Local Presentation
Surprise the listener
Provide Companionship & Community
Discovery (Music, events, community)
What’s Up With Radio? Takeaway Notes:
Ford Motor Company’s Mark LaNeve says about radio at a November 2015 “DASH” Conference:
“It’s a great storytelling medium and you can get scale immediately. Plus, it works. When we used radio in August and September, we had record months.”
What’s Up With Radio? Contact me:
Twitter: @mikepaterson72
LinkedIn: Mike Paterson
815-874-7861