Will Traditional Radio be Invited to the Wi-Fi Party?

As a proud owner of an iPhone I was thrilled to hear that Steve Jobs had cut the price of the 8 gig iPhone by $200 just in time for the upcoming holiday season. Boy, that makes me feel just great!

But wait....as radio broadcasters, we should we feel good or bad that Mr. Jobs didn't 'refresh' his new Fall iPods with FM radio receivers.

The radio industry shouldn't feel slighted that FM radio seems to be at the back of the line of applications that are waiting to be included in America's favorite audio toy. We need to be realistic; it's just never going to happen.

Why is this?

Bridge Ratings has conducted studies over the past two years on iPod and MP3 use and believe me when I say that very few users of these devices want a radio in them. It just is counter-intuitive. Focus groups have been asking why it would make sense to put a radio in an iPod.

Steve Jobs has seen the research too. He's not even contemplating adding a radio to his iPods. Because Mr. Jobs doesn't ever look back. He has the luxury of doing what radio management hasn't had the chance to do in over 7 years - look to the future.

Of more concern to traditional radio is the new iPod Touch which comes with Wi-Fi capability and a Safari browser - the best mobile device browser out there. It's on the iPhone and it makes surfing the Internet effortless.

And now a music-playing device has the ability to go to iTunes and download music direct to the player. How far away are we from a time when these same devices can surf over to an Internet radio website and in a Wi-Fi hot zone listen to Internet radio. Not very far.

Generally, the radio industry has done a decent job and has dedicated some resources to its Internet radio efforts. This has occurred in mostly large and some medium markets. The remaining markets/stations haven't taken the step because they are intimidated by the streaming/copyright expense issue and they really don't know how to do an effective job of delivering an Internet radio product.

But if you can feel that Wi-Fi enabled MP3 player train bearing down on you, you are not alone, traditional radio. It's coming and coming fast and as far as Internet radio is concerned, traditional radio's greatest weakness is the vast choice (thousands) of stations available on the Internet. Practically every taste is served. And soon it will be served in a small hand-held device.

Traditional radio's greatest strength is its brand and the current distribution system of blasting its programming across metropolises (is that a word) up and down our great land. Radio's bright leaders should take these Steve Jobs press conferences to heart because each time Jobs steps on that stage, radio's exclusivity and relevance shrinks.

If you have not instituted an Internet radio effort for your company or station, don't wait too much longer. The pervasiveness of portable devices that can bring the world of radio to a hand-held music player or mobile phone is on the horizon. In fact, some already do.

You want to be invited to that party.

Chicken Little?

I just returned from the "New Media Seminar 10" in New York City. It's an event sponsored by industry publication "Talkers Magazine" published by long-time industry visionary Michael Harrison. The event draws about 600 programmers, managers and related people who are tied to the news/talk radio industry.

Great group of people. Excellent seminars. Thought-provoking commentaries. Stimulating cocktail party discussions.

Yet, some of the buzz being dispensed to the attendees this year is that "terrestrial radio"is in serious trouble if it doesn't get its act together. There was a sense among those there that news/talk and talk radio is the salvation of terrestrial radio primarily because music radio is dead, dead and more dead. It's this MP3 player thing that's going around.

I respect all of those in attendance who got up on the dais and the podiums and tossed out this theory, philosophy or prediction, but they're just plain wrong. And I'm getting fatigued with "bloggers"and journalists who continue to spout this incorrect theory.

It's a matter of degree really. Certainly, people are finding multiple audio alternatives for their audio listening enjoyment. They're all good and serve a distinct purpose and fulfill a specific need and mood. And the "pie" is being divided up into more pieces.

But all the research I've seen indicates that the public love this. You've heard that "Content is King"? For consumers "Choice is king".

Terrestrial radio will sustain whether it is Talk radio or music radio. Why would anyone listen to terrestrial FM music radio when they can provide themselves all the custom songs they want - whenever they want?

Because radio provides something MP3 players don't: surprises and music discovery. "Pandora's" more of a threat than MP3 players. God help us all if royalty rates slam the door shut on Pandora and others like it. The point is, music on terrestrial, when programmed properly, can easily provide a unique component that will cause people to continue to want to tune in when they are in the mood for it.

So, if you know someone trying to sell this bill of goods that music on FM is going to be extinct within 5 years (let alone 10), have them call me. My personal cell phone number is 323.829.3201. I'll be glad to explain it to them.

Meanwhile, you know what happened when "Chicken Little" cried "the sky is falling", right? Do you even know who Chicken Little is?

He was wrong.