Juan Monroy — Class 5, Radio Today

Three Cs
- Competition
- Consolidation
- Content
Competition
- Audience
  - 1930s: talking movies
  - 1950s: television
  - 1980s: home video
  - 2000s: digital media
- Advertising Revenue
  - TV gets the most (36%)
  - Newspapers and magazines (26%)
  - Custom publishing (9%)
  - Online, Yellow Pages, Alternative (20%)
  - Radio (8%)
- 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
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)
      - 30–44 station market: 7 (no more than four on each
        band)
      - 15–30 station market: 6 (no more than three on each
        band)
      - 1–15 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
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
    - quantitative: aggregate size
    - qualitative: tastes and preferences
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
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
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
Programming Sources
- Local
- Syndicated
- National
Radio Formats
- Format Hole
  - find an opportunity to connect advertisers and audiences
  - create a radio format
- Audience Analysis
  - target audience
  - demographics-psychographics
- Format Change
  - if the advertising market has changed, a format change will
    likely occur
Hot Clock
- music
- commercial spots
- news/weather
- DJ chatter
Format Wheel
- talk radio
- commercial spots
- news/weather/sports
Dayparts
- Morning Drive Time
- Afternoon Drive Time
- Daytime
- Evening
- Overnight