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Don’t Be Afraid of the Paywall

The advent of in-car smartphone apps and Wi-Fi have given people easy ways to access commercial free alternatives to the advertiser saturated content on the dial.

Ryan Hedrick

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I was talking with a former radio colleague of mine a few months ago. We got into a rather lengthy discussion about online radio listening and on-demand content.

We segued into a discussion about subscription-based services.

“It’s shocking to me why radio operators don’t put their content behind a paywall,” I said.

“Hell no,” he replied. “We could NEVER do that!”

“Why not?” I queried.

“People would never pay to listen to our shows. If we started charging them money to listen to our content, they would just go somewhere else!”

That line gave me a EUREKA moment. What my former colleague said is perhaps the radio industry’s biggest problem- they don’t have enough faith in their own content.  

A someone who spent nearly three decades working for terrestrial radio stations in eight different markets across the country, this pains me. Radio is missing out on a golden opportunity to break open new revenue streams that they desperately need. The solution has been sitting in their studios the entire time.

Radio’s biggest asset is their content. And more operators need to double-down on that. Company to company, market to market and station to station, radio still boasts the biggest portfolio of local and syndicated talent in the country. Yet, they don’t maximize the revenue from this talent. Instead of putting a dollar value on that content, they’d rather give it away for free and make money the way they have for 100 years…spots and dots.

Radio’s efforts to generate new revenue streams have been mixed, at best.  I’ve seen first-hand the dabbling into things like e-commerce, e-mail marketing, SEO and website building.  Eventually every new fad I’ve witnessed championed has, for the most part, fizzled out within a year or two.  Why?  Because nothing they come up with is innovative.  Everything I’ve seen radio get into had already been done by the Groupons, Go Daddy’s, Googles and Amazons of the world…and those companies did (and continue to do it) it far better.  

Radio is using an antiquated revenue model, relying too heavily on selling ads to survive. One problem, spot revenue has been on the decline for well over a decade. Advertisers are seeing higher ROI by investing in more non-traditional campaigns to get their messaging out. 

What’s worse, radio has seen serious listener erosion for a long time. In large part because younger consumers have grown tired of having to soldier through 20+ minutes of commercials in a given hour (or even one of those damn “Kars4Kids” spots).  

Time and time again, consumers (younger ones, in particular) have proved with their wallets that they will pay a few extra bucks for quality commercial free content, on virtually every platform. Hell, its as if they’re conditioned to do so.

Netflix Revenue in 2019 was over $20 billion.

Disney+ managed to gain over 60 million subscribers in less than a year.

Spotify did almost $7.5 billion in revenue in 2019.

SiriusXM is now a $2 billion company and has already swallowed up competitors in Pandora and Stitcher.

Huge multinational corporations like Apple, Sony and Amazon are pouring cash into developing original audio content.

And the list goes on and on.

The advent of in-car smartphone apps and Wi-Fi have given people easy ways to access commercial free alternatives to the advertiser saturated content on the dial.  

Everyone has already left for the party and radio is still in the bathroom fixing their hair. The truth is, they look fine and should have been at the party hours ago.  

There will always be room for ad-supported content in the audio world. But the reliance on it needs to be drastically reduced and a big part of the needed shift should include the building of paywalls to support subscriber-based content.

As I prepared to write this column, I did a little-self exercise. How many commercial-free subscription services do I actually have?  

Here’s my inventory:

You Tube Premium

Amazon Prime Video

Netflix

Hulu

Disney +

CBS All-Access

HBO Go

New York Times

Spotify Premium

The Economist

The Athletic

SiriusXM

TuneIn Premium

NFL Sunday Ticket

Crunchyroll (my husband is a big fan of anime)

DC Universe

Shudder

World of Wonder

That’s a lot. And by the way, as anyone will tell you, I ain’t rich! But what’s an extra $15 dollars a month if I get to see John Oliver and Bill Maher every week? What’s an extra $25 a month if I can listen to Stern?

And to be honest, if my favorite terrestrial radio talent were pushed behind a paywall, the decision for me would be easy.

As a die-hard (and constantly suffering) Detroit Sports fan, I’m an almost daily listener of Mike Valenti’s on 97.1 The Ticket. His Monday shows after Sunday Lions debacles are must-listens. If I can get the Radio.com app to NOT crash on me, I make a point to be logged on to his live stream.

That being said, If Entercom were to tell me that I’d have to pay $5.99 a month to listen to his show online, get commercial free access to his podcasts (and maybe some additional bonus content), I’d sign up without even giving it a second thought. I’m guessing a decent chunk of his nearly 200,000 weekly listeners would do the same.   

Even if say, 5% of his audience (10,000) agreed to pay that subscription fee, that’s $60,000 in revenue. How many radio stations would turn down a $60k annual these days?  

All is not lost. There are some operators who are moving in the right direction. No one does digital better than iHeart. Yes, they have the largest scale, but they have also invested more than anyone else in top tier talent as well as the technology to deliver it. In 2019, their podcast revenues alone were about $100M. A big reason for that is because they’ve approached things fearlessly. Sure, they have ad-supported content online. But they also created a space for the paywall as well. iHeart Radio Plus and iHeart Radio All-Access are upgrades to their digital content services that unlock different features such as ad free artist radio. On a smaller scale, Good Karma is starting to do the same as they continue to grow their footprint.   

Radio has, for the most part been far too conservative. They’re the guy at the poker table that gets bluffed easily, may win a few hands, but would rather fold than call. At some point, they’re going to have to push all their chips into the center of the table. Otherwise, like that overly cautious poker player, they’ll continue to slowly hemorrhage money until it’s time to call it a night.

BNM Writers

The Cost of “Thoughts”

Jack Del Rio made a classic mistake of wondering aloud about topics that people in public positions aren’t allowed to think about on Twitter.

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The first recorded use of the expression, “A penny for your thoughts,” was made by Sir Thomas Moore precisely 500 years ago (1522). But, no doubt, a penny went much further in the 16th century.

The U.S. Department of Labor’s most recent Consumer Price Index (CPI) shows that inflation continues to increase above expectations. The current annual rate of 8.6% is the highest since 1981. The cost of thoughts, or at least saying them aloud, well, saying certain things in a public forum, has gone up far more than the CPI.

Jack Del Rio, defensive coordinator for the Washington Commanders (formerly known as the “Washington Football Team,” and before that, the Washington Redskins), made a classic mistake of wondering aloud about topics that people in public positions aren’t allowed to think about on Twitter. Specifically, his Tweets compared (what he called) “the summer of riots” to January 6th at the U.S. Capitol. As the late, great Alex Trebek would say, Del Rio’s comments were “in the form of a question.”

Faced with media scrutiny about his Tweets, rather than back down, Del Rio referred to January 6th as a “dust-up at the Capitol.”

Can I tell you a trade secret of press flacks? They all have a small can of lighter fluid and a pack of matches within reach behind a piece of glass with the words “break only in the case of emergency” scrawled on it. Certain phrases or words will cause a press person, at great personal danger and sacrifice, to break the glass, douse themselves with the accelerant, and strike a match before flinging their immolating body in front of the podium. Okay, not literally, but I guarantee the Commanders’ public relations director would think this alternative less painful than hearing those words come out of Del Rio’s mouth in front of the press gaggle.

The controversy that followed was swift and certain: as was the reaction from Commanders Head Coach Ron Rivera. He promptly assessed a $100,000 fine on Del Rio for his comments.

Two points here: First, this is not a sports story. Talk Radio observers should be far more concerned with the consequences of this story than NFL or sports fans. Second, it doesn’t matter what you think happened on January 6th. You should still find the fine issued by Rivera chilling, whether you call it an insurrection or a dust-up.

I used to believe that comedian Bill Maher and I were about as far apart on the political spectrum as any two Americans could be. Maher and I, however, hold similar views on freedom of expression.

On his HBO show, “Real Time,” Maher defended Del Rio by saying: “In America, you have the right to be wrong. They fined him; the team fined him $100,000 for this opinion. Fining people for an opinion. I am not down with that.”

Because this is where we meet, I’d like to buy Bill Maher a drink and have a laugh over all the times he’s been wrong, or we can share that drink and a smile for understanding that freedom of expression IS the foundation of democracy – no matter who’s right or wrong. Freedom of expression is an issue where liberals and conservatives must find common ground.

The football team currently known as the Washington Commanders may need another name change. Perhaps the “Comrades” would reflect the team’s philosophy better? Levying such a hefty punishment for stating a political (and non-football) point of view because it is out of step with what is apparently official policy seems more reminiscent of the Politburo’s posture than a free society.

Del Rio’s words are understandably offensive to many. At the very least, they were ham-handed for someone who has been in the public spotlight for so long. But a $100,000 fine? Stifling political opinion is far more dangerous than anything Del Rio said.

Taking the Del Rio incident into context with the “Cancel Culture” of the past few years, Talk Radio hosts should look over their shoulders. Del Rio is also an excellent reminder to think twice before posting a politically unpopular opinion on social media.

Inflation has eaten away at the value of a penny and increased the cost of making politically incorrect statements, including on the air in recent years. What inhibits individuals from expressing their thoughts, beliefs, opinions, and emotions is a threat to Talk Radio and democracy.

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BNM Writers

Joe Pags’ Dream to Work In Media Started Early

Pags knew a career in media was for him ever since he was ten years old, even before his vocal chords did.

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If you’ve ever been required to interview someone for a segment or article, you know pretty quickly when it’s going to be a bumpy ride. 

Joe Pags was answering my initial questions as freely as Ebeneezer Scrooge hands out Krugerrands. Teeth have been pulled from the human head with greater ease. It just wasn’t happening. 

After a few minutes, I think I grew on him.

I discovered we actually had a few things in common; both of us lived in Lake Worth, Florida, we knew a lot of the same places and faces, and we both understood that summer heat in Florida is like purgatory. 

However, Pags and I will both have a fond devotion to The Noid. We will always share the memories of being a manager at Domino’s Pizza. 

“I worked at Domino’s when pizzas were delivered to your door within 30-minutes, or it was free,” Pags said. “After a while they went to 30 minutes or three dollars off the price. Too many people were getting into accidents trying to beat the clock.”

What Pags did not mention was that even when you legitimately made it in less than 30 minutes, you had people questioning your delivery time. I guess that’s human nature.

Soon, pizzas were just for eating, not working; Pags started his radio career in 1989 in Palm Beach County, Florida.

After that, it was a stint as a television anchor from 1994-2005 in Saginaw, Michigan, and then Albany, New York. From there he was called back to radio and landed at the Clear Channel Talk Flagship, WOAI, in 2005. The Joe Pags Show has been a fan favorite since its debut in 2005.

For Pags, the media dream started early on. 

“I grew up listening to talk radio at a very young age and was determined to make my living doing it one day,” Pags says. “I actually have a tape somewhere on which I erased the DJ’s voice and recorded mine over the songs.” 

Pags is probably thrilled that the tape will never be released.

Years later, he found he could pay the bills doing something he loved. “I’m lucky enough to work with great people on both local, and national radio and television,” Pags explained.

As a kid, Pags listened to Neil Rogers on WIOD. It was consistently a top-rated show in the MiamiFt. Lauderdale media market and had been since his Miami debut in 1976.

“I also remember Steve Cain, Rick, and Suds on that station,” Pags said. “It was a lot of talk radio, but it was fun. It was entertainment. Rush Limbaugh was doing the politics stuff back then.”

Pags knew a career in media was for him ever since he was ten years old, even before his vocal chords did.

“When my voice changed at 13, I developed more of a bass tone; I knew I was on my way. I had a New York accent and had to shake that.”

Before he embarked on a career in radio, his music career was going well. Pags played French horn and saxophone; apparently, he was pretty good.

He played gigs at the prestigious Breakers Hotel, among many others. “I used to play at the Backstage lounge adjacent to the old Burt Reynolds Dinner Theater in Jupiter,” Pags said.

No word on whether Reynolds ever caught Pags live or not.

As a kid, he played baseball. Pags said he was pretty good. What took center stage for Pags was music. It was the French horn and saxophone that captured his heart. 

“I played professionally on the Empress Dinner Cruise on the Intracoastal Waterway,” Pags said. “I also did gigs at The Breakers Hotel in Palm Beach. We made some good money.” 

Before Domino’s and radio and music, it all started with a strong desire to succeed. That often comes from your family’s belief in you. Sometimes it’s not there.

“I knew that if I worked hard enough, if I showed the love for the work I was doing, then I’d succeed,” Pags said.

His family lived in Lake Worth, Florida, from 1973-74, and Pags returned every so often. “I got back to Florida recently when I went to Mara Lago and watched 2,000 Mules.

San Antonio has been home for the past 17 years for Pags and his family. “I’ve been here at WOAI. I’ve got my own studio in a great area.” His daughter Sam is his executive producer. I asked Pags if there was any nepotism when it came to hiring Sam.

“Darn right, there is nepotism,” he said. “This is Joe Pags media. I get to hire whoever I want,” he quipped. “Sam has always had a love of broadcasting. When I became syndicated in this business, I told her I trusted her more than anyone else I knew and asked her to produce my show.”

The other day I spoke with Will Cain for a piece. He told me if I visited Austin, I should also see Texas. So I asked Pags what Cain was trying to say. “He means Austin is a city like Portland; only it’s in Texas. There’s a lot of homelessness in Austin. A lot of crime. The University of Texas in Austin goes far to the Left.”

Where does Pags’ tough demeanor come from? 

“My father was 100 percent Italian. We had some good pasta dishes around our house with my grandparents around,” Pags explained. “We didn’t have a good bakery in Lake Worth, so I remember my mother and aunts bringing great bread recipes over from the homeland.”

Pags has always been interested in what takes place on the periphery, not just the core of matters. He’s done a lot of things throughout his life. That experience has helped shape his radio show. Pags said his show tends to be white-collar, but he grew up blue-collar all the way. 

“I liked the Superman movies. I enjoyed Rocky,” Pags explained. “As a car-buff, I loved the Burt Reynolds films with Smokey and the Bandit. Stuff like that.”

Lake Worth, like a lot of other Floridia areas, has been known to be a little rough and tumble. Just watch Cops for a week if you don’t believe me.

Pags said other than a little shoving match at the bus stop, he didn’t encounter much rough stuff. “I was a musician, I wasn’t in that mix. Perhaps a scuffle in little league.”

When he was a teenager, he thought music would be it. “I’d played with some big-hitters at the time, like The Coasters,” Pags said. 

“Music career opportunities really didn’t come along as I’d hoped. In some ways, people in the industry were full of it. I still did some freelance work on the saxophone.”

Pags said he was always willing to work for what he got. “I poured coffee and ran errands for $4 an hour,” Pags said. “I had my car repossessed, and got evicted from my apartment. I still kept at it. I never was deterred from what I wanted. I knew what I wanted, but never really expected things to happen the way they did.”

Pags said if some youngster asked how to be what Pags is today, his answer was succinct. “Pour coffee, run errands, whatever you have to do.” 

I asked Pags what he does in his downtime? Let’s just say he’s not running to tee-off at 7:00 am with the guys at the club on his day off.

“I’m a domestic sports car guy,” he says with pride. “I’ve got three Corvettes, a Camaro Super Sport. My Camaro was a 1967, red with white stripes. I sold that car so we could afford to adopt our daughter. I got the better end of that deal.”

He doesn’t do any weekend racing on local tracks like other aging Indy wannabes. “I like to look at those cars in the garage,” Pags said. “My dad was a big car guy. My dad is probably why I’ve succeeded in my life and career. Not for the reasons you’d think.”

Pags’ relationship with his father had the typical ups and downs. Same as it is for most men.

“My father didn’t think I’d amount to anything and had no problem relating that to me,” Pags said. “Conversely, my Mom was always extremely supportive of my interests and goals. I knew if you were good at what you did, people would take notice.”

Pags said his father excelled at being a naysayer. A glass is a half-empty kind of guy.

“He was so negative. He thought I’d never succeed at anything,” Pags explained. “I was out of the house at 17, and I was determined to become something. To prove him wrong.”

Before his father passed away, Pags believes his father became aware of a lot of things. 

“A light went on in his head, and he was just so surprised I could make a living doing what I did,” Pags explains. “When I became a big enough success, he recognized my drive and determination. I’m still not sure if he was hard on me because he thought it would help me in the end. Whatever his reasoning was, it gave me the drive and determination to see things through.”

Pags’ father became so proud of his son that he’d tell friends Joe was going to be on Fox News and how they should tune in.

“It was my mother, with her ultimate support, that really made me want to succeed. For her,” Pags explained.

“I learned that if someone disparages you or makes you feel small, you have choices. You can go into a shell and take it. Believe what people say. Or you can go out and knock down some doors. If you want me to do something, tell me I can’t do it. Soon I will be syndicated on 200 stations. All that came from believing in myself. I’ll prove it to iHeart. To other broadcasters.”

Pags said at some point; you’ve got to find some kind of edge. 

“I knew I wasn’t going to agree with things my father believed and said, just to shut him up. I had to stand up for my own beliefs.”

I can relate to a guy like Pags. He’s got a tough exterior, not easy to crack. But like me, I know in the center is a soft, creamy nougat. 

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BNM Writers

The Rise of Florida Governor Ron DeSantis

According to BNM’s Pete Mundo, Ron DeSantis sounds an awful lot like someone who is gearing up for something bigger than “just” being the Governor of Florida.

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For at least the last six years, the long-standing belief is that talk radio has been the home for Donald Trump sycophants. While I’ve always viewed this as an overly-simplistic analysis of tens of millions of weekly talk radio listeners in this country, it’s fair to say that certainly, from 2015 through 2020; the news talk audience was supportive of the 45th President. 

And now, as time goes on, there are signs that the dam is breaking. There’s anecdotal data I can share and then more scientific data to touch on.

This past Monday, I spent one segment of my show saying I would burn through as many calls as I could over 8-9 minutes on Trump or Ron DeSantis to be the 2024 Republican Presidential nominee. I brought this up in the wake of DeSantis’ criticism of Joe Biden’s energy policy from late last week. He sounded an awful lot like someone who is gearing up for something bigger than “just” being the Governor of Florida.

Over those 8-9 minutes, I fit in 14 phone calls. Going into it, I told my producers privately that my guess was that the calls would split fairly evenly but probably lean towards Trump. 

That’s not what happened. 

Instead, we ended up with nine of the 14 callers in favor of DeSantis, with five going for Trump. 

Then there was some interesting polling this week. One poll of likely Republican primary voters in New Hampshire found DeSantis edging out Trump 39 percent to 37 percent. The most telling fact about the New Hampshire poll is that while DeSantis leads Trump by just two points overall, he leads among Fox News watchers by 14 points and among conservative radio listeners by 16 points.

As is always the case, one poll should not be viewed as an absolute, but there are clear signs that Donald Trump’s stranglehold over Republican voters is waning. And from my perspective, it’s waning faster than I expected. 

Politics move fast. One day you’re hot; the next day, not so much. And to see DeSantis rise this quickly when all the focus is on Joe Biden and the 2022 midterms, not the Republican primary in 2024, makes this poll even more surprising.

And while I have no interest in getting ahead of myself, talk radio is likely to be the battleground for this issue if and when it does ultimately come to fruition. Talk radio is obviously far more interactive than cable news. Callers, texters, and Facebook/Twitter users can all be participants and have their perspectives shared with thousands of listeners at any given time.

And if those most in tune with the news cycle of the moment find themselves shifting to someone like Ron DeSantis, then the run-of-the-mill Republican voter is likely to follow suit when the time comes.

But, if we do end up getting a Trump vs. DeSantis primary, then 2024 could end up making 2016 look like child’s play. But I’ll stop here because, once again, I’m not looking to get ahead of myself.

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