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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.

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BNM Writers

It’s Time for News Radio to Clean Its Clock

With radio, the top of the hour always begins with a self-aggrandizing, overly-produced introduction to a program I may have been listening to for half an hour already.

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A photo of clocks

News radio is an interruptive format that swiftly moves listeners from one informative topic to
the next but over the years we’ve gotten bogged down with an insufferable amount of clutter: too many commercials, endless promos and teases, and pointless production pieces. All of it
interrupts the flow and cuts into the interesting information you promise to provide.

Let’s clean the clutter, starting with the anachronistic basis for it all: your hourly format clock.

I’ve never understood why radio stations root themselves to the clock. The show starts at the top of the hour and you bury your boring features at the end. Why? Why should the top of the hour be considered the beginning of anything? It’s not how people live their lives. Radio isn’t like TV where shows start at specific times. Hell, TV isn’t that way anymore.

But with news radio, the top of the hour always begins with a self-aggrandizing, overly-produced introduction to a program I may have been listening to for half an hour already. This is especially true with morning shows, where simple logic would suggest that people trying to get to work by the top of an hour begin listening at various times before then.

Who even owns a clock radio anymore?

The 21st century is nonstop. There is no daily news cycle, no beginning or end to anything but
news radio programmers still think of time in divisions of hours, minutes, and seconds. We still draw empty circles depicting analog clocks to plot hourly radio formats.

On news and talk stations, the top of the hour almost always begins with the hourly network
report. It’s the biggest of big-time radio, steeped in tradition, professionally detached, global. In other words, it sounds nothing like your radio station in your unique market and it contains the least interesting content you have to offer.

We cling to the networks at the top of the hour for their prestige, because that’s just how we’ve always done it. Any national or international stories of real interest to Americans, the latest Trump-Biden court decisions, for example, will be well covered in talk shows and you’ll probably want to drop it into your local programming, too. How about a one-minute segment twice an hour, 60 seconds of just the big national and world stuff, in 10-15-second boil-in-the-bag headline segments? I’m just spitballing here. You’re the programmer.

In my heretical news radio mind, the networks do great journalism but they still sound flat,
stuffy, and old-fashioned. They don’t sound like anything else on my station. I’ll dump the top-of-the-hour five minutes and cherry-pick the network sound bites. We’ll deliver them ourselves.

While I’m carving up your format and trying to get you thinking outside the box, do you need
traffic reports every ten minutes? Or, at all? Heresy, I know. Catch your breath and read on.

When we had real-time airborne local reporters telling us what they were looking at it had a gee-whiz factor and the information mattered because it was live, local first-hand reporting. I could imagine the scene as it was being described. Now we have reporters in booths looking at
computer feeds and doing shotgun-style traffic reports for multiple cities. Words without
pictures.

I knew an L.A.-based traffic reporter who did reports for Salt Lake City though she had never even been there. These so-called “real-time traffic” reports are nearly always recorded and delayed for playback. Does this practice serve any purpose at all except to deceive listeners?

Not incidentally, traffic reports are a prime target for AI exploitation. How difficult can it be to
attach state and local transportation agency traffic data to AI voice-to-speech generators? For all I know this is already being done. You can argue it’s cost-efficient but as a longtime morning news host/anchor/personality, I despise it. One of the greatest assets to any morning news team is the interaction between news and traffic people.

When Amy Chodroff and I started working together at KLIF a dozen years ago we had that human contact with remarkable radio veteran Bill Jackson doing traffic from an adjoining studio. Bill wasn’t just a voice, he was a talented news radio veteran and a valued part of our show. He was so good the company, Cumulus, put two more stations on his plate, ripping a valued team member away from us.

As hosts, Amy and I had to assume Bill wasn’t able to listen to the show anymore because he
was too busy gathering and preparing his reports for the other stations. Then he was shipped out of the building to do his work from home which made his insights and witty exchanges
impossible. We couldn’t talk to each other off the air. We couldn’t exchange glances, smiles, and hand signals or bump into each other in the hall. Our show suffered and our audience became a bit more detached.

Bill Jackson, real name Dale Kuckelburg, was also significantly detached from his career.

But I digress. The biggest problem with traffic reports is the shotgun approach I mentioned,
telling everybody in our listening area driving to their unique destinations how traffic is snarled thirty miles away. Good god, we have apps in our cars that do a much better job in real time.

How about the weather? What the hell, we’re swinging the ax here. Let’s be realistic.

There isn’t a day in my life that I don’t wake up with a fair idea of what weather I should expect. I don’t need someone on the radio telling me to carry an umbrella. If it’s iffy the immediate and highly local details are now available at the touch of an app. When the weather becomes of critical and life-threatening importance it’s a major news story and that’s when local radio news shines, making it the center of our continuous attention, not just a regular feature at scheduled times.

It’s your radio station, do what you think is best. I’m only suggesting that you might want to
reevaluate all the things we’ve all taken for granted for far too long.

News radio has always been an interruptive format. We promise listeners “the news you need” in the time it takes them to drive to work. They understand that they’ll receive useful and
interesting content in exchange for frequent subject switching and sponsorships. The great news stations know how to capitalize on that agreement but too many have sold their souls to
commercial clutter that chokes a news team’s ability to serve the promised meal.

As if 22 minutes of inane and repetitive commercials per hour aren’t bad enough programmers, struggling to do their work in a hurricane of increasing spotloads, add to the clutter with recorded promos that simply beseech listeners to keep listening while offering nothing of substance. Meanwhile, the same programmers tell talent to tease, tease, tease the subjects they’ll talk about six, twelve, and twenty minutes from now.

I know the business reality. Radio — especially news radio — is struggling to meet the profit insistence of corporate boards and the overhead needs of staying afloat locally. But at some point, we must answer the question, who do we have to serve first, our clients or our audience?

Station managers and their corporate masters have to stop issuing profit mandates without
offering programmers the opportunity to do their jobs, to provide more valuable content while
limiting commercial minutes, sponsorship rhetoric, and eliminating distracting bells and
whistles.

Clean your clock. Stop filling empty circles with stuff that made sense 50 years ago but is merely clutter today.

The only way to think outside the box is to get rid of the box.

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BNM Writers

AM 680 WCBM Leapt Into Action As the Francis Scott Key Bridge Collapsed

Our employees live and work here and know what’s important to our listeners.

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As Americans woke up to a cargo ship hitting Baltimore’s Francis Scott Key Bridge Tuesday morning, the crew at AM 680 WCBM was already hard at work gathering the facts.

Just before 1:30 AM, a cargo ship lost power exiting the Baltimore harbor, striking a support beam that toppled the 47-year-old structure. In the wreckage, six people working on the bridge died, while drivers were rescued from the rubble in the chilly waters of the Curtis Bay.

The AM news/talk station — which celebrated its 100th anniversary Thursday — went wall-to-wall breaking coverage, something most outlets now avoid because of budget concerns. 680 WCBM morning host and Program Director Sean Casey told BNM in an email exchange how his crews handled the breaking news.


BNM: When did you guys hit the air with breaking news coverage?

Sean Casey: We first broke in with updates at 3:30 AM, approximately two hours after the bridge collapsed. Breaking news updates continued every half hour until 6 AM.”

BNM: How did you coordinate coverage in those moments?

SC: Full wall-to-wall coverage started at 6 AM and included full newscasts as well as interviews with state and local law enforcement agencies, eyewitness call-ins, and our national news partners. Our producer made call-outs and our news department shifted to full-blown local coverage.

BNM: How much experience did you have in putting together coverage of an event like that on the fly?

SC: Having been on the air during 9/11, I used the same formula that listeners want to know: Who, What, When, and Where? The why will come later.

BNM: How does your coverage show the importance of both local radio and AM radio?

SC: In times of breaking news events that impact our listeners, local AM radio stations are more in tune with the local listening audience. Our employees live and work here and know what’s important to our listeners. We also know the local players and officials and can get immediate reaction.

The talk component of our news/talk format offers listeners a chance to vent, share, and communicate with each other in good and bad times. This is why AM radio is still relevant. In some emergencies you can lose your cell service or have too weak of a signal, AM radio remains viable for in-car listening and at home with battery backup.

The AM 680 WCBM morning host and Program Director concluded his thoughts by noting the importance of a team effort, not only in coverage of breaking news events but also in operating a successful station and business as a whole.

“One of the biggest concerns we have is budgetary. More and more AM stations are abandoning the format because of its expense. Very few can afford a live and local news staff and show hosts,” Casey told Barrett News Media.

“Now more than ever, it’s vital that there be synergy between ownership, sales, and programming to maximize ratings and revenue so that we can continue to deliver vital information to listeners in our market.”

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BNM Writers

News is the Only Thing Missing From Election Coverage

Coverage of the election is, as we’ve discussed, still very horse-race-centric, and there’s been, of course, coverage of the various Trump court cases, but where is the coverage of exactly what the candidates plan to do if elected?

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A photo featuring I voted stickers

The first thought I had when I heard NBC had hired Ronna McDaniel as a commentator for $300,000 a year was to wonder how many actual journalists they could have hired for that money. Then, I recalled that NBC had laid off dozens of news staffers just a few months ago. Then, I remembered that I had just recently written a column decrying news organizations throwing pretty much anybody on the air as a “pundit” and this….

This was worse. It’s one thing to grab some rando who happened to be a minor functionary for the Executive Branch. It’s another to hire someone whose job was to promote election denialism and pretend that her opinion is something valuable for viewers. And, yes, it’s just as ridiculous when news organizations hire former presidential press secretaries (that’s you, Jen Psaki and Sean Spicer), their very jobs were to spin everything in their bosses’ favor and now you’re going to pay them big salaries for, um, what? Because they “have a name” or you’re afraid someone else will snap them up? Why them?

The McDaniel deal lasted five days, one completely unilluminating interview, and one unexpected Chuck Todd spine-growing outburst, so it’ll all blow over soon enough. The problem is, though, the part about having fired several news staffers, and what it means in an election year on both the national and local levels. If you have the money to hire an alleged pundit – any alleged pundit – you have the money to hire reporters, and I don’t mean anchors or opinion show hosts.

Coverage of the election is, as we’ve discussed, still very horse-race-centric, and there’s been, of course, coverage of the various Trump court cases, but where is the coverage of exactly what the candidates plan to do if elected? Who’s probing Project 2025 and why isn’t it front-page, first-segment news? Who’s pressing the Biden administration on Gaza? Is anyone reporting on the candidates’ record on climate change?

Beyond prescription drug prices, is anyone digging into the broken healthcare system and demanding answers from the candidates about what they’ll do to fix it (and not letting Trump get away with “I’ll have a better plan, a beautiful plan” without a single specific detail, like they did in 2016)? Why didn’t anyone focus on, for example, the GOP candidate for governor of North Carolina and his incendiary past comments well before the primary?

Pundits are not going to do the legwork on the issues; they’ll just talk about swing states while John King and Steve Kornacki point at their touchscreen maps. We need reporting on the things that matter (and can affect that horse race, even if most people have made up their minds). It shouldn’t just be Pro Publica and scattered independent journalists doing the dirty work.

Honestly, I don’t want to hear the complaints about the quality of the candidates or how this is a rerun or any of that. (We’ll leave that to The New York Times.) We are a horribly underinformed electorate and we got the horse race we deserve. It might just be idealists like me who think that, just maybe, the news media can play a role in educating the public and bursting the bubbles and echo chambers. This country has survived and prospered for a few centuries with the press shining a light on injustice and corruption.

Now, when we need that most, they’re more concerned with what they think will bring them ratings and money (although someone will have to explain to me who thought having Ronna McDaniel as a paid commentator would draw a single viewer to NBC).

Here’s a thought: Don’t lay off reporters, especially in an election year.  Assign them to dig deep on issues that matter to the voters.

Let the pundits talk about that.

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