RemainComm

Filling the "White Spaces"

 I found the phrase "white spaces" interesting when it was announced yesterday that the FCC has allowed conditional unlicensed use of "white spaces" television spectrum. In an attempt to avoid getting bogged down in tech speak. This is the radio spectrum that is now available as a result of TV's switch to digital.

Once the FCC found that the issue of interference with existing radio signals could be overcome through technology that shuts down any device using the "white space" once it senses another signal, granting access was a slam dunk.

Companies like Google and Microsoft herald the decision as a way to allow widespread mobile adoption. On the other hand, broadcast companies (seeing yet another reason to claim "everybody is out to get us") and the likes of Verizon (already hot to charge more for services) are less than thrilled.

As I have said previously, I personally am thrilled with anything that allows the growth and spread of mobile access if it leads us closer to parity with other countries (Luxembourg for God's sake) in services offered wirelessly. I am also concerned as a radio fan. This magic sensing thing-a-ma-bob that prevents interference with existing frequencies sure better work. The last thing any "channel" needs is a return to the "party line" annoyance of too many on a channel. Ick!

"White spaces"  also triggered in me another use of that term. A use that I see benefitting many media channels. As of late yesterday the flood of political advertising stopped...I'll pause as you jump up and down with joy and do a couple of Tiger Woods arm pumps...done? This sudden loss of "content" in itself reveals a whole lot of "white space".

Pandora…Who Cares? You!

There has been a flurry of press about the online music service Pandora in the last few days. The buzz was generated by founder Tim Westergren  when he told the Washington Post that the company is "approaching a pull-the-plug kind of decision" because of royalty increases that will begin to take hold. In fact, $17 million of a projected $25 million in revenue for this year will go toward royalties.

Yes, I'm a Pandora fan, though not a heavy user, and I also have some strong feelings as they apply to royalties and fees, including my post on SoundExchange. What interests me most is perhaps summed up in a question posed by Harve Alan who blogs on the subject of radio: Maybe we should befriend Pandora?

Maybe? No ifs, ands, or buts about it, Harve is the master of understatement. While he is speaking to the terrestrial broadcast community, he is also speaking to every medium, service, company, or individual who showcases music. I’m talking from good ol’ radio to the local club owner to you the listener.

Of course there is a business model that is at work here. But, in Pandora we have a service that was created by a musician and music lover with wants to tailor a listening experience to an individuals taste while at the same time exposing them to new music by a group of artists who for years, never received any kind of “national” exposure, a service (along with the likes of Last.FM, Imeem, etc) that answers so many of the complaints listeners and artists have expressed for years and we have to wonder who should care?

Radio, you should care because, like it or not, the web is where people have gone to discover music and you will, eventually I hope, follow them. What happens to Pandora will happen to your online initiatives. There’s too much ad money being spent online for you to allow that to happen.

Music Industry, you should care. Yeah, the traditional business model is hosed and, though the ultimate answer has yet to be found, being a party to targeting those providing ears to hear your product and charging them out of business sure as hell isn’t the way to do it.

Artists, you should care. Not only will revenue go away, but so will fans because if they can’t hear you, how in the hell can they be a fan.

Club owners, you should care. Sure you can sling beers at people who happen to show up when a band is playing. But you can do much better serving those fans, and their friends, that come out in droves to see the act that they heard online or on air.

Listeners, you should care because choice is what you’ve always wanted and you deserve nothing less.

Even if we never listen to them...we all should befriend Pandora.

My, hasn’t the FCC been busy…

Wow, the FCC turned up in the news allot over the past 10 days. This could lead to displacing the latest news from Brangelina...nah! The impact will be felt across all media. Well, maybe not print...but they have enough to worry about.

Satellite Radio. Big surprise, they approved the merger of XM and Sirius with very few stipulations attached. Much to the chagrin of the NAB, MPR, NPR, PRI, and many other letters of the alphabet except MEL. Mel Karmazin has successfully gotten his wish and, once he fights off the inevitable appeals, will oversee one unprofitable satellite radio service instead of two. So far the only way this business has made any money at all is from investors who keep hoping that the promises made to them that “it will be profitable” actually come true. To be fair, this was inevitable. To deploy that many birds, maintain studios and staff, keep up with operating expenses, pay content fees and royalties, as well as create new content while patiently waiting for enough subscribers to make it all profitable is no simple task for one company, let alone two.

Internet. In it’s July 20th Notice of Proposed Rulemaking the FCC is looking to mandate filters “That filters or blocks images and text that constitute obscenity or pornography…” on free broadband. It’s a bit of a slippery slope, especially when you come across the infamous “as measured by contemporary community standards” line. This has to do with the new spectrum that the FCC is auctioning off known as the Advanced Wireless Services (AWS) Spectrum. Does this start us down the road of censorship of internet content? Take note: this talks about filtering services that make internet content available to the public for free, not the removal of content from the internet. Like I said a slippery slope. Info here and here.

TV. I remember distinctly the day Janet Jackson’s nipple became half-time entertainment because of that “wardrobe malfunction”. I’m still trying to figure out if the way I explained it to my kids was even close to effective. I also remember the half million dollar fine the FCC threw at CBS for airing it. Keep in mind a 30 second ad costs 2.7 million clams so really, the fine was chump change. No matter, it all got overturned on July 21. Look for more nipples coming soon to half-time shows near you. Now if we can get somebody to tell the N(nipple)FL to lighten up on the use of the words Super Bowl. C’mon guys, don’t make everyone in media say “the big game.” For the love of Pete…why would you want to limit someone from using your brand by name. Find something else for your lawyers to do. But I digress…

Radio. All of the above.

The Point Is...Concerns of a Music Loving Radio Fan

One of the most highly anticipated sessions at the Conclave Learning Conference this past week was the Friday Royalties and Performance Fees for terrestrial radio discussion. This one had all the signs of being highly combustible, and for the most part it did produce some great sound bites.

A quick bit of history. One of our players, incorporated in 2003, Sound Exchange is designated by the U.S. Copyright Office to collect and distribute digital performance royalties for featured recording artists and sound recording copyright owners (usually a record label) when their sound recordings are performed on digital cable and satellite television music, internet and satellite radio. SoundExchange currently represents over 3,500 record labels and over 31,000 featured artists and whose members include both signed and unsigned recording artists; small, medium and large independent record companies; and major label groups and artist-owned labels.

The other of our players is the National Association of Broadcasters (NAB). The National Association of Broadcasters is a trade association that advocates on behalf of more than 8,300 free, local radio and television stations and also broadcast networks before Congress, the Federal Communications Commission and the Courts

The current debate and the reason for the session at the Conclave Learning Conference centers on pending legislation that would require terrestrial radio broadcasters pay a performance fee. This performance fee is designed to pay performers of the music on a per play basis and is already paid by online, satellite and cable stations. In short, this is a new fee, or “tax” as the NAB’s David Rehr likes to say, to broadcasters. (Radio, like digital media, currently pays royalties to writers via BMI, ASCAP and SESAC.) Broadcasters and the NAB feel that due to the promotional nature of the medium, they should be exempt from the fee. Sound Exchange disagrees and, that like other entities including online and satellite, radio should pony up. Those are the facts in a very small nutshell. (More can be found here and here.)

The session produced some brief volleys between the two sides inspiring quotes like David Rehr’s “I’d rather cut my own throat than negotiate” for a performance royalty. In actuality, there was very little actual discussion or debate between the opposing sides. Both sides, with a few exceptions chose to make statements to the audience instead.

It’s Time For Radio to Get Social…Again.

The time I spent at the Conclave Learning Conference this past week was filled with many highlights. The most obvious was the fact that radio needs to get social. By “get” I mean broadcast has to understand the social media space and it needs to become active in it. And I contend “being” social is nothing new to radio.

First and foremost, it became quite apparent to me during a few sessions that the talk of social media applications and marketing tools (Twitter, blogging, streaming, podcasting) was foreign to many in attendance. Congratulations to those that made the trip to Minneapolis and the Learning Conference. It is no longer foreign to you. To my radio brethren that haven’t made the commitment to learn I say, “I know you’re busy, but you need to find time to understand and be part of social media.” Not being hip to this will kick you in the butt.

Second, I want to encourage radio as a whole to remember that you are part of what could be the original social medium. Remember when we reached out to the community? Remember when we asked for callers to give us input and requests? Remember when we asked listeners to join us at “remotes”…back when we made them events. Yes, we were doing “social” long before Facebook. Then we got safe. Then we started to be so inwardly focused the social aspect of radio became something we just did and not something we were involved in.

Here’s a quick side note and a way to get social instantly. Don’t ask for a request unless you intend to play it within minutes of receiving it. Be honest 95% of radio stations don’t really play requests.  If you are part of that majority, don’t lead your listeners to think you will play one. Figure out some other way to get the phone to ring. Your audience will appreciate your honesty.

Finally, what I want to emphasize more than anything to everyone in all forms of social media is this; don’t over emphasize the “media” in the term social media. Media is just the conduit to get the act of being social to your audience. Being social requires involvement. It’s about building a relationship. If you don’t get that you must really be involved with your audience or customer or you don’t want to take the time to do it, the medium by which you reach them is of no consequence.

I dig the crap out of everything from Twitter to Friendfeed to Facebook to Ning but they are really only as good as the message and my level of involvement.

More from the Conclave Learning Conference tomorrow…

At the Crossroads with the Conclave

I’ll be spending the next 4 days at the Conclave Learning Conference in downtown Minneapolis. This 33rd annual event has nothing to do with electing the Pope and everything to do with educating broadcasters.

The agenda committee has adopted a “track” agenda focusing on Promotion, Management & Programming, Formatics, Life Skills and Tech. I’m looking forward to many sessions including those in Tech from Jerry Del Colliano, Richard Rene, and Lee Abrams. These folks are among those broadcasters who are greeting the opportunities to connect with audience that new and social media offers.   

I’m also really interested to hear from the NAB’s David Rehr about what the radio lobby is doing these days…clearly, it hasn’t been convincing Steve Jobs to include a radio receiver on the iPod. The session addressing performance royalties and licensing fees pitting both sides against…um…I mean…featuring representatives from the radio industry, Sound Exchange and NARAS is also on my list. The debate should produce some interesting comments, if not a high body count.

See the agenda here and look for my comments on Twitter over the weekend and, of course, a post or two next week.

Of course, the weekend won’t be complete without me and my radio buds getting together and to eat an entire cow at Lindey’s in Arden Hills. Mooo!

Now You Know...ACT!

A great post from Mark Ramsey today at Hear2.0. Mark is brilliant and has always lead the way in giving a collective smack on the backside of the broadcast industry to stay on top of changing communication. In fact, to be honest, I sometime worry about how much he smacks them. The fact is though...he's right. Be sure and listen to his presentation here.

Now that you've listened, act! Broadcast, The New Radio is out there waiting, but you can't get there on the cheap and you can't do it by making your "stick" a second thought. There needs to be understanding, a strategy, resources, real people to make it all work, and above all, a relationship with your clients...both listeners/users and clients.   

NPR Is Radio Too

This morning my friend Steve Borsch from Connecting the Dots sent me a link to a post by Jeff Jarvis over at Buzz Machine. It is regarding CEO Ken Stern being forced out at NPR (not my words, theirs). It appears to many, though not the “official” reason, that his push to move NPR further into the world of program distribution via new and emerging media had ruffled too many affiliate feathers.

My reaction… you seem surprised? I don't know Ken Stern from Adam and have no idea if his internet strategy had anything to do with his termination. However, I do know that many in radio believe online is the enemy. You've heard me rant that this has been going on in commercial radio for years.

We can talk forever about how NPR is "different", how they are most concerned with the quality of what the listener hears. Clearly, to a great extent that's true. But after all the puffery, high-mindedness, and the hob-nobbing with the hoi polloi (perceived or real), for the local affiliate NPR’s focus is to help them get people to listen to their stations.

You bet NPR has made great strides in distribution, but if all of the public radio listeners, especially the younger ones...with money, head to the internet for their news, information, book chat, and Bach (a bit snarky, I know) then Hooterville Public Radio has a stick (antenna) that they have invested in that suddenly becomes worth a whole lot less. Number of listeners and revenue derived from them is what stick value is all about.

In most of my conversations with those in public radio, the honest ones anyway, they have been quite frank that even there, the bottom line is...well…the bottom line, the same for all radio. Look you can’t pay the bills without revenue, I don’t care who you are. 

The opportunity for radio is still a big one. People, currently the vast majority, still turn on the radio. But every day  as technology evolves they are given more and more ways to get the same or better content. Yes, there is opportunity for the medium to try and build a strategy and revenue around the new distribution channels but the real opportunity is to provide great content for those channels to keep people tuning in. Gone are the days of counting on revenue because it’s the only place to get content. Now it’s about where to get the best content.

Broadcast is freaked out because the big money is on the distribution channel not on the content in it. Content is where they save money through quantities of scale. That's why NPR exists, that's why affiliates like Hooterville Public Radio need them and that's why many fear change.

It is clear that NPR, at least under Mr. Stern, is aware of the need and is trying to change the paradigm. The affiliates may or may not have the same vision, but they most certainly don't have the same money to dedicate to exclusive content.

If Ken Stern was shown the door for his internet/new media strategy that's a shame...but it wouldn't be a surprise...at least to me. 

Cramer on Radio

Many of my broadcast brethren, including one I highly respect, Harve Alan, have posted the video of Jim Cramer commenting on the business of radio this week on Wall Street Confidential on TheStreet.com. Many radio types bristle at the comments but don’t really say much more than that. And really, there may not be much more to say...but that's not gonna stop me.

From the opening introduction by host Farnoosh Torabi, including the words “Radio…maybe a dying medium” to Cramer’s defining, comment of “Radio is over as we know it.” Clearly, this is not a PR video from the NAB. However, it is completely true.

What Cramer says in this video is exactly what is going on.  Look, I’m not a financial whiz. I could tell you I know everything there is to know about “the street” but I would be lying through my teeth. I know I have a 401k and I know every time I’ve tried my hand at trading stocks I have wisely invested in companies that are no longer with us. I hope it wasn’t my fault. (I don’t need that kind of guilt.) But, I do know the truth when I hear it.

1. When you decide that all that matters is great cash flow, and cash flow starts to go down, then you don’t have anything.
2. Once XM and Sirius team up then there will be a uniform satellite service and will be in every car.
3. Cars are what radio is about. (At least for the last 30 years)
4. People who own radio talk a big game (Nothing wrong with that, gang. It’s show biz.)

And the big enchilada…

    5.  Radio is finished, as we know it!

Yep it is…JUST LIKE IT ALWAYS IS! Radio…as we know,is always finished; just like any medium that reflects its audience. That’s just fine. Radio must continue to reinvent itself. That’s what makes radio great!

The trouble is, going back to the cash flow truth; there is no money to re-invent. If you only have people and marketing to cut back, then you have no one to re-invent and no way to tell anyone about it.  (So I guess from a logical standpoint, if you don’t have anything new to say then save the money on saying it.)

So the truth is, let radio…as we know it, be finished but look ahead to what it is now and where it will be next. It might be more difficult than it has ever been, but radio must look at ways to exist and differentiate itself in a world crowded with even more listener choice.

Many of those choices wouldn’t be around if it weren’t for radio. Perhaps radio can learn from the choices it helped to create. 

To Blog or Not to Blog?

If you follow this blog regularly, and as you’ll find out later in this post, regularly is a term I use loosely, you’ll note that it’s been awhile since I’ve commented on anything. 

Don’t get me wrong, as many of my closest friends know, I’m never at a loss for “topics” that must be commented on (He says with just the right amount of sarcasm.). It’s just that lately; I’ve been wrestling with what topics are “worth” commenting or reporting on. 

For example, I noticed that shortly after the conclusion of the Podcasting and New Media Expo, known by it’s acronym as PNME, the organizers decided to drop the “P” or podcasting from the name. Ok, now the acronym for the New Media Expo is NME. NME…en-em-ee…enemy! Oops! I’m not sure this is what needs to be communicated by “new media.” So I’m thinking a post titled something like “When Acronyms Attack” could be good, but is it? 

Another example…Recently the National Association of Broadcasters (Yep, radio again) announced that it was launching the Radio 2020 initiative. The idea is to focus on keeping radio relevant for years to come. I don’t think the window is that wide, let’s go with Radio 2010. Clearing that hurtle is tough enough. Nah…that topic just seems so…well…done. Besides, it’s too easy to be cynical and that’s been way, way over done.   

So, I’ve shied away from posting because I want to provide content that is much more actionable as well as entertaining and not just musings. I’ve found, with all of the information that pours down on us every day it’s difficult enough to keep up without me adding to it. And yes, in addition, I now know the meaning of “writer’s block”. 

The problem is that if I want to fulfill the goal of RemainComm, which is to keep communicating, I need to…well keep communicating. In order to build relationships we all need to keep talking to each other. In my case, one way I do that is through this blog. If I’m ever going to build a relationship with you, I’m going to need to share more of me in the hopes of you sharing more with me. 

So, here’s the deal. I’ll keep striving to post real actionable content but at the same time I’ll keep posting “regularly”. That may mean shorter posts, posts that are a bit out of left field, or posts that are insightful, thought provoking, and life changing (yeah…well…maybe). In the end though, let’s keep talking… 

Now about this whole Ellen crying on TV deal…