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SmallBizGrow.com | 713-588-4417

Sbg Marketing provides traditional and digital marketing growth strategies and execution for consumer, B2B, and professional services firms. Based in Houston, TX.

Local Radio: What’s the Future?

LINKEDIN DISCUSSION: The Future of Terrestrial Radio

Came across this thought provoking Linkedin discussion on the future of “traditional” media

The focus was on the future of radio. My thoughts replicated, below:

Coming from a content acquisition and creation background, I view it from this angle: As operators of local TV and radio stations, and to a lesser extent newspapers, our weakness has always been that we are primarily delivery conduits. None of these platforms can easily transition to and monetize new forms of content delivery because, with a few exceptions, they don’t own their content.

In terms of cost, it’s easier for radio to generate “100% local” content (e.g., sports talk or topical call-in shows) than it is for newspapers and television. All-local radio formats, I think, have a future, along with hyper-local newspapers that serve sub-communities. Neither of these models demand expensive, national-level talent, and can tap into small-business advertisers that can’t afford the price of entry in other media delivery forms. Needless to say, under this scenario, gross revenue and margins certainly wouldn’t be what they once were.

Local television is in a different boat. Production costs, even for basic newscasts, are enormous, so 24-hour local-content television is a rough proposition. TV Networks want reverse comp, are dumping their O&O stations (hello!), and should eventually opt to take their often stellar content straight to cable or 24-hour streaming delivery where they can control all of the inventory all of the time.

I think radio can and must go all local to survive, but I don’t see it working with the high cost of terrestrial transmission – nor do I see it happening with current, consolidated radio ownership. Radio will need to maintain the towers long enough for those buyers who still see a “golden sheen” around anything “broadcast” to retire. By then, CBS and Clear Channel should long have divested as margins dropped, and the new owners can then stream their all-local-content formats inexpensively. No tower. No transmitter. I’m betting few cars won’t come with a stock, satellite internet connection within a decade (Satellite radio, watch out!), and I’ll be able to stream Rhapsody and other music services, and a renaissance of creative, “local” sports-chat or political bickering from anywhere in the world.

On the downside, I imagine there will be far fewer successful local radio stations compared to pre-internet days. After all, few forms of traditional media haven’t felt the bite of explosive growth in new media and methods of content delivery.

Finally [in response to a question in the Linkedin forum] heck yes a :60 spot still works, provided it’s well done, sells something people want, and that those same people hear it!