Remembered for its once youthful promise of delivering a wide variety of content to listeners coast-to-coast; for its sales pitch of over 100 channels; music for and from every generation; for its false promises of “commercial free radio” (19 public service announcements an hour don’t count as commercial free); and its promise of providing a venue free of the traditional regulations and limits that accompany traditional broadcast media.

Satellite Radio leaves behind some 15-million subscribers, an untold number of discouraged employees, and the dream of a modern rebirth for radio.

Cause of Death:
Satellite Radio suffered a final blow when it conformed and succumb to pressure to regulate its own content, which resulted in censoring its own jocks. The deathward spiral for Satellite is not expected to be immediate but it is expected to push Satellite in the direction of becoming a collection of boring, unoriginal, and bland channels programmed toward the lowest common denominator.

The Analysis:
With satellite and traditional radio under such scrutiny, other new media outlets are bound to grow and develop. Perhaps with new tools and delivery mechanisms such as iPods and Podcasting, niche content will start to become available either via ad-supported mechanisms, or with a subscription model through private websites, iTunes, and the many other content distributors that are available today.

Since the development of Satellite, the environment has changed dramatically and today’s audiences are increasingly technically educated and savvy, which will allow listeners in their own homes (and more and more in their hand via the evolving cell phone) to tap into any number of content options and delivery mechanisms. With the evolution of these tools, coupled with the failure of Satellite and traditional media outlets content creators and audiences will increasingly look toward new technologies to disseminate creative content.

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XM and Sirius are constantly locked in a war of words that often extends from their programming, or marketing campaigns, today took a turn toward the boardroom.  As earlier today, Sirius' CEO Mel Karmazin said during a speech at the Museum of Radio and Television, that Sirius would be interested in buying its competitor XM Satellite Radio. 

Well, that was enough of a breath of fresh air to put Wall Street in motion and move both companies’ stock prices in a positive direction   (a departure from their recent trends downward).  Ironically, and even though Karmazin acknowledged it, such a transaction would be a major regulatory hurtle.  Further, it is particularly interesting how many observers often portray a merger as an exit strategy for the infantile satellite radio companies.   The problem would be, as Karmazin hinted, that the FCC would be quite reluctant especially, since in its request for bids for spectrum on March 6, 1997 it noted that: "Bidders may win only one license, and as such will be permitted to be active on only one license at a time."

Regardless, despite the legalese, I guess Karmazin's confidence struck a cord with the Street.  To his credit he's doing his job and working to move the stock in a positive direction, which of course is also creating more value for the company's shareholders regardless of the likelihood of such a transaction.

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Radio has been in a state of change for some time now, probably most actively since the 1996 Telecommunications Act changed ownership rules and regulations.  With those changes though the radio landscape has shifted dramatically, to the point where radio outlets are virtually machines just playing 'random' music files.  However, random is quite the opposite as music so carefully scheduled, tested, and sampled that outlets are homogenized.  Today, the previous generations of personality, creativity, and a sense of connection to the community have literally gone out the window. 

In a commentary today, Allan Sniffen, moderator and owner of the New York Radio Message Board, has an interesting essay on "The Dumbing Down of Radio."  Sniffen's comments focus on the lack of personality driven radio today and the dynamics of how today's radio conglomerates have an impact on what hits the airwaves.  Most interestingly, may be Sniffen's astute observation that the pendulum swings in both directions and at some point a radio executive will have the 'bright' idea to add personality as a competitive advantage.  For some, like Sniffen, that day probably can't come soon enough.

NYRMB:

The Dumbing Down of Radio

(Photo Courtesy of Allan Sniffen's Musicradio77.com, Shown are Legendary Scott Muni and his engineer in their WABC Studios in 1964.  Pictures taken by Jay Sclar.)

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Today, news of a deal between Emmis Communications and Apple's iTunes: Through the agreement, Emmis is taking the first and most aggressive action by any radio chain yet and is embracing iTunes.  With Apple’s assistance, Emmis' stations will benefit from integrated and custom iTunes stores, which will feature music that is tailored to each outlet's offerings, as well as special features such as DJ play-lists.

In terms of the larger picture, this represents a really interesting change and perhaps will serve as a breaking point in the relationship broad relationship between Apple's iTunes and traditional radio outlets, which can lead to further growth and integration.  Specifically, for radio this represents a vast new field of opportunity to stay in touch with their audiences, as well as an opportunity to add an additional revenue stream.  Meanwhile, for Apple it further cements their lead in the digital space and will keep current and future customers connected and dedicated to the iTunes Music store.

Radio Ink Has the Emmis Story:

http://www.radioink.com/headlineentry.asp?hid=133817&pt=inkheadlines

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The trend moves on.  For those who just don't have time to listen to your favorite sports radio talk show, Clear Channel and CBS Corp. have cut a deal with MSpot inc. to make available sports radio on your cell phone.  For $5.95 a month, Clear Channel will debut its strongest radio shows in its largest markets including Detroit, Houston and Washington, D.C.  CBS will provide Chicago's WSCR, New York's WFAN, and Philadelphia's WIP.

CBS and Clear Channel both expect to eventually produce a healthy stream of revenue as terrestrial radio continues to try and find additional outlets besides the traditional means.  This is definitely a trend that is worth following.  As iPods and satellite radio begin to pick up customers within their cars, and offices fixated on internet radio, terrestrial radio is trying to find a way to stay afloat.  This might be that step in the right direction.

The Wall Street Journal
Radio Ink

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After weeks of speculation, and as The Media Backpage first opined just about a month ago, "Opie and Anthony" have returned to the airwaves.  The duo returned to broadcast radio in New York and six other markets.  For the radio industry, at the same time it experienced its first dose of reverse-syndication.  The concept aptly named for its inverted take on syndication, brings satellite radio content to radio listeners over terrestrial radio, whereas the traditional methodology of syndication rebroadcast terrestrial content on the satellite radio providers.   

The CBS/XM Agreement in Brief:

• Opie and Anthony on both Free-FM and XM 6-9AM ET, XM only from 6-11AM
• XM version of the show is uncensored.
• O&A gain access to their old content from their stint on CBS' WNEW.

The unique arrangement means that for the first time listeners will have the option to hear a show that is available on regular radio at the same time via satellite and uncensored.  So while the beeps and dumpouts will be there, the audience can simply subscribe and hear a fully unedited live feed of the broadcast.  Specifically, under this agreement which brings the Opie and Anthony show back to CBS Radio's Free-FM outlets, the talk show hosts will also do at least two hours a day of radio that will be available only on XM.

For XM, and CBS, this is a great arrangement.  Free-FM (or more broadly the concept of FM-based talk radio aimed at 25-54 year old men) gets a shot in the arm and a fair chance to succeed.  Meanwhile, XM can count on Opie and Anthony using their new megaphone to tout their trademark outrageous stunts and contests that are undoubtedly bound to happen often while the duo is only on satellite later in the morning.

More Info:

FMQB Coverage

OpieandAnthony.com

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Amidst the many angles of the changing media landscape that we monitor here at The MediaBackpage, one of the more interesting angles is that of how media outlets themselves adopt and integrate new technologies and methodologies into their own toolboxes.  With that in mind, Fortune Magazine's David Kirkpatrick has an interesting commentary in his recent Fast Forward column about Old Media's new love affair with New Media. 

Well, in something a bit new, we want to hear from you!  What's your opinion, do you think that old makes way for new media? Do the various media constantly blend together to create new paradigms? Do New mediums help grow Traditional audiences or do they take away from those very audiences? Share your opinion by leaving a comment or sending us a note mail AT citycastmedia DOT com.

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While traditional radio outlets are dealing with satellite radio's force and some personalities exit the traditional landscape for satellite is a new paradigm in radio programming brewing?  The traditional notion of syndication is to take content from one master outlet, and replay it on another either at the same or a later time – in the world of radio that means syndicating terrestrial radio content onto the satellite outlets.  For example, both XM and Sirius syndicated coverage of sporting events, and news content like CNN and Fox News Channel.  Now, the question is are the winds of change blowing and are the rules for satellite and terrestrial radio syndication about to become altered? Speculation is that long banished Opie and Anthony are in discussion to reverse syndicate their XM talk show onto terrestrial radio outlets owned by CBS.  Stay tuned to The Media Backpage.

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So far this year we've seen XM set the tone by hiring Oprah Winfrey to create her own channel on satellite radio geared toward women.  Three weeks later NBC makes a large push to get a digital -hold on the world of the woman consumer by acquiring the popular website, iVillage,   "The Internet Home for Women."  Sirius chimed in with its own version today by launching Cosmo Radio.  The channel devoted to all things Women in the same style as the magazine, Cosmopolitan. 

Cosmo Radio is part of Sirius radio's Lifestyle package that already includes Martha Stewart's channel and the Lime channel, which addresses healthy living.  This is just the latest example of women being targeted as specific consumers and satellite radio's timeline for success.

Both XM and Sirius have made it clear to become and remain successful in this business, one must produce quality music programming covering all musical tastes.  After that is established, you first go after the tech-savvy "early adopters," then go after the men with incredible sports packages and aggressive radio personalities (Opie and Anthony, Howard Stern) and lastly the women with entertaining and enlightening programs with brand names and people you know and trust.

Links:
Radio Ink

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I have always been a big fan of XM Satellite Radio's business plan.  They vow to put out quality, diverse and entertaining  programming while remaining cost effective in an extremely costly business.  They refuse to get into bidding wars with their competitor, Sirius over attracting talent.  Sirius has a business plan too.  Bring in so many high profile celebrities and sports, that when you finally cave for satellite you'll have to lean Sirius way on star power alone (see my previous posts).   That plan has finally began to take notice, as Sirius out performed XM in the 4th quarter last year in listener subscriptions, for their first win over XM.   XM announced at the end of last week, they signed Oprah Winfrey to a 3-year $55 million to launch her own channel, "Oprah and Friends."  Oprah has dominated television for decades and has entered the film, Broadway, periodicals, and book circles in her career: why not radio? 

My guess, this move will be a massive success.  XM's strategy is to grab the early adapters first with great programming.  Sports fans next with every baseball game ever played on their airwaves.  Lastly, attract the women with a concentration in lifestyle programming.  Considering what Stern cost Sirius in dollars alone, if Oprah attracts 325,000 extra subscribers her contract will pay for itself.  Look for Oprah to dominate yet another market.  Everything this woman touches turns to gold.

Additonal Links:
NY Times
The Wall Street Journal

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In the Wake of Howard Stern's departure, CBS Radio, revamped many of their rock stations to all-talk outlets called Free FM.  The stations feature either David Lee Roth in Mornings on the east coast, or Adam Carolla on the west, as well as a variety of other shows from Penn Jillette to Leslie Gold the Radio Chick.  Personally, as I have argued here before, I think that this strategy of going with an all-talk format in the wake of Howard Stern's departure was a miscalculation.  However, with that aside, since the CBS station's changed formats, I have noticed one thing: radio does whatever it takes to keep up with the times and stay relevant.

Since radio's debut in the 1920's as a technology it has certainly faced its share of competitors and yet it has despite all of its new found competition the medium has managed to remain an important part of the American media diet.  With television, radio too the opportunity to extend its billboard messages and let the audience know what they could find on the airwaves.  Then, with the advent of the internet, radio took sought out ways to develop an new audiences beyond its physical signal limitations by streaming their signal online.

Today, stations like Free FM have again sought out new technologies to grow their audience and remain relevant, in this case its podcasting.  Missed a show, not sure if you'll like what they have to say, or simply want to catch it later now through most of the Free FM sites, or even in iTunes you can find short form version's of the station's different shows from David Lee Roth to Chris Booker.  Regardless of what you think of the content itself radio itself has found a way to stay at the forefront and continue to build its audience.

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Yeah...that will work.  In a "shocking" statement from Sirius, cease-and-desist letters have been sent out to online pirates, hearhoward100.com and hearhoward.org in a move to try and stop the "king of all media" from being heard for free.  After his satellite debut on January 9th, pirate radio stations around NY as well as other major markets began to retransmit the Sirius program on terrestrial (free) radio.  I can't imagine who was more thrilled, Sirius (by losing potential consumers) or the FCC (with Stern uncensored roaming on the FM dial).  Pirating Howard is nothing new, it has been occurring for years.  However, the issue is about dollars and cents now.  With Sirius costing consumers $13 a month, if their is a free alternative, people will flock to it.  There is little doubt Sirius will do everything in their power to eliminate the free transmission of Howard Stern's program with as much as $500 million invested in him.  Sirius spokesman Patrick Reilly said, "We don't condone the stealing of Howard's show, or any of the content on our more than 125 channels. We vigorously protect our intellectual property rights and we will actively prosecute those who attempt to steal it."

TheStreet.com put the scenario best: if water fountains started spraying free Coca-Cola. In that case, who’d want to part with four quarters for a bottle of Coke?

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As part of a broader effort announced earlier this week by the HD Radio Alliance, the nation's largerst radio broadcasters have begun unveiling their HD Radio roll-out plans.  As the announcements roll in many across the country are going to have the opportunity to experience new formats, as old ones will re-emerge.  For example, in New York, on one of Clear Channel's HD signals New York gained its first country signal in several years, while many of CBS's newly launched Free-FM outlets began providing modern rock on their HD channels.  Additionally, new formats for terrestrial radio are making their debut such as Clear Channel's Hip Hop Raw and Uncut channel in San Francisco.

FMQB - HD Radio Rollout Begins

Terrestrial Radio Gets "Serious" About HD

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So this morning Stern said his parting words, and left terrestrial radio. Almost as soon as the mics were silenced WXRK-FM in New York (known for about the last twenty years as one version or another as K-Rock) went jockless. Despite all of Stern’s success for much of the past twenty years the rest of the station had struggled to find an identity and today with Stern gone and the mics off iit moved even further from the radar of its target audience: men. On January 3rd, the CBS Radio (newly renamed from Infinity Broadcasting) will debut its new format, Free-FM, in New York and a handful of other markets, it may be too little too late.

The idea for Free-FM is nothing new, but it is simple; talk for men. Actually, in the past, Infinity Broadcasting (this the same ownership group) has actually tried this recipe before in 1999 on New York's storied, WNEW-FM. Back then, the station revolved around afternoon radio bad-boys Opie and Anthony with a smattering of other programs. The station struggled and after that show was silenced the poorly performing format was replaced.

Nonetheless, despite the format's lackluster history, it seems to be the wrong time to revive an all-talk format for men with Stern's departure. The management at Infinity argues that men want talk and therefore they should build an entire station filling that void. (Keep in mind too that they are trying to keep men listening to their traditional station opposed to turning to the options on satellite radio.) But this logic is twenty years late, Infinity should have taken this approach at the beginning of Stern's career, not at the end.

At this point, with Stern's show leaving the airwaves. rock stations like K-Rock in New York and WYSP-FM in Philadelphia should refocus on the music and turn-off the talk before their male listeners tune out for good.

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So the time has finally come. Tomorrow Howard Stern's run on terrestiral radio comes to an end and the $500 million man hasn't turned the numbers Sirius has hoped for. According to the Wall Street Journal this morning, Sirius might edge out XM in the 4th quarter, but XM still holds 70% of the satellite radio market. Sirius has placed their focus on selling radios in technology stores like Best Buy and Circuit City and XM in new car models and have both have tremendous programming diversity and options. Presently, Stern hasn't produced the outright audience numbers he was meant to attract. It will be an interesting first few months for Howard and Sirius. Rest assure, we will continue to monitor the situation.

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As the drumbeat for satellite radio continues to grow in volume, traditional radio outlets and ownership groups are searching for any which way to maintain their audiences, as well as find new ways to cater to audiences that have been previously ignored. Enter High Definition Radio, or HD Radio and the ability to deliver multiple "channels" on one signal band. This creates an environment where traditional outlets will be able to offer multiple streams of targeted radio content. At the same time, it adds some further clutter to an already confusing radio menu list that now includes AM, FM, XM, Sirius, Internet Radio, and Podcasts.

With that in mind, yesterday, in New York foes and friends alike from radio’s major stake holders including Clear Channel, Citadel, Bonneville, Cumulus, Emmis, Entercom, Greater Media, and Infinity announced a new industry alliance, the HD Radio Alliance. to proactively program and educate the American public about HD radio. The alliance will create a commercial free multi-channel approach, organize content, and pour over $200 million dollars into marketing the new options to consumers.

Continue reading "Terrestrial Radio Races to Save Face" »

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Prior to music radio's movement to the FM band, New York's WABC-AM was a powerhouse for Top 40 music lovers in the New York area. However, since the transition to the other side of the dial WABC-AM has been home a variety of talk show hosts, and fans of the former WABC have had to relive their childhood years through sites like Alan Sniffen's MusicRadio77.com.

Starting this weekend on Saturday night listeners throughout the New York metropoitan area, and those lucky enough to be able to catch the signal along the eastern seaboard, will hear something that they haven't heard in years - music. The station will launch a new version of Musicradio 77, under the direction of WABC's Program Director, Phil Boyce, the new show will return oldies to the New York airwaves after heritage oldies WCBS-FM flipped to a new format last June. The show will be hosted by Mark Simone and will feature hit songs of yesteryear. If early indications are anything, from this online message board...it looks like the folks in New York are excited to have the music back on WABC-AM.

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