Others are concerned that radio's content strategies are inadequate to compel listeners to stick around. One respected music programming consultant remains optimistic that radio can fix this problem, but that it has work to do, and quickly. He's Mike Henry, CEO of Paragon Media Strategies, who advises, "Radio should employ a multi-pronged digital path, regardless of the distribution device," but quickly adds, "Stations should produce sub-genre format streams of their primary format."
He explains with some examples: "A classic rock station should produce streams for progressive rock, classic rock oldies and classic rock currents. Radio stations should also produce digital streams that are topical and that can come and go with topical events, such as concert tours and holiday seasons, which is the approach used by some satellite channels."
Henry believes that radio is well-positioned to move into the more socially networked environment preferred by younger audiences. "Radio stations must put themselves in the middle of the lifegroup they serve, and super-serve them around the inner wheel of their tastes."
He feels that the issue of which platform is less important than the content question right now, and cites fellow radio consultant Dan Mason, who is fond of saying, "As broadcasters, we should just make the donuts. It doesn't matter where the donuts are sold." Henry agrees with that philosophy, "Because it requires a commitment to creating compelling content first and foremost. Until a radio station can make that commitment, it doesn't really matter where the content is distributed. Right now, most radio stations are not even close to fulfilling the content commitment."
Bridge to nowhere
Another well-positioned industry veteran, who asked not to be named, took it a step further. "Is radio really even pursuing a digital path?" he asks, elaborating that, "Given that most of the current adopters of HD Radio are shareholders in iBiquity Digital, or received free equipment via CPB grants, how many broadcasters are actually in it for the pursuit of an expansive new radio platform?"
He believes that broadcasters have not stepped up adequately, providing only lip service to their digital transition. "Even the multicasting on secondary channels is treated minimally by the radio station owners, most of whom spend next to nothing in support of these new 'exciting' opportunities. They'll use cheap or free Internet radio software running in a simple loop, playing music with an occasional generic promo. How is that ever going to compel listeners to run out and spend their hard earned money on HD Radio when the same dollars will get them a cell phone with an internal MP3 player?"
This observer did find one development to be positive about: "The big opportunity is a 'connected' analog FM radio — RDS delivering content identifiers, and Wi-Fi or docked connectivity delivering the power of the Internet to the consumer." He feels that this legacy add-on could make it even harder to justify HD Radio, though, concluding that this feature is "eclipsing HD Radio right now. HD Radio is obsolete, DOA."
"Without the almost
80 million Gen Y'ers coming of age,
there is no future for radio."
Jerry Del Colliano
Such dire pronouncements are shared by others who hold influential positions in the industry, but who are not broadcasters per se. One such is Jerry Del Colliano, who serves as a frequent advisor to the new media and broadcasting industries and is publisher of InsideMusicMedia.com. He is also a professor at the University of Southern California. Del Colliano bluntly states, "The fact that anyone in radio is even thinking about HD Radio at a time when the industry is in great peril illustrates why it is."
He sides with those who believe that the future of radio is in content creation and marketing. He also agrees that a multi-platform approach is key, but feels that the important new delivery mechanisms are Internet-based. Broadcasters' investment should be focused "not solely on terrestrial signals but online, mobile and podcasting."
He recommends that broadcasters follow the example of Apple CEO Steve Jobs, whom Del Colliano believes "understands the next generation better than they understand themselves." Ultimately, Del Colliano warns that "without the almost 80 million Gen Y'ers coming of age, there is no future for radio."
Meanwhile, Mark Ramsey, a frequently quoted commentator who is president of the consulting firm Radio Intelligence US, agrees with many here that the consumer will ultimately decide on the preferred platform. But, Ramsey believes, "That marketplace has (already) spoken."
Ramsey cites relative sales figures to support his contention. "Compare the mere smattering of HD Radios in the marketplace — and no momentum for more," he points out, "with the estimated 64 million 3G mobile smartphones in the hands of American consumers in 2008 — up 80% from 2007."
He chastises the radio industry for what he feels is a blatant disregard of market forces. Ramsey contends that when comparing online services with HD Radio, "One solution is Internet-based and all about what's in it for the consumer, the other solution is radio industry-based and all about what's in it for the broadcaster."
He concludes that, "Except insofar as HD stations are also Internet stations, there is no such thing as HD Radio."
