APig On A Seesaw

There is absolutely nothing wrong with radio. The transmitters still work. Car radios still work. Clock radios still work. The radio in the lobby of your dentist's office still works too.

All of this equipment is functioning perfectly. 100% A-OK. Trust me. I checked.

Sure, the medium has more challenges and challengers today than ever before, but the fundamentals of radio are sound. Listeners may be less passionate about radio today than in years past, but that's because we're giving them less to be passionate about. These are issues of content. Issues easily overcome through creativity, passion and hard work, and I don't see any lack of talent dying to provide that.

I'll say it again: There is absolutely nothing wrong with radio.

What's broken is the business of radio.

Once upon a time not so long ago, your typical radio station was a balancing act: a seesaw of programming and sales. Programming created entertainment to build an audience. Sales used that audience to generate revenue. Want more money? Create better programming. Build a bigger audience.

It doesn't work that way anymore because the business of radio is broken. There is no balance of programing and sales when there's a pig on the seesaw.

Take, for example, Clear Channel's KHKS FM in Dallas. They celebrated a return to market dominance by slashing the budget. Is it really a fact that the highest rated English language station in a major market can't afford to staff the midday airshift? Really? ...Please... That decision was made in San Antonio and enforced via Pittsburgh, which I find odd since KHKS's signal can't be heard by people who live in either of those cities.

While we're in Dallas, let's consider the fate of another major player in the market: CBS Radio. They own six stations, four of which were rated in the one shares this past fall, yet CBS did Jack squat about it. The most offensive of these embarrassments to broadcasting is the ironically named "Movin' 107.5", a successful heritage smooth jazz station flipped to the latest flavor of radio snake oil. Though Movin' is ranked in 24th place overall in Dallas/Fort Worth, this station is actually out-performing some of the Movin' stations in other markets, many of which have little more than decimals for ratings. Come on now - let's be honest... if a full market signal can't even muster a one share, clearly it's not Movin' at all.

The decision to put the Movin' format on the air in Dallas and Los Angeles had nothing to do with entertainment. It was a get rich quick scheme and it failed. The way to fix either of these stations is simple: go to the market, find an under-served sellable demographic (people!) and entertain them. These are major markets! Hire talented PDs, compelling air talent and build a winning team, one station at a time. But the days of doing radio that way are quickly coming to a close because large corporations don't view individual properties individually, and that's a key reason why they're not willing to do more to get more.

Years ago, you'd blow out an underperforming jock. Today, you blow out the entire shift and track it regardless of how well the jock is doing.

Years ago, you'd blow out an underperforming PD. Today, you blow out the entire station and replace it with a gimmick. Worry about it again in '09, eh?

The old way: Grow the budget. Make more money.
The new way: Slash the budget. Take more money.

And the worst part is, the business of radio was destroyed while the economy was strong. Imagine the pressure to slash budgets further when this recession really takes hold.

The business of radio is broken.