Dear Radio Executive:

With the advent of increasing amounts of audio alternatives, traditional radio as an industry faces a unique question: "Where is it all going?"

During the last year, Bridge Ratings has compiled an amazing amount of data measuring not only radio listening estimates, but also radio listener behavior.

We're measuring new formats this year that show great promise as the radio industry gets creative in the face of all the adjustments that are occuring in listener behavior primarily related to digital audio alternatives like Internet radio, satellite radio, MP3 players and the iPod, CD's and the cell phone. (see "Where Did My Listeners Go? Parts 1 and 2 on this site).

2004 was somewhat of a turning point for audio entertainment's momentum as strong signals have been sent by radio listeners, primarily 12-29 year olds, that custom everything/instant gratification is where it's at. Traditional radio is finding it difficult to compete with other instant gratification alternatives because of this elemental need. No doubt the iPod, with nearly ten million units sold, is paving the way.

The additional sources of audio entertainment point to a desire by the segment of the public for a more custom listening experience. The momentum for this is grown out of the desire or need of primarily 12-24 year olds for something different, something that speaks to their lifestyles. Traditional radio abandoned this age group long ago and the arrival of the original Napster and its inevitable power was an expression of just how ready this demographic was for something more. Peer-to-peer music file sharing began a new era in audio entertainment.

The iPod has even spawned yet another broadcast competitor - Podcasting.

It all points to a movement towards a completely customized listening experience. How does mass appeal radio, whether it be traditional, satellite or Internet compete with customized one-on-one programming?

Answer: It doesn't. It can't.

Traditional radio broadcasters must face the fact of industry change. (See "The Predictive Shakeup of Radio" - December 1, 2004). Like traditional television before it, radio will prevail. As an industry we must face increased competition as the best of us always have: don't duplicate - separate. Since radio cannot duplicate the personal MP3 player experience, its clear path is to differentiate, to continue to do what it is most skilled at - defining a market position, delivering a great product and marketing it.

With all the increased competition for television viewers, traditional TV continues to attract significant viewership with quality content. Even though there were over 400 television alternatives, the night of this season's "American Idol" premiere the show attracted 33 million viewers. It's compelling content that will keep 'em coming back for more and the more traditional radio recognizes this primary fact, the better off we'll be.

In 2005 the radio industry needs to stay focused. Like thousands of successful companies in other industries, radio needs to invest in product, talent, content, research and marketing. Now more than ever in order to light the path.

Your feedback is vital to our company's on-going success. I look forward to hearing from you.

Sincerely,

 

Dave Van Dyke

President