 Radio Ink- 1/9/06
Podcasting Should Be Part Of Your Core
Business
By Jimmy Risk
I recently attended the first annual Podcasters
convention in Ontario, California. The phenomena that has enticed bedroom
broadcasters to compete for portable ears actually met the newest players
in this exploding mine field. Yahoo, Real Networks, Audible, and a host of
upstarts served notice by their presence that podcast content-and its
monetization-was a top priority! In fact, all of these companies are
equipped with content acquisition and trackable software, plus a tiered
sales strategy, which means they're more than ready when podcast revenue
rears it's substantial head in 12-18 months.
Sadly, terrestrial radio's attendance at
this confab was paper thin.
One of the hardest things in life is to convince
people of a reality that they cannot see. Right now, Apple's
Steve Jobs does that better than anyone on planet earth. He has the power and the
will to alter our media
landscape and that is exactly what he is doing with
podcasting.
His legendary disdain for radio is no
secret; he thinks terrestrial is far too cluttered and repetitive,
and has proclaimed podcasting as the
next generation of radio. He rocked
the television world by forcing Disney and
subsequently others to give up lucrative rerun rights in
exchange for downloads where Apple
promptly registered one million at $1.99.......days after
the announcement. For Jobs, it's simple; embracing podcasting helps retain the
aura of revolutionary and helps sell more iPods and computers. He also thinks that "trackable
ear drums" will now become the new metric for advertisers who crave
"eyeballs." And, like the standard music model he shattered with iTunes,
he'll now use the platform to bring you short and long form podcasts. More
importantly, he has emboldened a new wave of formidable competitors to
think that deliverable content is not the private domain of Radio or Television.
At the convention the
question arose, "At what point in the future will advertisers try to
discern the difference between a radio industry and an audio content
industry?" The rising tide of 100 million portable players by 2007 has
created a race for content that radio should be in right now. We are a
100-year-old analog gorilla that has been flat at $20 billion for the past
five years while internet advertising is rocketing. Why? Because the sale
is right on the desktop! The time worn standard avails model will never
move Wall Street's needle again. Rather
a content delivery system with
limitless revenue stream can
provide the needed octane.
Radio Is Yesterday?
The
perception that radio is so passe is far larger than the reality. Nothing
looked more neanderthal than the programming of network television until
2000. That's when it came back in a meaningful way because the outer
fringe of the cable collective forced its creative hand. From the reality
TV explosion to Desperate Housewives, the networks daringly reinvented
themselves with content. Can HD radio provide the same opportunity for
radio's future? I think we can all find middle ground on HD's
possibilities; better sound quality and opportunities for niche
programming.
However, lingering questions remain.
Radio has always been a medium that eats itself. How many powerhouse
stations in a market are at risk when competing clusters use side channels
to target and splinter its cume? And how long is the ramp-up for critical
mass awareness and delivery of HD Radio? As sexy as satellite radio is, it
has not happened overnight.
Still, if we can overcome the
obstacles and HD turns out to be radio's rainbow, why not take the ensuing
time to podcast compelling content to the first stop on a download-the
computer! The personal computer is still the best place to land content.
If we're going to fight our way out of these doldrums the way network
television did, why not start with a medium that can reach 161 million
people-instantly?
Newspapers are our best friends!
The
current and future churn at newspapers alone can make terrestrial radio a
default winner in the grab for media market share-if the homework is done
now. There can be no question that the newspaper industry resides on a
slippery slope. Like radio, it has suffered monstrous attrition in lower
demo usage. Industry workers are being laid off in droves from jobs that
will never be filled again. The circulation numbers scandal is starting to
make savvy buyers get quantification for bloated ad rates. In the future,
local car dealers might think differently about high priced,
unquantifiable Sunday ads when a radio station can vertically deliver
demos in a targeted podcast.
Radio has done an exceptional job of
creating relevant websites and collecting databases. Newspapers have not.
So the course of action is clear: a digital retrofit in stations, a
constant search for content, and a living culture that recognizes we are
always better then ourselves.
Jimmy Risk is President of LoyalEars.com, a media
rewards company.. He can be reached at 586-336-9903, or email him at jimmy@LoyalEars.com.
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