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Radio Timeline… An Evolving Story “Having existed for more than 80 years, radio has met the challenge of new forms of audio delivery on numerous occasions.

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Presentation on theme: "Radio Timeline… An Evolving Story “Having existed for more than 80 years, radio has met the challenge of new forms of audio delivery on numerous occasions."— Presentation transcript:

1 Radio Timeline… An Evolving Story “Having existed for more than 80 years, radio has met the challenge of new forms of audio delivery on numerous occasions and managed to remain a very competitive and profitable form of media”. Harris Nesbitt analyst Lee Westerfield October 8, 2004 R&R The 1920’s Radio Arrives First Commercial Broadcast: Many stations began to spring up throughout America Radio Corporation of America (RCA) created the NBC Network. Networks were encouraged by the government, because they were seen as the only way to offer superior programming and news coverage. The 1930’s Radio Matures Radio experiences a tremendous amount of growth. 600 to 700 radio stations now exist – Creation of FM. Howard Armstrong discovered a new wide band frequency modulation – Programming became highly segmented with many different types of shows; Soap Opera’s on in the daytime, comedies, newscasts, dramas, and quiz shows – The FCC is formed. By the end of the decade they will complain that radio is not local enough, that the un-licensed national networks control the programming but the stations are licensed to serve local communities – First television sets offered for sale.

2 Radio Timeline… An Evolving Story The 1940’s Radio Serves 1940 First TV Station – Paramount puts their first TV station on the air in Chicago – Radio competition intensified between the networks. Nobel buys NBC’s Blue Network and forms The American Broadcasting System. The Networks offer a variety of different programs: comedy was lead by Bob Hope, George Burns, Gracie Allen and Jack Benny and Edgar Bergan. Many different entertainment programs were created by Bing Crosby, Arthur Godfrey and Kate Smith to name a few. Children and mystery/adventure programs frequent the airwaves. The Lone Ranger, The Shadow, Superman, Jack Armstrong’s “The American Boy" entertained thousands of children throughout the country. News and live war reports were often heard especially “Fireside” chats with FDR were popular – Radio station growth and in car radio debuts – Television catches on. The years are growth years for TV like the early 1920’s were for radio. Programming is mostly controlled by the same networks and sponsors as radio – First Cable TV system developed – It began in the rural areas of North America.

3 Radio Timeline… An Evolving Story The 1950’s Radio Struggles The development of television staggers the radio industry. Many advertisers switched to television, dropped radio and took their stars with them. Networks and stations are forced to lower the rates and the sponsors threaten to abandon the entire radio industry. Radio revenue begins to steadily decline. Nielsen (was measuring radio audience at the time) reports indicate that radio listening declines as more homes purchase tv sets. Early 1950’s Format Radio: Although Todd Storz invented Top 40, a fellow broadcaster named Gordon McLendon pioneered the format and created one of America’s first “Top 40” stations – First Color TV broadcasting begins – ABC (American Broadcasting Systems) was barely operating. ABC received FCC approval to merge with United Paramount Theatres Radio slowly started to recover from the impact of television. Many stations begin to develop specific formats… Mid 1950’s Rock and Roll emerges - Elvis Presley and others were getting air play and selling records The listeners respond positively to the development of specific formats. FM frequency starts to grow, and by the mid 1950’s represented ¼ of all radio stations on the air. Late 1950’s – Radio Networks Evolve – With all the entertainment programs going into television, and with most radio become disc-jockey based, radio networks are left with only news. Late 1950’s “Spot” Radio – By the end of the decade, entire sponsor control of programming gives way to advertisers being able to buy a 30 or 60 second spot with a program.

4 Radio Timeline… An Evolving Story 1960’s Radio reinvents Early 1960’s -Top 40 AM, becomes a dominant force. “Block” programming could not compete, so putting something on radio that wasn’t available on television became vital. Top 40 also spawned the first generation of star disc jockeys, whose between-song patter and connection with the listeners became as important as the songs themselves Portable radio was developed. The clock radio, the battery radio, and the miniature transistor set were popping up everywhere. Listening no longer confined to the home. People had the ability to listen at work, home or in cars – Philips introduces the audio cassette tape player Midland CB Radios introduced into the public market the first CB radio – Led by the Beatles, AM Top-40 flourishes – News Format and Talk Format debut. WINS-AM in New York switches to an All News format breaking new ground in radio programming – 1965 – Radio stations increased from in 1960 to in – The 8-Track Cassette. Ford Motor company offered 8-track Players as an option in their line of 1966 models cars. Home players were not introduced for another year or so The 4-track, 8-track and PlayTape formats had all introduced home players. Late 1960’s FM Radio Rock hits the scene as FM makes a comeback. AM stations refusing to play the new music from albums were suddenly facing new competition from FM stations that would play the music Radio becomes a demographically targeted medium. The ABC Network splits into four new divisions. ABC Contemporary with a format of Top 40 and a target audience of Persons ABC Entertainment (MOR) Persons ABC FM (AOR) Persons ABC Information (News/Talk) Persons 25+.

5 Radio Timeline… An Evolving Story 1970’s- Radio’s Expansion Cigarette ads are no longer allowed on radio which causes a tremendous loss of revenue for the radio industry – The Television networks start selling 30’s. The transition from 60 second commercials to 30 second commercials as the standard length for commercials on Television takes hold – Radio Programming adjusted to continue to attract specialized audiences – First pre-recorded videocassette tapes offered to consumers – Sony introduces Betamax home VCR – First VCR introduced FM stations for the first time show collective profits with over 40% of the national listening audience – The CB craze begins. Many within the industry were concerned about its impact on in-car radio listening. Mid to late 1970’s -Formats fragment: There are no longer just two formats, top-40 on AM and progressive rock on FM; there is AC, Urban, AOR, 50’s and 60’s Oldies, Disco. Late 1970’s - To retain a share of audience, many AM stations dropped music in favor of news and talk – VHS home recording format introduced – The Sony Walkman Personal Stereo was introduced. Major concern that this would negatively impact radio listening – FM audience levels finally surpass AM.

6 Radio Timeline… An Evolving Story The 1980’s Radio Struggles During the 80’s - The growth of Cable television resulted in a plethora of viewing options for the audience. The new multi-channel environment provided viewers with more than 50 programming choices at once – Radio reacts to a changing marketplace and formats continue to fragment: Format niche continues with Hot AC, Soft AC and Classic Rock. The NAC format develops as a Jazz hybrid and continued fragmentation of hybrids Churban and Rock AC. During the 1980’s - the number of radio stations swelled to 12, – FM stations dominate over AM, reaching 63% of all listeners by – MTV debuts – The CD debuts – “80/90 Docket” - The FCC added hundreds of new FM stations across the country plunging more into unprofitability. (allowing more stations to become unprofitable.) 1986 – VH1, MTV’s sister station debuts and is designed to target adults.

7 Radio Timeline… An Evolving Story 1990’s Radio Competes First third of the 1990’s - The recession crippled financing of Radio properties. The buzz term then became LMA where stations combined their resources (signals, staffs and facilities) to survive Syndication talk shows: Howard Stern, G Gordon Liddy, Don Imus, Larry King and Rush Limbaugh become extremely popular radio personalities –AM stereo is available for stations – New Group Owners and Duopolies - The FCC for the first time permits ownership of multiple AM/FM stations in each market, subject to specific limitations. The new term “Duopoly” refers to co-owned AM/AM or FM/FM stations in the same market – Cable Television penetrates 60% of all US Households while the networks share of its prime time audience had dropped from their routine 80%-90% to 60% -65% The FCC allocated spectrum for nationwide broadcasting of satellite-based Digital Audio Radio Service (DARS) 1994 – The liberalization to network rules encourage three Hollywood studios to launch TV Networks. Warner Brothers launched a network in its own name, and Universal which had grown to eminence as a prime source for NBC teamed with Paramount, proud source of the inexhaustible Star Trek, to form UPN (United Paramount Network) – Cable and VCR penetration continue to grow (63% and 79% respectively).

8 Radio Timeline… An Evolving Story 1990’s Radio Competes The Telecommunications Act was signed and all but eliminated ownership caps. Ownership restrictions in a given market were loosened while national restrictions were eliminated altogether. Ownership restrictions in a given market were loosened from 4 stations to as many as 8. Digital takes over Radio Technology. Now an entire day can be stored, edited and broadcast using the hard drive of a computer. Production that used to involve slicing tape is now done with the click of a mouse. Late 1990’s- Introduction of Streaming Media which allowed users to listen to radio stations on the internet. Late 1990’s - Home computer users began sharing digitized music in a number of different formats. The MP3 standard began to catch on and Napstar software appeared to make it possible for users to access each other’s song via the World Wide Web. The recording industry complains and shuts Napstar down. Late 1990’s – Advances in digital communication and cable. Allows for more stations at a higher fee.

9 Radio Timeline… An Evolving Story The 21 st century: Radio innovates iPOD Apple introduces the iPOD, a brand of portable media players with a 5 GB-storage capacity. The iPod classic model stores songs on an internal drive. Six iPod generations later, the iPod stores and plays songs, movies, games and photo slideshows. It can store up to 160 GB of any type of files and is now a full-fledged portable media center Some accessories add extra features such as sound recorders, FM radio tuners, wired remote controls, and audio/visual cables for TV connections SATELLITE (DIGITAL) RADIO XM Satellite Radio launches in November 2002-Sirius Satellite Radio launches in July Both digital radios are subscription-based and broadcast by a communications satellite. Their content is not local; it is commercial free and free from regulations by the FCC Satellite currently claims approximately 16.3 million subscribers (which represents approximately the size of one radio metro, New York, with a population of 15.3 million) DEBUT of HD TECHNOLOGY 2002-iBiquity Digital Corporation develops the HD technology (in-band on-channel IBOC). It enables AM & FM radio stations to broadcast their (local) programs digitally. It becomes the U.S. standard for digital audio broadcasting once approved by the FCC this same year HD Radio AM&FM broadcast technology represents the industry’s biggest leap forward since the introduction of FM. It will usher in radio’s digital era with top sound quality, FM delivering CD-level performance and AM matching today’s FM stereo The commercial rollout of HD Radio begins with a few AM & FM stations broadcasting digitally. Users must purchase a receiver, but HD programming is free Clear Channel commits $100,000,000 to HD radio segue. Early 2008, Clear Channel had converted 283 of its stations to HD digital radio

10 Radio Timeline… An Evolving Story The 21 st century: Radio innovates PODCASTS The term “podcast” - derived from iPod & broadcasting - is first suggested & adopted by podcast pioneers & will be commonly used thereafter It is an audio or video file downloaded to a personal computer or MP3 player for consumption at the time and place of the user’s choice – in other words, time shifted digital audio First half of 2007 – Nearly 5 million pieces of content are delivered “LESS IS MORE” & CLUTTER REDUCTION Clear Channel debuts their Less is More” initiative designed to provide a more satisfying listening experience to its listeners and a more effective advertising environment to its advertisers CLEAR CHANNEL’S NEW ONLINE STRATEGY Early 2005-Clear Channel introduces its online strategy, building more original programming & other creative features onto it’s stations’ websites to lure listeners & new advertisers o Stripped™, created & produced by CC Online Music & Radio, is the company’s version of MTV’s Unplugged series: a live performance by radio artists that visitors can either watch or listen to as an audio feed oSneak Peak offers Clear Channel’s online visitors the chance to listen to tracks from albums that have not been publicly released AUDIO STREAMING THROUGH CELL PHONES April 2005-mSpot is the first mobile phone content provider of music, radio and video. A number of Clear Channel stations become available to subscribers of Sprint & US Cellular who carry mSpot compatible phones Bridge Ratings predicts that mobile phone audio streaming will grow from 1.5 million people in 2006 to nearly 25 millions in 2010.

11 Radio Timeline… An Evolving Story The 21 st century: Radio innovates HD-2 MULTICAST PROGRAMMING Early 2006-The HD Alliance, a joint initiative of the major radio broadcasters (12), formed in Dec ’05 to promote HD Radio, announces the initial 28 markets to begin broadcasting HD-2 multicast programming. The new HD-2 channels carry a variety of formats, which either complement existing on-air programming or introduce new formats Currently, there are over 1,200 stations broadcasting in HD & approximately 700 stations multicasting in the top 100 markets SATELLITE BROADCASTS ON PORTABLE MUSIC PLAYERS February XM introduces an XM-enabled portable MP3 in February ELECTRONIC (PASSIVE) AUDIENCE MEASUREMENT WITH THE PPM SYSTEM Spring 2007-Arbitron released the first “currency” radio ratings from the Philadelphia portable people meter radio ratings service. Houston, TX followed several months after. Philadelphia is the first radio market in the U.S. to be measured by the PPM system This is a patented encoding technology, which detects consumers’ exposure to any audio broadcast - regardless of the source of the broadcast, from traditional radio and TV broadcasts, to podcasts and movie trailers. Over the next three years, the PPM is schedule to be deployed in the Top 50 markets in place of the paper & pencil diary method that the company has employed to collect radio audience estimates since 1965 Events, inventions, notable moments, and excellent programming made radio what it is today Despite all the competition, radio has continued to develop and evolve from the first days of experimentation to digital broadcasting and radio over the Internet, and will continue to do so… Radio has also retained a personal, intimate and emotional driven connection with its listeners that will continue to evolve and solidify


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