The Dynamics of Mass Communication Joseph R. Dominick Seventh Edition

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-2 Part 3 Electronic Media

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-3 Chapter 7 Radio

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-4 Radio History Radio History Early Radio Milestones 1887 Heinrich Hertz sends, detects radio waves 1896 Guglielmo Marconi sends wireless signal in Morse Code, sees promise of "wireless“ as a naval communication medium 1906 Reginald Fessenden makes first device that can broadcast human voice and music 1908 Lee de Forest invents vacuum tube which makes it much easier to receive audio waves WW I Inventor patent wars hamper radio development; U.S. Navy takes over and log jam is broken

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-5 Evolution of Radio as a Mass Medium Big Business Radio’s profit potential attracts big corporations; GE, AT&T, and Westinghouse are early investors. Mass Audience In 1920, station KDKA, Pittsburgh, becomes the first to prove radio can profit by targeting programming to general audiences. Better Receivers Technical and cosmetic changes help turn radio into a “must have” household appliance; 17 million sets sell by 1930.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-6 Evolution of Radio (Con’t) Radio Goes Commercial AT&T’s “air time for sale” idea quickly demonstrates advertising can be radio’s chief revenue source. Networks NBC starts two networks in 1926; CBS follows with one in By 1937, NBC has 111 affiliates, CBS 105. Government Regulation Unregulated airwaves prompt Congress to order chaotic radio practices with the Radio Act of 1927.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-7 Evolution of Radio (Con’t) The Depression: Industry avoids bad times, thrives by becoming an inexpensive escapist outlet for national audiences. Roosevelt creates FCC in 1934 to regulate entire electromagnetic spectrum. Seven-member board governs national resource. Birth of FM Invented mid 1930s, FM is curtailed by WW II, later by TV. Radio Programs Programming expands to drama, soap operas, comedy, news, and westerns. Roosevelt becomes first “radio President.”

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-8 Evolution of Radio (Con’t) World War II Network news thrives as public follows war developments with “name” correspondents. Ad revenues double during war years. Supreme Court orders NBC to sell one of its two networks. ABC is formed from that court order.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 7-9 Innovation and Change: In the nine years following WW II, the public’s attention focuses on TV as the nation’s new entertainment medium. Radio switches from dramatic programming to airing pre-recorded music, finds new markets and thrives. FM’s development is further delayed by corporate and public preoccupation with the new TV medium.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved FM RADIO FM RADIO (frequency modulated radio) FM and TV share nearly same wavelength areas on the electromagnetic wave band; in 1945, FCC gives TV the FM bands and bumps FM into the MHz band where it remains today. Though FM was technically better than AM (FM sounded better and was less affected by static), FM radio stayed in the shadows until the 1970s, partly due to WW II, a preoccupation with TV, and regulatory hurdles.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Television’s Influence on Radio TV’s entertainment advantage forces radio to create new program formats. Talk, music, news and sports, and religious shows debut as a result. Though station revenues remain intact, network affiliations are cut in half due to a lack of demand. Profits rise as stations turn to local businesses to provide primary advertising revenues.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Specialized Formats Among the new program formats, pre-recorded music quickly becomes a favorite offering. Some stations begin specializing in certain music formats, none of which is more popular than the “Top 40” genre. DJs become new radio personalities themselves as they intertwine personal talk and top 40 record hits. The clock hour, a scheduling tool that specifies every element of programming within a given time frame, emerges.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Growth and Stabilization: Stations double in number. Profit potential of Top 40 format leads some record companies to bribe DJs with payola schemes. Format specialization continues, increases. FM emerges as viable medium. In 1965 FCC passes its “nonduplication rule.” No more than 50% of content can be duplicated on AM/FM sister stations; FM stations become attractive investments.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Growth and Stabilization: Growth and Stabilization: (Con’t) Country music becomes favorite FM format, followed by adult contemporary AM is home to talk, news, oldies, and religious formats. National Public Radio (NPR) debuts in 1970 as the first non-commercial network; it boasts 160 affiliates by By 1970, FM controls 70 % of the entire radio audience.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved The Volatile 1990s Congress passes Telecommunication Act of It allows unlimited station ownership, but limits the number of stations that can be owned within same market to eight. As a result, an era of unprecedented station mergers and acquisitions begins. Radio conglomerates flourish. Original FCC philosophy of “localism,” which mandated that stations should serve local interest, now replaced with a corporate view: the public interest is served by offering content that interests the public.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved RADIO IN THE DIGITAL AGE IBOC (in band, on channel) technology now allows simultaneous transmission of analog and digital signals; digital radio debuts in Satellite radio Aimed at expanding the commuter market, direct-satellite-to-car technology offers 100 commercial free program formats for $10 monthly fees. Internet radio With commercial free, highly specialized formats, over 300 Internet-only stations now offer their brand of programming plus Internet service options such as chat, e-commerce, and content-related web links.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved DEFINING FEATURES OF RADIO Radio is... portable – small, convenient to carry supplemental – listening often a secondary focus universal – most people have one, tune in daily selective – niche medium of specialized audiences

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved ORGANIZATION OF THE RADIO INDUSTRY There are about 12,500 radio stations in the U.S., most of which use local programming plus network and/or syndicated shows. While reliance on network programming is declining, the new demand is for syndicated shows featuring hosts such as Russ Limbaugh, Dr. Laura Schlessinger, and Don Imus, plus a variety of other specialized content.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved AM Station Classifications While AM signals travel further, FM’s signals offer superior sound quality and are less affected by interference. AM has three station classifications: clear channel regional local

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved FM Station Classifications FM has three station classifications, also largely based on a descending order of output power. A 100,000-watt “C” station, for example, will have more power than a “B” or “A” station.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Station Formats Stations are best categorized by format, a type of consistent programming designed to appeal to a specific audience which, in turn, attracts advertisers trying to connect with that audience type. There are three basic categories: music black or ethnic news / talk

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Format Homogenization Many stations across the nation sound essentially the same for good reasons: 1.Owners believe that what works well in one city should work well in another. 2.Satellite program transmissions are standardizing content. 3.Program choices are increasingly influenced by a limited band of radio consultants and audience research firms.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Noncommercial Radio Some 1,900 noncommercial stations are owned by non-profit organizations, with most programming supplied by two networks: National Public Radio (with 530 affiliates); stations pay NPR a usage fee based on audience size and budget. Most stations also receive funding from the CPB, or Corporation for Public Broadcasting, an agency funded by Congress. Public Radio International Distributes programming from station-based, independent and international producers.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved OWNERSHIP IN THE RADIO INDUSTRY The Telecommunications Act of 1996 encouraged a strong trend toward radio station consolidation and group ownership. As a result, several radio station conglomerates now dominate U.S. markets, the largest of which owns some 904 stations.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved PRODUCING RADIO PROGRAMS Most stations are divided into four departments. sales. news. programming. engineering Most stations also employ two top positions:. general manager. program director

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Putting Together a Program Music Format: Uses a format wheel divided into program element segments and the times they’re scheduled to air. Talk Format: Staff produced, topics are geared to local interests. These shows require more equipment, staff and technical expertise than DJ-based programs. All-News Format: The most costly of all formats, news shows schedule specific spots for news, weather, sports, business reports, and commercials. Their repeat story cycle usually starts at the top or bottom of the hour.

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved RADIO ECONOMICS At $20 billion annually, radio advertising holds 8 percent of the advertising market. From , the industry enjoyed 93 consecutive months of revenue increases. Revenue comes from three main sources: national advertising (5 percent) regional or national spot advertising (16 percent) local advertising (79 percent)

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved GENERAL EXPENSES A radio station generally incurs five types of expenses: technical programming selling administration news

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved FEEDBACK Audience figures for radio stations are monitored by Arbitron, which surveys 3,000 to 4,000 randomly selected listeners in some 262 markets nationwide. The results (usually only 40 to 50 percent of the surveys sent out), take two forms: ratings ratio of station listeners to all people in the market shares ratio of station listeners relative to the total number of people in the market share actually listening to radio at the same time

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Examples of ratings / shares Ratings Example: 100,000 people in the market with 20,000 listening to station WXYZ ratings = 20,000/100,000 or a 20 % rating Shares Example: 80,000 people are listening to radio with 20,000 tuned in to WXYZ share = 20,000/80,000 or a 25 % share

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Radio Audience Profiles. 550 million radios in U.S. (over two per person); 1/3 are in cars. on a typical day, 3/4 of all adults will listen to some radio. average person has the radio on for about three hours daily. most listen to radio during the twice daily rush-hour drive times. FM listenership rising (72%), biggest increase from teenagers. as people age, they tend to evolve from one format to another

McGraw-Hill © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved Radio End of Chapter 7 Radio