New Telecom Technologies Week 03: Radio

It is 2017: Here is What Radio Looks Like Today, only a handful of companies or “radio groups” own a majority of traditional terrestrial radio stations in the U.S. While the prediction (and current myth) is that commercial radio will die, it is surprisingly resilient. [cultural habit] On-demand audio streams increased 62.4% from 2016 to 2017. It sits at 184 billion (Nielsen)

Radio Ownership: VERY Consolidated with Centralized Content Production Top 10 radio groups account for 19% of all U.S. radio stations Yet garner nearly 50% of all radio ad revenue They control most popular stations in the largest markets

Radio Ownership: VERY Consolidated with Centralized Content Production 2015 Economic Revenue for Top 10 Radio Groups: 1. iHeartMedia, $2.59 billion, 862 radio stations, 8.5% of total radio industry revenues. 2. CBS Radio, $1.25 billion, 117 radio stations, 8.9% of radio revenues. 3. Cumulus Media, $748.6 million, 449 radio stations, 5.3% of radio revenues. 4. Entercom, $505.6 million, 125 stations, 3.6% of radio revenues. 5. Univision, $330.8 million, 67 radio stations, 2.4% of revenues. 6. Cox Media Group, $286.9 million, 56 stations, 2.0% 7. Townsquare Media, $267.6 million, 309 stations, 1.9% 8. Alpha Media, $248.4 million, 245 stations, 1.8% 9. Radio One, $232.1 million, 54 stations, 1.7% 10. Hubbard Radio, $223.9 million, 46 stations, 1.6%

It is 2017: Here is What Radio Looks Like On-demand streaming will increase Currently, satellite (Sirius), cable (Music Choice), and terrestrial (KROQ-FM) are dominant However, as custom audio increases across spaces (bedroom, kitchen, automobile, workspace), competition from custom will heat up.

2016 & 2017 U.S. Commercial Radio Statistics The cultural habit of listening to commercial radio while “trapped” at work or in an automobile can not be overstated. Away from home, working moms have the greatest percentage of out-of-home listening at 77%.

2016 & 2017 U.S. Commercial Radio Statistics Due to the current political climate in the U.S., news and talk radio formats saw dramatic highs for listeners in the last quarter of 2016. Stations switching to all holiday playlist also typically siphons off listeners from other formats

2016 & 2017 U.S. Commercial Radio Statistics The latest priority: making sure Millennials will continue to listen to terrestrial, commercial radio (only showing 2017 to the right) The relative breakdown has stayed the same for format between 2012 and 2017. This means from high school to young adulthood, they are still listening BUT the overall numbers have decreased a bit.

2016 & 2017 U.S. Commercial Radio Statistics Slight decreases, but for the most part, surprisingly stable.

Radio Trends Very little technological change has occurred in commercial radio. Still transmit radio signals via transmitters to your receiver. Over a decade ago, physical radios were outfitted with digital features, but commercial radio itself has not entirely moved online. We’re probably moving to SAM Broadcaster Cloud-based automation software.

Radio Trends In keeping with our modern urges for individualism and tailored content, local radio will enjoy a continuing swell in popularity. These stations do very well by bringing on guests from a regional community, or those who have some link to their immediate listener base. Thusly, discussions have a close impact on the audience, and investigative reporting can explore things that are relevant to them.

Novelty Stage James Maxwell (1831-1879) His equations theorized that electricity, magnetism and even light are all manifestations of the same phenomenon: the electromagnetic field. Theory allowed us to predict existence of radio waves Electromagnetic waves image: http://www.cpii.com/bmd/cpinew/Tutorial/Frequency/frequency.html

Novelty Stage Heinrich Hertz Proved Maxwell’s theories Identified Electromagnetic waves Electromagnetic waves image: http://www.cpii.com/bmd/cpinew/Tutorial/Frequency/frequency.html

Novelty Stage A. Guglielmo Marconi vs. B. NiKola Tesla vs. THREE GUYS WHO INVENTED THE DEVICE TO TRANSMIT A SIGNAL THROUGH THE AIR (1894) A. Guglielmo Marconi vs. B. NiKola Tesla vs. C. Alexander Popov Who invented Wireless telegraphy? Electromagnetic waves image: http://www.cpii.com/bmd/cpinew/Tutorial/Frequency/frequency.html Marconi image: http://www.sqtradiometeo.it/images/Gugliemo%20Marconi%20story.html

Entrepreneurial Stage Ship-to-shore communication Ship image: http://www.marconi.com/Home/about_us/Our%20History/Marconi%20Heritage/Titanic%2090th%20Anniversary Newspaper image: http://www.irelandseye.com/titanic/1.htm

Entrepreneurial Stage David Sarnoff and the Titanic Sarnoffboy: http://history.acusd.edu/gen/filmnotes/empireoftheair.html Sarnoff: http://history.acusd.edu/gen/recording/radio.html

Entrepreneurial Stage “Wireless” became a huge hobby

http://images. google. com/imgres. imgurl=http://www. radioblvd http://images.google.com/imgres?imgurl=http://www.radioblvd.com/hamgear/Nuradcliffe.jpg&imgrefurlhttp://www.radioblvd.com/Welcome.html

http://www.antiqueradios.com/superhet/

Some Key Developments… Radio Act of 1912 You need a LICENSE to operate a radio WW1 (1914-1918) Radio is an important war tool U.S. wants to control Global radio

Some Key Developments… 1915: Over 20 companies selling point-to-point radio equipment: e.g. AT&T (transmitters) General Electric (U.S.) (Receivers) American Marconi (Britain) (both) (marconi was the biggest and best)

Some Key Developments… U.S. develops a “plan” to ensure powerful radio technology would fall under U.S. control. 1. Establish new company, anchored by GE, called RCA (Radio Corporation of America), To pool patents. RCA is a private-sector monopoly. 2. Using GE, weaken British Marconi by not selling them key components, and then BUY its American assets (American Marconi) 3. Use RCA to oversee radio patents from GE, AT&T, Westinghouse, American Marconi and the Navy. Standardization.

Mass Medium Stage KDKA, Pittsburgh, 1920. “First” station to broadcast music and talk (disputed) BROADCASTING vs. POINT-to-POINT First ads, 1922 Conrad’s garage: http://www.radiodiaries.org/radiodiaries.html (Find “Conrad’s Garage”)

Mass Production of Radio Assembling Radios, 1925 http://www.shorpy.com/node/3534http://www.shorpy.com/node/3534

2 KEY NETWORKS = BCA (Broadcast Corp. of America) (1910s- 1926) 1. AT&T creates network of stations, linking together with long distance lines = BCA (Broadcast Corp. of America) (1910s- 1926) AT&T SEES RADIO AS A WAY TO ENHANCE TELEPHONE BUSINESS

NETWORKS 2. RCA creates a network as subsidiary, linked with (INFERIOR) Western Union lines = Radio Group (w/ GE and Westinghouse)

NETWORKS BROADCASTING CORPORATION OF AMERICA (AT&T/BCA) superior VS. RADIO GROUP (RCA) inferior

Mass Medium Stage NBC Red (AT&T lines) NBC Blue (Western Union lines) Government cracks down on AT&T FOR MONOPOLIZING RADIO COMMUNICATIONS, forces it to sell network (July 1, 1926) RCA organizes two networks as NBC Red (AT&T lines) NBC Blue (Western Union lines) =NATIONAL BROADASTING CORPORATION (NBC)

Radio Rules Radio Act of 1912: required a license Radio Act of 1927: Establishes FRC and standard of operating in the “public interest, convenience, or necessity” (PICON) Communications Act of 1934: Establishes FCC, keeps PICON standard. Congress endorses commercial radio.

Radio OWNERSHIP FCC OWNERSHIP CONSTRAINTS 1950-80: 7 AM, 7 FM, 7 TV Stations Late 1980s: 20 AM, 20 FM, 12 TV Stations 1996 Telecommunication Act: You can’t reach 35% of national audience 2003: You can’t reach 45% FCC used to enforce BROADCAST DIVERSITY (NOT ANYMORE)

Radio ownership Clear Channel owned by late 1990s-early 2000s: Over 1,190 stations Premiere Radio network (syndicates programs to 6,500 other stations 240 international stations 40 TV stations Largest Billboard/outdoor sign business Largest live event promoter SFX (talent and sports star agency) Broadway, Cable, network, films