MUC110 LEC 9. Radio

Radio
© 2007 musicbizclasses.com

Radio Overview
3 Major Provider Types:
• Terrestrial Radio- traditional radio model
• Internet Radio- online model
• Celestial Radio- satellite model

• Various Business Models:
• Terrestrial Radio- Advertising
• Internet Radio- Ad/Sponsorship
• Celestial Radio- Subscription

Brief History of Radio
•1860’s
– First Radio Technology developed
•1920’s
– Airwaves are unregulated
– Starts as a service medium for farm reports & weather
– Becomes a major outlet for mass Entertainment
– First advertisers- hire their own producers to make
and control radio shows
•1930’s
– FCC is created by an act of congress
– Programming is broad, appeals to national audiences,
no “genres”


Brief History of Radio
•1940’s
– First recorded music only show; very popular,
birth of a new format
– Growth period for Radio
•1950’s
– Radio now has the ability to “make” top hits and music stars
– First “Payola” scandals emerge
•1980’s-00’s
– FCC changes rules restricting radio ownership;
Massive consolidation of radio begins
– Before 1996, no single radio corporation could hold
more than 65 stations.


Commercial Terrestrial Radio
Classification:
• AM vs. FM
– AM= News, talk, sports
– FM= Music

• By “call letter”
– Stations begin with “W” or “K”
– W=east of the Mississippi
– K= west of the Mississippi


FM today:
• Over 13,000 stations in the U.S.

• A handful of Major Conglomerates own the majority
of radio stations:
– Clear Channel- owns over 1200 stations
– CBS
– News Corp.
– Walt Disney

• 75-85% of broadcast time is dedicated to music
• Local advertisers make up 70%-80% of radio's revenue

The Team:
• General Manager- CEO

• Program Director- manages the “sound”

• Music Director- meets with independent music
promoters; conducts research

• Promotions Director-runs all events/live promos


The Team:
• Sales & Marketing Director- sells airtime advertising
• Development Director- meets w/ community,
creates goodwill, manages volunteers

• DJs- on air “personalities”- back announcing

• Engineering team

• The independent radio promoter- works for record
labels; middleman for securing airplay


A word about Independent Radio Promoters:
• An indie middleman exists to help avoid violating
payola laws

• independent promoter, or indie, is a contractor
representing record labels to radio stations

• Indie develops exclusive deal with a radio station

• indie promoter gets paid every time a song he/she
is “selling” gets an “add” on the radio.

A word about Independent Radio Promoters:
• Average going rate paid to indie for an add is $1,000 in large
markets, $800 in medium markets and $600 in small
markets.

• Record companies together spend in excess of $100 million
each year on radio promotion.

• adding four songs a week at $600 each= $120,000 in adds
annually.
• The indie, generally splits revenue with station-->$70,000
to the station owners-->$50,000 for him or herself.


How Commercial Programming works:

• Organized around the weekly playlist
• Music Director looks at variety of research data-
BDS, Soundscan
• The weekly music meeting
• MD, PD- review new releases each week
• DJs do not, generally select the music played
• Only a small number (approx. 3-5) songs are added
each week
• New adds can be handed down from top
management

Radio Terms and Structures:

• Genres- developed for advertisers. Allowed for
more targeted niche markets

• Reverse Programming- don’t include songs
that listeners don’t want to hear

• Clustering- sets of non-stop music- 6 songs,
then cluster of ads, then DJ talk time


Radio Terms:
• Day Parting- breaking the day into specific programming
segments with different needs--e.g. “drive time”-
• Note: Morning and Evening drive time day parts are
the most valuable to a radio station

• AQH: Average Quarter Hour share of the national
audience

• Cume: total number of unique listeners who tune
into a specific daypart for 5+ minutes

• Syndicated Radio- total, self-contained radio shows
produced and packaged by national media conglomerates
(Westwood One)

Commercial Radio & Research:
• Radio time is carefully researched and “scripted”
• Research includes:
– Audience research--Auditorium
– Sales- Soundscan
– Airplay- Bds

• Important Industry resources:
– Arbitron
– Billboard Charts
– Nielsen
– Radio & Records
– Big Champagne


Alternatives to Commercial:
• Public Radio- NPR
– Non-Profit
– Government Funded
– Private donors
– Alternative view points

• College Radio

• Small Webcasters


MUC110 LEC 9. Radio

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MUC110 LEC 9. Radio