Pinnacle Media Worldwide

IT’S NOT ALL ABOUT CONTENT – IT’S ALSO ABOUT HARDWARE!

5 May 2006

IT’S NOT ALL ABOUT CONTENT – IT’S ALSO ABOUT HARDWARE!

Pinnacle Media Worldwide

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International Radio Conference

Pinnacle Media's VP/International Ken Benson will be attending the International Radio Conference 22-24 May in Dubai.

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For more information, Contact Pinnacle Media Worldwide

USA: Bob Lawrence, President/CEO

Worldwide: Ken Benson, VP/International

By Bob Lawrence, President/CEO Pinnacle Media Worldwide

Over the years you’ve probably heard anyone who’s anyone tell you that radio’s future is all about “content”; the one thing that's more difficult for Satellite and I-Pods to provide. But is that the real truth, especially since they too are working on content that includes talent and podcasting?

Consider this. It may just be “technology” that presents traditional radio with the biggest challenge. With the advent of I-Pods and Satellite Radio – traditional, terrestrial “radio” may be taking a backseat in the consumer’s mind. And, it’s not necessarily a product issue but one of hardware. Walk into any Best Buy or Circuit City and take a look at the amount of I-Pods and accessories, or the numerous displays for XM and Sirius. Now try and find the sections that sell radios. Unless you’re buying a portable CD player, the choices for portable “radios” is non-existent.

The “radio” itself, has been usurped by new technology. Think about all the cell phones on the market. We really only need a cell phone to talk, don’t we? But the hardware offered by Verizon, T-Mobile, Cingular, and Sprint have new Windows Smartphones, Treos, Blackberries, video phones, razors, and a plethora of mobile phones to meet your needs. But what exactly, is your need? Is it only to talk? Nope! The service providers and manufacturers have told us what we need. It’s the classic case of “if you build it they will come.” Radio’s problems are even more exacerbated by the fact that cell phones have software now to stream XM and Sirius, but don’t offer terrestrial radios integrated in mobile phones.

All this hardware seems to change on a daily basis. XM and Sirius offer visor radios, plug-and-play radios, in-dash radios, portable radios, and all with multiple designs. On the web, you’ll find an amazing number of software sites designed for cell phones. There’s Handango.com, Palm.com, Smartphone.net, and MyTreo.net – just to name a few of the dozens out there. There's even technology from Media Audit to use smartphones for measuring radio listening... but there are no radios in smartphones! Where are the cool, new devices out there for radio consumers? What about new gadgets that make our product more fun, exciting, cool, and desirable?

The world is truly, becoming more about variety of choice. Consumers are out there searching for those who will not necessarily provide the “most variety” – but more of what they want! That’s how variety is being defined.

In some ways, the internet offers us a way to prevent ourselves from becoming dinosaurs. With limited options, we can use this technology to communicate with our listeners using fun, online gadgets, devices, and players that can help make who we are compelling, once again. Just the fact that we’re online can make it more compelling to a radio user. Fact is that radio usage is declining and Internet usage is rising.

Nielsen NetRatings announced in March 2006 that in the United States, 68% of active Internet users have broadband and that the number of broadband users from home increased 28% year-to-year, from 74.3 million in February 2005 to 95.5 million in February 2006.

Pinnacle’s hundreds of studies now show I-Pod ownership in the past 12 months up dramatically, among 25-44 year old females.

What’s the solution? The good news is that most of the people operating the large radio groups are really opportunity seekers! Smart people like David Field, Joel Hollander, Judy Ellis, and John Hogan know that radio is in a battle and they all seem committed to taking steps necessary to keep radio in the foreground. Generating agreements with not only HD manufacturers but making our traditional, terrestrial radios desirable again, is something that everyone needs to examine, soon! Because we all know what happened to the dinosaurs.

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