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Pandora VS. Radio. Tons of Comments.



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(2/17/2011 5:29:54 AM)   Flag as inappropriate content
Wasn't it Mark Twain who said, "The rumors of my death have been highly exaggerated"? I'm always oblivious to these statements that 'Radio is dead'. Radio is free. Free is good. You don't need to subscribe to anything to receive a station. No monthly fee to connect. Nada. Just turn it on and it's there. There will always be market for the LOCAL connection of radio. What radio needs most NOW is some innovation that encourages Listener loyalty. In other words... loosen up and ENTERTAIN, and keep it close to home.
- BIG John Libynski
(2/17/2011 5:12:21 AM)   Flag as inappropriate content
Mary Beth... thanks for taking the time to bring all the facts and accurate behavorial observations together. Bravo. Now that the wave of "catch-up" has is headed into the beach... Here's to the next wave of investment in innovation that's comin' over the horizon. - WyattWatters Entertainment & Consulting, N. Potomac, MD.
- Jeff Wyatt
(2/17/2011 4:05:36 AM)   Flag as inappropriate content
Ms. Garber makes some very solid, valid points in her reply, but I must caution that facts can change quickly, especially where the Internet is concerned. I broadcast on the Web (Live365), and after an extended period of my wide variety format being listed at between #200 and 160 among the hundreds of stations they list in my general format, I was suddenly rated this past week at number 10, and just yesterday was rated number 9. Maybe I don't have as large an audience as the top station in some major markets, but if such an incredible jump in status can happen to me overnight, it can happen with a music provider like Pandora. It may also not be out of the realm of possibility for a number of other Internet radio sources.
- Chief Jack Hawk
(2/17/2011 1:36:18 AM)   Flag as inappropriate content
@Mary Beth--nice, well-crafted rebuttal. The points you make are for the most part, quite valid. You've done a great job of addressing almost every counterpoint--except the broadcast radio advertising revenue math model that we all know is broken. My take: There probably isn't a single GSM in broadcast radio who hasn't been forced to run spots at rates below the break-even point just to improve cash flow enough to meet payroll, or the payment on the station's line of credit. Do we blame this on the economy, or the fact that spending by corporate America on internet advertising has outpaced that spent on broadcast radio advertising in the last few years, or that there are plain and simply too many sticks in almost every market? Notice I didn't even mention Pandora. Yet.



I just returned from a local Chamber of Commerce function this evening where I talked about our lively dialog on Radio Ink with some friends. They're local business owners, and for the most part are happy with the results they get from broadcast radio--but here's the kicker: They say they're paying less than $3.00 for spots on rotation (including drive time) on nine stations. Who's putting their kid through college on that math model? I'm guessing the sales rep is deciding to "heat, or eat" this month--unless of course her account has been "housed" which would probably be a kindness because she would likely be making more on unemployment. We are, in effect, talking about an industry that already can't take care of it's own people--a crushing reality you seem unwilling to address.



There are a wide array of projections/extrapolations for smartphone numbers and utilization methodologies put forth by Apple, Microsoft, trade pubs and user groups and I think that most of us here understand that this technology will have an impact on broadcast radio. All of these projections point to a very steep curve in smartphone utilization and content development. Nobody's crystal ball is perfect. You can stand on the numbers you've mentioned all you want, but we KNOW they're going to morph southward--the only questions are how much, how soon, and how many dollars they will take away from broadcast radio. Even if Pandora fell off the end of the earth, something like it (perhaps even bigger and uglier) would take its place in a heartbeat. I understand it's your job to promote the value of broadcast radio to your constituents (broadcasters) and a fair amount of "making round sounds" goes with the territory; however, ignoring the giant gorilla while poking fun at his potential investors isn't going to make him go away. He's here for your wallet.



As some of you know, I'm a recruiter; I have a fairly strong interest in communications technology. My interest is strong enough to have spent a week in San Diego last month at the USNI/AFCEA West conference, where the current and future state of DOD communications technology is showcased. The show had around 400 technology exhibitors and they were predicting roughly 12,000 attendees. Almost all of this showcased communication technology is internet based. All I can say is "wow". When this stuff (and the people trained on it) make their way into the civilian market, you're going to see an even bigger and faster paradigm shift. That's just an opinion, though.


- Will Baumann
(2/17/2011 12:29:22 AM)   Flag as inappropriate content
This is going to be sales meeting material at one--and I suspect many more stations---thank you Mary Beth for the best damn sales pitch for our medium I've heard since Roy Williams.
- Bruce Collier
(2/16/2011 10:03:32 PM)   Flag as inappropriate content
Thye biggets mistake you are making is that Pandora is not a radio in its common understanding as a means of audio delivery of news, songs, talk shows, sports casts, etc. Pandora is a medium via which you can try with some degree of success to look for songs only. Radio is much more than song search.
- john


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