A story in Radio & Records last week stated that, for the first time, total Internet advertising dollars exceeded total radio advertising dollars. Advertisers are starting to migrate toward the web at the expense of traditional media.
Another scary thought for the radio biz: A former big-time radio executive was anonymously quoted as saying that radio is irrelevant to anyone under 24, and that it is losing importance among the coveted 25-54 year-old demographic. Logic says to give the young folks what they want, but they like the freedom to pick their own songs in their order, with no commercials or mindless DJ chatter. They are not likely to come back to radio. The other strategy is to abandon the youth and program to the old folks. That might be a good short-term strategy, but what happens when they pass away? Radio finding itself between a rock and a hard place.
I suggest that any company heavily invested in radio sell now, before the licenses and physical plants begin to decline rapidly in value to the point of worthlessness. And it will happen. The only variable is time.
Wednesday, September 5: Jumping Through Hoops