MUC110 LEC 9. Radio

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Introduction to Radio

Introduction to Radio

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  • 1. Radio © 2007 musicbizclasses.com
  • 2. 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 © 2007 musicbizclasses.com
  • 3. 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” © 2007 musicbizclasses.com
  • 4. 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. © 2007 musicbizclasses.com
  • 5. 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 © 2007 musicbizclasses.com
  • 6. Commercial Terrestrial Radio 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 © 2007 musicbizclasses.com
  • 7. Commercial Terrestrial Radio 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 © 2007 musicbizclasses.com
  • 8. Commercial Terrestrial Radio 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 © 2007 musicbizclasses.com
  • 9. Commercial Terrestrial Radio 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. © 2007 musicbizclasses.com
  • 10. Commercial Terrestrial 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. © 2007 musicbizclasses.com
  • 11. Commercial Terrestrial Radio 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 © 2007 musicbizclasses.com
  • 12. Commercial Terrestrial Radio 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 © 2007 musicbizclasses.com
  • 13. 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) © 2007 musicbizclasses.com
  • 14. 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 © 2007 musicbizclasses.com
  • 15. Alternatives to Commercial: • Public Radio- NPR – Non-Profit – Government Funded – Private donors – Alternative view points • College Radio • Small Webcasters © 2007 musicbizclasses.com