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mus 419 music business

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  • 1. Radio
    • Nielsen Business Media folded R&R into Billboard
    • Radio & Records (R&R) was the industry publication ( www.radioandrecords.com )
    • Billboard was the record industry publication, now “media” ( www.billboard.com) also billboard.biz
  • 2. Radio
    • Income from advertisers
    • Programming (music) to attract listeners for commercials.
    • Price per commercial determined by ratings
    • Advertisers buy “impressions” ie., how many eardrums are they reaching
  • 3. R&R Past Charts
    • AC, Active Rock, Alternative Rock, Americana,CHR/Top 40, Christian AC, Christian CHR, Christian Rock, Country, Gospel, Hot AC,INSPO, Latin Pop, Latin Rhythm,Regional Mexican, Rhythmic, Rock, Smooth Jazz, Triple A, Tropical, Urban, Urban AC, Canadian AC, Canadian CHR, Canadian Country, Canadian HAC, Canadian Rock
  • 4. Arbitron Formats
    • Arbitron
  • 5. Radio History
    • 1920 - 1st Station KDKA Pittsburgh
    • 1923 - 1st network AT&T
    • 1930s - 600 stations (1931) free entertainment during depression
    • 1941- FCC licenses FM stations
    • 1945 - 950 AM stations
    • 1950 - TV begins to kill radio
  • 6. Radio History cont.
    • 1950 - networks decline, local stations take over, DJs begin to dominate
    • 1960 - Payola scandal,
    • Late 1960s - FM begins to develop into album rock
    • 1970s - FM become MOR
    • 1980s - FM takes over, MTV begins
  • 7. Radio History cont.
    • 1990s - Tighter niches for formats, ownership in fewer hands, digital age
    • 2000 - satellite stations change to mix
  • 8. AM & FM
    • Amplitude Modulation - bounce of ionisphere, travels great distances, effected by weather dominates until 1980s
    • FM - Frequency Modulation, doesn ’t bounce, short range, better sound quality
  • 9. FM
    • Late 1970 FCC (Federal Communications Commission) ruling limits dual programming forces FM to develop separate programming
    • San Francisco & Tom Donahue develop free-form rock radio
  • 10. Ratings ( Arbitron )
    • Listeners keep diaries, ratings quarterly
    • Portable People Meter (PPM): like a pager, it detects signals embedded in a radio signal
    • Demographics - ages, gender, education, economic status, race, day part
    • Advertising revenue tied to ratings (share)
  • 11. Ratings cont.
    • Research Statistics - less than .01% sampled, 3-5% accuracy
    • Rating = # of households contacted were listening
    • Share = % of those that were listening. 15 share = 15% of those listening to radio were listening to your station.
  • 12. Charts
    • Billboard:
    • • Broadcast Data Systems electronically monitors radio stations (1992)
    • • SoundScan tracks CD sales
    • R&R (Radio & Records) charts & playlists from reporting stations (closed 2009)
    • Others: Gavin (gone), FMQB , Hits
  • 13. BDS
    • Neilsen Broadcast Data Systems
    • • uses “digital pattern recognition” software
    • • 100 million “detections” per year
    • monitors 1,400 stations in 130 markets, 12 US & 8 Canadian music video channels
  • 14. Formats
    • The type of music a stations plays is “format”
    • CHR, Contemporary Hits Radio, formerly called Top 40 (now 25-30). Format created by Todd Stortz, Omaha
    • AC, Adult Contemporary
    • Country (Hillbilly Hit Parade to C&W in 1949)
  • 15. Formats cont.
    • Urban, formerly R&B (1949)
    • Alternative, 1990s alternative to CHR, first called “New Rock”
    • AOR, Album Oriented Rock, late 1960s a response to Top 40, at first Free-Form
    • Classic Rock,
    • Active Rock
  • 16. Formats cont.
    • Oldies - many versions 1950s-70s
    • NAC, New Adult (Age) Contemporary, smooth jazz, 1990s muzak
    • Spanish, Regional Mexican, Tropical, Spanish Contemporary
    • Christian
    • Classical
    • Public Radio
  • 17. Radio Ownership
    • Radio Station Groups - owners of multiple stations, R&R lists 1081.
    • Clear Channel Communications, 900 radio stations in 100 markets, 37 TV, venues in 66 countries (sold TV 2007), 776,000 outdoor advertising displays. Known for playing hardball dumping Arbitron in 130 markets
    • Spun off Live Nation 2005
  • 18. Ownership cont.
    • Others, Citadel (filed for bankrupcy 12/09), Infinity, Capstar & Chancellor (merged into Clear Channel).
    • Telecommunications Act of 1996, removed restrictions on number of stations.
    • 1996 there were 5133 station owners, today 4 control CHR & Country
  • 19. Administration
    • General Manager (GM)
    • Sales - sell ads, “Rate Card” is the fee structure
    • Program Director (PD), on-air talent, schedules shows, playlist
    • Music Director (MD), new releases, read trades, meet promoters, research, playlist
  • 20. Administration cont.
    • Promotions Director, events to increase ratings
    • Production, putting together commercials & shows
    • Traffic & Billing, keeping track of scheduling commercials, documenting what get aired, bills advertisers
    • Engineers, maintains the electronic gear
  • 21. Admin. Cont.
    • Talent (DJs), music, news, sports, traffic
    • Program Consultants, hired by station to advise on play list, day parts, format focus
  • 22. Promoters
    • After the 1960s Payola Scandal led to independent promoters
    • Record labels pay promoters present new records to MD
    • 2003 Clear Channel cut ties with promoters
    • Various schemes to sell radio time to labels
    • A thing of the past?
  • 23. Reverse Programming
    • A listener will change a station when they hear a song the hate. AND A listener will leave a station on as long as they don ’t hear a record they dislike.
    • Records rated 1-5. Reverse programming wants 3s
  • 24. Syndication
    • Programs packaged and sold to stations. (American Top 40, Rush Limbaugh, Howard Stern)
  • 25. Satellite Delivered Formats
    • Entire content except for station ID and local commercials.
    • Local station pays minimum wage to keep buttons pushed
  • 26. Radio Information
    • Allaccess.com