Tag: Allen Shaw

Industry Views

Sabo Sez: Five Predictions

By TALKERS | by TALKERS

By Walter Sabo
Consultant, Sabo Media Implementers
A.K.A. Walter Sterling
Radio Host, “Sterling On Sunday”
Talk Media Network

im1. Financial solvency laws. Consolidation is not the problem; it actually saved the radio industry. The problem is the 1986 rule change that dropped financial solvency requirements for station ownership. Prior to 1986, stations could not be purchased with debt. A potential owner had to prove that they could meet the expenses of a station through the duration of its license. Once the financial efficacy rule was dropped and stations could be purchased with debt, the industry was financially decimated. Prediction: Financial solvency laws will be re-instated.

2. Ratings change. Ratings giant Nielsen will change its system of measurement of audio. The PPM was created over 20 years ago by a company that no longer exists. For a station to earn proper audience levels, Nielsen must measure all audio distribution platforms including radio sets, in car, cell phone streaming, computer streaming, satellite, public address systems and ear pods and whatever comes next. Now you choose one – over the air or the stream. This will change or more companies will follow the recent lead of Good Karma Brands radio which just cancelled Nielsen.

3. New leadership. Who’s in charge? Most radio companies are run by very sharp and very senior CEOs and Boards. The Boca effect — I don’t want trouble, just get me to my retirement and condo on Boca. The primary reason FM grew from 10% household usage in 1968 to 60% in 1981 was the “kids” were put in charge – and caused “trouble.” Allen Shaw at ABC FM, Walter Sabo at NBC FM (forgive me), Jerry Lyman at RKO FM and the sons and daughters of the owners of thriving AMs paired with orphaned FMs (think Beau Woods at WEBN, Cincinnati and Bart McClendon in Dallas) were given free range to create and implement brand new formats. While the AM management played golf, those 20-somethings aired daring, new, shocking, amazing radio that drew listeners to FM. No, not stereo or low commercials, it was the FM package of subversiveness. For radio to level up and serve the joy of an audience born with iPhones in their cribs, it will be led by today’s 20-somethings without suffering interference by bosses sharing really interesting stories about their time at CBGBs.  The essential leadership will come from younger programmers and executives who have only known a world with online video stars, a thousand cable channels, and on-demand video and audio entertainment.

4. New sales paradigm. Digital entertainment companies – audio and video – are fueled by stupid money. Venture capitalists launch new businesses with the goal of claiming a stake and then selling the business for their ROI. VCs have no interest in operating profit. Really. That means start-up media companies pay much more for sales executives than radio companies. Start-ups are shinier goals than radio stations to a media advertising seller. There will be a revolution in the way salespeople are identified, recruited, managed, and paid or the decline in radio revenue will accelerate.

5. Renovated voice tracking. Voice tracking is not horrible, it’s an opportunity that has not been realized. Today voice tracking is a poor imitation of being live – without benefits. No time, temp, urgent news. Here’s the miss: Every station has a stunning, amazing production library. Don’t have one? Swipe from YouTube. Rather than pretending to be live, admit to being recorded. Use that production freedom to produce. Tap the production library to create a running drama, comedy, mood, listening environment. Make the show between the songs to be as compelling as Taylor Swift. That’s the future of music radio.

Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers. HITVIEWS clients included Pepsi, FOX TV, Timberland, Microsoft, and CBS Television. He can be reached at walter@sabomedia.com www.waltersterlingshow.com

Industry Views

SABO SEZ: Award the Future

By TALKERS | by TALKERS

By Walter Sabo
Consultant, Sabo Media Implementers
A.K.A. Walter Sterling
Radio Host, “Sterling On Sunday”
Talk Media Network

imWhen reviewing our industry’s awards such as the Crystals or Marconis there are two categories missing. They are: “Best New” and “Best Innovation.” Imagine if winners were announced for these prizes:

“Best New Talent On Air”

“Best New Talent Off Air”

“Most Creative Sales Solution”

“Most Creative Station Promotion”

“Most Innovative DAB or Podcast Format”

“Best New Talent – Podcast”

“Best Innovation In Engineering”

Those awards aren’t fantasy, they are actual awards given annually by Australian Commercial Radio (ACRA). They are presented at a magnificent well-produced event for the entire country – attendance is SRO. The subliminal message to Australian radio personnel is powerful: Innovation is expected and rewarded. NEW is expected and rewarded – no need to wait for you to become legendary (!) to be recognized. “NEW” is a powerful reward and promise to the talent you hope will find a career in radio. Face it, our “on boarding” leaves a lot to be desired. (Hey, work in the promotion department while you live at home, and we’ll let you pick up pizza that you can share!)

The best gift the late PD Al Brady Law gave me was he greeted all new ideas with, “It might work.” Most other executives kill innovative thought with the worst question possible: “Who else is doing it?” The industry has a lame record of assessing new ideas. New ideas are systematically despised:

Bill Drake’s format was damned in jock-for-hire classifieds that warned, NO DRAKE JOCKS. Yes, dozens of stations wanted NO DRAKE JOCKS. Quickly Drake’s strategies slaughtered those stations and revolutionized music formats to this moment. Recorded music on the radio was actually thought to be illegal until WNEW-AM, New York fought that court fight in the 1940s and won. All news on WINS and WCBS certainly was not going to work after the 1960s New York newspaper strike ended. WFAN could never succeed as an all-sports station – soon after launch it became the highest biller in NYC.

When AC was launched in 1978 at the NBC FM and RKO FM stations, it had no future. FM was only for beautiful music and hard rock and besides who else is doing it?

Album rock, AOR, …why we have research to prove young people only want hits! Targeted FM talk – combining a hot format with hot talent would absolutely fail at KLSX-FM, Los Angeles and thanks to Bob Moore became the number one local biller – turn it back to the failed classic rock format please begged one research hit squad! “New Jersey 101.5” has a one million cume talking all week, playing music all weekend. Which award category suits that giant station? “Best New” would have been appreciated.

Todd Storz, the inventor of Top 40, passed away at 38 and his father who owned their stations in Miami, Omaha, and New Orleans couldn’t wait to change his Top 40 format creation to MOR when the kid died. As a result, when Todd died the stations died, too.

Innovators like Bill Drake, Jeff Smulyan, Allen Shaw, Bob McAllan, Alan Mason, L. David Moorhead, and Howard Stern are first ignored, then marginalized, then vilified… then hundreds fight for their credit.

The only way radio stays relevant and grows its place on the media landscape is with a constant flow of “Best New” and “Best Innovation.” That’s when younger listeners are attracted to radio – the same way they are attracted to everything – if it’s NEW. The radio you and your friends were drawn to, talked about at school, listened to constantly was saturated with new contests, new daring DJs, new promotions, new hits, new energy.

The delicious daily challenge of on-air talent and management is what can we put on the air today that has never been done before? If it’s new, even if it doesn’t work forever, generates buzz, attention, youthful audiences.  Of course, 20-year-olds will listen to radio, it’s at the end of their arm! But they are not going to salivate at the promise of “20 of your favorites from the 80s, 90s and today.” Or a national contest.

Why not test a NEW award in just one awards category? “Best Innovation in Engineering” The Marconi Award.

Walter Sabo is a leading media industry consultant and syndicated talk radio personality.  He can be emailed at Walter@Sabomedia.com. Website: www.waltersterlingshow.com