Internet Radio Needs a Good Fight - Walter Sabo

Internet Radio is at the flashpoint between the Innovative user who is fascinated by new software apps and a few artists they must hear constantly and the Early Majority of users who will determine the success or failure of the product category The entire category ForeverMaking the technology work is a pyrrhic victory The technology is SUPPOSED to work All Internet Radio companies have their DNA in the founding technology and often the technocrats run the company They are brilliant but they aren39t brilliant showmen and to grow Internet Radio it39s time to bring on the showThe Mom with three kids in the car and one to pick up before she starts her assignment from work has limited interest in the quotcapabilitiesquot of the software She wants a show That show can be information or music or a very funny host But to get her to go through the experience of downloading an app signing up online or sharing a credit card she has to have heard about your show from her friendsAM Radio was on the decline in1921 After hobbyists and Innovator adopters bought their radio sets sales started to drop That was a problem for RCA a company that at the time was primarily an aggregator of radio equipment patents For RCA39s patents to have value Americans had to buy radiosDavid Sarnoff a corporate staff lawyer whose primary job was to make the patent deals realized that RCA owned stations needed to broadcast radio programs with stronger appeal than their offerings of opera farm news and economic advisoriesPrize fights then and now drew the biggest crowds Sarnoff made a deal to broadcast the next Jack Dempsey fight and give loud speakers to hardware and electronic stores all over America The stores were encouraged to stay open late and put the speakers outside on the sidewalkThe result was a surge in sales and more importantly Sarnoff concluded thatquotProgramming made by lawyers accountants and bankers is not capable of attracting a significant audiencequotRCA then started what we could call a quotcreative hot shopquot of talent whose only mission was to produce shows that would SELL RADIOS That company is called NBCRADIO39s initial appeal was to customers who liked gadgets or had survival needs To grow from quotInnovatorsquot to quotEarly Adoptersquot radio found that it had to broadcast mass appeal entertainment That single discovery and the resulting actions made Sarnoff the CEO of RCA and wealthier than you If you would like to be as wealthy as Sarnoff read onHBO SHOWTIME MOVIE CHANNEL USA Networks AMC all started as aggregators and then their growth stalled USA was built on reruns of Murder She Wrote now it thrives on Burn Notice and that Long Island Doctor show Tony Soprano kept you from cancelling HBOor was it the Prize FightsThe cable networks forced NBCABCCBS to create more original content Until 1980 the original networks had movie nights showing a film for the last two hours of prime time In 1979 NBC had FIVE movie nights The moment those movies were shown on cable without commercials they could no longer get a number on commercial TVA clever record player is not going to deliver essential demographic growth to Internet RadioInitially the appeal of Sirius radio was to listeners with an extraordinary need for uninterrupted music over long distances Truckers The most robust displays of Sirius radios are still found at truck stops To grow from that audience to 20000000 subscribers took more than quotyour favorite songs commercial freequotConsider the process of getting a satellite radioIf a satellite radio didn39t come with the car a customer has to put a new hole in the dash and break the SEAL in the windshield Most configurations transmit satellite radio over an existing FM frequency which means the technical quality is not greater than any FM Radio The install total usually comes close to 80000 Then they have to deal with a lengthy on the phone subscription process amp8230where is the EIN number or spend computer time and commit money to hearing radioWHAT IS GOING TO INSPIRE a person with kids no time no money to go through that for radio Answer Superior programmingThe opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggerscom management or associated bloggers MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries

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Internet Radio Needs a Good Fight - Walter Sabo

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Walter Sabo

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