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Rock Radio Dying?

Posted: March 9, 2005 11:46 am
by Jahfin
http://tinylink.com/?Am23pR0s0n

Stations dump rock format as audience declines

Just before midnight on February 24th, Y100, the last modern-rock station in Philadelphia, played the final notes of Pearl Jam's 1992 breakthrough hit "Alive" and faded to silence. When the music resumed a few minutes later, Y100 had become the Beat -- Philly's newest hip-hop station.

In the past six months, three other major-market rock stations have folded -- Washington, D.C.'s WHFS, Miami's WZBT and Houston's KLOL. And more closings are coming: At press time, New York's K-Rock is reportedly considering a format flip after morning-show DJ Howard Stern leaves for satellite radio in 2006. Ratings for rock radio have been in decline for at least six years, with audiences shrinking by nearly twenty percent. With urban and Hispanic formats increasing nationwide, rock is getting squeezed out.

In Y100's twelve years on the air, it helped break artists such as Beck, Weezer and Good Charlotte. When the station switched formats, Interpol's scheduled interview to promote a Philadelphia gig was canceled. "It's a huge blow for fans and for bands that Y100 closed and that other stations are closing," says Interpol manager Brandon Schmidt, a Philadelphia native. "To think that the sixth-largest radio market in the country has no place to play new bands is kind of hard to believe."

Mainstream rock has been hit the hardest: Album-oriented rock stations that rely on staples like Three Doors Down have seen listenership fall seventy percent since 1998. Meanwhile, stations that play harder bands like Godsmack and Alter Bridge haven't developed a larger audience. The poor numbers have left programmers complaining about the quality of recent music. "Some good new bands are getting airplay," says Dave Wellington, program director at Boston's WBCN, a station that plays a mix of modern and classic rock. "But nothing has really emerged as the new grunge, a single style that creates a massive radio movement."

Rock radio's larger struggle may have more to do with America's shifting demographics. Baby boomers, who fueled FM radio's rise in the 1970s, are aging beyond the twenty-four-to-fifty-five-year-old demographic that advertisers pay premium rates to reach. Rock listenership has fallen close to twenty percent in that demographic since 1998, according to Arbitron, which measures radio play.

Meanwhile, the Hispanic population became the county's largest minority population in 2003, and a February Arbitron report says Hispanic buying power is increasing at twice the rate of other demographics. Spanish-language radio ratings are up thirty percent since 1998. In September, Clear Channel -- which owns more than 1,200 radio stations -- announced plans to convert up to twenty-five stations to Spanish language by mid-2006. "The number-one TV station in most Hispanic markets is the Hispanic station," says Phil Quartararo, president of music marketing at EMI. "Radio broadcasters are applying the same theory. It's 'I've got three rock stations slicing up a ten percent market share, while forty-five percent of the population is Hispanic.'"

Finally, hip-hop and R&B have a stronghold on teens and young adults. Only six percent of teenagers are listening to rock at any given time, compared with nearly twenty percent listening to urban radio and forty percent listening to Top Forty radio stations, which are dominated by hip-hop and R&B.

Concert-biz and record-label executives worry that they're losing a key promotion avenue for rock. Electric Factory Concerts in Philadelphia, a frequent Y100 advertiser, promoted recent shows by Franz Ferdinand and My Chemical Romance on the station. "Y100 really tapped into a community feeling," says Electric Factory's Jim Sutcliffe. Adds RCA vice president Richard Sanders, "A Top Twenty market that doesn't have a modern-rock station hurts us. There's nothing like getting thirty or forty spins on a radio station to sell records."

Rock radio stations might be changing formats just as the music is beginning a renaissance. A new wave of bands including the Killers, Modest Mouse and Franz Ferdinand are gaining play on stations across the country. "Five years ago, I stopped listening to radio completely," says Franz Ferdinand bassist Bob Hardy. "Now there's dozens of new bands I'm keen to hear. It's all just part of the natural cycle of music."

Rock fans are fighting for their stations. In Houston and D.C., listeners raised such a ruckus that the stations returned to the air, albeit with weaker signals elsewhere on the dial. Now Philadelphia's rock fans are mounting their own battle online at Y100rocks.com, teaming with former station employees to stream alternative rock twenty-four hours a day. One listener, seventeen-year-old Ben Kennerly, set up an online message board, which was flooded with 40,000 posts in its first week. "I've been listening to the station since I was twelve," says Kennerly. "It's worth fighting for." Another listener, thirty-nine-year-old Richard Cardona, donated nearly $3,000 worth of Web-site development. "I'm hoping we can get a station with lower ratings to flip their format and play what Y100 is playing online now," says Cardona. "People ought to be able to hear rock on the radio."

BILL WERDE

Posted: March 9, 2005 11:51 am
by ParrotheadGator
they need to dump r&b radio....what a bunch of crap

Posted: March 9, 2005 12:15 pm
by iuparrothead
R & B = profit for record companies. Plain and simple.

Rock music is not a good investment for the record companies, therefore, they are not promoting the music as much and not getting it played on the radio... and that's the truth coming from my good friend that's a music exec with Columbia.

Posted: March 9, 2005 12:21 pm
by PHBeerman
Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?

Posted: March 9, 2005 12:27 pm
by LIPH
Rock radio died years ago. :(

Posted: March 9, 2005 12:33 pm
by a1aara
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.

Posted: March 9, 2005 12:36 pm
by SEofDisorder
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????

Posted: March 9, 2005 12:41 pm
by a1aara
SEofDisorder wrote:
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
I see your point.

Clear Channel is destroying radio. Just look at country radio.

Posted: March 9, 2005 12:43 pm
by a1aara
Poor reception
Howard Stern jumped ship to satellite radio, and Wall Street is concerned that listeners of traditional radio will, too, along with the ad dollars they attract
Wednesday, March 09, 2005
Seth Sutel
ASSOCIATED PRESS





NEW YORK — For years, investors loved the radio business. Its skyhigh profit margins were among the best in the media industry, and changes in ownership rules a decade ago triggered a wave of merger deals. Prospects for growth seemed great.

These days, Wall Street would rather hear something else. Growth in advertising has slowed, listeners seem to be switching off their radios in favor of iPods, and a new threat is emerging from commercial-free channels on satellite radio.

Viacom Inc. recently disclosed that it adjusted the value of its radio business downward by $11 billion and the nation’s largest radio chain, Clear Channel Communications Inc., said it lost $4.7 billion during the fourth quarter, mostly because of an accounting charge.

Industry observers say many of the problems reflect the industry’s focus on profits and Wall Street, rather than consumers. Specifically, they point to costcutting that compromised the quality of programming, and a tendency to put more commercials on the air, alienating listeners with what’s known as advertising "clutter."

In the boom years of the late 1990s, radio stations benefited from the surge in advertising from Internet companies. Many increased the amount of ad time, — "inventory," as it’s called in the industry — to accommodate the demand.

"It was a boom time," said Tom Taylor, editor of Inside Radio, an industry magazine owned by Clear Channel. "Then came the bust."

Despite a big drop in demand for radio ads since then, Taylor said, "There’s way too much inventory out there."

Radio revenues have begun edging higher but nothing like the surge they enjoyed in the ’90s. Last year, radio advertising inched up 2 percent; in 2003, it rose just 1 percent, according to figures from the Radio Advertising Bureau.

To beef up its radio portfolio, Viacom is selling off stations that aren’t in the top 20 markets and investing in the ones it’s keeping. Viacom also owns CBS, MTV and the Paramount movie studio.

Meanwhile, San Antonio-based Clear Channel is trying to curtail clutter by reducing ads each hour by about 20 percent, cutting the number of traditional 60-second spots and selling more 30-second spots. But it’s charging more for them.

Clear Channel acknowledges that it likely will take a shortterm financial hit for its "Less Is More" program, but it says the strategy will pay off in the long run by bringing listeners back.

"We know that shorter-length commercials work," John Hogan, chief executive of Clear Channel Radio, recently told analysts.

A federal rule change in 1996 led to a wave of merger activity, leaving 2,000 of the nation’s 12,000 stations — many in large markets — concentrated in the hands of a small group of public companies.

"The industry started running its business for the analysts and investor community, rather than its listeners," said Ed Christian, chief executive of Saga Communications Inc., a publicly held company in Grosse Pointe Farms, Mich. that owns about 80 stations. "It led to buying because you were rewarded for buying."

External threats are creeping closer. The phenomenal success of Apple Computer Inc.’s iPod, which has sold more than 10 million units, has some executives worried that many younger listeners are tuning out radio altogether.

Satellite radio also is a potential rival. While the success of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio Inc. is far from assured, investors have bid up their stocks during the past two years, while those of terrestrial radio companies have stagnated.

XM and Sirius are involved in an aggressive bidding war for top talent. Sirius signed a $500 million deal with shock jock Howard Stern and a $108 million deal with NASCAR, while XM has a $650 million deal with Major League Baseball. Still, the companies had just 4.3 million subscribers between them at the end of 2004 and have racked up massive losses.

Despite its challenges, traditional radio remains a staggeringly lucrative business. Viacom noted recently that its radio unit earned 44 cents on each dollar it took in during the fourth quarter last year, compared with 46 cents in the same period a year ago. That’s still a huge profit margin by any standard.

Posted: March 9, 2005 1:03 pm
by PHBeerman
SEofDisorder wrote:
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.

Posted: March 9, 2005 1:07 pm
by a1aara
PHBeerman wrote:
SEofDisorder wrote:
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.
Not thinking straight. The President is due here today. Big headache.

Posted: March 9, 2005 1:08 pm
by PHBeerman
a1aara wrote:
PHBeerman wrote:
SEofDisorder wrote:
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.
Not thinking straight. The President is due here today. Big headache.
Say hi to the boss for me.

Posted: March 9, 2005 1:10 pm
by a1aara
PHBeerman wrote:
a1aara wrote:
PHBeerman wrote:
SEofDisorder wrote:
a1aara wrote:
PHBeerman wrote:Supply and demand. These stations don't care what the play, they just care about ratings. Obviously Rock and Roll formats are not profitable.


Therefore, who cares?
It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.
Not thinking straight. The President is due here today. Big headache.
Say hi to the boss for me.

I won't be allowed to get that close. But if by chance I do I will pass along the message.

Posted: March 9, 2005 1:13 pm
by rednekkPH
a1aara wrote:
PHBeerman wrote:
a1aara wrote:
PHBeerman wrote:
SEofDisorder wrote:
a1aara wrote: It's not even the ratings. It's the advertising dollar that is important in radio.
and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.
Not thinking straight. The President is due here today. Big headache.
Say hi to the boss for me.

I won't be allowed to get that close. But if by chance I do I will pass along the message.
Let me give you some advice to get you closer. Take about 10 paper towel rolls, paint them red, and tape them to your chest. If you have an old alarm clock, tape that on there too. Throw on a trench coat and look for the first secret service agent you can find...they'll appreciate your sense of humor, and introduce you right away...

Posted: March 9, 2005 1:16 pm
by a1aara
rednekkPH wrote:
a1aara wrote:
PHBeerman wrote:
a1aara wrote:
PHBeerman wrote:
SEofDisorder wrote: and isn't it the ratings that decide the price of the advertising dollar????
That was the step I thought I could skip and most people would understand. I guess I thought too highly of the economic knowledge of some people.
Not thinking straight. The President is due here today. Big headache.
Say hi to the boss for me.

I won't be allowed to get that close. But if by chance I do I will pass along the message.
Let me give you some advice to get you closer. Take about 10 paper towel rolls, paint them red, and tape them to your chest. If you have an old alarm clock, tape that on there too. Throw on a trench coat and look for the first secret service agent you can find...they'll appreciate your sense of humor, and introduce you right away...
Those secret service guys are known for their sence of humor! :D The ones I deal with are a laugh riot! :D