Radio's New Golden Age…It's Time to Step Forward
Many folks believe the best time to launch a new product, service or new concept is during the best of times; when the economy is vibrant and customers are eager to spend their surplus of cash. A recent blog post by Seth Godin says it’s much easier to challenge your industry’s major players during an economic downturn or recession when the power of for these companies is less secure.
With this idea in mind, let’s look at the radio industry. A number of the top groups are struggling with staggering dept which is restricting their ability to protect their market position and compete head to head with other local media companies. In many markets, stations are functioning in a striped down mode with staffing for programming and marketing reduced to untenable levels. This scenario has been present for some time now and presents great opportunity for those willing and able to take it. Majors groups are now less secure and this presents an opportunity for that second tier, less indebted group or the new-to-form broadcast groups of 2010.
To make his point in relation to all industries, Godin draws a parallel to pop-music history. “In the 260 weeks from 1966 to 1970,” he notes, “there were only 13 musical acts responsible for every #1 album on the Billboard charts. In the 260 weeks that accounted for the first half of the 1970s, it was 26.”
During the 1960s, folk upstarts like Harry Chapin stood little chance of challenging commercial juggernauts like The Beatles for Billboard’s top spot. But when the British super group broke up, it caused one of several disruptions that gave songs like Cat’s in the Cradle a fighting chance at reaching number one.
“The real growth and development and the foundations for the next era are laid during these chaotic times,” says Godin, “the times that come after the leaders have stumbled.”
He therefore urges today’s entrepreneurs and I in turn urge today’s broadcaster entrepreneurs and newly forming broadcast groups, to go for it right now: “The next golden age of journalism, of communications, of fashion, of car design—those are being established now, in a moment when it’s not so crowded at the top.”
There’s much opportunity for the radio industry but the players are going to be different. Who’s ready to lead the next generation of broadcasters to their rightful position as a media that is relevant and economically strong?
