FLO Music Business Video Podcast Episode 2

Why The Connected Car May Kill Local Radio

In the past, I have made the case that the connected car may kill traditional radio, because the addition of apps like Pandora and MOG will give it heavy competition. These apps may not kill radio, but it would be the first time since the rise of the personal music collection and satellite radio that radio will have to vie for mindshare in the car.

It’s also possible, however, that radio will kill radio.

We take one thing for granted with radio stations, that they suffer from the tyranny of geography. In other words, we accept that we’re limited to the stations that are located where where we live.

In the connected car though, any radio station is capable of being streamed or cached. Now, it’s not just Pandora and MOG that listeners gain access to; it’s any station, anywhere. As appealing as local talking heads and commercials are, it’s easy to imagine that niche and national stations will steal their listeners.

iHeartRadio

With Clear Channel’s buy out of Thumbplay and plans to integrate its technology into their “iheartradio” app, this is already happening. If I were to turn on a real radio, there’s only five radio stations that I would be able to hear with any clarity.

Right now, I have my iPod Touch in a Dock playing stations from the “iheartradio” app. I have access to all cites, genres, and personalities. I am not listing to radio stations where I live. I am listening to one in New York. Once the connected car and radio apps are commonplace, it’s possible that local listening will fall off a cliff. It’s one thing to be stuck with the several stations in your area, constantly settling with whichever one is plays tolerable music. It’s quite another to have nearly unlimited options and be able to tune into a station that you actually like.

iKillRadio

The personalized radio revolution gets all the hype, but it’s traditional radio that may start to kill traditional radio in the coming years. No fanfare, there’s just more options. Once listeners have a choice, who says they’ll pick your radio station?

Top 40, country, and classic rock stations all play the same songs anyway.
Kyle Bylin in Broadcast Radio & TV

FLO Music Business Video Podcast Episode 1

Apple & Amazon: They Simply Know Too Much About Music Fans…

by Paul Resnikoff of Digital Music News

Why do Apple and Amazon know more about music fans than many artists and labels?  And whose fault is that?   “We don’t know who the customers are, but they do,” Tommy Silverman recently told PBS.  ”Apple and Amazon own that.”

The problem, according to Silverman, is that labels – especially major labels – constructed relationships that allowed companies like Apple to totally control the consumer transaction.  ”People know at the major labels that they could have created a delivery warehouse, and Apple could have done the selling and we could have done the delivery,” Silverman continued.  ”Having those IP addresses [for customers] is having the keys to the kingdom.”

Of course, selling totally direct-to-fan is preferred, though fans often go to iTunes – it’s just the default shop.  And if a sale isn’t made there, it may never happen.  That also introduces a major Apple (or Amazon) commission, making the transaction sub-par.

But what can labels do at this late stage?  Silverman suggests that grabbing information on a relatively small percentage of customers can create a dramatic change. ”Any major label that has direct contact with even 25 percent of their customers is in great shape and can monetize the relationship instead of just selling records, which was the old model,” Silverman suggested.