Top (terrestrial) Radio Execs start sounding desperate

Emmis Broadcasting CEO Jeff Smulyan, quoted in Radio Ink, confirms that he just doesn't get it:

'We're not hiding from new technology, we're driving it. One of the hottest-selling features for the iPod is an FM tuner.'

Or maybe it isn't? Here's the top 10 selling iPod accessories from the Apple Store as of 3-April-08, and I don't see the FM tuner anywhere on it. But the more important thing he's missing is that the FM radio is an iPod remote as well. In fact, it's the only remote control for the iPod that Apple sells now (aside from the one that requires a dock).

'...But one of the biggest reasons for MP3 sales over iPods is that tuners are built in.' The iPod is nearly the only digital audio player available that doesn't come with an FM tuner, but Smulyan said said he believes Apple will soon commit to radio tuners in its market-dominating device.

And I believe Google will give me billions of dollars. That doesn't mean it's going to happen, but it's a nice fantasy world to live in.

Terrestrial radio has to keep repeating this, hoping someone will believe that people do listen to commercial terrestrial radio to discover new music. I think they're just saying that to try and stop the tide of the approaching music royalties being pushed by MusicFirst and the RIAA.

Terrestrial radio across the country adds in total less than 30 tracks a week. That's across all commercial formats, all across America. A typical FM station might add a few tracks each week. Look in the music trades- most stations list less than 5 adds a week. I can discover more music than that just by browsing the recommendations on the iTunes store.

'Our goal, in the next five years, is to have a radio tuner in every portable phone, in every PDA sold in the United States,' Smulyan said. 'We want to reach 400 million more devices in the next five years.' "

I guess I should be thankful that he's not saying put a HD radio receiver in every iPod. (Among other things, that would be a huge battery killer as well).

Tell my why would Apple want to add an AM/FM tuner in to all their iPhones and iPods? It's a $49 accessory with a cost of goods of well under $5, so why would they want to give up that margin, especially if Smulyan is correct and it is actually one of the biggest selling accessories for the iPod? They probably make more margin on it than they do on the Shuffle itself.

People are caring less and less about AM/FM radio all the time. Look at the demographics: they're not getting any new customers. And they're losing a lot of their old customers.

Oh, and Radio Execs: it's not all about the technology. It's about providing the content that people want. And terrestrial hasn't been doing that for a long, long time.

The biggest stumbling block to the death of terrestrial radio altogether is current copyright law. The fact that we have to jump through hoops to distribute Podcasts, the facts that there are so many limitations to the Section 114 music licensing, the fact that we have to pay such high royalties: these are what is keeping digital radio from completely obliterating terrestrial radio.

I'll leave you with one last comparison: Shortwave Radio. This used to be huge 40-60 years ago. There were stations all around the world broadcasting over Shortwave to reach global audiences. People would buy special radios just to pickup the BBC in the US. But now no one listens to shortwave, and many shortwave stations are shutting down their shortwave transmitters, going online instead, because no one listens to shortwave over the air anymore.

AM/FM: You're next. What you should focus on is creating incredible programming that you can stream and podcast, and stop worrying about your expensive transmitters.

HD Radio isn't going to save you. Cookie-cutter HD2 channels aren't going to help you. Forcing manufacturers to include AM/FM radios in mobile devices isn't going to help you. You've lost the battle. Move on.