'Networking' - A Trump Card?

As soon as UK media regulator Ofcom announced in February that it was relaxing the rules on the amount of local programming it required stations to broadcast, it was only a matter of time until the bigger radio groups took advantage of this. ‘Global Radio’ were the first out of the traps with the move to network all output across Heart, aside from breakfast, mid-morning and Drivetime. ‘Galaxy’ have kept local Breakfast and Drivetime shows, but networked everything else.

Next was GCap (soon to be Global, so they’re pre-empting the inevitable really) who announced a new 3 hour daytime show across the One Network, details of which are still a little sketchy to be honest! And recently the three Xfm stations in London, Manchester and central Scotland announced they’re going to network another three hours of programming on weekdays, taking the local output from 10 hours to 7 hours. Lots of smaller UK radio groups are also taking advantage of the rule change and going a step further to relocate stations in central ‘broadcasting hubs’, with the obvious economies of scale that this brings.

So far Bauer have resisted the temptation to go for any daytime networking, with their ‘In Demand’ evening show being the only real networked programme. So what’s the deal? Is this good for listeners… good for the radio station… good for advertisers? Who benefits?

Yesterday, at the Radio 3.0 Conference in London, outgoing GCap Chairman Richard Eyre had some thoughtful insights about networking.

"Piping in a mega-DJ from London would mean sacrificing the key element of local radio: localness. The economics of radio in 2008 will mean that companies will not be able to resist. But it's still handing over one of our best assets to reduce costs. The economics say delocalise. But the relationship says keep it local."

With comments like that, it seems a shame that he’s the outgoing chairman really. I can’t help thinking that despite the best efforts of some radio executives to convince me otherwise, it’s all about saving money in the short-term during an economic downturn, and not thinking about the long-term effect of stripping localness from radio. I’m sure Global Radio have in their top drawer a plan to turn lots of their newly acquired GCap stations into the ‘Heart’ brand. How long before we hear a station’s positioning change to … “Fox FM – The Heart of Oxfordshire”. And we all know what comes next.

It’s quite easy to be snobby about the quality of some stations when you have a portfolio that includes well resourced brands like Heart and Capital on your books. And yes, the quality of the smaller stations could be improved in many places. But is the answer just to network this ‘mega-DJ’ from outside the area. Surely investing in training and development of new talent and programming skills on a local level is a more important long term objective? Go to places like Liverpool, Manchester, and Leeds and imagine a world where Radio City, Key 103 and Radio Aire were pseudo-national stations with perhaps a local breakfast show as the only indicator of their true parentage. Sure you can use smoke and mirrors all you like to give the impression the output is ‘local’… but for me, you can’t beat the real thing. It doesn’t matter how good your smoke screen is, because local radio is best when it’s local… and not pretending to be local.

The next 12 months will see the inevitable ‘character-stripping’ out of many truly local stations, with some of their output replaced with no doubt well-produced, slick, but rather soulless programming. The radio landscape will be painted magnolia… designed to cause least offence, but not engender a reaction of any kind. Is this the type of local radio listeners want?

One of the great clichés about succeeding at programming a local / regional station is “Play the local card”. It seems that the deck is about to be rigged.

RAJAR Qtr 1 2008 - "Story of The Blues"

Every set of listening figures tells a story beyond that of the immediate numbers, and the latest set of figures in the UK issued by RAJAR last week are no exception.

Actually, it’s a story with several tales to tell.

First, the main theme. The BBC is starting to pull seriously ahead of commercial radio, with almost 57% of listening verses Commercial radio’s 41%. Depending on which side of the fence you sit on, you can either see this as just rewards for investment in content and talent… or a blatant abuse of a privileged position designed to drive any commercial rivals into the ground… and stand on them hard! The BBC is long used to allegations of this sort, and to be fair, has to walk a delicate line of being successful… but not too successful, because “that’s just not fair”!

Perhaps it’s also tied into that peculiar British disease. We like success, but then when we see something becoming too successful, we cry foul, and denounce it as terribly unjust and really not very… well… ‘British’. Odd. To give a parallel example in the world of retail, I need only mention the word ‘Tesco’! ‘Nuff Said!

With Radio 1 back above 11 Million listeners and Radio 2 at 13.6 Million, there is no doubt that the BBC has made further inroads into the beleaguered commercial sector.

Virgin Radio’s resident number cruncher (and generally all round good-egg) Adam Bowie has written a very thoughtful piece on his personal blog about this topic and illustrated the theme with a rather good graph, which I've "borrowed". (I'll give it back whenever you want Adam!)

I think I need say no more on this topic, as the lines speak for themselves!

Another theme in this great RAJAR story is the tale of woe that continues for GCap. Capital has now slipped to 4th place in terms of reach with Kiss 100 now cume-ing an audience of 1.583 Million a week compared to Capital’s 1.563 Million.

Despite Kiss being a strong listen, I expect this to reverse itself over the remainder of the year as the ‘Denise’ effect kicks in. Word on the street is that the internal research is very strong for her and it’s only a matter of time before this translates to RAJAR. The fact of the matter is she’s a far bigger star than Johnny now. But how long can Capital hold on to her for? Hmmmm…

Elsewhere in GCap, Xfm’s worst nightmare has come true. Its market share is under 1% (at 0.9%) and its audience dropped a whopping 26% to just 379,000! (That “let’s get rid of all the DJ’s across the day” was a cracking idea wasn’t it!!) Is it time for that brand to be “humanely euthanized”? The boys at Global Radio certainly have a full ‘in-tray’ when they take over from the GCap!

And finally to a more subtle, yet highly significant tale: The number of people listening to some sort of digital radio continues to grow. Almost a third of the population (31.4%) listens to digital radio at least once a week, with DAB being the dominant technology. Sure… most of this is to analogue stations on digital, but it was great to see Planet Rock cume well the half million mark! Even The Jazz signed off with over 400,000 listeners. A bit too hasty to switch that one off? Over 27% of the UK’s population has a DAB radio, so it seems although the commercial sector is in turbulent times over the economics of DAB, the public still quite like it.

So, what’s the morale of our story? Simple really - invest in content! Easier when you have guaranteed funding I accept, but nonetheless, it seems to be a bit of a no-brainer really. And what is commercial radio’s answer to the current situation? Networking. Hmmmm – is this really investing in content? More on that to follow I think…

The Big DAB Gamble!

This morning’s announcement by Fru Hazlitt, (CEO of GCap Media) that “DAB is not viable”, is quite a momentous moment. Far be it from me to dramatise further an already dramatic announcement, but this is huge.

You’ve probably read all the facts elsewhere, but to put this all in context, here are some of the headlines from GCap’s statement this morning:

- Closure of national DAB stations Planet Rock and The Jazz
- Sell all the Xfm stations outside London or hand the licences back
- Sell off stake in Digital One Multiplex
- Abandon Capital’s ‘2 ads in a row’ policy
- Call for the switch off of AM

This ‘defence plan’ as it has been called, is really a last throw of the dice for GCap (even if it’s Fru’s first throw at this particular table). Global are hovering ‘vulture-like’ and we’ll see what the next few weeks bring. But back to the DAB issue. The UK’s largest commercial player has come out and basically said, “We think DAB is rubbish and we’re bailing out while we can”. Is this right, or are they just responding to a difficult economic climate, cutting costs, and dealing with a legacy of investment and belief in DAB which bordered on religious fervour, from Ralph et al.

This kind of puts commercial radio in an awkward spot as they’re now very divided with Bauer seemingly doing well with The Hits, Smash Hits, Heat Radio, and Q Radio and ready to launch ‘Closer’ as a radio brand. (No coincidence the timing of the press release to herald the announcement of Ric Blaxill joining Bauer’s national digital brands! He actually joined a while ago but this bit of pro-DAB PR says to the world… “We’re still investing in DAB and doing fine thank you very much”!!) And Channel 4 constantly have to put out statements saying how committed they are to the 2nd national multiplex.

So let’s try and make sense of this all. I believe Fru’s thinking was that the best way for GCap to survive as a company was to do something dramatic. The City loves bold initiatives. You take a gamble and hope that the city / investors back you. The ‘red or black’ scenario is a common one and GCap has gone for a defensive option of cutting where it can save most… DAB. The net spend in 2007/07 was £8 Million. This, combined with the other measures announced will hopefully placate the city and investors enough to not be tempted by an improved offer from Global in the next few weeks. I thought the comment from Charles Allen on the Times Online was a good one: “You can’t shrink your way to growth”. We shall see.

The sad thing about all this is that all the papers tomorrow will write “DAB in Crisis / The End of Digital Radio / Digital Killed The Radio Star” etc. There’s no doubt that the economics of it are challenging, particularly at the moment, however there is still a belief from many within commercial radio (not to mention the BBC!) who fervently believe in it. So GCap backing out of DAB should be seen more in the context of a company trying to survive this year “It’s about the here and now” – (Fru Hazlitt), rather than sounding the death knell for a technology that is already in around a quarter of homes in the UK.

Let’s spare a thought for the people at GCap. It can’t be a great place to be today. Planet Rock and The Jazz are both really good radio stations staffed by people who want to make great radio day in day out. And the Xfm sell off will no doubt affect a large swathe of employees. Plus, I wouldn’t place much money on the newly re-launched ‘Gold’ surviving. It’s on AM and DAB… both platforms are on today’s blacklist. They’ll be a lot of good people going home tonight with rather glum faces.

Two final thoughts on what probably should have been about 5 postings! (Sorry!!)

Capital is ditching its ‘only 2 ads in a row’ policy. Last year that policy cost the company almost £6 Million. About bloody time!! It was never the ‘silver bullet’ it was trumpeted to be at the time and was a great demonstration on how to loose £6 Million a year with no tangible benefit.

And ‘Jerry’s Final Thought’ today… What a damning indictment of the post merger GCap / ‘Bernard’ era today’s announcement is. Talk about a public slap in the face. Actually - it’s more like a public flogging! (Except the perpetrators are exiting stage left with rather large cheques in their back pockets and no whip marks visible!)

This will go down as one of commercial radio’s biggest U-turns ever… and the history of this company is almost comedic if the real twists and turns were laid out for all to see. Let’s pause… take breathe… and wait for the next roll of the dice as we remember the words of American playwright Wilson Mizner…

"Gambling… The sure way of getting nothing from something!"

RAJAR Qtr 3 2007

Now that the dust has settled on another set of listening figures in the UK, and the metaphorical handbags are returned to the closets, who were the winners and losers and what have we learnt this time around.

Well, the big bun fight was (as predicted) over the Breakfast Show figures in London. Who really is number one?

Capital are bullishly claiming that Johnny Vaughan is clearly number one, as his show has more listeners during the entire duration of the show. This is true... and from 6:30am till 10am there are 1.024 Million listeners.

"Stop cracking it up right there..." cries a rather bemused Dr Fox, Foxy, Neil Fox.... you know the guy. Magic's argument is that their show runs from 5:30am till 9am, and while both shows are on at the same time, 6am - 9am... Magic beats Capital. For the record, the figures are...

Magic - 885,000
Capital - 880,000
Heart - 810,000

So, who's right. Well, I feel that common sense should take over at this stage. You have to measure like for like, between 6 and 9am. Otherwise, Capital or any other station indeed, could run their breakfast show from 5am till 10:30am, and bingo... the reach of the show has increased again!

Frankly, it's all a bit of a storm in a tea cup, as the lead is so minimal versus the accuracy of the ratings data, that it could be reversed with the stroke of a pen next time round.

However, Magic are proud to claim number one commercial reach position and number one breakfast show, whilst Capital are keen to gain the PR advantage that having the number 1 morning show brings you, especially when your share figure has come off the pace of the top two.

It just shows you how fierce this battle is, and I have no doubt that the handbags will make another appearance in 3 months time!

And now... news in brief!

Well done to Choice FM who now have 611,000 listeners a week. They're really delivering a focused urban product which knows it's target audience so well.

Nice try to Xfm whose 'no DJ's in the day' thing (Called Xu... or something suitably cool) has contributed to a slump from 2% to 1.2% share. Oops! Never did like the idea!!

Moyles and Wogan are down a bit... but I don't see either of them being unduly worried!

The Hits continues to be a great success story for EMAP with 1.49Million listeners. It shows you what having a focused product on the right platforms can do! Well done guys!

With digital listening accounting for 15% of listening time in the UK, the future is firmly in the digital arena... a point I'll expand on during my session at this years NAB in Barcelona next week.

Xfm - A Backward Step

This weeks news that Xfm is to get rid of its daytime line-up of DJ's and run a listener-powered, non-stop music offering between 10am and 4pm is an incredible move.

When John Plunkett at the Media Guardian first got wind of the story, he published a speculative "they're thinking about this idea", which usually means the story has been leaked, but he couldn't confirm it completely!

"Surely some mistake", I thought. "They wouldn't do a foolish thing like that.... would they?"

Then came the confirmation. Radio to the Power of U will allow listeners to choose songs via text, phone, and online across the day.

Nick Davidson, the MD of Xfm was quoted on Media Guardian as saying:

"Our listeners are used to being able to control what they watch or listen to as these days people are inundated with choice. Allowing them to shape their own content seems the next logical step." (Actually if people are being inundated with opportunities to take control, falling into line and allowing them to do the same on Xfm is not actually the next logical step. However, I digress!)

OK. Here's the reason why this is a bad idea for Xfm.

Xfm is all about having a passion for new music. A passion that is emphasised and celebrated by its presenters. The DJ's on Xfm bring new music to life. They live it, breathe it, feel it and share it with their listeners who look to them to a trusted guide through the sea of musical mediocrity.

Cutting out these musical champions is like removing a vital organ from the radio station. Will it still function? Yes - but it will look a lot paler... probably be bed-bound, and need some sort of dialysis for the rest of its natural life.

One of the reasons why BBC Radio 1 does so well, is because it has entertaining presenters who share their passion for music with the listeners. Even Moyles gets excited about certain records at breakfast! The opportunities for exploiting the rich vein of content that sessions, interviews and new music features brings will all be lost across the day at Xfm. Gone. And replaced with what?

A faceless jukebox that I could replicate on my ipod.

Radio at its best is about the relationship that develops between a broadcaster who communicates in a unique way with the listener. Imagine Paul Gambaccini if he played 40 minutes of non stop music every hour... or Bob Harris entering into a 100 Minute Music Marathon! Great music radio stations need great broadcasters. Sure, there's all the specialist shows in the evening and weekends, but that's not where the mass of the audience is available. I know putting your consumers in control is very fashionable at the moment and having sections of your output where this happens is as old as the hills in radio programming. "The Giant Jukebox" anyone? But having it across at least 30 hours of primetime radio every week is frankly a waste of valuable spectrum.

I like Xfm and what it stands for. It shows that some in commercial radio do care about new music (even though it's always struggled to make any significant commercial revenues) and it's been a breeding ground and platform for great talent like Adam and Joe, Shaun Keavney, Justin Lee Collins, Christian O Connell and Ricky Gervais.

Just at a time when the BBC has extended it's lead over commercial radio across the UK, one of the major radio groups announces that it's pulling it's daytime line-up off its network of new music stations, and replacing it with listener requests. Hardly a move that will win back valuable share points from the BBC is it now? Shouldn't commercial radio be investing in content... not removing it from the airwaves? I'm sure that Radio 1 are laughing into the thier licence fee settlement as we speak.

This move is a negative, defensive step and my predication is that it won't have any significant positive impact on the audience. If anything, the loyal Xfm fan who tuned in to hear a knowledgable DJ get excited by music, will re-tune to find a station that has one.

Sorry Xfm. Bad move.

Xfm - Dodging the Meteors

Xfm launched its new ‘unsigned’ music initiative online this week. It’s called ‘Xfm Uploaded’.

The idea is simple. If you’re an unsigned band or artist that wants some exposure, stick up some songs, a band biog / photo on the site and hey presto… you’ve got more of a potential audience than you had a few minutes before you signed up.

Xfm can then pick the cream of the crop and play them out on their ‘Music:Response’ show, as well as including them in podcasts, and before long, you’re the next Artic Monkeys. Well, that’s the theory I’m guessing.

The concept works well (even if it seems a bit familiar… BBC Radio 1’s “One Music” anyone?!!) and the site is easy to navigate and once there are a few more bands on there, I’m sure it’ll prove popular. (If you’re in a band, I’d still get a lawyer to check out the rather onerous looking “The Artist grants GCap all present and future rights in perpetuity” clauses!!)

OK – its just Xfm trying to do a MySpace, who really own that whole area of new music online, but the philosophy behind it is an important one. As radio evolves (and needs to evolve) to become less linear, for a brand like Xfm, it’s about emerging entertainment powered by the audience being at the centre of the listener experience.

The radio brand provides the ‘assurance seal’ and acts as a filter to say to consumers, “This is a good place to find really new music”. The station benefits from the image that its supports new artists, plus generating a new online community. Oh….and did I mention the £250,000 sponsorship from Stolichnaya Vodka?

This is a good example of a radio brand embracing “Radio 3.0” (did I miss Radio 2.0??) and kitting itself out for a less linear future. Some radio stations and radio brands are a little like “dinosaurs dancing in a meteor shower” at the moment. Xfm doesn’t appear to be one of those.