June 27, 2009

Radio Gaga

AM and FM Radio is having a difficult time. It could be they are obsolete.

Or possibly it is the business model that is broken? If I want to start up a radio station today, I need to get the okay to broadcast, get the equipment then the personnel. After a format is decided upon you would have to pay to play the music or some fee for broadcasting someones show. or you have local talent. Next you will need to sell advertising on your station to cover the capital, upkeep, fee's and salaries.

How much would that cost? No clue, but my best guess is considerable.
I could use my computer sign up with a web based radio company and pay $10.00 a month or so to be a DJ. Much less capital and expenditure. Probably low to zero return.

I am a radio fan. I love the history the genre. I am fascinated by the old shows and enjoy hearing new personalities.

Just seems to me that the given model for the business is difficult to sustain in the current market. What are the kids listening to? Ipods and Zunes. How do folks get local news? They don't, unless they have cable TV or something big enough locally comes to MSN or Yahoo.

If I want to hear music I have a dozen or so Internet stations I can tune into. If I am in my car, I will play an old fashion CD while the kids sit rocking out in their ear buds.

The more I think about it maybe this is one of those cases where something has to die in order to be reborn.

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