What Team is Radio Playing?

A recent Wired Blog post 5 Ways the Cellphone will Change How You Listen to Music could also have been What Team is Radio Playing?

Here’s the gist but read the entire Wired post.   1)  Interactive Radio is going mobile.  2) It’s free with ads but ad-free with the pay service. 3) Interactive Radio works with cellphones and other devices.  4) Cashed interactive radio works everywhere.  5) Music blogs program Interactive Radio to individual tastes.

Look at the Interactive Radio team:

1.        Smartphone Manufacturers – Nokia, RIM, Sharp, Fujitsu, and Apple selling 120-million smartphones worldwide growing 22%.  Estimated annual revenues $48 Billion.

2.       Cell Phone Carriers – Verizon, AT&T, Sprint, and T-Mobile … wireless data $20-Billion growing 50% per year not including voice services.

3.       The Music Industry – Universal, Sony, Warner are all courting the digital music paths.   This $12 Billion industry is working digital as a new revenue source.   

4.       Software Developers – Symbian, RIM, Microsoft, Linux, Apple, Palm, and Google.  Let’s stop at Microsoft and Google $80 Billion annual revenues and they are giving away mobile software.

5.       Audience – spending $ 30 Billion annually on new smartphones and data plans. 

That’s $190 billion team. 

Now let’s think about AM/FM radio, $19 Billion in annual revenues declining 10%.  AM/FM radio trends to national playlists, voice tracked entertainment, and commercially supported music-no option.   AM/FM radio does offer local information … maybe.  Radio has local sales forces making local calls.

Broadcast AM/FM can make it a good game.  Broadcast Radio can still be a go-to source for music, community information, and personally relevant material.   Broadcast AM/FM Radio can build on open digital resources.  Build your digital platform.  Engage your digital audience.  Add your program director and sales team to the digital platform goals and content management.

AM/FM radio can win with digital but not against digital going mobile.