The Potentially Bright Future of Radio: an Analysis of Interviews From
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Running head: THE POTENTIALLY BRIGHT FUTURE OF RADIO The Potentially Bright Future of Radio: An Analysis of Interviews from Radio Professionals Regarding Radio's Past, Present and Future A Thesis submitted to Southern Utah University in partial fulfillment of the requirements for the degree of Master of Arts in Professional Communication May 2014 By Shawn L. Denevan Thesis Committee: Dr. Arthur Challis, Ed.D, Chair Dr. L. Paul Husselbee, Ph.D Dr. Matthew H. Barton, Ph.D ` THE POTENTIALLY BRIGHT FUTURE OF RADIO ii The Potentially Bright Future of Radio: An Analysis of Interviews from Radio Professionals Regarding Radio's Past, Present and Future Shawn Lee Denevan Dr. Arthur Challis, Thesis Supervisor Abstract Speculation regarding the viability of radio's future presents itself whenever a new audio medium is put forward as a possible competitor to radio. From TV, FM radio, CDs, cassettes, Satellite radio and now Internet radio, AM/FM terrestrial radio has been predicted to "die" at the hand of these competitors numerous times since radio's inception. The Telecommunications Act of 1996 changed the way radio operated as a business. Technology has changed the way radio stations program content. The Internet has provided new audio competition for radio. This study examines the role of the Telecommunications Act of 1996, changes in content and programming, and technology that continues to affect the way radio is perceived as a business and as a medium. An analysis of interviews from radio professionals—whose careers in the radio business may span from before the Telecommunications Act of 1996 to the present, and who have the insight and knowledge to discuss the strengths and weaknesses of radio's past and present—suggests that radio has a bright future if radio can return, in portion, to its past programming ideals of being live, local, and relevant to the communities it serves. This information may provide insight and guidance for the radio industry to remain a competitive and relevant media. THE POTENTIALLY BRIGHT FUTURE OF RADIO iii Table of Contents Approval Page .................................................................................................................................. i Abstract ................................................................................................................................. ii I. The Potentially Bright Future of Radio ...................................................................................... 1 II. Literature Review .................................................................................................................... 11 A. The Telecommunications Act of 1996 ............................................................ 11 B. Local Content: The DJ and the Listener .......................................................... 15 C. Radio's Money: Radio is a Business ............................................................... 21 D. Technologies Role in Changing Radio ........................................................... 24 E. Uses and Gratifications Theory ....................................................................... 28 F. Research Questions .......................................................................................... 30 III. Method ............................................................................................................................... 30 VI. Discussion 1, Before the Telecommunications Act of 1996 ................................................. 40 A. Radio as a Business ......................................................................................... 40 B. Community ...................................................................................................... 43 C. Technology ...................................................................................................... 48 D. Uses and Gratifications Theory ....................................................................... 49 V. Discussion 2, After the Telecommunications Act of 1996 ..................................................... 51 A. Radio as a Business ......................................................................................... 51 B. Community ...................................................................................................... 55 C. Technology ...................................................................................................... 62 D. Uses and Gratifications ................................................................................... 70 VI. Conclusion, What is the Future of Radio? ............................................................................. 72 Based on Radio's Past and Present, What Should Radio do to Secure its Bright Future? ...... 72 THE POTENTIALLY BRIGHT FUTURE OF RADIO iv A. Technology...................................................................................................... 72 B. Content ............................................................................................................ 77 C. Business ........................................................................................................... 78 References ..................................................................................................................................... 82 Appendix 1 Qualitative Questions ................................................................................................ 90 Appendix 2 Recruitment Letter ................................................................................................... 94 Appendix 3 Pre Interview Information ......................................................................................... 95 Appendix 4 Interviews .................................................................................................................. 96 THE POTENTIALLY BRIGHT FUTURE OF RADIO 1 The Potentially Bright Future of Radio Radio has a bright future if—and only if—it can partially return to its programming roots of being live, local and relevant. Regulations governing the radio industry were relaxed with the passage of the Telecommunications Act of 1996 (TA96). The radio industry has drastically changed its business model from serving the public interest with information and entertainment, to maximizing monetary profits from each radio station by the consolidation of radio properties, layoff of non-essential employees, streamlining of on-air content, specific use of certain automation technology to lower overhead costs, and limited use and acceptance of Internet-based technologies viewed by some in the industry as not important enough to study or worth the investment (Plunket, 2010). Radio ownership has made it clear that its primary goal is profitability. Since the TA96, radio has reduced the amount of live and local entertainment and informational news. As mobile technology has evolved with the introduction of the Apple iPhone in 2007 (Farber, 2014), and the first release of an Android phone in 2008 (German, 2011), new content and media have become more accessible through the Internet via these and other mobile devices. Radio listeners are migrating from conventional AM/FM radio to Internet-based-audio content because they have more options. Because radio owners and managers actively embrace the TA96, choose to make changes in radio operations and programming for primarily economic reasons, and do not embrace emerging Internet technologies and HD radio, they are contributing to the perception, by those who comment on electronic media (Lycan, 2013; Quain, 2011), that radio is a dying medium. The radio industry needs to give increased attention to providing more live, local and relevant information, in addition to embracing cross media branding, or the future of radio as a profitable and viable media may be in question. This author believes that the radio industry is on a course of self-destruction based on the decisions, and lack thereof, by station owners and managers. Those directing its path are doing so at the expense of radio's long-term financial future as a local, live, relevant distributor of information and ` THE POTENTIALLY BRIGHT FUTURE OF RADIO 2 entertainment to the communities it serves, so as to achieve short term financial gain for themselves and those who have financial investments in radio. By providing a product whose quality has been reduced to an audience quickly moving to other audio media for information and entertainment, radio is not enticing its listeners to stay, as the audience chooses more and different avenues for audio entertainment and information. Radio has the ability to be live, local and relevant, but the desire to maximize investors' respective bottom lines has crippled that potential. Radio's bright future is based on a partial return to more live and local programming that once allowed the medium to thrive before the TA96, while incorporating the financial lessons learned post- TA96 that allowed radio to become financially stable. The Telecommunications Act of 1996 was drafted to govern the growing industries of radio, broadcast and cable television, telephone, and other emerging telecommunication technologies. The TA96 was originally proposed to allow more competition in the marketplace by allowing any telecommunications company to compete against any other telecommunications company ("Telecommunications Act," 1996). The TA96 promised growth in the separate communication industries, more jobs, more money infused into the economy, and