What Is the Direction of the Commercial Radio Industry for the Next Five Years?

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What Is the Direction of the Commercial Radio Industry for the Next Five Years? ABA Update John Kirby is Chairman, Village Roadshow FM Ltd, which RECENTLY MADE A FORAY BACK INTO THE RADIO WORLD WHEN IT ACQUIRED THE TRIPLE M NETWORK, WITH STATIONS IN SYDNEY, A Melbourne, Brisbane, Adelaide and Perth. What is the direction of the mercial radio audience base, how likely to have any effect on the commercial radio industry for the can the industry do this? commercial radio markets? next five years? The commercial radio industry can iden­ If there are people out there who are It’s a pretty exciting time, a challenging tify market segments and adventur­ not listening to radio, then there is time. The challenge for the industry is ously program towards them. But to a obviously demand for extra radio be­ for it to become a lot more competitive large extent this will be driven by a cause there must be a reason why they with the number of new licences being whole lot of new licences the ABA will are not listening. The current range of issued. This provokes people to be be issuing, aimed at market segments radio stations is not catering for them, better at what they have chosen to be not well catered for by current partici­ so in that respect I welcome additional their particular ability in providing a pants. This will force people to narrow licences. I would love to see a survey service on radio. The end result is the their focus on audience targets, will where everybody listens to the radio, public will be better served by radio. also force them to aim at one particular just as I would love to see a survey Some audience groups have not been segment of the market rather than try­ where everybody goes to the cinema. well served by radio in recent times. A ing to be all things to all people. Trying That will only happen if you have more good example of this is the one shown to be all things to all people is a recipe outlets and facilities that people want. up by HITZ-FM in Melbourne— main­ for failure. There is a marketing side attached to all stream radio has not catered for that Do you see narrowcasting as a of this. People have a perception of significant market. I’m sure there are threat or as an opportunity? what a particular station is and what it many more market segments to be I think it is an opportunity. I think it is does and develop a loyalty to that discovered. I believe the end result will an exciting development for the indus­ station. But if that station is all over the be that everyone will benefit. It will try. If narrowcasting identifies market place, catering to a whole range of make radio more a part of people’s segments that are not catered for by the people, then it means people have to lives. When we expand listenership it current industry, it will therefore ex­ keep changing channels to find what will expand identification with radio pand radio listnership and make radio they want. and all participants will be better off. more a part of people’s lives and every­ HITZ-FM is a wonderful example that What is your reaction to the body will be better off. There are a lot shows there is a radio audience out demand shown for HITZ-FM? of people in the industry who have a there that is not being served well by HITZ-FM was successful because it was ‘jurassic’ attitude to change. Our phi­ the mainstream operators. The Minister not all things to all people. HITZ-FM losophy is that more is better, more is should issue a licence because that was a breath of fresh air to the radio exciting. audience was not being served. It also industry and we support new blood Do you see a network such as means there must be other areas of the and new ideas. And Triple M assisted yours going into the narrowcast­ market out there that are not being HITZ-FM with the supply of new equip­ ing segment of the industry? served, so I would welcome licences ment to support their broadcasting serv­ It is something we are looking at very being issued to them as well. ice. closely, but we haven’t made a decision New licences will cut into the radio One of the criticisms aimed at yet. In terms of the new age Triple M, audiences of Austereo, Wesgo and our­ commercial radio, especially we are only nine months old, so there selves and, as the largest companies, those on the FM band, is that is a whole range of things we need to we have more at stake financially. But they are all the same. How do consider so that we are strong in terms we need to become more appropriate you respond to that? of our management systems, our finan­ to the market and more efficient in the It’s a little difficult for me to answer, as cial disciplines, our ratings, our profit­ way we present ourselves. That audi­ we have only been back in radio for ability. Looking beyond that, it is the ence may be listening to HITZ-FM now, nine months. My impression is there is nature of Village Roadshow, and so but in the long term, it will change as it a great similarity between a lot of the now also the nature of Triple M, to grow gets older and listen to other stations. stations and that has not served the and develop. That will mean more The new licences will ‘grow’ the audi­ industry particularly well. It has meant licences, not just here in Australia, but ence and spread the message. that rather than creating new markets, also internationally. The industry has done itself a great members of the industry have been Do you have plans to expand disservice in terms of not embracing stealing little bits off each other and I internationally? change or fostering change. It’s not don’t think that is a healthy way to how much of the pie that you have, it is We have considered it. the direction of the pie, whether it is operate. Is the planning of the mainland If the aim is to expand the com­ metropolitan services next year growing and the size of the pie. 4 There are no limits on foreign by others. We have nearly 200 cinema participants in the Australian radio in­ ownership of radio. Do you think screens throughout Australia which can dustry by leading right into the next there will be increased interest support the marketing of Triple M. We century. by international investors? are one of the leading video distributors How could you describe the I think there should be more interest by in Australia and one the major film and Triple M management/corporate international investors. It is appropriate production houses in Australia, which style? that local people have a preference but gives us opportunities for cross promo­ It was pretty fast and loose. We have I think it would be exciting to have tion. There is an enormous amount of tightened up to focus on planning and international interest, to have them come synergy, or cross promotion, we are systems. It is driven by the creative in and try the market. We learn from harnessing to the benefit of Triple M. forces. competition. We should not put up Does the Nine Network's share­ Was the investment strategic for barriers and say we do not want influ­ holding have any effect on Triple Village Roadshow or was it seen ences from anywhere else in the world. M? as an investment in its own Digital sound broadcasting is the No, I don’t think so. The Nine Network right? next big step for radio. Do you shareholding is on an investment basis We bought the network because we think the industry has been saw all the cross marketing advan­ preparing itself? tages that no one else has which can I’m not a technical person. Any be used to support it. We were very improvement in the service and successful with 2DAY FM and we the signal I endorse. I don’t know have a degree of confidence that what it means in terms of the cost having done it once we can do it structure of the organisation, but again. So it is an area of entertain­ conceptually any improvement ment we know, but it is also an area in the service must be good. well aligned with our movie-going The industry is examining audience. it? Do you have any plans to I’m sure it’s something in the expand into other services? FARB tube but as to when, I don’t Our immediate aim is to be the best know. As with other break­ at what we are— the best music throughs, the signal is improved station for those in 18-40 and what the consumer hears is age group. Beyond that better but the adoption of tech­ John Kirby we will look acquiring nological breakthroughs can be jurassic. only. In terms of promotional other stations or taking I don’t think its introduction should be activities (through the production house up or acquiring new licences. compulsory, some people may choose facilities) we deal with all the networks. Where are you in the ratings? to introduce it, some may not. It’s What are your immediate plans something that the listener will decide.
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