SPECIAL REPORT The Latin American radio panorama The future of radio in Latin America: a new revival Madrid, December 2013 BARCELONA BEIJING BOGOTÁ BUENOS AIRES LIMA LISBOA MADRID MÉXICO PANAMÁ QUITO RIO DE JANEIRO SÃO PAULO SANTO DOMINGO THE LATIN AMERICAN RADIO PANORAMA THE FUTURE OF RADIO IN LATIN AMERICA: A NEW REVIVAL 1. INTRODUCTION 1. INTRODUCTION 2. THE RADIO SECTOR IN LATIN AMERICA Radio in Latin America, as in other parts of the world, is about to have 3. WHAT DO PEOPLE IN LATIN a second wind, thanks to the application of new technologies to the AMERICAN COUNTRIES LISTEN TO? medium of radio. First heard in the 1920s, radio reigned unopposed until the 1950s and 1960s when television was introduced. 4. BUSINESS GROUPS 5. DIVERSIFICATION OF SUPPLY The audiovisual world dethroned radio but did not lead to its 6. CONCLUSION: THE FUTURE OF disappearance or extinction, as some predicted. It survived thanks RADIO BROADCASTING to its greater closeness to the consumers (listeners) and its greater immediacy and flexibility, but it clearly lost prominence as a means of mass communication. LLORENTE & CUENCA However, in this second decade of the 21st century, the Internet and the new "a la carte" communication methods may lead to a radio revival. In addition, the large number of stations has made radio in Latin America more heterogeneous and flexible, adapting to the political, social, religious and ethnic needs of the listeners. In this report we will uncover the state of radio broadcasting in Latin America today (what is listened to and who listens to it) and look at the future prospects for this medium. Specifically, we will look in more detail at the following aspects: the state of radio broadcasting in Latin America today, the fragmentation of audiences, the heterogeneity of supply, the consolidation of the large media groups and the outlook for this medium. 2 THE LATIN AMERICAN RADIO PANORAMA THE FUTURE OF RADIO IN LATIN AMERICA: A NEW REVIVAL 2. THE RADIO SECTOR IN study carried out by Reputation LATIN AMERICA Institute and Inmark Perú. The radio sector in Latin America Great ability to adapt has two virtues that put it in a very good place to keep consolidating One of the real historical virtues its position: of this medium is its great ability to adapt to new times and to It enjoys prestige among the changes, thanks to being more "Radio is, and will remain population as a whole and the flexible. It found an alternative for a long time, the listeners in particular. role to television when television means of communication first appeared (appealing to its par excellence in Latin Radio continues to be very important greater immediacy) and it has done America" in Latin America. Reports by so again with the arrival of the Latinobarómetro1 normally suggest Internet (underlining its closeness that it is the trusted medium for to the listener). much of the population, with a 55% approval rating. Radio offers people As argued by Marta Garrido and company and entertainment, and Laura Pinto in an article in Radio for many it is currently the only Netherland “the new technologies, medium for finding out what is far from having supplanted radio, happening in their country. have made it more universal. Radio is merging with the Internet and This prestige is even more is adapting to the social media. pronounced for the stations Despite there being an increasing broadcasting in FM than it is number of people with access to for those operating in AM, as the Internet, its use is still limited highlighted by the radio specialist in Latin America since only 27% Tito Ballesteros who concluded that of people have Internet access. “AM is becoming less valued and In any case, radio is, and will FM more listened to. The findings remain for a long time, the means of the study support this argument: of communication par excellence there are 6,892 AM stations in Latin in Latin America. Although it has America and 13,394 FM stations”. changed its format along the way to adapt to new times, its essence An example of this prestige and remains intact”. trust can be seen in Peru, where it is worth discussing the case of This ability to adapt has increased Radio Programas del Perú (RPP), over recent times, with changes to since it is not only the means of the entire process involved in radio communication with the best broadcasting: in the different reputation in the country, but areas of production, broadcasting, also the only medium in the Top reception and interaction between 10 of RepTrak Pulse Perú 2012, a the transmitter and the receiver. 1 Latinobarómetro is an opinion poll that each year carries out around 20,000 inter- views in 18 Latin American countries representing more than 600 million inhabitants. 3 THE LATIN AMERICAN RADIO PANORAMA THE FUTURE OF RADIO IN LATIN AMERICA: A NEW REVIVAL From the point of view of production, through computers, mobile phones the Internet is increasingly used for and tablets is increasing. producing radio programmes and this encourages connectivity since it makes it possible to access a 3. WHAT DO PEOPLE IN larger number of indirect sources LATIN AMERICAN COUN- and also to share productions in a TRIES LISTEN TO? way that is much more immediate than was possible with sending The structure of the radio sector "The structure of cassettes or CDs. is very similar in most countries the radio sector is in the region, characterised by very similar in most Thanks to the Internet, radio being extremely fragmented. countries in the region, broadcasting has lost its ephemeral There are two or three national characterised by being nature since the mass sharing of channels, controlled by large extremely fragmented” sound files is now possible after communications companies, that they have been broadcast, for are focused on audience numbers, example in podcast format. As a and a large number of other result, digital publishing and the broadcasters more focused on possibility the Internet offers to certain social niches, such as music store content online implies a great stations for the young, evangelical transformation for radio. stations for the religious groups and community stations for the One example of this is the indigenous sectors. It is clearly Colombian station Blu Radio, a case of having a fragmented whose aim is to be a station that audience and the radio stations can be listened to on the radio, responding to this by diversifying over the Internet and through their service and content. mobile phones. The same is true in Peru with RPP, which Taking as our base a study by in addition to being available Tito Ballesteros López in 2012 through the television and the “La radio en América Latina y radio, shares information in real el Caribe, Mapa Interactivo” time on its website and adapts to (Radio in Latin America and the the new digital platforms, such Caribbean, Interactive Map), we as Facebook and Twitter. It does can see that “the country with the so because of its policy of always fewest number of radio stations being connected to its audience. in AM and FM is Cuba (62) and the one with the most is Brazil The way in which radio broadcasts (3,788). The Central American are received has also undergone countries have a total of 3,649 significant changes with the stations while the South American appearance of mobile phones that countries have a total of 21,039. offer many more features than Brazil is the country with the most simple telephone communication stations, followed in order by Peru and that have FM receivers. and Chile”. Similarly, mp3 players facilitate the production of content to download Looking at the figures country by and share. The use of online radio country, and taking into account 4 THE LATIN AMERICAN RADIO PANORAMA THE FUTURE OF RADIO IN LATIN AMERICA: A NEW REVIVAL the lack of reliable audience over a decade. After 13 years figures in most of these, we can of leadership by Radio 10, paint the following picture of the Mitre has fought back in 2013 current situation: in relation to mornings on AM. • In Argentina the two According to Ibope figures, generalist stations with the in June 213, in the generalist highest audience figures are area, Mitre had 41.6 points, Radio Mitre (owned by the compared to 19 for Radio 10. Clarín group) and Radio 10 In third place was La Red, (belonging to the H Group until with 12.2 points, followed by 2012 and now in the hands of Continental with 9.1. The table the entrepreneur Cristóbal of the six most listened to was López) which have been completed with Radio Nacional, fighting over the top spot in with 5.7, and Del Plata, with an terms of audience figures for average of 4.6 points. • In Chile, the stations with DISTRIBTION OF AM AND FM FREQUENCIES IN LATIN AMERICA the highest audience figures, AND THE CARIBBEAN according to the international Country Stations Stations Total sta- consultancy firm Ipsos, are AM FM tions by Corazón with 8.5 %, followed country in second place by Bío Bío with Mexico 675 388 1,452 7.7%. After these comes FM Dos Guatemala 288 52 280 and Cooperativa, both with an El Salvador 100 148 248 audience share of 5.3%, ADN Honduras 277 626 903 (3.3%) and Agricultura (1.9%). Costa Rica 56 69 125 These are stations with very different profiles and they Nicaragua 52 228 365 are a good example of the Panama 99 177 276 fragmentation seen in these Colombia 850 1,124 1,974 media and in radio in general.