By Michael Carney
www.marketingweek.co.nz
Late last month the Radio Network announced the sale of one of its Rotorua frequencies. That in itself isn't particularly newsworthy, but what is interesting is the way that the Radio Network described the move, with the headline "Easy Mix Moves from On-air to Online in Rotorua".
Why "dangerous"?
Because (as US radio brand strategist Mark Ramsey pointed out in a recent blog posting) Internet radio can and will cannibalize over-the-air broadcast listening, not replace it. And it will cannibalize radio's advertising pool, not replace it.
As Benjamin Franklin famously said, "A great empire, like a great cake, is most easily diminished at the edges."
And those edges are tasty, indeed.
Particularly as the speed-bumps to accessing and using and enjoying Internet radio are cleared - as they will be - over the next few years.
Particularly as advertiser demand continues to build for the highly targeted capability of Internet radio which, quite frankly, leaves its over-the-air alternatives in the dust.
Particularly as revenues for Internet radio build and agency acceptance of this new medium grows.
Particularly as the Internet becomes embedded in everything, everywhere - even in places where radios generally don't exist (or won't exist forever) - like, say, your pocket.
Particularly as Google and others provide new access ramps to monetization for publishers (formerly called "broadcasters") large and small.
And particularly (our thoughts) because there's very little competitive barrier to entry with internet radio if you've always fancied yourself as a radio jock.
Alternatively, why "really really smart"?
Because the Radio Network and RadioWorks (who collectively control the NZ radio waves) have already avoided the high-cost, negligible-gain of introducing digital radio to this country -- and could, if they so desired, migrate their listeners across to internet-delivered radio alternatives, one market and one radio brand at a time.
In due course, most markets and most brands could end up being served through internet radio, saving our existing broadcasters a fortune in frequency costs.
Yes, they would be moving into an environment where competitors could easily set up -- and many international operators are already there, pumping out a million million different music flavours 24 hours a day -- but then there's the small matter of those iconic local radio brands that Kiwis already trust, and the small but perfectly formed band of hosts whose opinions we've grown to love (or hate)
Theoretically, it should be easy for anyone with a digitised music collection and an attitude to compete online with The Edge or Classic Hits; in practice, our major radio brands have spent years (in some cases, decades) building a following.
Just imagine a medium with the immediacy and intimacy of radio, the targeting capability of the internet -- and of course the ability to add images, coupons, text. Radio with pictures, you might say.
Interesting times.
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