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Some Thoughts On HD Radio: Dialogue With Les Garland
February 10, 2006
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"HD Radio is another exit off the super highway ... to succeed, art and technology must meet at the crossroads"
-- Les Garland, President of the Tube Music NetworkThere's been a whole lot written about HD radio in the past few months. There's a whole section on it in the 'Digital Technology' section at All Access.com ( www.allaccess.com ) where this newsletter also is also posted. (And past issues from last October through the current issue archived.)
I wanted to get some thoughts on HD radio from Les Garland, now President of The Tube Music Network, and once one of the radio industry's most respected Top-40 programmers before he joined Bob Pittman in a little start-up that was to be called MTV. (If you want to read more about Les's incredible background, just do a Google search on him and read away, or visit Bob Shannon's All Access column, "All Them Big Dogs," which recently spent three weeks profiling Garland.)
I've always believed Les has been quite astute in sizing up technological changes in our business, so I threw some questions about HD radio at him and he was kind enough to offer his insights.
SM: First of all, thanks for taking the time out of your busy schedule to give us some of your thoughts on HD radio.
LG: I always enjoy speaking with you Steve, and good morning to you! Well, as you well know, technology continues to 'force' innovation doesn't it? Let's hope the amazing technology of HD radio (h2) creates a laboratory full of experimentation, diversity, and innovation in programming. that, in my opinion, is what's been missing in terrestrial radio for a long, long time.
SM: So you look for HD to be a success story then?
LG: Oh, yes, for sure. Today is the dawning of a new 'digital' day loaded with opportunity for radio as we know it. HD can be a huge success story , but programming innovation must be in the mix. Similarly, we are currently launching The tube Music network onto the multi-cast digital spectrum with broadcast television. Technically, and from the viewer perspective, there are three ways The Tube can be seen: free over the air; on digital cable; and even on the satellite HD box. The critical challenge is to create an innovative, differentiated product that commands viewership. If we're all that, they will find us. It's same with h2.
SM: What do you think is HD's biggest advantage versus the continued growth of satellite radio?
LG: Certainly, one of the biggest advantages from the terrestrial radio perspective is the 'free model' vs. the 'pay model.' However, the battle will not just be programming appeal or free vs. pay. Distribution methodology is at the heart of the battle ground. I'm sure the radio industry collectively will use its advertising strength to drive home that magic word, "free." Still, it's mandatory that 'content' be the driver. There are many, many unanswered questions to be resolved. an important one, of course, is the invasion of the FCC. Let's hope pay radio can hang on to its freedoms as has pay TV in America (HBO, for example). That sort of censorship could certainly create problems for a great talent such as Howard Stern and Sirius.
SM: Do you have any concerns about the way HD is launching?
LG: Concerns? Hmmmn. Well, I've been told there are more than 500 radio stations currently broadcasting in HD right now. We are all aware of the capabilities: the ability to scroll can be magnetic; information ... entertainment ... artist information on music radio formats ... radio ... weather ... news ... advertising ... messaging.
Today is really just the beginning. Exciting and evolutionary times aren't they? I do hope this new HD territory becomes fertile ground for talent, programming innovation, creativity, and new ideas. HD can be where the next Howard Stern is born. I've not been a huge fan of the 'radio roll up' that's happened in the past ten to fifteen years. Isn't that what wiped out the 'farm system'? Is there a Robert W. Morgan out there in Fresno today? Or a Don Imus? Beau Weaver? So, my hope is that HD will open the door for newcomers who really want to be in radio broadcasting. I knew I wanted to be in radio since I was 14 years old. It's time for something new and big in radio. Why not satellite and HD? It's all radio to me.
SM: Obviously, HD will bring the listeners more choice, right?
LG: That sure seems logical with all the digital 'channels' that will launch. If HD fails to do well, it shouldn't be because programming innovation was absent. To succeed, the magic of creativity is a MUST.
SM: That seems to be a problem with terrestrial radio ... long-term audience engagement and loyalty.
LG: Surely it's not across the board, but 'brand loyalty' has disappeared for a huge number of terrestrial radio stations. Greedy owner groups drove away audience with too many commercials. 'Cookie cutter' type formats contributed to that loyalty erosion too. That and the lack of talent on a localized basis and the over-all fragmentation phenomenon. It always comes back to creating a winning formula. It's really not so complicated. Creativity is the only solution.
A friend of mine spotted a couple of billboards ... defensive advertising tactics by terrestrial radio in this 'outdoor' campaign. One board said something like "Don't make a Sirius mistake ... so and so is free" and the creative on the other board read "Put down your cell phone ... so and so in the morning." Sorry, I just don't "get that." Stellar programming has always been the only way to compete, just like it was in the 'good old days.'
SM: What about the talk that music on the AM dial if digital can exceed FM quality?
LG: I'm told that's true, and if it is, imagine what we might do with those 50,000 watt clear channel signals like CKLW, WLS, etc. Imagine music BACK on AM ... talk about full-circle!!!! That could be fun!!! I can see it now: 'Les Garland Returns To KFRC!' "(Chuckles)
SM: What do broadcasters have to do with HD to compete with satellite radio and now iPod compatibility being readied by auto manufacturers?
LG: And the internet ... and DVD ... and films ... and TiVo ... and cable ... radio ... and telephones ... it's endless but that's a good thing! Audience fragmentation is not a result of the technology alone. Broadcasters must get the programming in shape while they create distribution models. But it all starts with the 'art,' if you will. Really! There's no doubt that broadcasters' success with HD will depend on how quickly they get these new receivers in cars or in retail stores. But, when they do, the programming better be mo' better! Clearly the delivery needs to be as ubiquitous as their competition.
SM: Overall, you sound very enthusiastic about HD and terrestrial radio's future then?
LG: You and I have been hearing about the end of terrestrial radio since we got into this business. Those ahead of us heard it too when movie theatres and television invaded America. Radio has survived for nearly 100 years and it will still be here 100 years from now. Sure it will change. Just like where you live, Las Vegas ... there was 'Old Vegas' and today there is 'New Vegas.' But, baby, it's still Vegas!
I'm also a huge believer in 'pay radio' as well. It won't be long before there will be more than 10-million satellite radio subscribers. It wasn't so long ago many thought that number to be impossible. This is America! We have cable and we have satellite. It's your choice. But both not only survive, they thrive! Pay cable has its hits such as 'The Sopranos,' 'Sex and The City,' and others. And broadcast networks have theirs, too. There are 30 million people watching 'Desperate Housewives' each week on network TV and shows like 'Lost,' 'House,' and 'Gray's Anatomy' are HUGE ratings success. 'American Idol' is a monster hit. My point is what I learned from Bill Drake ... " a hit is a hit is a hit." It's the content that drives technology.
I'm a huge believer in the digital space, too and both HD radio and the multi-cast spectrum in television. That's why we've created The Tube Music Network. And I love it when people say "this will never work." They said that about MTV when we launched it. It's fun to prove them wrong. The challenge to succeed against naysayers is always a great driver.
SM: Your closing thoughts then?
LG: Technology is only as compelling as the art that rides its waves.
SM: Thanks for your time as always Les.
LG: Always a pleasure, Steve. Thank you.
If you want to get in touch with Les, you can contact him at: lgarland@thetubetv.com.
THE SALES PICTURE
Album sales for the week were down 4%, or 454k, compared to the same week of '05. Year-to-date sales are approximately 51.2 million, down 0.9% from last year at this time.
The Top 10 albums collectively generated just under 950,000 units in sales this past week.
Consumers Will Spend 260% More for Internet Entertainment in Five Years
According to Digital Lifestyles: 2006 Outlook, from Parks Associates, U.S. consumer spending for online entertainment, including on-demand gaming, music and video services, will grow by 260% in the next five years. Driven by broadband usage and innovations in digital entertainment platforms and content services, revenues will grow from $2.4 billion in 2006 to nearly $9 billion in 2010.
Read more about it by clicking here.
Networks' iTunes Gamble Paying Off
Television networks took a leap into the unknown when they started selling their shows on Apple Computer's iTunes online store, but even in these early days, it's starting to look as if that faith in digital downloads was well-placed. Apple CEO Steve Jobs welcomed Walt Disney and Pixar Animation Studios content to the service in October. Now there are 40 different series, each episode of which costs a standardized $1.99 to purchase, and
more are on the way.
Nobody will disclose numbers for these television downloads. It's easy, however, to keep an eye on the iTunes download chart, which usually shows NBC's "The Office" as the top full-length program, followed by ABC's "Lost" and Comedy Central's "South Park."
Read more about it by clicking here.
Most Major Labels Back Off DualDisc
The DualDisc marks its one-year anniversary of mass distribution this month, but the new hybrid CD/DVD once expected to become the physical successor to the CD may already be on life support. A year after a consortium of major and indie labels announced they would back the product, its future appears to be riding on the one leading music company actually pushing it as a priority: Sony BMG Music Entertainment.
Read more about it by clicking here.
Radio Conglomerates Eyed in 'Payola' Probe
New York Attorney General Eliot Spitzer said Wednesday he has subpoenaed many of the nation's largest radio conglomerates in his "payola" investigation of major artists and songs that he claims got air time because of payoffs by recording companies. Spitzer wouldn't identify the major radio companies that have been subpoenaed or release the artists and songs that he claims benefited from the pay-for-play practice for cash, trips and gifts like the scandal that rocked early Rock n' Roll in the 1950s and 1960s.
Read more about it by clicking here.
Can Amazon Catch Apple?
The former leader in online retailing was beaten badly by iTunes. But it has a few tricks of its own.
It's OK to feel sorry for Internet CEOs these days. In the past month, investors with lofty expectations have punished the stocks of such companies as Yahoo, eBay and Google. But no one seems to be having a harder time than Amazon CEO Jeff Bezos, whose famous goal was to sell everything from books to 200-pound treadmills over the Net. Even though Amazon just cleared a record $1 billion in quarterly sales, Wall Street is now more interested in the only e-commerce feature Bezos doesn't have-the delivery of music and movies digitally, a la Apple's wildly successful iTunes.
"Amazon is especially well positioned to capture a bigger part of that business," Bezos
told analysts last week-before his company's stock plunged 10 percent the day after it announced lower-than-expected profits. "But it's premature to talk in any detail about those initiatives."
Read more about it by clicking here.
THE AMATEURS BEAT THE PROS
According to overnight ratings reported by Nielsen Media Research, nearly twice as many people watched the season 5 contestants on "American Idol" than the Grammy Awards Wednesday when the two music programs went head-to-head in prime time. The "Idol" audience on Fox was 28.3 million while the Grammy Awards were being watched by 15.1 million people from 8 to 9 p.m. EST, Nielsen said.
GRAMMY WRAP-UP
U2 leading Grammy winners Wednesday night with five trophies, including Album of the Year (How to Dismantle an Atomic Bomb) and Song of the Year ("Sometimes You Can't Make It on Your Own). Green Day won Record of the Year for "Boulevard of Broken Dreams." John Legend scoring three awards, including Best New Artist. Other three-time winners Wednesday included Kanye West, Mariah Carey and Alison Krauss and Union Station. David Bowie, Merle Haggard, Richard Pryor and Cream among the artists receiving honorary Grammys Tuesday night.
EVERYDAY IS A WINDING ROAD AND HE'S OBVIOULSY NOT INTO A BICYCLE BUILT FOR TWO
Lance Armstrong and Sheryl Crow calling off their engagement and breaking up after two years together. "After much thought and consideration we have made a very tough decision to split up," the couple said in a joint
statement.
FOR NOW ANYWAY
A Los Angeles judge on Friday ending Courtney Love's house arrest for drug-related probation violations. The judge says Love has put her "gnarly drug problem" behind her.
AND IF THE VATICAN SIGNS OFF ON THIS ONE, THERE'LL BE QUESTIONS
An Italian priest who runs a record label specializing in religious music stating Monday that Michael Jackson might be one of several artists to sing on a CD of Pope John Paul II's prayers, but said the project had not yet been cleared by the Vatican.
B.B. WANTS LUCILLE BACK
B.B. King offering a reward of a signed guitar for the return of his missing dog, Lucille, named after his signature guitar. The dog, a 2-year-old Maltese, disappeared Jan. 27 in West Hollywood.
STONES GET BLEEPED
The NFL and Super Bowl producers editing sexually explicit lyrics from two Rolling Stones songs during the band's halftime performance Sunday. (Lyrics from one song about what the girl could do to "a dead man") ABC also airing the Super Bowl on a five-second delay -- the first network ever to do so.
TAYLOR FETED IN L.A.
Bruce Springsteen, Sheryl Crow, Bonnie Raitt, David Crosby and Dixie Chicks among the artists honoring James Taylor as MusiCares Person of the Year Monday night by performing their takes on the singer-songwriter's classic hits.
WHERE YOU GO WHEN YOU'RE AS COLD AS 'ICE'
VH1 planning to air 'The Surreal Life: Fame Games,' an all-star edition of the series featuring former C-level celeb castmembers such as Vanilla Ice, Emmanuel Lewis and Ron Jeremy, among others, competing in an elimination-style competition for a $100,000 prize.
HE ACCEPTED THE MISSION
Kanye West tapped to write the theme song for Mission: Impossible III. The latest Tom Cruise adventure hits screens this May.
JUST A MONTH UNTIL THE MOB RETURNS
The sixth and final season of HBO's The Sopranos premiering on Mar. 12. Twelve new episodes will air this year, with
the final eight debuting in 2007.
CLIVE DOES IT AGAIN
Barry Manilow notching his first-ever chart-topping debut with Greatest Hits of the Fifties selling 156,000 copies in the week ended Sunday, according to Nielsen SoundScan data. Kudos to Clive and his entire team.
OPRAH BEAMS UP TO SATELLITE
Oprah Winfrey signing a three-year, $55 million
deal with XM Satellite Radio to launch a new radio channel beginning in September, Winfrey and XM announced Thursday.
WELL, HE KNOWS ABOUT THE BENEFITS OF 'HEMP' SO THIS IS HIS NEXT STEP
Willie Nelson launching BioWillie, his brand of clean-burning fuel made from
soybeans, which went on sale Wednesday at an alternative gas station in San Diego.
COMING SOON!
- Kid Rock, When I'm Dead ... Kid Rock Live (2/14)
- Sergio Mendes, Timeless (2/14)
- Arctic Monkeys, Whatever People Say I Am, That's What I Am Not (2/21)
- Nick Cave, The Proposition Soundtrack (2/21)
- Rhett Miller, The Believer (2/28)
2006 Industry Conferences
Date Name Location Digital Hollywood Spring March 28-30, 2006 Santa Monica, CA MusExpo 2006 April 30-May 3, 2006 Los Angeles, CA
Quotes of the week
"Robert Blake has filed for bankruptcy. Blake said if he had to do it all over again, this time he would have shot his accountant."
-- Jay Leno"Do you know that the Rolling Stones have a combined age of 246 years old? In fact, that's why they preformed on a stage with a circular runway. See, that was kind of a precaution; in case any of them 'wandered off', they would eventually go back to the center."
-- Jay Leno
NARIP Information
NARIP (The National Association of Record Industry Professionals) promotes career advancement, education and good will among record executives. To find out more about this great organization, how you can join or attend their events, just go to: www.narip.com.
The B-Side - 'Blips'
THIS IS YOUR BRAIN ON DRUGS, DEPT: ORLANDO, Fla. -- Deputy Ed Johnson was in uniform. He was also sitting in his marked patrol car. So he was a bit surprised when a man approached Friday and allegedly offered to sell him some cocaine. Michael Garibay walked up to Johnson's car at a Mobil gas station and asked the Orange County deputy if he was "straight," according to arrest records. When Johnson replied he was, Garibay responded "Do you know what that means? It means do you want to buy some cocaine." When Johnson said "yes," Garibay pulled out a plastic bag containing "several
pieces of flat white rocks substances" and asked for cash, records show. The contents of the bag tested positive for cocaine and the deputy arrested Garibay. Garibay was being held Friday in the Orange County Jail on $7,500 bail for alleged possession of cocaine with intent to distribute, possession of drug paraphernalia and possession of marijuana with intent to distribute.
NOT SO GOOD POLICE WORK, AND HOW YOUR HARD EARNED TAX DOLLARS ARE BEING SPENT: STUART, Fla. -- A Martin County deputy is accused of using his squad car camera to tape women. The sheriff's office fired deputy Jack Munsey after an investigation found that Munsey broke the rules by using the camera
for unofficial purposes, spending on-duty time on off-duty activities and for improper conduct. The investigation reveals that Munsey used his dashboard-mounted video camera to zoom in on and record bikini-clad girls, including one showering at a public beach.
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