Pat Paxton

Pat Paxton is a true "radio guy," going back to his days as programmer for KHMX/Houston and WOMX/Orlando; a group PD for Nationwide; and a consultant for Zapoleon Media Strategies. Entercom hired him well over a decade ago, then promoted Paxton to his current post in 2003. Suffice it to say, Pat has seen radio's highs and lows in that time - and despite the most recent recession, remains bullish on radio's future. Here he explains why:

So how was 2010 for Entercom?

The year went well for Entercom. The economic recovery has been a good thing; we're making a little more money than we did last year. We're still way behind where we were before the recession, but we are climbing back.

That said, we, as an industry need to continue to work together. We need to emphasize the positive influence this medium has on so many millions of people every day. Overall the perceptions of the industry are better. More people listen to the radio than ever before, despite all the doomsayers out there. For us, 2010 was a nice start ... and we're looking forward to a stronger 2011.

Will the nature of Entercom's growth in 2011 be primarily dependent on the economic recovery? There have been reports of big radio groups making more staff cutbacks to generate more profits. Could that be part of your overall strategy, too?

We're cautiously optimistic about the economy. We've seen the recovery begin -- and all the public companies are up this year, for the most part. We have no plans to do any kind of systematic layoffs or cost reductions. We believe in running our business in a smart way - by continuing to generate unique and compelling entertainment. As usual, we may choose to spend more money in some areas and less in others to achieve our goals, but there are no plans for systematic cutbacks.

One of the more exciting things about our business is that we have become an integrated medium. We now offer marketers solutions far beyond what we could offer before. Our core business is to sell exposure to millions of people who listen to radio - but that's only one tool in the toolbox. We're growing digital, streaming, e-commerce, HD radio, social media, apps and texting ... all these different vehicles can deliver an advertising message to millions of people. That's an exciting platform.

Recently, a few Power Player interviewees have called for the creation and development of new programming and/or to reinvigorate the radio audience. Is Entercom interested in new programming?

We're always looking for new opportunities. We're always brainstorming. We put on one of the industry's first '90s stations in Sacramento. We look for opportunities where we can serve an underserved audience. If we feel there are enough listeners to support an idea, we'll strongly consider it.

Have you or Entercom looked into using Jelli or Listener-Driven radio, which lets the listeners' request alter the music scheduling?

We're keeping an eye on it. If the programming benefits us, our listeners and our advertisers, we'll do it.

When you launch a new niche format or even a new air personality today, is there more pressure or ratings succeed in a shorter period of time?

Our goal has always been get ratings as quickly as possible. If we put something new on the air, that means we have confidence in the potential of the brand. However, we also realize that we need to give it the time it needs to develop.

Are your confident that Entercom stations have completely adjusted their programming to optimize PPM measurement?

We're still learning. However, while the measurement system is different, I still believe in the same premise - if you do great radio, you'll get great ratings. I also believe PPM is a more accurate reflection of reality as compared to the diary.

Overall, we're doing very well in PPM, which says we're doing something right.

What's your take on the NAB's proposal in the performance royalty brouhaha?

My take is that without the radio industry, the record industry would be a shell of itself. The same holds true for music radio stations...without record companies, where would our music come from? I can't name one music industry executive who wouldn't privately admit that their business model could not survive without radio airplay. Many of today's biggest artists wouldn't be today's biggest artists (or even today's littlest artists) without radio.

What the end result of this debate will be, I don't know. What's important is that the leaders of both industries admit that we need each other. Once that happens, my guess is some type of agreement will be reached.

So you're behind the NAB proposal that, among other things, gets a FM chip for some sort of royalty?

I didn't say that. I don't know what end solution should be. I'm not involved in the ongoing conversations between the parties. Our CEO, David Field, and his peers are. I'm not commenting on what I think end result will be. All I know is that without us, the music industry would be in dire straits ... and vice versa.

After years where a radio station's main competition was the direct-format rival across the street, now some are saying radio should concentrate more on competing against Pandora, Net radio and the like. Do you agree?

Our competitors are - and always have been - all forms of entertainment, be it movies, TV shows, mp3 players, CDs, Internet radio, satellite radio, surfing the web, playing video games and anything else that competes for the consumers' valuable time and attention. Through the years, people have been predicting the death of radio by all the above. Every time there's a new kid on the block, the brilliant prognosticators out there say the same thing. And, they've been dead wrong every single time.

Radio continues to attract a bigger and bigger audience. We have more listeners now than at any other time in history. I'm not making this up ... the numbers are what they are. The bottom line is that there's room for all the different entertainment options out there. As long as we continue to focus on creating compelling brands, we'll be just fine.

Finally, radio has survived an economic collapse, but have downsized to get by ... radio's under major, if not more, pressure to generate higher ratings and more advertising revenue ... you have more competitors than ever before -- to the point where you're perceived to be an outdated medium. Looking at it through that lens, is radio as much fun for you now as it was in years past?

First, I think your lens is fuzzy. Second, radio is actually more fun for me right now because it's so different, so meaningful, and so vastly bigger than years ago. The challenges we face are huge, but so are the opportunities. Back in day each company had one or two radio stations per market. We were fat and happy. Now everything has changed. Everyone at our stations is expected to do so much more ... contribute in so many different ways. And, those who can, do very well. Those who can't, don't. You can see that in a negative light or a positive one.

The reality is that there are so many opportunities - be it in the traditional terrestrial space, the digital space, the social media space, the app space, the texting space, the ecommerce space, etc. There are so many ways to serve our listeners and our advertisers -- ways nobody could've predicted 10-15 years ago. That's why I find competing in radio today so compelling.

Sounds like you still have plenty of goals and challenges to accomplish....

Absolutely. Remember, we're in the entertainment industry. As long as we all keep having fun and remain passionate about what we do, the sky's the limit.