New York Post
Former Cumulus Chief Executive Lew Dickey has penned a tome about the media business, with some gnarly words for those in terrestrial radio broadcasting.
Dickey’s new book, “The New Modern Media,” from publisher Tourbillon International, a unit of Dickey-owned Modern Luxury Media, points out just how tough it is for ad-supported media businesses to make a shift into subscriptions.
“Radio broadcasters will be unlikely to benefit from subscription revenue for their core service, leaving them highly exposed to the ad markets,” he writes.
Cumulus acquired a stake in subscription music outfit Rdio as a hedge against the vagaries of the ad business. Then Rdio was acquired out of bankruptcy by Web radio player Pandora, and servic57 e was discontinued.
On Friday, the nation’s No. 1 radio station owner, iHeartMedia, announced it is getting into the subscription music business.
“Broadcast has a narrow path to participating in subscription revenue with its core business,” observed Dickey.
That’s a viewpoint that’s bound to spark a lot of static within the business.
(Pandora has totally changed the radio business. I am the biggest radio fan you will ever see. The other streaming services like Spotify are going to totally wipe out regular radio. Sure some people will still have cd players but it is a thing of the past. I listen to music on my phone now.
I also listen to all the games on the radio these days. Much better than watching it on TV. It takes me back to the days when I was listening to a transistor radio under the covers when the Yankees were on the West Coast. Or sneaking it when I was in class in grammar school. The fact was I was always so far ahead the nuns gave me special dispensation. I used to love to listen to radio comedy like Opie and Anthony. Now all of that stuff is on Youtube. Both of them are on subscription radio separately these days. Opie and Jim Norton are on Sirius and I am not going to pay that. Anthony has a private podcast for about seven dollars a month. Radio is going the same way as television. You should only get the product you want. You don't need 57 channels because nothing is on. You just bundle what you need. The few podcasts I enjoy like Bob Kelly are either on Youtube or on their own pay-wall for a minimal fee.
It is a new world. Old industries like radio and TV need to adapt or die. Of course you know what the tv and radio executives have been saying.
Those horseless carriages will never catch on.)