Stephen Salyer address to MPC 38
Page 2
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      Further, I believe that the onset of satellite and internet radio will fuel competition with public radio stations in the areas of strength that they’ve developed over the years, relatively unopposed, I might add, by commercial forces, those being serious news and serious music. 

      Radio hasn’t had to contend with the equivalent of cable television. I gave a talk that had some parallels to the one I’m giving this morning a few weeks ago to the presidents of the top 100 public television stations, and I was on the podium with the guy who is the head of interactive services at Microsoft who, if you think I have a radical view, was much further out, and with Michael Jackson (not the performer, but the head of Channel 4 television in London); and in delivering this message to a couple of the television folks, I think they felt they were in much deeper shit, if you’ll pardon the word, than I honestly believe radio is in. I think our prospects are much better. But I’m still going to give it to you straight: I think we’re in deep trouble, because we haven’t had the sort of threats from commercial radio, which migrated all its talent to television many, many years ago and then went to formatted approaches, by in large, which have not been, in most cases, directly competitive with what we’ve done in the music and cultural areas; and serious news virtually disappeared from the commercial airwaves.

      We’ve had an oasis which we’ve been able to occupy and develop and in which a lot of intelligent, curious, well-heeled people have come to drink amidst the desert, if that metaphor isn’t too contorted. As a result, I think many of us who work in radio believe that our medium is different and immune from competitive threat; that we’ll continue to grow audience and revenue into the indefinite future; that our greatest problem is too few broadcast signals,; and, in some cases, the greatest call on our resources should be to buy additional broadcast stations. I believe we’re about to have our bubble burst.

      One indicator of the kind of competition that’s coming is the channel lineup for Sirius Radio set to launch fifty music channels next October on one of two radio direct satellite services licensed by the FCC. When you look at this lineup, there will be three classical channels, 24 by 7. At least the initial plan is that one will focus on symphonic works, one on chamber, one on opera--some of you may be able to get your opera broadcasts off the air, if you’ve been trying to do that for years; or you may say, “that’s not what I’ve been trying to do;” but in any case, people are going to have access to twenty-four hours of opera, if they subscribe to the serious lineup. Five jazz channels, contemporary, big band, classic, NAC and Latin; seven rock, including triple A; two alternative; two classic rock; one all-album rock; eight distinct Latin channels; plus new age, world beat, blues, reggae, Broadway, etc.

      Now, you may say, “gee, been there, seen that, cable radio--it was a flop, nobody cared, so what’s the big deal?” 

     These are going to be hosted channels, not the elevator-music approach that DMX and some of the others took in the cable world, and they’re being programmed by people with strong radio backgrounds.  I visited a few weeks ago the studios that have been built for serious radio in Rockefeller Center, and it’s enough to make you weep, if you’ve spent your time at a radio station over the years. These people are heavily bankrolled, and they are developing an extraordinary infrastructure, not just technical, but beginning to now hire people, and they’re going after the best they can find in each of the areas that they are programming. In some cases their partners will be our best producers, including those who make programs for NPR, and yes, for PRI too.

      Second, I believe that these threats are materializing more rapidly than most of us thought possible even a year or two ago; and within three to five years, as content companies link with satellite internet companies to define new markets and services, we will see a noticeable erosion of broadcast audiences and it is likely we will see a corresponding loss in revenue.

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Created 3/29/2000

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