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ftm Radio Page - week ending May 26, 2023

Politicians try to frighten with the future
remember the buggy whip

After threats of legislation from the US Congress, automaker Ford Motor Company last week changed course on the legacy of AM/MW radio in automobiles sold in the US. Some lawmakers cited possible disruption of the Integrated Public Alerts and Warning System, designed to deliver safety messages across all radio platforms as well as mobile phone networks. But, the threat public and political outrage got sufficient momentary attention from Ford.

In March Ford made clear its intent, saying maintaining AM/MW radio receivers in any forthcoming cars filled no compelling need. BMW, Volkswagen, Mazda, Tesla and others recently removed AM/MW radio capacities from some electric vehicles (EVs) manufactured for the US market. Inherent electromagnetic interference with automobile operating systems, unique with AM/MW radios, was generally cited, along with increased manufacturing costs. Ford also noted low AM/MW radio usage rates - less than 5%. (See more about radio audience here)

“After speaking with policy leaders about the importance of AM broadcast radio as a part of the emergency alert system, we’ve decided to include it on all 2024 vehicles,” wrote Ford chief executive Jim Farley wrote on social media, quoted by Variety (May 23). “For any owners of Ford EVs without AM broadcast capability, we’ll offer a software update.” Not so subtly indicating a future direction after the roar dies down, he added: “Customers can currently listen to AM radio content in a variety of ways in our vehicles – including via streaming – and we will continue to innovate to deliver even better in-vehicle entertainment and emergency notification options in the future.”

Eventually, support for AM/MW broadcasting will wane for the most time-tested reason. Broadcasters - and their shareholders - will lose interest due to high energy, real estate costs and other irritants. Add to that the continuing advance of digital and mobile platforms, particularly as revenue sources. The broadcast services long available on analogue platforms will be dispersed by economics.

In-store radio takes big leap from background music
feast your eyes on the steak on aisle five

People in the stores barely notice. After generations, background music services remain retail fixtures. A large European retailer wants to change that with live radio.

MaxFive is an Austrian brand development specialist, a subsidiary of German diversified retailer Rewe Group. About a year ago MaxFive expanded measurably. In its Vienna headquarters there are radio studios and about 100 employees making programs provided to stores in “about half of Europe,” said Austrian daily Weiner Zeitung (May 25).

All retailers of a certain size have been collecting information (data) about consumers for years. Largely, this knowledge is used to better manage the in-store experience; meaning mood enhancement, messaging and flow control. Retailers know all the shelf-space tricks. A happy customer spends more money, right?

The MaxFive audio products, offered under localized brand names, target "persons running the household,” said program director Katharina Horn. That is typically women 30 to 50 years. "We pay attention to a positive sound that also slows things down a bit.” The radio program is “about everything that is beautiful.”

“It's about revitalizing and activating the customers,” said managing director Michael Tippl. For that they rely on basic classic radio components; music, information and ads. "We bring everything that is relevant. But we don't do sensational reporting. When I'm shopping, I don't have to hear that 500 people have burned to death.” A special daily edition starts two hours before the doors open, all the best to motivate the employees.

Traditional broadcasters, wherever they might be, may look askance at these new audio services at their peril. The MaxFive channels are available on Spotify and other online platforms.


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