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More competition for radio broadcasters where it hurts
the smart playlist

The instant popularity of streaming audio platforms disrupted radio broadcasters - mostly those offering all-music. Just like their video cousins, the audio platforms appealed to a certain set of users - mostly music fans. A distinct majority of radio broadcasters - mostly in the commercial sphere - had been chasing that same group of listeners for decades. The streamers are now chasing other traditional radio listeners.

Streaming audio platform Spotify is ready to go with a daily morning show exclusively for US listeners. There will be three co-hosts. Music within this presentation will be personalized, meaning bots will select tunes based on individual listener preference, which is Spotify’s big pitch. The show is to be called The Get Up. (See more about streaming media here)

But the show is not live. There will not be listener phone-ins, games or contests. Indeed, Spotify calls it a playlist, noted TechCrunch (October 22). Or mix of playlist and podcast, meaning bots at Gimlet Media will put it all together. The appeal seems designed for the music-only person who seeks to avoid all speech content, particularly ads. But speechlessness is the new normal for commercial radio broadcasters. Think: fire the DJs.

Spotify is also competing for another slice of the US radio landscape. Its podcast compliment is adding more right-wing conspiracy theory-toting talk shows. “Spotify has always been a place for creative expressions,” said a leaked email outlining company strategy on the talk shows, reported BuzzFeedNews (October 28).

Those “creative expressions” may force the company to raise its premium subscription rates in “mature markets,” suggested chief executive Daniel Eck in an investor conference call (October 29). Musicians’ unions are asking for a US$0.01 (1 cent) per stream. The current streaming royalty averages US$0.0038.

Regulator steps on independence, executive heads for the door
"we will explain these things"

Adjustments to public media governance are an unending obsession of certain politicians. Much of this relates to funding as that ties directly to control. While this is a broad pattern, it has become most apparent in the new EU Member States. At the same time public media currently enjoys high levels of confidence, until it doesn’t.

Last week Bulgarian National Radio (BNR) general director Andon Baltakov asked to be released from his contract. He had been named to the position earlier this year. Now he wants to leave at the end of the month.

His primary objection is strategy, which is his specialty. After considerable effort by broadcasters and specialists a draft amending the Radio and Television Act was sent to the Ministry of Culture, which effectively struck off key provisions ensuring independence. The politicians would be able to tie funding to specific programs - not necessarily channels. The entire section outlining management mandates was zeroed out. (See more about public broadcasting here)

After several years as a working reporter for BNR, Mr. Baltakov immigrated to the United States, employed by the Associated Press, CNN and, then, as chief operating officer for Storyful. He also took an MBA at Yale School of Management. “His principles, independence and integrity make him a very irritating foreign body in the Bulgarian media and political environment,” wrote business portal capital.bg (October 23). (See more about media in Bulgaria here)

None of that sways the politicians. "Mr. Baltakov comes from the United States and therefore has other reflexes, but we will explain these things to him,” said regulator Council on Electronic Media (CEM) chair Betina Joteva to news portal toest.bg (October 24), like something out of The Godfather. She is hopeful, she said, that Mr. Baltakov changes his mind.

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The Six Radio Brands is about the uniquely European development of radio brands. Competition among broadcasters - and certainly between the public and commercial sectors - gives radio in Europe a rich dynamic. As consumers become more media-literate and demand more attachment broadcasters find target markets illusive.
Regulators, advertisers and broadcasters take turns trying to influence radio brands. Culture and technology makes an impact. More and more, the greatest influence comes from consumers.
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