Mark Ritson recently wrote a column in The Drum about the decline of Peloton. The company was built on selling bicycles. Roughly 75% of their sales were product-based, while the remainder of their income was from subscription sales.
Their rise was fueled by the pandemic, and their decline stemmed from people’s desire to get back in the gym. Peloton lost its “must-have” status because it was unable to develop a sense of community around its participation model. (Google their stock trajectory).
I couldn’t help but think of the parallels to radio.
As a free platform, we were a must-have item. We had radios everywhere. Now, we’re trying to hold on to our last stronghold: the car. We gave people information, companionship, and music at work that everyone can agree on.
There was a time when we actually valued our connection to community.
Unfortunately, consolidation, annual budget cuts, and layoffs have eroded that bond with our audience. While we were able to weather the portability of recorded music, we were not primed to combat the on-demand world.
As Ritson points out, back during COVID, if you saw a Peloton on your Zoom call, you thought, “Cool.” Now, when you see one, you ask, “Why?”
Fortunately for us, the radio industry is in a much stronger financial position than Peloton. We hear a lot about our ultimate demise, but we still reach a significant portion of the American public every day. And we continue to excel as an advertising medium.
The question is, is our current trajectory sustainable? Can we afford to continue to ignore our local communities? Can we afford to continue to cut back on talent? Can we afford the lack of a pipeline for new talent?
Radio once offered the element of surprise to our listeners. Conservative programming, the fear of “tune outs,” and the dogged pursuit of creating a product that plays it safe every day have taken us from “must have” to “nice to have.” That does not engender passion.
Everyone I have ever met or worked with in radio got into the business because they loved it. They loved the challenges, the people, and the competition. That passion fueled what came out of the speakers.
Have we lost that passion, or are we just afraid to translate that into compelling content because one meter might switch off?
A lot of people who are much smarter than me have been saying similar things for years. I read about it weekly.
Radio became great because we took chances. We risked doing something that did not appeal to everyone, all the time. Those actions developed loyal audiences. They brought us repeat customers. They created communities.
That magic still exists… if we want it to.
If you still believe in great radio, call us. You’re the kind of person who appreciates and values the services and insights we provide. Or… feel free to tell me I’m full of it: [email protected].
