Backwards Thinking: ESPN980 Delays Podcasts

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UPDATE: I just had a long chat with my friend Chuck Sapienza, Director of Programming for ESPN980.  He outlined the situation and this is my take:

ESPN980 is trying to pay the bills.  Media is fragmenting and getting a larger share, in order to charge more for ads, is very important.

Online listening, to put it mildly, doesn’t pay the bills.  So the station is attempting to make a move that will help generate revenue that will keep the programs on-air.

The problem isn’t with the station – it’s with the radio industry as a whole which has, to this point, given VERY little value to the online audience.  And advertisers like buying ads in local markets.  Sorry, Internet Listeners, you don’t count nearly as much as a listener in the station’s local market.  It sucks and it’s unfair…but there is no real alternative.

So instead of trashing the station and Chuck, let’s use this space to come up with solutions.  What’s your suggestion?

 

I spent a massive chunk of my career working in the sports and entertainment PR world before shifting into purely digital over the last few years.

What few people know is that upon college graduation, I weighed two job offers: one with a PR company and one with the entity that is now ESPN980 in Washington, DC.

Sports radio was – and still is – a passion of mine…just not something I want to do for a living.  I’ve got boxes full of tapes from my college broadcasting career, if you’re interested! video killed the radio star

And over my sports PR career, I loved working with the folks at SportsTalk 980, which was purchased by Red Zebra Broadcasting and rebranded as ESPN980 a few years back.  Absolutely loved it.

Now, it pains me to see them delaying their podcasts by 24 hours, as discussed by Dan Steinberg’s Washington Post Sports Bog. As stated above, they HAVE to try something different.

The station’s director of programming, Chuck Sapienza (whom I’ve worked with and talked to countless times and really, really, really like and still do after our conversation today), cited the need to keep the focus on their core product – radio.  The radio station supports the podcasts, so everything should be done to protect it.

It appears to be a money decision, as anything that could increase live radio listening is a positive and anything that reduces live radio listening is a negative.  This is because radio stations set their billing rates by Arbitron ratings, that don’t count podcasts. Yes.  This is the heart of the matter.

That makes sense.

However, this is where the station industry needs to evolve.

We are in a media age where people want infotainment (and if sports radio isn’t infotainment, I don’t know what is) on-demand.  We want what we want when we want it, not a moment sooner or a moment later.  Let’s also remember that in the digital age, radio has gone from hyper-local to global.  Content rules all.

The station’s line-up features the nationally-popular Tony Kornheiser.  And people want to listen to Tony.

Thankfully, technology makes these demands completely realistic.

What the station appears to be doing is attempting to turn back time to a point where you HAD to listen to the radio live. True.  Because the podcasts, and ads generated from podcasts, aren’t paying the bills.

But those days are over.

People’s listening habits have irrevocably changed.

Delaying podcasts of popular shows won’t increase the audience.  People listen to podcasts to time-shift.  They are at work, meetings, appointments, vacations, whatever and CAN’T listen live.  Or people outside the media market tune-in because they just like your programming.  Downloading a podcast allows them to consume the programming you want them to consume at a time when they can consume it.

One would hope that a media outlet would find a way to capitalize on this advancement.  ESPN980 The radio industry, sadly, is just shunning it.

Here are just a few ways that a radio station could take advantage of podcasting:

- Sell more expensive ads on the web page where the podcasts can be downloaded.

- Have exclusive online-only ads. Thanks to federal guidelines, this doesn’t seem too feasible.

- Sell naming rights for the podcast.  (“The Joe Smith Podcast Presented by [Brand X]“)

- Set-up audio pre-rolls before popular podcasts begin. See above.

- Create a podcast-only branded segment heard at the end of the show.

My basic point is this: We are not going to get any LESS digital.  Radio stations will need to diversify their “core product” in order to survive.

Sadly, ESPN980  the radio industry seems to be thinking backwards instead of forwards.

 

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I'll bite.  What's the gov't issue with commercials in podcasts?

Great post but here's the BIG media issue. Technology has not only made it more accessible, more technologically doable, primed the audience for wanting it when ever they want it, however they want it. And for FREE.  

And digital, for all it's greatness (and I'm a digital professional), can't pay the bills for a traditional media company, be it music, newspapers, magazine, radio, and possibly traditional TV. 

The issue is historically traditional media's business model structure included high overheads (staff, old school processes/technology) and subsidized advertising rates. Digital has killed that model - ask the recording industry...ask anyone - including Mr Tony - in the publishing industry. The reality is that traditional media co's serve niche audiences. Niche audiences with an ad supported business model can't support both traditional and digital. More importantly, the ad supported biz model now can't even support traditional media. Eventually, but probably too late, the radio industry will "discover" this reality that the print industry is now facing and they will grasp at straws (e.g. iPad apps for magazines). The painful fact is that traditional media companies will have to completely restructure how they do business and what their business is. It is and will be painful - lost jobs, lost industries (e.g. buggy whips, LPs, telegrams, faxes, CDRoms, etc.) So in the meantime, while there is a Mr Tony radio show that is still viable using the traditional media model, the business side will hold on hard to the only model they think can work...as the ship sinks...and podcast will be delayed. P.S. A subscription model might work (e.g. Ricky Gervais), but the overhead has to be incredibly low...which it won't be in this case anytime soon. 

This is backwards thinking and delaying the podcasts will not help them with their problem. I think it could potentially hurt them more, but what do I know?

There's a silent minority of littles out here to which none of this advertising talk matters who are getting stiffed. I'm a huge TK fan with multiple emails read out on the show. Been listening for years through all the podcast versions. I would love to get my breakfast from Bagel City. if I needed new windows I'd love to call Harley & Arron @ Window Nation. But I live in Bristol. Not the home of ESPN Bristol, the "original" Bristol. In South West England. It's a long swim to the "art" of Rockville. I can watch TK on PTI on the correct day. I can see Bob Ryan on ATH on the correct day. On my TV. On ESPNAmerica. I want my podcast on the correct day too and I'm willing to pay a subscription fee to do so. Evolve or die, sons of b!tches, or I might bring a snow shovel on my next holiday [vacation].

There are elephants in the room here. Most podcast users aren't local, thus listening live would:

A. Artificially inflate the numbers that local advertisers are using to drive revenue.
B. Expensive ads for this type of web-site is an oxymoron. It's a local station primarily, ads will never to high CPM levels.
C. Selling naming rights is a cannabalistic enterprise for local stations. The usual suspects will be those companies who already advertise on the station.

Why not go the micro-payment route? Most of Mr. Tony's listeners are more affluent than the typical radio listener and Apple and Zygna have shown micro-payments can work on a scaling level.

I still don't understand how angering loyal listeners, even if they aren't in the desired advertising demo,  is good for business. Do they *really* think that podcasters will flock to the streaming live broadcast in great numbers? As you mention ("We are not going to get any LESS digital"), current trends in infotainment consumption will prove that the percentage of regular podcasters who will migrate to the live broadcast will be minuscule at best. THUS, what does it hurt to put the podcast up sooner? Seriously, ESPN 980 and the radio industry, podcasters are not going to listen live. It's why we podcast, because we can't listen live. Maybe you try to market to us? Another market segment, hmmm.....

Ask Carolla it Leo laporte about making cash on podcasts. They can do it. 980 could too

Absolutely correct. Another example is Kevin pollack. He makes money as well. Tony should just go podcast only. He has enough national appeal.

TK is under contract to Red Zebra through 2012.  RZ should be smart enough to use TK- a well respected pundit with a national reputation and a loyal following to launch their own "Ace Broadcasting" (Carolla's joint which features 9 different podcasts) style network.  They could fill the 10-12 slot with just about anything (Cowherd?) and put TK as podcast only.

This is a great post and I understand the heart of the matter is a business decision, however I feel like the point was missed specifically by two things that were mentioned. Unfortunately, my response turned out to be way too long for this so I posted it here (last 2 bullet points)
http://42screens.wordpress.com/2011/06/02/free-mr-tony/

I blogged my thoughts about how I would have handled this situation.  Check it out and let me know what you think.   http://bit.ly/lLyPpD

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