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					                                   Radio Timeline…
                                   An Evolving Story




   “Having existed for more than 80 years, radio has met the challenge of
 new forms of audio delivery on numerous occasions and managed to remain
              a very competitive and profitable form of media”.
                                  Harris Nesbitt analyst Lee Westerfield
                                          October 8, 2004 R&R




The 1920’s Radio Arrives

1920- First Commercial Broadcast: Many stations began to spring up throughout America.

1926 - Radio Corporation of America (RCA) created the NBC Network. Networks were
encouraged by the government, because they were seen as the only way to offer superior
programming and news coverage.




The 1930’s Radio Matures
1930 - Radio experiences a tremendous amount of growth. 600 to 700 radio stations now exist.

1933 – Creation of FM. Howard Armstrong discovered a new wide band frequency modulation.

1934 – Programming became highly segmented with many different types of shows; Soap
Opera’s on in the daytime, comedies, newscasts, dramas, and quiz shows.

1934 – The FCC is formed. By the end of the decade they will complain that radio is not local
enough, that the un-licensed national networks control the programming but the stations are
licensed to serve local communities.

1939 – First television sets offered for sale.
                                Radio Timeline…
                                An Evolving Story




The 1940’s Radio Serves

1940 First TV Station – Paramount puts their first TV station on the air in Chicago.

1943 – Radio competition intensified between the networks. Nobel buys NBC’s Blue
Network and forms The American Broadcasting System. The Networks offer a variety of
different programs: comedy was lead by Bob Hope, George Burns, Gracie Allen and Jack
Benny and Edgar Bergan. Many different entertainment programs were created by Bing
Crosby, Arthur Godfrey and Kate Smith to name a few. Children and mystery/adventure
programs frequent the airwaves. The Lone Ranger, The Shadow, Superman, Jack Armstrong’s
“The American Boy" entertained thousands of children throughout the country. News and live
war reports were often heard especially “Fireside” chats with FDR were popular.

1946 – Radio station growth and in car radio debuts.

1948 – Television catches on. The years 1948-1952 are growth years for TV like the early
1920’s were for radio. Programming is mostly controlled by the same networks and sponsors
as radio.

1948-49 – First Cable TV system developed – It began in the rural areas of North America.
                                  Radio Timeline…
                                  An Evolving Story




The 1950’s Radio Struggles

1950 - The development of television staggers the radio industry. Many advertisers switched
to television, dropped radio and took their stars with them. Networks and stations are forced to
lower the rates and the sponsors threaten to abandon the entire radio industry. Radio revenue
begins to steadily decline. Nielsen (was measuring radio audience at the time) reports indicate
that radio listening declines as more homes purchase tv sets.

Early 1950’s Format Radio: Although Todd Storz invented Top 40, a fellow broadcaster named
Gordon McLendon pioneered the format and created one of America’s first “Top 40” stations.

1953 – First Color TV broadcasting begins.

1952-53 – ABC (American Broadcasting Systems) was barely operating. ABC received
FCC approval to merge with United Paramount Theatres.

1956 - Radio slowly started to recover from the impact of television. Many stations begin to
develop specific formats…

Mid 1950’s Rock and Roll emerges - Elvis Presley and others were getting air play and selling
records.

1956 - The listeners respond positively to the development of specific formats. FM
frequency starts to grow, and by the mid 1950’s represented ¼ of all radio stations on the air.

Late 1950’s – Radio Networks Evolve – With all the entertainment programs going into
television, and with most radio become disc-jockey based, radio networks are left with only news.

Late 1950’s “Spot” Radio – By the end of the decade, entire sponsor control of programming
gives way to advertisers being able to buy a 30 or 60 second spot with a program.
                                 Radio Timeline…
                                 An Evolving Story




1960’s Radio reinvents

Early 1960’s -Top 40 AM, becomes a dominant force. “Block” programming could not compete,
so putting something on radio that wasn’t available on television became vital. Top 40 also
spawned the first generation of star disc jockeys, whose between-song patter and
connection with the listeners became as important as the songs themselves.

1962 - Portable radio was developed. The clock radio, the battery radio, and the miniature
transistor set were popping up everywhere. Listening no longer confined to the home. People
had the ability to listen at work, home or in cars.

1962 – Philips introduces the audio cassette tape player.

1962 - Midland CB Radios introduced into the public market the first CB radio.

1963 – Led by the Beatles, AM Top-40 flourishes.

1965 – News Format and Talk Format debut. WINS-AM in New York switches to an All News
format breaking new ground in radio programming.

1960 – 1965 – Radio stations increased from 4000+ in 1960 to 5000+ in 1965.

1965 – The 8-Track Cassette. Ford Motor company offered 8-track Players as an option
in their line of 1966 models cars. Home players were not introduced for another year or so.

1967 - The 4-track, 8-track and PlayTape formats had all introduced home players.

Late 1960’s FM Radio Rock hits the scene as FM makes a comeback. AM stations
refusing to play the new music from albums were suddenly facing new competition from
FM stations that would play the music.

1969 - Radio becomes a demographically targeted medium. The ABC Network splits into
four new divisions. ABC Contemporary with a format of Top 40 and a target audience
of Persons 18-34. ABC Entertainment (MOR) Persons 25-54. ABC FM (AOR) Persons 18-34.
ABC Information (News/Talk) Persons 25+.
                                Radio Timeline…
                                An Evolving Story




1970’s- Radio’s Expansion
1971 - Cigarette ads are no longer allowed on radio which causes a tremendous loss of
revenue for the radio industry.

1971 – The Television networks start selling 30’s. The transition from 60 second commercials
to 30 second commercials as the standard length for commercials on Television takes hold.

1972 – Radio Programming adjusted to continue to attract specialized audiences.

1972 – First pre-recorded videocassette tapes offered to consumers.

1974 – Sony introduces Betamax home VCR.

1976 – First VCR introduced.

1976 - FM stations for the first time show collective profits with over 40% of the national
listening audience.

1976 – The CB craze begins. Many within the industry were concerned about its impact on
in-car radio listening.

Mid to late 1970’s -Formats fragment: There are no longer just two formats, top-40 on AM and
progressive rock on FM; there is AC, Urban, AOR, 50’s and 60’s Oldies, Disco.

Late 1970’s - To retain a share of audience, many AM stations dropped music in favor of news
and talk.

1976 – VHS home recording format introduced.

1979 – The Sony Walkman Personal Stereo was introduced. Major concern that this would
negatively impact radio listening.

1979 – FM audience levels finally surpass AM .
                               Radio Timeline…
                               An Evolving Story




The 1980’s Radio Struggles

During the 80’s - The growth of Cable television resulted in a plethora of viewing options for
the audience. The new multi-channel environment provided viewers with more than 50
programming choices at once.

1980 – Radio reacts to a changing marketplace and formats continue to fragment:
Format niche continues with Hot AC, Soft AC and Classic Rock. The NAC format develops
as a Jazz hybrid and continued fragmentation of hybrids Churban and Rock AC.

During the 1980’s - the number of radio stations swelled to 12,000.

1980 – FM stations dominate over AM, reaching 63% of all listeners by 1982.

1981 – MTV debuts.

1982 – The CD debuts.

1983 – “80/90 Docket” - The FCC added hundreds of new FM stations across the country
plunging more into unprofitability. (allowing more stations to become unprofitable.)

1986 – VH1, MTV’s sister station debuts and is designed to target adults.
                                Radio Timeline…
                                An Evolving Story




1990’s Radio Competes

First third of the 1990’s - The recession crippled financing of Radio properties. The buzz
term then became LMA where stations combined their resources (signals, staffs and facilities) to
survive.

1990- Syndication talk shows: Howard Stern, G Gordon Liddy, Don Imus, Larry King and
Rush Limbaugh become extremely popular radio personalities.

1991 –AM stereo is available for stations.

1992 – New Group Owners and Duopolies - The FCC for the first time permits ownership of
multiple AM/FM stations in each market, subject to specific limitations. The new term
“Duopoly” refers to co-owned AM/AM or FM/FM stations in the same market.

1992 – Cable Television penetrates 60% of all US Households while the networks share of its
prime time audience had dropped from their routine 80%-90% to 60% -65%.

1992- The FCC allocated spectrum for nationwide broadcasting of satellite-based Digital
Audio Radio Service (DARS)

1994 – The liberalization to network rules encourage three Hollywood studios to launch TV
Networks. Warner Brothers launched a network in its own name, and Universal which had
grown to eminence as a prime source for NBC teamed with Paramount, proud source of the
inexhaustible Star Trek, to form UPN (United Paramount Network).

1995 – Cable and VCR penetration continue to grow (63% and 79% respectively).
                                  Radio Timeline…
                                  An Evolving Story




1990’s Radio Competes

1996 - The Telecommunications Act was signed and all but eliminated ownership caps.
Ownership restrictions in a given market were loosened while national restrictions were
eliminated altogether. Ownership restrictions in a given market were loosened from 4 stations
to as many as 8.

Digital takes over Radio Technology. Now an entire day can be stored, edited and broadcast
using the hard drive of a computer. Production that used to involve slicing tape is now done
with the click of a mouse.

Late 1990’s- Introduction of Streaming Media which allowed users to listen to radio stations
on the internet.

Late 1990’s - Home computer users began sharing digitized music in a number of different
formats. The MP3 standard began to catch on and Napstar software appeared to make it possible
for users to access each other’s song via the World Wide Web. The recording industry complains
and shuts Napstar down.

Late 1990’s – Advances in digital communication and cable. Allows for more stations at a
higher fee.
                                   Radio Timeline…
                                   An Evolving Story




The 21st century: Radio innovates

              iPOD

2001      -   Apple introduces the iPOD, a brand of portable media players with a 5 GB-storage
              capacity . The iPod classic model stores songs on an internal drive.

Six iPod generations later, the iPod stores and plays songs, movies, games and photo slideshows.
It can store up to 160 GB of any type of files and is now a full-fledged portable media center
Some accessories add extra features such as sound recorders, FM radio tuners, wired remote
controls, and audio/visual cables for TV connections

              SATELLITE (DIGITAL) RADIO

2001      -   XM Satellite Radio launches in November
2002      -   Sirius Satellite Radio launches in July
              Both digital radios are subscription-based and broadcast by a communications
              satellite. Their content is not local; it is commercial free and free from
              regulations by the FCC

Satellite currently claims approximately 16.3 million subscribers (which represents approximately
the size of one radio metro, New York, with a population of 15.3 million)

              DEBUT of HD TECHNOLOGY

2002      -   iBiquity Digital Corporation develops the HD technology (in-band on-channel IBOC).
              It enables AM & FM radio stations to broadcast their (local) programs digitally.
              It becomes the U.S. standard for digital audio broadcasting once approved by the
              FCC this same year
              HD Radio AM&FM broadcast technology represents the industry’s biggest leap
              forward since the introduction of FM. It will usher in radio’s digital era with top sound
              quality, FM delivering CD-level performance and AM matching today’s FM stereo.
2003      -   The commercial rollout of HD Radio begins with a few AM & FM stations
              broadcasting digitally. Users must purchase a receiver, but HD programming is free
2004      -   Clear Channel commits $100,000,000 to HD radio segue.

Early 2008, Clear Channel had converted 283 of its stations to HD digital radio
                                   Radio Timeline…
                                   An Evolving Story




The 21st century: Radio innovates

              PODCASTS

2004      -   The term “podcast” - derived from iPod & broadcasting - is first suggested & adopted
              by podcast pioneers & will be commonly used thereafter
              It is an audio or video file downloaded to a personal computer or MP3 player for
              consumption at the time and place of the user’s choice – in other words, time shifted
              digital audio

First half of 2007 – Nearly 5 million pieces of content are delivered

              “LESS IS MORE” & CLUTTER REDUCTION
2004      -   Clear Channel debuts their Less is More” initiative designed to provide a more
              satisfying listening experience to its listeners and a more effective advertising
              environment to its advertisers

              CLEAR CHANNEL’S NEW ONLINE STRATEGY

Early 2005- Clear Channel introduces its online strategy, building more original programming &
            other creative features onto it’s stations’ websites to lure listeners & new advertisers
                 o     Stripped™, created & produced by CC Online Music & Radio, is the
                      company’s version of MTV’s Unplugged series: a live performance by radio
                      artists that visitors can either watch or listen to as an audio feed
                 o    Sneak Peak offers Clear Channel’s online visitors the chance to listen to
                      tracks from albums that have not been publicly released

              AUDIO STREAMING THROUGH CELL PHONES

April 2005-   mSpot is the first mobile phone content provider of music, radio and video.
              A number of Clear Channel stations become available to subscribers of Sprint & US
              Cellular who carry mSpot compatible phones

Bridge Ratings predicts that mobile phone audio streaming will grow from 1.5 million people in
2006 to nearly 25 millions in 2010.
                                  Radio Timeline…
                                  An Evolving Story



The 21st century: Radio innovates

            HD-2 MULTICAST PROGRAMMING

Early 2006- The HD Alliance, a joint initiative of the major radio broadcasters (12), formed in
              Dec ’05 to promote HD Radio, announces the initial 28 markets to begin broadcasting
              HD-2 multicast programming. The new HD-2 channels carry a variety of formats,
              which either complement existing on-air programming or introduce new formats
Currently, there are over 1,200 stations broadcasting in HD & approximately 700 stations
multicasting in the top 100 markets

            SATELLITE BROADCASTS ON PORTABLE MUSIC PLAYERS

February 2006- XM introduces an XM-enabled portable MP3 in February

            ELECTRONIC (PASSIVE) AUDIENCE MEASUREMENT WITH THE PPM SYSTEM

Spring 2007- Arbitron released the first “currency” radio ratings from the Philadelphia portable
             people meter radio ratings service. Houston, TX followed several months after.
             Philadelphia is the first radio market in the U.S. to be measured by the PPM system
             This is a patented encoding technology, which detects consumers’ exposure to any
             audio broadcast - regardless of the source of the broadcast, from traditional radio and
             TV broadcasts, to podcasts and movie trailers.
Over the next three years, the PPM is schedule to be deployed in the Top 50 markets in place of
the paper & pencil diary method that the company has employed to collect radio audience estimates
since 1965

Events, inventions, notable moments, and excellent programming
made radio what it is today

Despite all the competition, radio has continued to develop and
evolve from the first days of experimentation to digital broadcasting
and radio over the Internet, and will continue to do so…

Radio has also retained a personal, intimate and emotional driven
connection with its listeners that will continue to evolve and solidify

				
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