Diversity
Today, the FCC unanimously approved the use of an unlicensed frequency spectrum for wireless broadband. I find it surprising that this is not on the front page of every radio mag in the country considering that is where their business is going. Broadcasters in general, including those in radio have been adamantly against the use of this spectrum. These opponents, including the National Association of Broadcasters, criticized the ruling.
"While we appreciate the FCC's attempt to address significant issues raised by broadcasters and others, every American who values interference-free TV should be concerned by today's Commission vote," the group said in a statement.
Sorry to burst your bubble NAB, but over 89% of Americans get their TV over Cable or Satellite, the other 11% will be moving to Digital transmission in February 2009. I think the NAB is smarter than that. In my opinion, they are using that as an excuse because they are scared of what ubiquitous wireless broadband really means.
If wireless broadband Internet access is available everywhere, the need for AM/FM/Satellite/HD goes away. There are serious implications for a number of companies who right now control the 'broadcast space'.
Let me be clear about who I'm referring to when I say "AM/FM/Satellite/HD". I am talking specifically about the transmission mechanism, not the content providers.
Transmission mechanism = AM/FM/Satellite/HD SIGNAL
Content Providers = The Radio Stations & Content owners
In other words, a company like Sirius/XM will still be in business, but as a content provider only. They will broadcast their content over the Internet, instead of over satellite. KROQ will still produce all of its programming and content, but instead of piping it to a transmitter, they will send it online.
The listener will tune in and listen to the content, but instead of receiving it over a satellite transmission, it will be over a two-way wireless IP network. The end result is the same.
Don't get too excited about this, because we have quite a while to wait before the number of people listening over the Internet outnumbers those listening over the air. Some people say 10 years. I say, if technology propagates as fast over the next 10 years as it did for the previous 10 years, we'll all be 'driving' flying cars and consuming entire meals in pill form.
10 years ago:
- 1 in 7 Americans were online, today, two out of every three Americans spend time online.
- Online Ad revenue was $270 million, now its more than $22 billion.
- The top 5 online radio networks have on average nearly doubled audience every year since 2004 and there will be exponential growth as more devices become "Internet capable".
To further illustrate my point, I copied the "Ando Media 1998 website" from a hard disk the size of a refrigerator and posted it on the web.
Here it is in all its glory:
Here it is in all its glory:
Seriously though, I believe the tipping point will happen significantly faster than 10 years. To put it into perspective, the iPhone3G was released in July, since then, half a dozen new companies have jumped into the "Mobile Internet Radio" market. They are developing software and tools that take Internet radio from the desktop to the mobile device.
In the period of 7 days after releasing their iPhone app, one major broadcaster garnered 7% of their listenership from the iPhone. Pandora, sees a new listener every 2 seconds from iPhone.
In the period of 7 days after releasing their iPhone app, one major broadcaster garnered 7% of their listenership from the iPhone. Pandora, sees a new listener every 2 seconds from iPhone.
There are 6 million iPhones out there now. What happens when these apps become available to the other 220 Million mobile phones? Radio's rebirth.
This year has certainly been interesting to say the least. Many companies are finding themselves redefining their business model to stay competitive. Ando is no different in this regard. We are developing software and services which will exponentially increase revenue for digital radio networks and content owners over the next couple years. Stay tuned!
Until next week my friends!
Jordan Mendell
P.S - The links above are obviously a joke. Everyone needs a good laugh.
