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I finally figured out how to Profit from HD Radio

So I'm meeting with a wonderful Christian radio client who relies on direct financial support from their listeners, like many in their format.

They are very successful thanks to a clear, broad, mainstream focus for their stations. But this also means some of their original listeners who are getting older find their tastes less satisfied by the station than they used to be.

The problem is that some of these older listeners provide very strong financial support to the station, even remembering the station in their estate planning. This makes them VIP listeners of a very particular kind.

"How many are in that category?" I asked.

"Maybe 300" they said.

"Here's what you do," I suggested. "Give them all free HD radios. Then find out exactly what those 300 people want to hear: Send them a questionnaire and have them check off their favorite Christian music artists. Then create an HD channel which plays all the hits from those artists and all the favorites for that audience of 300 listeners."

"But how old do we go? What format will this be?" They asked.

"It's not a format," I replied. "It's the Christian songs which best suit these 300 people."

The end result will be a vastly improved and direct relationship (after all, you're not only giving them a free radio but you're programming a radio station exclusively for them), vastly improved loyalty and satisfaction, and - I suspect - vastly improved financial support.

And isn't a service personally tailored to that degree entirely worthy of magnanimous support? Especially when that support goes to fund a profound spiritual mission?

A Christian radio station is much more than its frequency. It is the spiritual nexus for its fans. The kind of brand expansion I'm describing is entirely mission-appropriate.

End result: A logic for HD radio.

Imagine that.

And by the way, this same logic could apply to Public Radio stations and their Classical Music VIP's.

Is this the way HD Radio was supposed to work for our industry? Obviously not, but if it accidentally solves a different problem, then who cares?

After all, the sweetener in Splenda was discovered when the scientist trying to find an anti-ulcer drug accidentally licked his fingers.

Too bad HD radio leaves such a bitter aftertaste.

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Comments

Mark -- I appreciate this post and wonder whether you'll follow up at some point in the future to let us know the outcome of this suggestion. It would be great to see a positive angle on HD.

Best-
Brett

Oh, it will work, Brett.

I guess we could buy a radio for every listener to make HD radio viable. Or we could the web. This same custom programming could be delivered for almost no cost via the web. Create a URL and a simple splash page customized for the client and he can now share it with hundreds if not thousands of his clients. I don't think we've figured out a real use for HD radio yet.

If I want to listen to the radio and you tell me to go online you will not be in my will.

Soon every car will have cheap wimax a wireless internet connetion. Why would you listen to radio? Can I be in your will?

I don't think you guys understand the type of listener we're talking about.

Think folks in their 70's and 80's.

People who may never buy another car and don't want a PC.

These people will not accept alternatives to radio.

Mark,

I think you are on track here. HD radio may well be another way for Christian or other listener supported stations to increase their financial base by reaching out to unserved/undeserved audience segments.

However, for the religious listener, it will require more than simply playing "their" music. I have found that the older audience is quite loyal and will support their station s with large and small donations. They will send small donations because of what you are doing for them.

If, on the other hand, you want large donations or bequests you will have to demonstrate that your station is benefiting others. They see radio much as they would see their church mission program, another way of proclaiming the Word of God to the world. Including some preaching in with the music as well as reporting back to them with results is key to receiving the large donations.

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