Do we really need (or want) "Canada Live" on CBC Radio 1?

Many of us are Radio 2 refugees. What is a “Radio 2 refugee”, you might ask? Well, I’ll tell you. It is a former listener of Radio 2 who has had to turn to other radio stations for their daily classical music fix.

I discussed alternatives to CBC Radio 2 in other posts. I did not mention in those posts, however, my almost traitorous decision to start listening to CBC Radio 1. Yes, I am a recidivist CBC radio listener.

I listen to CBC Radio 1 in the car, while working in my basement workshop, while painting walls. Any place where I require radio entertainment.

Yet I notice recently that the boys and girls in short pants that ruined Radio 2 seem to be trying to work their magic on Radio 1. What, specifically, am I referring to? Funny you should ask. It’s “Canada Live”.

“Canada Live” was first introduced on Radio 2 to replace “In Performance”, if I recall correctly, in 2007. Who was the bright light at the CBC who decided that what Canadians really, really wanted was to listen to mediocre performers performing across Canada, live and in performance? Well, not live, really. Recorded. But they were live when performing. We think.

Now the CBC, in its infinite wisdom, has decided that what CBC Radio 1 listeners really, really, REALLY want is to listen to mediocre performers performing … well, you know what I’m going to say next. Yes, CBC Radio 1 now has “Canada Live” on its schedule at 2:00 PM on Friday afternoons. Why? Why, I ask? Did I ask for this? Did you ask for this? Wouldn’t you really rather have another segment of “Ideas”? Or, God forbid, at least another episode of “Rewind”? But no. You have to listen to “Canada Live”. And if you’re not willing to listen to it on CBC Radio 2, well then, by God, you will damn well listen to it on Radio 1!

Two years later - have the CBC Radio Two changes been a success?

As I mentioned in my March 30 blog entry, it has now been two years since the CBC initiated its program of Radio 2 restructuring.

Phase I of the restructuring began March 17, 2009 with the cancellation of the "World at Six" news broadcast, the replacement of "Music for a while" with "Tonic", the replacement of "In Performance" with "Canada Live", the cancellation of "Two New Hours" and the introduction of "The Signal", the cancellation of "Brave New Waves" and the cancellation of "Northern Lights". Phase III was completed in September 2008 with the cancellation of "Here's to You", "Studio Sparks" and "Sound Advice" and the replacement of "Disc Drive" with "Radio 2 Drive" and "Music and Company" with "Radio 2 Morning". So, you may be wondering, has it all been worth the pain and agony that the CBC has inflicted upon its audience? Has the new programming been successful?

To answer this question I continued the analysis of CBC Radio Two's market share that I first did in my October 30 2008 blog entry using audience share data from the Bureau of Broadcast Measurement. Since we now have market share data including the period Sept. 1 2008 - Oct. 26 2008 (S4 2008, in BBM's terminology) and Jan. 5 2009 - March 1 2009 (S1 2009), we can compare CBC Radio Two's market share before the changes were implemented; i.e. before Phase I of the restructuring was implemented and the market share after the changes were implemented; i.e. after Phase III was completed. Since we have data for S4 2008 and S1 2009 we can get a good picture of how CBC Radio Two's market share has changed as this represents seven months of elapsed time since the completion of Phase III.

Much to my surprise, I found from the BBM data that radio listenership has actually increased in the major cities surveyed by the BBM, increasing from 20.7M in S1 2007 to 21.4M in S1 2009, an increase of 3.3%! In an era of MP3 players, internet radio and ubiquitous CD players this should be considered nothing short of astounding. It seems that there is a place for good old broadcast radio in our era of new technology after all!

But what about CBC Radio Two? How has it fared? Well, not as well. In a period of increased radio listenership CBC Radio Two actually lost listeners, losing a total of 49,000 listeners, or 6.9%, during the period from S1 2007 to S1 2009. As anyone with a lick of sense will tell you, to lose listeners in a growing market is very bad indeed, especially if you are trying to become more relevant to your audience, as the CBC apparently is trying to do. The chart below summarizes CBC Radio Two's market share during the period S1 2007 to S1 2009, as well as the total radio listenership in the major markets surveyed by the BBM. You can check this data for yourself using the BBM Top-Line Reports at the BBM web site.

The CBC has responded to reports of declining market share for CBC Radio Two in the past by saying that CBC Radio Two "needs to find its audience". One would think that if the "new 2" hasn't found its audience six months after its launch, it's never going to find it.

Most public corporations have a predictable response to a failed strategy. Either they admit their mistake and revise the strategy, or management is replaced or the corporation fails. The management of CBC Radio - answering to no one, apparently - has the luxury of being able to continue on their merry way to self-destruction, oblivious to declining market share and the ire of their audience. (For radio, that is, television is another story, as recent events have borne witness.)

Advertising on CBC Radio Two? Why not?

The following letter appeared in today's "Letters to the Editor" section of the Globe and Mail:

Tuned in, tuned out

GERHARD BASSLER

March 21, 2009

St. John's -- It is difficult to understand why CBC president Hubert Lacroix is so eager to keep assuring us there will be no advertising on radio (CBC Plan To Freeze Executive Salaries, Cut Bonuses Gets Poor Reception - March 20). He might as well introduce advertising on Radio 2; it goes with the kind of wishy-washy pop music that has replaced the CBC's unique and culturally distinct classical music and jazz programming.

The new listeners Mr. Lacroix is trying to attract would most likely not object to having the programming spiced up with advertising.

Advertising would have the additional advantage of funding bonus payments to reward CBC executives for having successfully gotten rid of an old community of loyal listeners and dedicated supporters.

Well said, Mr. Bassler!

WiFi Radio: The Death of Broadcasting, Part II

The following article appeared in this morning's National Post. It uses the term "WiFi radio" to refer to the "internet radio" that I used in my blog on the "The death of broadcast radio":

Radio in tune for digital revolution: Deloitte

'It's The Future'

Grant Surridge, Financial Post Published: Wednesday, January 21, 2009

While the vast majority of radio listeners in Canada still tune in to old-fashioned analogue signals, some observers say the medium may finally be on the verge of a digital revolution. And radios that connect to the Internet will push such change forward.

"Radio is really the last medium to go from analogue to digital," John Ruffolo, Deloitte's senior technology leader, said yesterday.
The accounting firm predicted the widespread adoption of so-called WiFi radios as part of an annual list of predictions for media and technology trends.

The devices in question look like normal radios, with digital displays, speakers and tuning knobs. But they pick up thousands upon thousands of Internet radio stations from around the world free of charge.

"It's the future of radio," said Alex Bowden, a salesman at Bay and Bloor Radio in downtown Toronto. He said the store has seen an uptick in sales of the devices, especially over Christmas, as prices have gone down.

The cheapest units retail for about $200. They connect to the Internet on their own or through an existing wireless router.

Analogue radio has stood down the advent of television, satellite radio and various digital incarnations. But Mr. Ruffolo contends WiFi devices will present a solution to consumers who are unwilling to pay for satellite radio, but tired of a limited selection of analogue signals.

Jacques Parisien heads the radio business at Astral Media Inc., the country's largest radio broadcaster.

He said WiFi radios present an opportunity for broadcasters to expand their analogue audience.

However, for the time being, Astral remains focused on analogue radio, where the vast majority of advertising and listeners are still situated.

In the first three quarters of last year, the U. S. Radio Advertising Bureau said online ad revenues accounted for about 9% of total radio income.

Mr. Parisien said that figure is likely even smaller in Canada.
David Bray, a radio industry analyst based in Toronto, called the idea that WiFi radios would herald a widespread shift in the way people listen to radio "wildly improbable."

He said he expects that there will eventually be a digital shift in the radio business, but it is far too early to tell if consumers will spend several hundred dollars to buy new radios.

He said that where there is no WiFi coverage -- such as outside of large cities -- such portable devices would be useless. "You're limiting yourself to urban locations where WiFi coverage is in place," he said.

According to data from the Canadian Radio-television Telecommunications Commission, about two-thirds of Canadian households subscribe to high-speed Internet connections.

There are still issues to be resolved over tariffs broadcasters must pay to musicians to compensate them for playing their music over the Internet, Mr. Bray said.

The challenge for radio broadcasters who want to compete in a cyber universe filled with thousands of stations will be to organize themselves so that consumers can find them.

"They'll have to be categorized in an easily searchable format. Absolutely," he said.

Of course, I fully agree with Mr. John Ruffalo, the Deloitte analyst who wrote the report and predicts that WiFi radio will replace today's analogue radios. Although the cost of WiFi radio is relatively expensive when compared to analogue radios, the cost will come down as production ramps up. Remember when LCD TVs cost over $4,000? The same TV can now be purchased for less than $1,000.

Mr. David Bray missed the point entirely, however, when he states that WiFi (or Internet) radios will be useless in areas outside the Metropolitan regions where WiFi coverage is not available. WiFi radios will, I expect, be only used in conjunction with WiFi transmission from your own in-house wireless router, not with commercial WiFi services. And, although the penetration of wireless routers may not be that high yet, I expect that soon every household that has broadband internet will soon have a wireless router in the home. When every child in the house, not to mention adult, has their own laptop, it will become impractical to connect to the internet through wires - hence the widespread deployment of wireless, and wireless routers. WiFi radio will just ride this trend.

The other point not mentioned in the article, and the point that I was trying to make in my previous blog entry, was that WiFi radio (or internet radio, as I called it) will mean the death of broadcasting. A broadcast radio station could not, for example, play U2 exclusively since the audience within broadcast range would be too limited, and the resulting advertising revenue too small. However, if you can reach U2 fans world-wide, then you can tailor your advertising to that segment of the population which are also U2 fans, and who are in the target market segment for your product. This is, of course, the dream for every advertiser. So, with the emergence of WiFi radio, I expect that radio stations will move to the internet, expand their reach, narrow their focus and consequently be able to target their advertising more precisely. Thus the advent of narrowcasting, as opposed to broadcasting.

What has this to do with CBC Radio Two? Well, as you can see, CBC Radio Two has moved in precisely the opposite direction - becoming a 'broader' broadcaster, attempting to reach an even wider audience with its mish-mash of every conceivable musical genre available in Canada, in the end satisfying no one. CBC Radio Two is not evolving, rather, it is accelerating its own devolution into a dinosaur.