Two weeks ago the radio station Indie103.1 shut down in LA. Indie 103.1 was like a cross between a college radio station, NPR, and a commercial alternative rock station. It wasn't really a challenger to KROQ (known in the industry as the most powerful alternative rock radio station in the country), but more of an oasis of relief from the repetitive radio programming we have here in LA.
The program director of Indie 103.1 is a friend of mine named Max Tolkoff. Max did a great job with Indie 103.1 much like he did with Boston's famous alternative radio station, WFNX. Max's lineage goes far back with radio; he was one of the guys who invented the format when he headed up 91X in San Diego a couple of decades ago. All this background is to get you prepared for Max's candor in this letter he wrote documenting the downfall of Indie 103.1. He wrote this great recount for a radio industry trade newsletter called The Sands Report. Richard Sands publishes a regular newsletter providing great insight into the state of alternative radio. As you will see from this letter which Richard has graciously allowed me to re-print, there is a lot more to programming a radio station than meets the eye. Enjoy...
Behind the Death of Indie 103.1 by Max Tolkoff
In deference to Mr. Sands we’re going to pretend, for a precious few minutes, that some of you people actually give a shit. After all, we’re all adults in an industry that takes pleasure in buggering us repeatedly with bad news and woeful deeds. And that goes for both sides; the radio side and the record side. Enough bodies have piled up in both camps to guarantee that none of us are starrry-eyed virgins anymore with hopes of a bright future in broadcasting and/or the music biz. Well, a few lucky souls will make it to the golden parachute stage; it’s just unclear how much raw sewage will have to be digested to accomplish this.
Look, if you’re a typical Rock or Alternative programmer in Asslick, Iowa just trying to hold on to your job, you really don’t give a flying fudgsicle about the death of (yet another) Alternative station. Anywhere. Let alone Los Angeles. But Richard wanted my thoughts on the demise of INDIE 103.1 so we will oblige him. Trust me, there are no lessons here. No moral to a sad story. It’s pretty much business as usual for radio as practiced in the United States of America today. It boils down to: formats that make money stay; formats that lose money go away. Now, feel free to go read the fun ads for new music, the “alt doggie corner”, and anything else in The Sands Report that amuses you.
Still here? Well, I warned you. Let me tell you what INDIE was NOT. INDIE did not spring from the fever dream of some enlightened station manger who woke up one morning convinced that L.A. needed another Alternative station. There were no voices in his head saying things like, “Holy shit there’s all this great new music out there no one else is playing and I think we can be the KROQ of the 21st Century (note: just in case you haven’t been paying attention to the PPM data, KROQ is, in fact, the KROQ of the 21st Century. Winner and still champion. People didn’t just write it down in the paper diaries out of loyalty or heritage. The meters don’t lie; people are still listening in droves). No boys and girls. There was no market research, no focus groups, and no perceptual studies that pointed to an unfilled niche for a way left-of-center Alternative station. The kind your grandpa would have been proud of when he was back in college radio.
INDIE wasn’t even independent. There was no pirate ship of swashbuckling programmers and music heads beholden’ to no one, ravaging the high seas and singing Vampire Weekend songs while drunk on grog. INDIE 103.1 was the creation of Clear Channel.
Five years ago the man who was in charge of all of Clear Channel’s armies of darkness in Los Angeles (let’s call him Roy) had this idea to take a station, and using it much like a straight razor, point this weapon at KROQ (owned by CBS), and shave some ratings to help better the fortunes of KISS-FM (owned by Clear Channel). One slight problem. Clear Channel already owned the maxi¬mum amount of stations in L.A. Flipping formats at any of the current properties was apparently not an option. But Roy is an evil genius. Hyper-smart and charming, he convinced Entravision Communications, a medium sized radio and TV company catering to the Spanish market (with 51 stations nationwide), to enter into a JSA with KDLD and KDLE; two par¬tial market coverage sticks under performing with some form of Spanish dance music. Clear Channel took over sales and programming, guaranteeing Entravision a specific amount of money annually. “The Independent FM” was born over Christmas break in 2003. The fetus was a laptop in a closet running through Profit.
INDIE was a pawn, a tool, a blunt instrument designed to execute a complicated maneuver in the chess game of Los Angeles radio politics. No one was sure it would even work. The signal beaming out of Santa Monica barely covered the west side of L.A., most of Hollywood, and points west to the water. The other 103.1, synchronized with Santa Monica, covered a small chunk of Orange County out of Newport Beach to the south. Hmmm, what to compare it to…Hey, remember the days of WLIR in New York? Basically a Long Island station with piss-poor coverage in Manhattan and the other boroughs. Hence their perennially shitty NYC numbers. Well, this was kinda like that. If you lived in the “valley”, tough shit. Go listen online.
But the public didn’t know the back-story. All they knew was one day there was only KROQ, and then BAM! Here comes a wacky station playing a combination of new and old Alternative tunes people had either never heard, or hadn’t heard in a long time. No jocks. Just production and music.
Oh yeah, INDIE made an impact. The response, and acceptance, was immediate. A renegade was born. Over the next year Roy breathed more life into the newborn. Ex-KISS MD Michael Steel was brought in to be the PD. A couple of full time jocks were added, Steve Jones of the Sex Pistols was given his own show for two hours a d a y, five days a week. Other specialty shows were added; Henry Rollins took over the airwaves once a week. And so on.
How thoroughly was the public convinced they had a real independent entity on their hands? No less an authority than the Los Angeles Times wrote an editorial praising the station and its “independent” stance. Lauding INDIE for not being part of corporate radio. Ha! They never had a clue. So much for investigative journalism.
However, the station started to get some actual numbers. As you well know there is the “check out factor” to new stations. Usually in the first year. The station even cracked a one share for a brief period, enabling them to become a “reporter.” Also, it seems the Clear Channel sales staff, selling the station in combo with other properties, was able to bring in the cash. However, 14 months after sign-on, the FCC changed the rules regarding JSA’s, which made this arrangement verboten. Clear Channel had to walk away from the deal. Somewhere around this time Roy himself exited the mighty CC. But he left a super salesperson in charge of INDIE. We’ll call her Dawn. Dawn knew how to make it rain money. So now INDIE was no longer part of Clear Channel, and had to make it on it’s own as part of Entravision.
So now there’s an honest-to-God alternative to the Alter¬native in L.A. And it’s making wheel barrows full of cash. Look, depending on who you talk to, Los Angeles is either the number one or number two advertising market in the country. Even with teeny tiny ratings you can still make money from the table scraps of the big boys. And Dawn decided to focus on 25-54 as the go-to demo. Entravision just left Dawn and the station alone.
By this time there were now 18, yes, eighteen specialty shows on the station. The music was, to say the least, eclectic. It was hard to believe this was an actual com¬mercial station and not NPR, or college radio. Perhaps you’re beginning to guess where this story is headed...
In the first year, Indie 103.1 was a plethora of riches that appealed to the very few, and the very hip. After the initial check-out, people went away and they did not come back. The station was too difficult to listen to for long periods of time. Too unfamiliar. At times even difficult to pin down what the station actually was due to too many specialty shows clogging up the format. It became harder for the sales person who ran the place that we are calling “Dawn” to squeeze blood from this stone. She was not happy. And she directed this unhappiness toward PD Michael Steele (ex-MD of KIISFM). Eventually they parted ways. The station was hovering around a 0.5 12-plus. And not much better in the key 25-54 demo.
At the time, I was in Boston trying to repair a few years worth of damage to the image and integrity of WFNX (they had gone “ball-crushing-manrock” for a while), and looking for a permanent new PD for the place. I was commuting back and forth to L.A. It was always designed to be temporary. As soon as the ship was back on course I would resume permanent residency back in California. And that time was now rapidly approaching. So, one thing leads to another and I find myself walking into INDIE as the PD in April of 2007.
Compared to INDIE, ‘FNX is practically a mainstream Top 40 station. Don’t get me wrong, ‘FNX stays a healthy distance away from the predictable mainstream, but my God! There were songs in rotation on INDIE from the gold categories even I had never heard of. And I know all the songs that were ever played a lot or a little in the Alternative world since 1982. I am not kidding. So if I don’t know it, how can we expect your average listener to know it?
And let’s talk about the currents. Like being a kid in a candy store. Like living on Fantasy Island. Yes Martha, there’s a lot of great unheard music out there, all just itching to be aired. You know that magical land where Silversun Pickups popped out of the blue? Well there’s a lot more good stuff where that came from. Truly, I was living in a world where the mail was more interesting from labels like Eenie Meenie, Almost Gold, Lost Highway, Dangerbird, and Astralwerks, rather than from Interscope, Warner Brothers, or Columbia.
But it’s all a question of balance, right? And INDIE was seriously out of balance. Koyanisqatsi, baby. [Editor’s note: I looked it up for you so you don’t have to—Koyanisqatsi is a Hopi Indian word that means “a state of life that calls for another way of living.”] No doubt about it. And I could see the clock on the wall. I entered into this arrangement with my eyes wide open. That clock was ticking loudly, and we all knew it.
But Dawn was still making money and Entravision left us alone.
And then…the first sign of the apocalypse. July 2008. Arbitron schedules a meeting at Entravision to present to the company the first “pre-currency” PPM numbers for Los Angeles. They came with a Power Point slide show breaking down the numbers for all the Spanish stations, and INDIE. And what did we see when we looked at the whole market? Essentially payday for KROQ and STAR 98.7 (which by this time had shifted to a format I can only roughly describe as “Let’s-Play-All-The-Best-Testing-Songs-From-KROQ’s-Library-With-A-Few-Random-Currents-Thrown-In-Just-For-Grins.”) Pre-PPM Star was tracking at about a 1.6 12-plus. [Post] PPM? 3.2. KROQ was similarly elevated back to through-the-roof status. INDIE? Suck it, ass wipes. Yer in the friggin’ basement. 12-plus we were at a 0.3 in PPM world. We used to be 0.5. As far as RATING POINT, which is all sales cares about anyway, we were at a nose-bleed inducing 0.0. Yes, you read correctly.
Then, the second sign of the apocalypse. Five weeks after the Arbitron presentation Dawn’s old pal Randy Michaels offered her a sweet gig at the L.A. Times ruling the entire sales force. The rainmaker has left the building. Frankly, it was just a matter of time after that. Don’t get me wrong, we had been cleaning up our act. We moved specialty shows either out or someplace harmless. The music was more familiar and balanced with the right currents. The PPM numbers since July had been creeping back up. Autumn seemed full of promise.
Third sign of the apocalypse? The economy, stupid. In terms of sales, everyone shit the bed across the board in L.A. And in other markets too, of course. By the end of the year the station was costing more to operate than it was taking in. Publicly traded companies with serious bean counters tend to have very little sympathy when it comes to scenarios like this. What would you do? On January 15th we found out.
Now, I may have been a tad hasty last week when I said that this story has no lesson, no moral to the sad tale. If you think about it. And I mean really, truly give American radio some “big picture” thought, you might come to the following conclusion. What we hear on the radio today is not at all determined by GM’s, or Presidents of radio divisions, or even owners of radio groups. What we hear on the radio today is determined solely by Arbitron. They are the true puppet masters. A lone monopoly with the power of life and death over content.
If your content can’t get ratings, and sales can’t sell it, you disappear from the airwaves. Even though you know, because listeners swarm to your events, clog your blogs, and buy the music, that you HAVE A VIABLE audience, if Arbitron can’t track them they clearly don’t exist.
I follow about 35 people on Twitter and about 25 follow me. I say "about" because it is growing daily. Literally daily. You know how you you get about one person a day adding you to their networks on Facebook and LinkedIn? That is what is happening with Twitter right now. It is hitting the tipping point and people are embracing the Tweet!
The leader in brand Tweeting is Zappos. CEO, Tony Hsieh is the man! He's actually leading Zappos in several areas including customer service and employee happiness. But it's his mastery of utilizing Twitter to foster brand and employee loyalty that wows me.
You can't move right now without seeing something about the Inauguration. It is truly riveting. I'm bummed that I'll be on an airplane tomorrow and won't get to watch everything live, but I am sure that when I get to my hotel room in New Jersey I'll be able to watch the highlights on any number of television stations. Meanwhile I'm "Tivo'ing" about 8 hours of coverage plus lots of other shows hovering around the Balls and other events. I've literally been dumping stuff off my Tivo to make room for this. (Side note: I don't own a Tivo any more, it is a DirecTV DVR, but it sounds much better when I say "Tivo.")
The question is, what happens on Wednesday? Ok, on Wednesday we'll all still be recovering from the celebration from the day before. So let's fast forward a week, what happens then? Do we all suddenly remember how lousy the economy is and that our friends and family members are losing their jobs at an alarming rate? My guess is, yes. The LA Times today reported that "Unemployment could be worse than now by the time President-elect Barack Obama's first term ends."
I'm afraid that the outlook is extremely bleak.
One of the few silver linings is the fact that I believe we'll actually have some clue as to what our government is doing. Thanks to technology and specifically the explosion of Social Media, there are a number of ways to keep abreast of what our new President and his administration will be doing. It started with the election and it will continue. A guest post today on Mashable from Shaun Dakin who created the National Political Do Not Contact Registry (a personal favorite of mine as you may be aware), listed the Top 10 Online Tools to Connect With the Obama Administration. Read the post here and the shortcut to his top 10 is here:
Twitter has been around for quite a while now. My company Fanscape has been doing campaigns utilizing Twitter for almost two years. But I'll be honest, I've been slow to get on board. I just couldn't imagine getting updates from people every time they went to the bathroom or crossed the street. I mean, why do I need to know all that? I can't even keep up with the 300 emails I get every day. Conversely, I couldn't imagine wanting to share that much information with anyone else. But today was a light bulb moment.
I've had a Twitter account for over a year but just started to "tweet" in December and started following people and having them follow me in the past 2 weeks or so. And every day I find something interesting as a result of my Twitter connections. I get turned on to funny videos, cool marketing campaigns, and I just generally know where people are that I am honestly curious about.
So today I opened my Twitter page and took a quick glance. Within seconds I learned that the radio station Indie 103.1 was being shut down, that Burger King and Facebook were having issues, and that a USAir jet had crashed into the Hudson. And all of a sudden I'm more informed than I've ever been. And it is a great feeling. The old knowledge is power adage. Not sure what power I possess other than being able to say, "yea, I heard about that hours ago." But it just feels cool.
It's a pretty cool and serious (read: technical) little 7 minute movie about how and why the Internet was started. Turns out it is not because of Al Gore!
I was reading eMarketer's "Key Predictions for 2009" today and this one caught my attention, "Video Ad Spending Will Run Counter to Economic Trends." The supporting paragraph stated:
Video ad spending growth will run counter to overall economic developments, rising by 45% in 2009 to reach $850 million.
Supporting this trend are two key factors: First, the sharp escalation of professional video content on the Web—coming mainly from TV networks—is creating a viable base for brand marketers. Second, even though most advertisers are increasingly cautious with their budgets, they still need to reach online audiences, and woo their shrinking wallets, with messages that reach their hearts and minds—hence, more video.
The reason this hit home is because I watch a lot of online video. My favorite right now is watching the webisodes Jimmy Fallon is doing leading up to the date when he takes over Late Night when Conan moves up a slot.
Each day Jimmy video blogs and it is really engaging. He is giving the viewers great insight into how the show will look, the writers, the stage setup, the band, and lots of personal background about him. Two days ago he even put up a clip of his very first stand up performance in his home town of Saugerties, New York.
Most days NBC runs an ad before the clip. For the first week the same Dove soap commercial ran over and over. Today's clip started out with an ad for Welch's grape juice. Yesterday's started with one for Friday's and when I re-ran the show, one for a Toyota vehicle came up. I'd like to say I don't mind these ads and that I completely understand that advertising is necessary to support these great "free" websidoes each day, but I do. I'm spoiled. I want my content ad free. Who doesn't? But of course I know that can't happen. So, if I have to watch advertising, why not give me advertising that appeals to me?
How about this idea, in order to watch Jimmy's clips each day, you need me to sign up and during that sign up process, you let me know that I have to watch a 15 second ad each time, but you'd like to know what I want to see. Maybe it starts out by categories. I have to choose:
Automobile
Food
Insurance
Financial
Then, after a month, if I'm still here and still loving my Jimmy clips, you ask me to tell you what advertising I want to watch. Maybe even what brands I'm interested in seeing advertised. Imagine the power NBC would have if they could go back to their advertisers and tell them that the viewers actually asked to watch their ads.
Right now I'd be asking to watch the Gatorade ads because I think they are cool and I'm still trying to identify everyone in them.
Finally, the ultimate win here would be ads that not only appeal to me but also have something to do with the content I'm watching. After I've seen the Gatorade ads enough times, I'll never need to see them again. So start each webisode out with Jimmy saying, "Hey, you're going to like this next clip which is brought to you by my friends at Gatorade. Watch this quick commercial and tell me if you notice anything different about it." Then splice in Jimmy in black & white.
I know this can be done today. But I'll give it some time until it actually happens. Kudos to NBC and to Jimmy Fallon for putting the energy into doing these daily webisodes in the first place. My prediction is that we'll be seeing some variation of this in online video advertising before the year is up.
Just read Steve Jobs' open letter to the Mac community (aka the world!). I say the world because the world really does hang on Steve's words. My father-in-law is enamored with Apple and is dying to find the right time to buy stock. And he doesn't own anything made by Apple. I own an iPhone and we have a half a dozen iPods throughout the house, but I don't own a mac.
I love watching the Steve Jobs presentation (online) at each year's Macworld conference. He is a fantastic speaker and I study his public speaking techniques the way I would study equations for a math quiz. It will be sad to not get that this year. But he's obviously not well. There has been speculation for months. When my father-in-law asked me if the time was right to buy that stock, I told him that I believe Apple will continue to make great products, but like most people, I'm not sure what happens if Steve is not there. The last time he left, the company took a nose dive.
Now, if I wrote a letter to everyone about my health, I don't think most people would care. Sure, my friends and family would care. But the world wouldn't care. And they shouldn't need to. But when Steve writes a letter, the world takes notice. I'm not a fool, I didn't read his letter and say, "Oh, that's all it is. Phew. Steve will be better by the Spring and Apple will be fine." There is probably something very wrong and he is doing everything he can to fight it. But there are millions of people hoping and praying that Steve is ok. He has little obligation to them but he knows that Apple is Steve Jobs and therefore he should communicate with the people who support his business and his products. Thus, the transparency, albeit vague, is welcome and a strong move.
For the first time in a decade, I’m getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.
Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed.
I’ve decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow.
As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority.
Fortunately, after further testing, my doctors think they have found the cause—a hormone imbalance that has been “robbing” me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis.
The remedy for this nutritional problem is relatively simple and straightforward, and I’ve already begun treatment. But, just like I didn’t lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple’s CEO during my recovery.
I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple’s CEO. I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.
So now I’ve said more than I wanted to say, and all that I am going to say, about this.
Like most people, I typically write my resolutions at the start of each year. Losing weight, reading more books, being a better husband and boss, usually make up the majority of the list. But not this year.
From the time I was 5 til the end of this past year, I've always looked forward. What was around the bend? What trip was coming up, what meeting did I need to prepare for, what concert would I be attending, what party was this weekend. I've definitely been the guy who didn't enjoy the ride, he just wanted to get there.
In February of last year I reserved plane tickets to take the family to Hawaii. The trip wasn't until December, but it felt great and I would have something to look forward to all year. It would be a long time to wait, but at the end of the year, we'd be going to our favorite place on earth.
Fast forward to December 25, on our way back from the trip. It was a good trip, but not what I had hoped for. I had imagined Hawaii the way I always knew it. Relaxing. Peaceful. A time to read books, sip drinks by the pool. But that didn't happen. When you add a 1 year old to your romantic adventure, things come up a bit different.
And while I was on the trip, I kept thinking, okay, today was rough but tomorrow will be better, at least we have 5 more days. Each day was the same. I never allowed myself to be there. To be in the now.
The end result was that I was disappointed. Sure, it was a great trip, it was Hawaii! But my expectations were too high. Just like when I was a kid and waiting for that Disneyland trip that my dad had promised. And that first date and that music festival out in the desert and on and on and on.
So, my new year's resolution is to live in the now. An absolutely impossible task for someone who has spent 40 years living in the tomorrow. But if resolutions were easy, then we wouldn't need them, right?
I see much in life as a possible business. It is exciting, but also torturous. I just don’t have enough time. A new idea often sends me into hours of thought, research, and ultimately deviation from what I really need to do in a day. I believe that the Internet has made it easy for anyone to create a business. I believe that the Internet has made nearly everything in life easier. I believe that trying to impact the masses is a tough notion, but finding a group of people similar to you, is at your fingertips. I believe that music is free, and that is not a good thing. I believe that life is a collection of experiences and that every day I learn something new and forget something slightly new.
I have learned that the toughest part of running a business is inspiring your own employees. I have grown to understand that you have to show your family at least as much respect as your customers.
I went to college at the University of California, San Diego and majored in Economics and minored in Literature/Writing. I wish I had majored in Literature and only taken the one Economics class that taught me about Supply and Demand.
Larry Weintraub is the CEO at Digital Word of Mouth marketing agency Fanscape. All blogs posts are Larry’s personal opinion and do not necessarily reflect the viewpoints of Fanscape clients.