Competition vs Cooperation

In this corner ... competition. In the other ... the challenger ... cooperation. Pit one against the other and see which of us come out the winners. The radio industry in Canada is in a fight for its survival. Perhaps not in the short run. But make no mistake; the gloves will soon be off. Many of us were raised in an era when so-called "healthy competition" was considered the ideal -- a fact of life for angry young men (and women) growing up in the shadow of the American Dream. Have we just been beating ourselves up?

For the first time ever, I can imagine a future in which radio could be irrelevant and forgotten. For someone who has always loved the medium, this is truly frightening. The facts are fundamental and inescapable. Take a look at the per capita average hours tuned for teens age 12-17:

(Source: BBM)

Sticking with the status quo would not seem to be a long term option. Radio doesn't have much in the way of laurels left to rest on. Heritage means little or nothing to those who haven't experienced it. Technologies that were once essential can be quickly forgotten. Let me offer a brief anecdote. My wife, a teacher, recently found herself having to explain LPs to her thirteen year old students ... "you mean those big black plastic things?" Teens and young adults are confronted with an unprecedented wealth of options, from MP3s and the internet to video games and cell phones stocked with bells, whistles and a personalized ring. Are they leaving us a message? Perhaps it is time to pull together for the good of the medium.

For now, both profit margins and station values are quite good. Not up to dot com boom standards but better than dot com bust. As a short term solution, broadcasters are facing financial challenges with consolidation and fiscal responsibility. Still, basic math tells us that constant downsizing can only lead to oblivion.

Radio currently takes approximately eight per cent of the overall advertising pie. And anyone who tries to tell you that figure isn't in danger probably has some shares they want to offload before retiring. For that eight per cent share, local stations have long set their sights on one another, both in terms of retail sales and programming. It is, as they say, "a mug's game."

Rather than cooperatively turning our collective attentions to initiatives that will benefit the industry, we beat ourselves senseless. Those in the industries taking the lion's share of advertising revenue are only too happy that those in the radio industry are myopically distracted fighting with one another. Lastly, multi-industry media conglomerates are paying less and less attention to their relatively unprofitable radio divisions.

I have recently been privileged to witness some initiatives that display examples of selfless proactivity that will doubtless be rewarded. Digital Radio Rollout Inc. is a unique organization comprised of major broadcasters (private and public) as well as independents. The individuals sharing information, insights and enthusiasm set an example to be followed. I have seen a driving force at the CBC who is willing to take daily calls from broadcasters across the country to assist them with technical issues. He continues to forge a future for DAB with a true sense of purpose. And he is not alone. I have seen many radio engineers, programmers and managers sit across the table and openly strategize together.

I truly hope that DAB thrives and opens up new avenues for the medium. Still, there is something more important happening here. Having seen and experienced some small examples of goodwill and cooperation, I can only guess what could be accomplished by the united efforts of an industry filled with talented people. There is plenty of room for complimentary formats and sales efforts that will advance the overall popularity and revenue of the industry.

It seems clear. If we want to fight for an industry in peril, cooperation will ultimately make for healthier competitors.