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Commercial radio seeks your donations

Radio microphone and console

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TEXT OF STORY

Kai Ryssdal: Like just about every other business that depends on advertising, commercial radio is getting pummeled in this economy. Ad revenues were down 9 percent last year. So some commercial broadcasters are fine-tuning their business models. They're trying a strategy that would sound familiar to our listeners. Marketplace's Janet Babin reports from North Carolina Public Radio.


JANET BABIN: Used to be you could tell you were at the low end of the radio spectrum when you heard people on the air asking for money. But public radio is getting some company from stations like:

KSCO AD: On KSCO Radio.

Talk radio KSCO in Santa Cruz is a launching a plan to ask listeners on its Web site to give. KSCO Owner Michael Zwerling does the asking.

Michael Zwerling: We're not getting rich off it, but you know, I'm not proud, and we're making more than if we didn't do it.

The Wall Street Journal reports that other commercial stations are considering asking listeners to pitch in. Radio and Records editor Mike Stern says in exchange, listeners get premium content.

Mike Stern: It's a matter of taking the content that the network has available and maximizing it and making it available directly to listeners for a subscription fee.

Marketing experts say the idea makes sense. Radio was struggling before the recession hit. But Arthur Cohen, with the Public Radio Program Directors Association, cautions commercial stations to take it slow. He says as nonprofits, public stations use the model because they have to.

Arthur Cohen: Public radio's been spending years trying to figure out alternative models, because it drives away listeners and is an interruption to the programming that we are trying to do.

But the old one has worked pretty well in a bad economy. While public radio's underwriting has been down, Cohen says many pledge drives have been breaking records.

I'm Janet Babin for Marketplace.

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Richard Core, Marketplace's picture
Richard Core, M... - Apr 21, 2009

Sybil, Thanks for catching our typo. It's fixed.

SYBIL AUGUSTINE's picture
SYBIL AUGUSTINE - Apr 21, 2009

I'm somewhat speechless at the crass audacity of this tactic....so I'll start with a small and obvious complaint: the story states "Cohen says many pledge drives have been braking records." I do believe you mean BREAKING records, as records do not have brakes, unlike things on wheels. <Sigh.> Is journalism, and thus the command of the English language, now completely dead?

Tom U.'s picture
Tom U. - Apr 20, 2009

Perhaps I'd be more inclined to invest in commercial radio (at least in north Texas) if I felt they did more than treat their listeners as blind consumers for the homogenized product they air. Hopefully, these stations will, in turn, invest in their local communities, break local talent, give a an active voice to the very people they claim they service. As a Public Radio fans I can say with confidence that the medium has potential to be far more than merely an advertising distribution service.