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Rehr Calls On Radio To "Reignite The Passion"
June 30, 2008

NAB President and CEO David Rehr delivered a keynote address Friday at the Conclave Learning Conference in Minneapolis, where he pointed to four key areas for growth in radio and called on the industry to remind people why they fell in love with the medium in the first place. "Radio is so pervasive, like water, air, and electricity, that many people take it for granted," Rehr said. "I believe we must do a better job reminding people why they fell in love with radio. We must reignite the passion."

Rehr then identified "four key areas for growth – opportunities to remind consumers of the value of radio," and listed them as technology; playlist variety and format diversity; building for the future; and reigniting consumers.

Rehr said the NAB is undertaking an effort to increase the number of FM radio receivers in cell phones, and he pointed to HD radio side channels an as important key to the future. 

"We know that in this customizable era, consumers are becoming more selective and protective of their choices. People want new, unique content. They want niche channels, and radio must respond," Rehr said. "We must continue to launch more eclectic formats, expanded playlist selection and increased local control. We must focus on content. This brings me to the immense opportunities of HD Radio. NAB has worked closely with the HD Digital Radio Alliance to make sure auto manufacturers 'fully equip' their vehicles with HD Radio... Radio stations are stepping up to offer the programming to support new multicast channels of HD Radio. We still have a lot of work to do on this, but we are certainly headed in the right direction."

He also spoke of the ongoing Radio 2020 initiative, which was announced at the NAB Radio Show last September. "We've launched the next phase of the Radio 2020 initiative – a campaign called Radio Heard Here. This comprehensive, multiplatform, viral campaign includes a wide spectrum of promotional and educational initiatives designed to engage virtually the entire ecosystem that radio touches. Through Radio Heard Here, we will remind radio insiders, the media industry and consumers of radio's value," Rehr said, adding that radio stations will soon receive
a fact book containing what they need to tell people about radio, as well as radio spots that remind listeners why they fell in love with the medium.

Rehr closed by talking about some of the NAB's battles on Capitol Hill, such as localism, the XM/Sirius merger and the issue of radio royalties. As for the FCC's proposed localism regulations, he said they "reflect an outdated regulatory mindset" and that the FCC cannot justify forcing such regulations. "Enacting these rule changes at this time is simply unacceptable," Rehr said. "We fundamentally disagree that this focus on re-regulation is beneficial."

As for the Performance Rights Act, which would call for radio stations to pay royalties to artists for the music they play, Rehr said, "For the past year, we have been aggressively working to oppose the imposition of a performance tax on local radio broadcasters. We will not let down our guard." He added that the NAB recently provided members of Congress "empirical data demonstrating how local radio airplay generates sales for artists and labels."

And as for the proposed merger of XM and Sirius, Rehr said, "Given the satellite radio companies systematic breaking of FCC rules over their 11 years of existence, it is unfathomable that the Commission could now reward the companies with a monopoly. We will continue to follow this issue very closely. We are continuing to make our case to the FCC and will keep you updated on our efforts as the process continues to unfold."

Rehr concluded, "We have challenges ahead of us. We have battles that may seem overwhelming. But the opportunities ahead of us are incredible. Radio's future is bright. If we are persistent and consistent, we will win our battles, we will realize the enormous opportunities ahead, and ladies and gentlemen, we will make radio new again."




 
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