NAB’s Smith: Radio’s Strengths Must ‘Not Be Undermined.’

Story by Inside Radio

Marking the official opening of the 2016 National Association of Broadcasters Show, president & CEO Gordon Smith’s State of the Industry address heralded the accomplishments of radio and television. And it emphasized the continued evolution of both as consumer habits shift.

In his robust discussion of radio issues, Smith stressed that the medium’s future lies in its availability on every device and “making choices that support its innovations.” Pointing to Nielsen research that says more Millennials listen to radio than any other demographic—66.5 million each week—Smith said, “Radio’s audience continues to evolve, and we must continue to evolve with them.”

That includes the steady push to make FM radio chips standard fare in smartphones. With AT&T, T-Mobile and Sprint unlocking FM radio in current and future phones, “more than two-thirds of U.S. mobile phone users [will have] access to a free entertainment and emergency information option through FM radio in their smartphones,” he said. “We do hope Verizon and others will join them soon.”

The NAB chief also addressed “ensuring radio’s rightful place” in the automotive dashboard of the future, calling attention to studies that make clear AM/FM radio is indispensable to drivers as their No. 1 audio option in vehicles. “While many drivers desire interactive features, the great majority also wants a traditional radio interface,” he noted. “We know that radio is what drivers want most, and we also will ensure that Detroit knows it.”

Smith added that radio broadcasters “must, and we will, continue to retain our rightful place in the automobile,” while stressing that the industry needs to work toward the future by “providing [an] interactive experience for those listeners who desire it. In the end, as you know, the customer is king and our listeners will decide ultimately what they want and what is on the dash.”

And regarding the hot button issue of royalties, Smith pointed out that the NAB is maintaining efforts to support policies enabling stations to deliver content across emerging platforms. Noting the association’s advocacy that helped reduce Copyright Royalty Board rates for radio broadcasters’ streaming services by 32%, the audience applauded enthusiastically, as he added, “We want reasonable streaming rates that encourage more broadcasters to stream and deliver music in new ways to their listeners. This is a win for everyone who loves, who makes or who plays music.”


Emphasizing that radio is among the few media players that continues to offer a free service for its audience, Smith stressed that “these attributes are unique in today’s media landscape, and should not be undermined,” while noting, “No other media industry is as dedicated to supporting our local communities: not Google, not Apple, not Pandora, not cable, not satellite. We don’t send a bill to our communities for all the services we provide.”

Rallying the industry in his conclusion, Smith said, “There is no other industry in the world like broadcasting...no other industry has, at its core, such an overarching focus on bringing communities together and serving the public good.”