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Chapter 1: State of the Fifth Estate
Overview
This chapter introduces the student to the following topics: the current state of broadcast radio,
noncommercial radio, proliferation and frag-out, profits in the air, economics and survival
consolidations, buying and selling, satellite and Internet radio, LPFM (low power FM), radio and
government regulations, corporate consolidation, and jobs and equality in radio.
Student Objectives
After reading and understanding this chapter, the students should:
xDevelop an understanding of the history and evolution of radio;
xGain an appreciation of how this evolution affects radio in the twenty-first century;
xBegin to learn the basic vocabulary unique to radio broadcasting.
Instructors may:
xUtilize video and audio recordings to communicate a sense of history;
Key Words
ABC, Call Letters, CBS, Chief Engineer, Consolidation, Deejay, Digital Audio, Radio Service, FCC,
FRC, Group Owners, IBS Intercollegiate Broadcasting System, MBS, Narrowcasting, NBC, Networks
Non-commercial Radio, NPR, Proliferation, RCA, Satellite Radio, Simulcasting, Top 40, Transistor
Quiz and Review
There is a quiz consisting of twenty multiple choice questions relating to the chapter material. There is
Discussion Topics
What factors will allow radio to retain its current level of appeal to a large and diverse audience? Are
there areas of the radio industry that should be more broadly utilized? What can be done to utilize the
effects of satellite and Internet audio services?
Class Activity
Most students will gain a fuller perspective of the current state of radio broadcasting through research on
the many facets of the industry. Do a survey of what students listen to and why.
Workshop
QUIZ: Chapter 1: State of the Fifth Estate
1. With nearly _____________ radio stations in the United States, radio is the most available source of
entertainment, companionship, and information.
__ a. 1,500
__ b. 15,000
__ c. 150,000
__ d. 1,500,000
2. Which of the following is NOT considered to be a listening source as an alternative to broadcast radio?
__ a. Pandora
__ b. iTunes
__ c. VH-1
__ d. Sirius/XM
3. The trade organization that represents radio and lobbies in Washington, DC is:
__ a. AFTRA
__ b. ASCAP
4. __ c. NASCAR
__ d. N.A.B.
5. The ratings company that was bought by Nielson in 2013 and rebranded as “Nielson Audio” is still
referred to by its old name, _______________
__ a. Arbitron
__ b. Hooper
__ c. Accurating
__ d. Pulse
6. On noncommercial radio stations, what kinds of announcements take the place of commercials?
__ a. Station promos
__ b. Underwriting announcements
__ c. Public service announcements
__ d. Fundraising announcements
7. What is meant by the term “frag—out”?
__ a. The invention of Top 40 radio
__ b. A wider variety of formats
__ c. Narrowcasting or niche-casting
__ d. Different music for each daypart
8. According to legend, Todd Storz and Bill Steward laid the ground work for what popular format after
observing what people played on the jukebox at a local tavern?
__ a. Middle of the Road
__ b. Progressive Rock
__ c. Top 40
__ d. Beautiful Music
9. Seventy percent of radio’s ad revenues come from what source?
__ a. National ad agencies
__ b. Local spot sales
__ c. Listener donations
__ d. Tradeouts
10. To counter the sharp reversal of fortunes, many broadcasters formed _____________agreements,
whereby one radio station leases time and/or facilities from another area station.
__ a. Reciprocal trade agreements
__ b. Local marketing agreements
__ c. Revenue sharing agreements
__ d. Non-competitive network agreements
11. What was one of the effects of the Telecommunications Act of 1996?
__ a. More local independent radio stations
__ b. “Duopolies” were limited to just two in each market
__ c. Reduction in the level of local programming
__ d. Limitation was placed on the number of stations a corporation could own
12. The largest and most successful radio group to emerge since deregulation has been:
__ a. Entercom
__ b. Greater Media
__ c. Clear Channel
__ d. CBS Radio
13. Who handles the buying and selling of radio stations these days?
__ a. The networks
__ b. A brokerage firm
__ c. The individual owner
__ d. The FCC
14. What is one of the advantages of digital radio broadcasting?
__ a. A multiplex stereo signal
__ b. Compatibility with current analog signals
__ c. More affordable prices than existing receivers
__ d. Dramatic improvement in the quality of the signal
15. What is one of the main problems with satellite radio?
__ a. It is commercial-free
__ b. It is obscenity-free
__ c. It utilizes free receivers
__ d. It has high monthly subscriber fees
16. In 2013, the biggest challenge confronting Internet presence continued to be:
__ a. A lack of consumer listening devices
__ b. Large fees charged to provide music
__ c. Weak advertising revenues
__ d. A lack of audience ratings
17. Radio Station websites offer what advantages?
__ a. Better signal quality
__ b. Secondary revenue opportunities
__ c. Interesting graphics
__ d. Commercial-free programming
18. What new technology constitutes the most popular mobile services for listeners?
__ a. Transistor radios
__ b. Compact discs
__ c. Audio implants
__ d. iPods, iPads, and smart phone apps
19. A microradio movement surfaced in the 1990s and raised the ire of both broadcast regulators and the
industry; these microstations are referred to as:
__ a. LPFM
__ b. HDFM
__ c. MPX
__ d. AOR
20. The Communications Act of 1934 resulted in the establishment of what government agency?
__ a. The FCC
__ b. The FRC
__ c. The KFC
__ d. The FTC
21. Consolidation of radio ownership has had what effect on jobs in broadcasting?
__ a. No noticeable effect
__ b. Fewer jobs on all levels
__ c. More executive jobs
__ d. Increased on-air jobs
ANSWER SHEET
Chapter 1: Essay Questions
1. What is the current state of radio in terms of audience and listenership?
2. What are considered to be popular listening sources as an alternative to broadcast radio?
3. Describe the trade organization that represents radio and lobbies in Washington, DC.
4. On noncommercial radio stations, what are some of the sources of revenue?
5. What is meant by the term “frag-out”?
6. According to legend, Todd Storz and Bill Steward laid the ground work for what became Top 40 radio
by observing what?
7. Seventy percent of radio’s ad revenues come from what source?
8. To counter the sharp reversal of fortunes, many broadcasters formed local marketing agreements;
describe how they work.
9. What were some of the effects of the Telecommunications Act of 1996?
10. Who handles the buying and selling of radio stations these days?
11. What are some of the advantages of high definition digital radio broadcasting?
12. What has been the impact on listenership of satellite radio?
13. In 2013, what was the biggest challenge confronting Internet presence, and why?
14. Radio station websites offer what advantages?
15. What new technology and devices constitute the most popular mobile services for listeners?
16. A microradio movement surfaced in the 1990s. These stations are referred to as LPFM; describe this
broadcast alternative.
17. The Communications Act of 1934 resulted in the establishment of what government agency? What were
its predecessors?
18. Consolidation of radio ownership has had what effect on jobs in broadcasting?
Chapter 1: Essay Question Answers
1. What is the current state of radio in terms of audience and listenership?
Radio listenership remains resilient and robust across all delivery platforms. While overall
2. What are considered to be popular listening sources as an alternative to broadcast radio?
3. Describe the trade organization that represents radio and lobbies in Washington, DC.
The National Association of Broadcasters (NAB) is the trade organization. President Gordon
Smith, speaking to attendees at the group's 2012 national convention, noted ". . . more than 241
million people listen to free radio every week." Speaking at the same event, FCC Chairman Julius
4. On noncommercial radio stations, what are some of the sources of revenue?
Member stations are the primary source of funding for NPR. They contribute 60 percent of its
5. What is meant by the term “frag-out”?
Frag-out, a term coined by radio consultant Kent Burkhart, posed an ever-increasing challenge to
program directors (PDs) whose job it was to attract a large enough piece of the radio audience to
6. According to legend, Todd Storz and Bill Steward laid the ground work for what became Top 40 radio
by observing what?
Radio programmer Todd Storz and his assistant Bill Steward of KOWH-AM in Omaha,
7. Seventy percent of radio’s ad revenues come from what source?
Many stations walk a thin line between profit and loss. Though the medium’s earnings have
maintained a progressive growth pattern, it also has experienced periods of recession. These
8. To counter the sharp reversal of fortunes, many broadcasters formed local marketing agreements;
describe how they work.
To counter the sharp reversal of fortunes, many broadcasters formed local marketing (also called
management) agreements (LMAs), whereby one radio station leases time and/or facilities from
9. What were some of the effects of the Telecommunications Act of 1996?
As the medium entered the mid-1990s, it was doing more than just fine. The headlines in the
industry trade publications revealed exactly how well the medium had recovered: “Radio Draws
Advertisers as Economy Strengthens” (
Broadcasting
, May 1994), “Recovery” (
Radio Ink
,
10. Who handles the buying and selling of radio stations these days?
Today, brokerage firms handle the sale of many radio stations. “It’s difficult to overlook the
importance of Wall Street and the financial community in the future of radio,” notes Ed Shane.
Bill Campbell, co-owner of Blue River Communications, says the future is now. “Wall Street is
11. What are some of the advantages of high definition digital radio broadcasting?
Digital signaling heralds a new age in radio broadcasting. Jeff Tellis, former president of the IBS,
explains why. “The reason for the great interest in digital broadcasting is its considerable number
of advantages.” Among them are:
• Significantly improved coverage using significantly less power;
xDramatic improvement in the quality of the signal; compare CD to vinyl;
12. What has been the impact on listenership of satellite radio?
Radio broadcasters retain a wary eye on the ever-evolving digital audio services being made
available by satellite. It is the threat of increased competition that inspires concern for the new
and evolving audio options. Although broadcasters have long employed satellite programming and
network services to enhance their over-the-air terrestrial signals, the idea of a direct-to-consumer
13. In 2013, what was the biggest challenge confronting Internet presence, and why?
In 2013, the biggest challenge confronting Internet presence continues to be fees charged to
provide music. States Paul Kamp of Backbone Networks, an Internet radio service provider, "The
14. Radio Station websites offer what advantages?
15. What new technology and devices constitute the most popular mobile services for listeners?
The biggest competitive challenge to radio today is posed by a range of interactive devices (smart
16. A microradio movement surfaced in the 1990s. These stations are referred to as LPFM; describe this
broadcast alternative.
A microradio movement surfaced in the 1990s and raised the ire of both broadcast regulators and
the industry. The debate positioned the NAB against what it labeled radio “pirates.” After lengthy
reflection, FCC Chairman William Kennard proposed rule-making designed to legitimize these
17. The Communications Act of 1934 resulted in the establishment of what government agency? What were
its predecessors?
The Communications Act of 1934 charged a seven-member commission with the responsibility of
ensuring the efficient use of the airways, which the government views as a limited resource that
18. Consolidation of radio ownership has had what effect on jobs in broadcasting?
Today, the radio industry continues to employ tens of thousands, but with all the downsizing and
consolidation and the increase in new and competitive audio media, this figure has eroded and
