AJR  Columns :     THE BUSINESS OF BROADCASTING    
From AJR,   June 1994

A Major Expansion Of Radio News   

Technology makes it an increasingly attractive option.

By Lou Prato
Lou Prato is a former radio and television news director and a broadcast journalism professor at Penn State University.     


Radio listeners are soon going to be hearing more news.

The Associated Press has just launched a 24-hour all-news radio service to supplement its thriving audio feed and newscast service. CNN, which has one radio operation providing scheduled newscasts and impromptu updates and another offering a 24-hour feed of audio from its cable "Headline News," is considering a new six-hour morning drive-time news program. ABC, CBS, Westwood One (which includes NBC and Mutual) and some smaller networks and syndicators also are looking at ways to expand news programming.

"The future of radio news expansion is in long-form programming like what the AP and CNN are doing," says Richard Rieman, a radio news executive for more than 20 years with NBC, RKO Radio Network and Unistar. "We will continue to have the short-form, five-minute news capsules at many stations. But the growth in talk formats around the country has encouraged more types of long-form news programming.

"The real leap will be to come up with a successful national long-form news format for FM stations. Right now there is only NPR. But 75 percent of today's radio listeners are in FM. There is a big future for news in FM with the right format."

Technology has made all this possible. The all-news format, for example, can be lucrative but it's also costly to run. That's why nearly all of the dozen or so all-news stations are owned by just two companies, CBS and Westinghouse Broadcasting, and are located in major cities.

"Everything is cost-effective because of technology," Rieman adds. "The network service comes in by satellite and with digital editing and digital automation you keep the labor costs down, whether it's all-news or news-talk. Three or four people can now do the job that once took 25 to 50."

The AP has designed its all-news service specifically for small- and medium-market stations that would be unable to afford a local all-news operation. Although the price for the service will depend on market size, the cost is expected to range between $12,000 and $80,000 annually. The station will sell all the commercials and keep all the revenue.

"A station can budget wisely, create a local news image and make money," says Brad Kalbfeld, the deputy director of news for AP Broadcast. "The station can hire a few people to do local news inserts, using automation [for pre-taped material] to give them presence even when they are not going live. We fill all the time and they can jump in and out whenever they want.

"This is a prudent investment for us, too. We are not adding to our editorial staff [of 100] but just redeploying it. Our investment in technology will make the staff more efficient and we can now worry less about mechanics and more about journalism."

Some of the AP's network members, which include ABC, CBS, CNN and NBC, are not happy with the new service. "The AP is supposed to be a cooperative and we pay a lot of money to keep the AP in business," says one radio executive. He complains that his network now will have to compete with the AP for stations' business.

Kalbfeld disagrees, saying a station subscribing to the AP's all-news service could also use other services. "There are stations [such as KWFB in Los Angeles and WMAQ in Chicago] that already use several sources like ABC, NBC and CNN," he points out. "We honestly believe we are helping to create new news markets for everyone."

CNN may benefit most from radio news expansion, and not just financially. The worldwide success of its two cable networks has given the company instant credibility on radio. A 1992 survey by Statistical Research, Inc., for Unistar Radio (now part of Westwood One) found CNN to be the overwhelming choice of radio listeners for national and world news. (Westwood One/Unistar is a technical partner of CNN's, providing the satellite delivery of CNN Radio to 600 stations and CNN "Headline News" audio to another 170 stations.)

Some radio news executives are apprehensive about any additional moves CNN makes in radio. With the technology now available it wouldn't take much of an investment to replace the CNN "Headline News" audio service with an all-news radio service similar to the AP's. Then there's the possibility of a 6 a.m. to noon drive-time radio show that would cover three time zones. It would be based in Washington and feature breaking news, sports and entertainment.

"CNN doesn't seem to realize the potential it has to dominate by far network radio news in America," says Pat Cassidy, assistant news director and long-time morning anchor at all-news WMAQ in Chicago, a Westinghouse-owned station that uses CNN. "Radio news seems to be an afterthought at CNN. It sounds too much like TV on radio, which is very confusing at times. If CNN ever gets serious about radio news, watch out." l

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