Radio stations innovate to survive<\/p>\n
By Johannes Simbolon and Rita A. Widiadana<\/p>\n
Despite earlier fears, radio broadcasting, the oldest of all
\nelectronic mass media, is alive in Indonesia. Aware of tight
\ncompetition from television, radio stations continue to innovate
\nand adopt hi-tech systems to remain on air. The following article
\nand several others on Page 3 describe efforts made by commercial
\nradio stations to survive and what they have done to boost their
\naudiences.<\/p>\n
JAKARTA (JP): Your are driving along in your car and listening
\nto a CD when your favorite ABBA song is suddenly interrupted by a
\nnews flash that a nearby street is underwater. You take the next
\nright to avoid the flood, merrily returning to lip synching
\nXanadu.<\/p>\n
There is nothing wrong with the CD player, it is just the
\nlatest development in radio technology to enter Indonesia. Called
\nRadio Data System (RDS), it has many amenities including the
\nemergency warning facility. The facility allows automatic access
\nto news flashes without having to manually switch on the radio.<\/p>\n
Only a few Indonesian radio stations, one of which is Radio
\nSonora, operate the system. To access the service, an RDS
\nreceiver must be tuned to an station with RDS.<\/p>\n
RDS receivers have long been available in Jakarta at prices
\nranging from Rp 600,000 to Rp 3.1 million (US$257 to $1,330). The
\nbrands include Blaupunkt, Philips and Grundig.<\/p>\n
In the near future, said Sonora director Jos Tanubrata, the
\nservice could offer a security system against theft. A stolen car
\nwhich has the RDS system can be shut down by the radio station.
\nThat way, the radio station will be able to locate your car.<\/p>\n
\"We are heading towards that kind of technology,\" Jos told The
\nJakarta Post.<\/p>\n
Indonesian radio stations are gearing up for a period of tight
\ncompetition against audio-visual media, which has proven more
\nattractive than radio broadcasting. Radio stations have to
\ndevelop themselves, continuously define their hardware and
\nsoftware, and find market segments left untouched by television.
\nOtherwise, both audiences and advertisers will abandon radio.<\/p>\n
Satellite<\/p>\n
Although many radio stations have survived the tight
\ncompetition, very few listeners understand how the stations have
\nmanaged. Audiences are better informed about developments in
\nvisual technologies than about radio broadcasting.<\/p>\n
To start with, radio stations have switched from the AM
\n(Amplitude Modulation) to FM (Frequency Modulation). The latter
\nhas clearer sound but covers a narrower area than AM radio. The
\nexodus started in 1982, and, of the 674 radio stations in
\nIndonesia today, 275 are FM stations. Only 8 of the 38 radio
\nstations operating in Jakarta are AM.<\/p>\n
\"The FM frequency in Jakarta is already full. No more stations
\nare allowed to move in,\" Purnomo, the chief executive of the
\nIndonesian National Private Radio Station Association, told the
\nPost.<\/p>\n
Purnomo owns Safari, a station specializing in cultural
\nprograms and the last to switch to FM in Jakarta.<\/p>\n
The AM exodus was followed by a series of hardware
\ninnovations.<\/p>\n
The RDS system was one of the innovations to make it to
\nIndonesia. Another one was satellite broadcasting, first
\nattempted by Trijaya FM two years ago. It relayed live music from
\nNews Cafe through 10 receiver stations outside of Jakarta.
\nUnfortunately, the government forbids radio stations from
\nbroadcasting on a nationwide scale.<\/p>\n
\"By using a satellite, we were staging a national broadcast,
\nwhich is denied to private radio stations,\" said a staffer at
\nTrijaya.<\/p>\n
Chapter 4 of the Information Ministerial Decree No. 39 issued
\nin l971, includes general policy guidelines on the operation and
\nprogramming of private radio stations. The decree stipulates that
\nprivate radio stations are local in character.<\/p>\n
Some radio stations also employ advanced AM stereo technology,
\nwhich produces as clear a sound as FM stereo and blankets a wider
\narea. Radio stations with AM stereo capability include Lita Sari
\nin Cimahi, West Java; Veritas in Manado, and K. Manek in Dili.
\nUnfortunately, AM stereo radio receivers are not available in
\nIndonesia so no one benefits from the technology.<\/p>\n
Some stations plan to use FM digital technology to transmit
\nbetter, clearer sound than a compact disc. It is also immune to
\nany natural disturbances.<\/p>\n
Broadcasters are confident the government will drop its stance
\nagainst new technology, which in the past killed Trijaya's
\nsatellite broadcasting.<\/p>\n
\"The new bill on broadcasting, which is now being discussed by
\nthe House of Representatives, does not prohibit the use of any
\nnew technology,\" Purnomo said.<\/p>\n
Networking<\/p>\n
The management trend is toward networking. Small stations
\nattach themselves to a large station in a mutually-beneficial
\nscheme. In return, the large stations share their abundant
\nresources, experiences and good programs. They also look for
\nadvertisements on behalf of the group and distribute the ads
\namong the stations. That way the small stations can focus their
\nbudget on marketing and production.<\/p>\n
Among the large networks are Prambors Network, led by
\nPrambors, and comprising 29 stations throughout the country; CPP
\nnetwork, led by CPP, comprising 20 radio stations; and Trijaya
\nnetwork, comprising 10 stations.<\/p>\n
Other stations cooperate with foreign networks to foster
\nquality. TOP FM, a classical music specialist, cooperates with
\nWCLV from Cleveland, a leading classical radio station in the
\nU.S. TOP FM cooperates with Media Network Consolidated, which
\noperates 10 radio stations.<\/p>\n
Small-budget radio stations were initially suspicious of the
\nnetworking trend. They feared they would be gobbled up by large
\nstations, leading to the conglomeration of broadcasting.<\/p>\n
Such fears seem to have evaporated. The broadcasting bill is
\nnot against the trend either.<\/p>\n
\"The networks help small stations to survive,\" Purnomo
\nclaimed.<\/p>\n
The tight competition and varied demands from listeners have
\nforced radio stations to focus on one particular segment of the
\nmarket. Prambors, for example, targets young people, while Kayu
\nManis still broadcasts radio plays, which made it famous in the
\npast. Sonora's traffic news flashes target upper middle-upper
\nclass listeners stuck in there cars, and Safari airs cultural
\nprograms. CBB specializes in dang-dut songs, while M 97 FM goes
\nto the other end of the music spectrum and plays classic rock.
\nFeMale radio is obviously dedicated to a female audience.<\/p>\n
In the past, when radio plays were king, almost all radio
\nstations broadcasted the plays. Today, talk shows and quizzes are
\nthe thing, with almost all wavelengths being dedicated to talk
\nshows during prime time.<\/p>\n
Innovation has not helped radio stations increase advertising
\ndollars. Although advertising spending continues to increase
\nnominally, it has steadily decreased in terms of percentage. In
\n1991, radio stations received Rp 105 billion, or 12.6 percent of
\nthe total Rp 835 billion spent on advertising in Indonesia. In
\n1992, the amount slid to Rp 100 billion, or 9.7 percent of the
\ntotal Rp 1,027 billion. In the 1993, Rp 113 billion was spent on
\nradio advertising but the percentage went down to 8.2 percent. In
\n1994, the amount rose to Rp 139 billion but the percentage
\ndropped to 6.1 percent. In 1995, total national advertising
\nexpenditure rose to Rp 3,113 billion, of which only Rp 170
\nbillion or 6.8 percent went to radio stations.<\/p>\n
Television stations and the print media get the bulk of the
\nadvertising funds. The television stations obtained 25.4 percent
\nof the total expenditures in 1991; the percentage increased to
\n48.3 percent in 1995. The print media, including newspapers
\nreceived 54 percent in 1991, which dropped to 39.1 percent in
\n1995 (see chart on page 6)<\/p>\n
The limited revenues have not discouraged radio station
\nowners.<\/p>\n
\"Even in the U.S., where TV networks are much developed, radio
\nstations survive,\" Purnomo pointed out.<\/p>",
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