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Business models in musical radios
A business model is the plan prior to the business plan, which defines what you are going to offer to the market, how you are going to do it, who will be your target audience, what will be your method to generate income, how are you going to sell your producto Service … musical radios today generate their business model based on the following aspects:
- Key partners: both the program and advertising are decisive for the financing of the radio obtained by their listeners.
- Key resources: The following elements are essential for a musical radio to be effective:
- Financial elements: capital obtained through advertising to deal with the payment of necessary materials.
- Human elements: technical body hired for the proper functioning of a program, composed of journalists, editors, speakers, sound technicians ..
- Physical elements: devices and instruments that are required for the elaboration of a program: set, computers, microphones ..
- Customer relationships: Some radioformulas use the incorporation of audios, called or even social networks messages by the public to make them feel participants in the program.
- Channels used: Another business model used by musical radios is the use of the YouTube platform, in which the stations have a channel from which, they can publish exclusive content to attract the masses. Some of the examples that we can find in YouTube channels are the recorded programs like already or interviews with celebrities. The following format competes with the new system offered. Once a program is carried out, it is uploaded to the website. The different business models used in the different radioformulas are evolving as the years go by, they adapt to new systems and new technologies (digitalization processes). The main music chain (the 40) has bought some competing radios: M80 and maximum FM, corresponding corresponding to the 40 dance and the 40 Classic. In this way, Prisa Grupo is monopolizing the musical radios. The radio is essential that it adapt to the technologies at the same speed that they evolve, so they currently have social networks, web pages and even a mobile application so that their most faithful users can listen to their broadcasts when and where and where and whereThey want.
- Cost structure: the previously mentioned key resources (physical elements and human costs) together with variable costs attempted total costs.
- Sources of income: audience studies determine the prosperity of a musical chain since they live from advertising mainly, so as they have a greater number of audience in the listeners ranking, it entails greater income from advertising wedges. Without advertising, few would be the ways with which radios could obtain benefits. Chains such as being confirm the existence of an exclusive department for advertising, becoming the same number of employees of both journalists and public relations (RRPP).
The world of musical radio are not simply the songs of the moment, lists and rankings. Behind these radio topics, a business is emerging in which a large amount of money moves with the aim of achieving fame and benefits through payments to radios by record companies and their corresponding producers.
The well -known technique that is named Payola, consists of the direct payment of the label to the DJ or announcer on duty so that a certain song is punctured on the radio. This strategy is not an invention created by the audience, but is imposed to obtain profits and convert the songs into insured successes. Payola is currently a practice that is prohibited, and that has caused great controversy and controversy in our country. The most important case that has occurred in Spain has been the one in the 40.
Few people are the ones who know what happened in the chain of the 40, and in turn, not many people have knowledge of the fraud they carried in hand. Despite being the pioneer and most listened thematic radio in the country, it was not always pink. Initially, the list of successes named "List Los40" was made based on the audience, the number of times a song on the radio was put and according to the votes he received on a web page. At the moment of truth, the great fraud was discovered that consisted of clicking songs on the radio of artists whose producers and record stamps had paid to sound in the 40 main ones for a certain amount of time, and based on the money that each paidrecord, the position that song in the ranking would get.
Currently, many are the people who do not know this fact. Despite this technique in Spain, the large record stamps in the United States continueFamous Billboard List: Hot 100.
Rumorology says that despite being prohibited, cases continue. A great example would be that of the international artist Catalan Rosalia. Rosalia became known in our country thanks to her hit "badly". During that time, the singer still had no contract with any record, and despite being a great success, it did not sound on any radio. Once he signed with Sony Music Spain began to sound on the different most important musical radios.
During the eighties and nineties there was the transfer of rights as payment to sound in the media. Artists such as those of the river, Alaska and Dinarama, Men G and Celts short had to give the editorial of their songs to the various radios.
Some radio stations such as Cadena 100 pays more than 1 million euros a year to the SGAE to be able to place music without copyright. In this way, they get rid of controversies. Depending on the type of audience to which each radio is addressed, the broadcasters decide to buy some certain songs and not others. In the case of 40, Europe FM and Cadena 100 offer their listeners recent international and national themes that are trend. Cadena dial focuses more on music of Spanish origin, while Rock FM bets on the rock genre.
The different business models used in the different radioformulas are evolving as the years go by, they adapt to new systems and new technologies (digitalization processes). The main music chain (the 40) has bought some competing radios: M80 and maximum FM, corresponding corresponding to the 40 dance and the 40 Classic. In this way, Prisa Grupo is monopolizing the musical radios.
In conclusion, based on the following elements, the radio is constituted as an entity.