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Thursday, February 23, 2012

Lotus CEO: "Radio Might Be Wiped Out By Internet"

2-22-2012

In 1962 Howard Kalmenson put KWKW-AM on the air in Los Angeles. Kalmenson grew that one facility into what is Lotus Communications today consisting  of 27 stations in Arizona, California, Nevada, and Texas. According to BIA, Lotus is now generating over $21 million a year. Thirteen of the 27 stations are broadcasting Hispanic formats, a Lotus specialty. Kalmenson is now 80 years old and his honest perspective on the radio industry is refreshing and very different than what you might be hearing today.

The former marine still refers to himself as a salesman even though he's the President and CEO of a company that employs 400 people. On March 21st in San Diego Kalmenson will be given the Lifetime Achievement Award at the Radio Ink Hispanic Radio Conference for all that he's accomplished in radio, specifically Hispanic Radio. We spoke to Kalmenson and asked him to give us his perspective on the radio industry and how he's seen it evolve.

"It's terrible. It's changed terribly. And they are going to have to change again or they're going to get wiped out by the internet now. I know what to do. We are starting to do it at our corporation now, to keep us from getting eaten up by internet when it's in the car and everywhere. It has changed for the worse. The minute that the money got big and people started concentrating on the ratings, because that's where the money went, all of the great things we used to do with public affairs, community involvement went away."

"I used to give away 500,000 toys at Christmas. We gave away 25,000 turkeys at Thanksgiving. We had programs for the poor. We had news that really meant something. Now none of it happens because everybody made so much money just by doing the ratings dance. The ratings dance was wonderful for listenership or TSL, but it did nothing for your involvement in the community. In fact, it was the opposite. They found just what made people tune in or what makes people tune out. No one gave a damn about anything else. It is terrible. I won't tell you my formula for what it is. I will tell you this much: You have to achieve interest in your company from a local level. In other words, we have the one thing that nobody else can do. If there is a traffic accident outside my window at 5:00, at 5:01 can have it on the air. Nobody else can do that. We can do that. We have to be very local. We have to be very much involved in the community. We have to be needed."

Kalmenson will appear on the cover of the March 12th issue of Radio Ink magazine where subscribers will be able to read more of his open and honest dialogue about the radio industry, the company he's grown from one station and how Hispanic radio has become mainstream. It's our special issue on the explosive growth of the Hispanic format and it features interviews with some of Hispanic radio's top General Managers and Program Directors. To subscribe to Radio Ink in time to receive this special issue, go HERE

(2/23/2012 6:46:55 AM)
I agree . . . I've been saying this for at least 20 years . . . live and local . . . but I have been frozen out by the morons who want to perpetuate the status quo. Let's just keep voice tracking until it's all gone.

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