RAIN 5/22: Panelists discuss the tumultuous "combination of art and science" that is personalizable radio at RAIN Summit West

Michael Schmitt
May 22, 2012 - 11:00am

Personalizable radio panelCustomizable radio, like the offerings from Slacker, iHeartRadio, Pandora and others, is a "combination of art and science," members of the "Personalizable Radio" panel at RAIN Summit West explained. The discussion was one of the most popular and thought-provoking of the conference.

The "art and science" metaphor was first put forward by Owen Grover, SVP of iHeartRadio. On the one hand, there's the "science": data from companies like The Echo Nest and Rovi about what artists are similar to other artists, what vocalists sound the same, what guitar solos are related and so on. 

But then there's the "art" of also taking into account the much more complicated "cultural" factors, explained Rovi Director of Architecture & Innovation Michael Papish. That is, linking artists and songs that don't necessarily relate to one another scientifically, but that are tied together in popular culture. "There's a lot more going on than just saying 'these two songs sound alike, therefore we should play them together.' There's a lot more behind why humans like different types of music," said Papish. 

Both Grover and Slacker CEO Jim Cady spoke to the power of having an emotional connection within the stream as well. "There has to be humans behind it," said Cady. Slacker employs 75 programmers to give their streams that human touch. Otherwise, "there's a missing emotional connection." He says most users want that "lean-back," curated experience (as long as they can "lean-forward" when need be to customize the stream). Grover said Clear Channel has seen their Custom Radio service actually push new listeners to the traditional AM/FM streams (which are all curation and virtually no personalization).

Michael PapishBut Papish (pictured left) challenged the idea of the power of the human touch. "We think there's something magical being done by the DJ song-to-song, but maybe it's all in the listener's head," he said, referencing studies that found that listeners prefer a random assortment of music just as much as a carefully-crafted playlist. "There may not be a way to measure whether a playlist is 'good' or not."

Whether the playlist has a human behind it or not, "The idea of uniformed playlist given a seed artist is unacceptable," argued The Echo Nest's CEO Jim Lucchese. It must be customized to each listener's individual preferences, and the process of discovering what those preferences are may be the next big challenge for personalizable radio services and the engines that fuel them.

Indeed, data about artist similarity can only take you so far, said Grover. "You don't want to start making too big leaps of faith around data," he explained. "A thumbs down on a Lady Gaga song doesn't necessarily tell you much of anything about that song, that listener, or Lady Gaga." Perhaps the sequence of songs wasn't quite right, or the time of day had an impact, or the listener may have just heard the song 50 times already. More information is needed.

"We may have hit the wall in terms of what we can do with either thumbs up/down, or ratings," mused Papish. "We need to figure out new, better ways of actually asking our listeners what they like." That process is still on-going. "We are just getting started identifying the individual listener," said Lucchese. Papish shared that Rovi, for example, is looking for better ways to have the listener explicitly share preferences with music services. One idea is to use gamification elements to make sharing that information more fun and engaging.

Jim Lucchese and Owen GroverAll this shows that the entire realm of personalizable radio is still "in the exceptionally early days," said Lucchese (pictured first on the right, beside Grover). But it's already changing how consumers think about radio, as the panelists explained.

Cady shared the anecdote of driving with several 10-year-old boys who asked him to skip the song currently playing on FM radio. Grover shared his own experience of a 9-year-old asking why he couldn't go back to the beginning of an AC/DC song playing on the radio. "There's a change that's happening," said Cady. Radio is being redefined and the industry "can't hold on to these old conceptions."

But, in Grover's opinion, the idea that these new customizable services will destroy traditional radio is "nonsense." Papish agreed: "We can't lose that one-on-one feeling," that DJ-curated experience. Not everyone wants that kind of experience all the time, but "we can't lose it."

That said, Grover argued, "If you aren't where your listeners are, with the features and content that they expect, you're nowhere... Be where your listeners are."

You can watch the "Personalizable Radio" panel, moderated by Radio-Info's Sean Ross, from RTT News here.

Michael Schmitt
May 22, 2012 - 11:00am

Pandora's personalizationPersonalization is almost certainly one of the keys to the success of webcasters like Pandora, Slacker and others. Yet some, like Clear Channel's Bob Pittman, argue personalization is just a "feature" -- an add-on. Pittman even refers to his own personalizable radio service, iHeartRadio's Custom Stations, as a feature. It's "not what we do," he said recently (RAIN coverage here).

That's the wrong way to go about personalization, argues Baynote CTO and co-founder Scott Brave (Baynote is a provider of intent-based personalization solutions for multi-channel retailers). "The companies that win are the ones making personalization a key company value – not just a feature," Brave writes in an opinion piece for TechCrunch.

"Winning companies approach personalization as a core value of how they do business – a 'customer-centric' philosophy – rather than an add-on 'feature.'" Brave points to several examples of personalizable services beating out others: Flipboard vs. Yahoo! News, Google's Alfred vs. Opentable and yes, Pandora vs. other streaming radio options. 

"When Pandora allowed users to input their music preferences through both explicit selections and implicit actions to help shape their content stream, it changed the listening experience... After Pandora, just listening to the radio online seemed like a waste of time."

You can find Brave's editorial from TechCrunch here.

Michael Schmitt
May 22, 2012 - 11:00am

Daniel AnstandigListener Driven Radio CEO Daniel Anstandig writes in Radio-Info today about how social media connectivity is helping grow audiences for streaming music services.

"Since launching in the U.S., integration with Facebook has been a key part of Spotify’s strategy to expand the reach of its appeal to potential premium users." Spotify was one of the first music services to more deeply integrate with Facebook in September 2011 (RAIN coverage here).

Anstandig writes that during May 2012 so far, Spotify has gained 1.5 million users (a growth rate of 8%), which doubles last year's growth at this time. During just a two-week period in May, "Spotify reported adding 500,000 new users, leaving the music company with 20 million global monthly users utilizing its Facebook app."

Anstandig says he's seen the same social media benefit at Listener Driven Radio."For every LDR user who shares a vote from their favorite radio station, we have seen an average of four or more people come back to a station website."

It's not difficult to find other examples of social media helping music services growth. iHeartRadio -- which initially required a Facebook login for its Custom Radio service (RAIN coverage here) -- recently announced reaching a milestone of 10 million registered users (more here).

And Facebook claimed in November 2011 that Slacker, MOG and Rdio were also experiencing tremendous growth since integrating with the social networking service (RAIN coverage here).

You can find Anstandig's Radio-Info column here.

Michael Schmitt
May 22, 2012 - 11:00am

Fred JacobsTomorrow, The Conclave will host a free webinar about Jacobs Media's new Techsurvey 8. The webinar will feature Jacobs Media president Fred Jacobs (pictured). It starts at 2PM Central on Wednesday, May 23.

Jacobs Media's Techsurvey 8 was the first to include radio listeners of 12 different radio formats (not just rock radio listeners). It found that nearly 4 in 10 "core radio listeners" stream Internet radio weekly, and that nearly half of respondents said they can connect a smartphone or mp3 player to their car stereo. Find more coverage from RAIN here.

Pre-registration for the webinar is required. Find out more from The Conclave here.