Old problems such as the decades-long illegal practice of payola and new challenges such as the digital convergence of entertainment are expected to be the hot topics in Los Angeles at an annual meeting of radio and music executives.
The three-day gathering, known as the Radio & Records Convention, boasts a lineup of marquee entertainers like Stevie Nicks and high-profile speakers, such as former US President Bill Clinton.
Clinton speaks Friday morning to executives of the US$20 billion radio industry, the oldest broadcast medium, which is currently undergoing massive changes because of wide-scale consolidation and rapid technological change.
"We're seeing more changes now in our business than since the advent of television 50 years ago," said Ron Rodrigues, editor-in-chief of Radio & Records, which hosts the convention in Los Angeles every year.
The landscape of radio, which was invented in the late 1800s, is transforming rapidly as fewer hands call the shots on programming because of megamergers and as AM and FM broadcasters are embroiled in a legal battle with the recording industry over royalties for Internet broadcasting.
One of the new challenges facing traditional radio broadcasters is the advent of terrestrial digital audio broadcasting and satellite radio.
Digital broadcasting is expected to provide near-CD quality and allow listeners to receive another channel of information, which can be displayed on their radio in text form.
"This is a way for traditional radio stations to compete with the emerging satellite radio market. All the radio stations have to do is upgrade their transmitters to send a (digital audio) signal, and consumers need radios that receive these signals," said Ric Dube, an analyst with Webnoize.
Satellite radio is expected to be launched later this year, offering an unprecedented choice of channels with superior quality sound coast-to-coast, based on a subscription model.
"The growth of satellite radio is going to be slow in the first five years, but eventually it could pose a threat to traditional radio," said Dube.
Amid the digital challenge, the industry remains haunted by such recurring problems as payola, a practice prohibited by US federal law in which broadcasters receive money or other kickbacks in exchange for playing songs.
