The rise of the hip-hop and R&B station Mai FM to number one in the Auckland market is one of the big stories of New Zealand radio. The Maori-owned station won the biggest share of the audience aged over 10 over in the latest ratings round, slipping ahead of long-time leader Newstalk ZB, the talk format station that stars the countryÕs top broadcaster, Paul Holmes. Originally launched as an ÒiwiÓ Ñ or tribal Ñ station, with support from the government, Mai is owned by the Auckland tribal group Ngati Whatua, and stands outside of the two radio groups that dominate the New Zealand radio market, CanWest and The Radio Network. Paul Kennedy, the editor of radio industry magazine Median Strip, says the ÒbrowningÓ of New ZealandÕs biggest city via Maori and Pacific Island population growth is making hip-hop and R&B more important for a range of stations. Mai won the number one slot by growing slightly Ñ from 11.3% to 11.7% Ñ at a time when its rival was taking a significant dive, falling from 15% to 11.2%. Those ratings figures are for performance 24-hours a day, seven days a week, and hide some important distinctions, like Newstalk ZBÕs dominance of the key, weekday breakfast slot. Media director Kevin Blight, of M for Media, sees MaiÕs victory as a tribute to the long-term consistency of its programming and approach. From an advertiserÕs point of view, the stationÕs audience is younger and less affluent than average. Kennedy says that MaiÕs rise to the top slot in Auckland was not entirely unexpected but Òit was still a momentous thing for Newstalk ZB not to be number one for the first time in 26 surveys Ñ or 13 yearsÓ. However, he says predictions of the death of the talkback format are premature. Nationally, one of the significant features of this yearÕs first survey round was a strong performance by what Kennedy calls the ÒsoftÓ music stations Ñ easy listening formats such as The Breeze in Wellington and Lite FM in Christchurch. Leaving aside ratings, the wider issues for the radio industry include New Zealand music quotas and a government proposal for a youth radio network. Another factor to be thrown into the mix is the possible sale of one of the biggest players, CanWest. CanWest owns both the big-performing More FM brand and the RadioWorks group of stations, which include Solid Gold, The Rock, The Edge and Radio Pacific. The Winnipeg-based media group is debt-laden after buying the Hollinger groupÕs newspaper assets in Canada in 2000. Reports surfaced early this year that the companyÕs New Zealand assets Ñ TV3, TV4 and the radio brands Ñ were up for grabs as part of a sell-off to cut debt. However, a news report in May quoted CanWest Global chief financial officer John Maguire talking about the global picture, as saying the company was not under pressure from its lenders to sell and Òwe are not about to enter into any fire salesÓ. The company would not comment on if Ñ or when Ñ a New Zealand sale was likely. For the industry as a whole, radio revenue is holding up well, with radio claiming a 13.2% share of adspend Ñ or NZ$196m Ñ for the 2001 calendar year in the figures recently released by the Advertising Standards Association. That was up 12.8% on the previous year. The executive director of the Radio BroadcastersÕ Association, David Innes, believes radioÕs share of adspend in New Zealand may now be one of the highest in the world Ñ something he is trying to confirm by chasing down the latest figures from overseas. ÒIt would be fair to say that the radio industry is pretty pleased.Ó CanWest head Brent Impey says the industry has had Òa good couple of yearsÓ. Talking in June, he says: ÒItÕs been flatter this calendar year, but there are some positive signs at the moment Ñ in the past month Ñ of a pick-up. But like all media, advertising in the first four or five months was relatively flat on 2001.Ó On the topic of why radio is generally holding up well, while televisionÕs share of the advertising pie slowly shrinks, Impey says comparisons between the two media are not always valid. He points to the different make-ups of advertising, with radio dominated by retail while television is not. Innes cites the benefits of networking Ñ slotting high quality national shows into local stations Ñ as helping to keep up audiences and revenue. He also points to the fragmentation of the television market Ñ Òall of a sudden, itÕs a more complicated medium than it used to beÓ. Radio itself is nothing if not fragmented, with a plethora of niche stations, but the industryÕs joint sales arm, The Radio Bureau, helps to simplify media buying for agencies. Voluntary New Zealand music quotas for the radio industry were introduced early this year and Innes says commercial broadcasters remain Òvery concernedÓ about the possibility of a state-backed Òyouth radio networkÓ. ÒWeÕre implacably opposed to it,Ó he says, adding that commercial stations Òunderstand and deliver really well to the youth audience as it is Ñ and there is no need for yet another state-funded frequency in the marketplace.Ó On the marketing front, The Radio Bureau in May launched ÒWhoÓ, a compilation of research for agencies and clients that tries to bring to life the particular audiences of the individual radio networks. The study Ñ available at trb.co.nz Ñ gives brief run-downs of the main networks, along with profiles of individual listeners, explaining why they listen to particular stations. As for digital radio: there is not a lot to report in New Zealand. ÒIt isnÕt going anywhere fast,Ó says Innes. ÒWeÕre absolutely not promoting it. The equipment costs are very high at this time, and the world hasnÕt settled on which system itÕs going to be.Ó Four radio stations Ñ National, Concert, The Edge and a tiny regional operator called Wolf Ñ are using pay TV company SkyÕs digital platform either to move signals around the country for rebroadcasting or to serve up their broadcasts to Sky subscribers. ÒItÕs a reasonably affordable way to get your signal around the countryside,Ó says Sky general manager John Simmons. Does he know how many Sky subscribers are listening to radio via the digital service? ÒNo. No idea.Ó Paul Panckhurst Radio shares Auckland The Radio Network 43.5% CanWest/RadioWorks 23.9% Others 32.7% Wellington The Radio Network 41.5% CanWest/RadioWorks 47.2% Others 11.4% Christchurch CanWest/RadioWorks 58.8% The Radio Network 32.7% Others 8.3%
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