Opinion

Live and local – but is it logical? Australian radio is at a crossroads

Australian radio is at a crossroads right now. Two networks are embarking on two vastly different paths, and we’re seeing it play out through their stars: Kyle & Jackie O, and Ray Hadley.

First to Nine Radio’s Ray Hadley, who earlier this year clocked up 150 consecutive survey wins on Sydney’s 2GB. His program has long been networked to regional stations across the country, and to Brisbane’s 4BC, which is also owned by Nine.

The industry is in its survey break this week, and so 4BC listeners would have tuned in on Monday, expecting to hear Hadley’s regular replacement host.

Instead, they heard 4BC weekend presenter and former Seven newsreader Bill McDonald, who confirmed he’d now be hosting the show. Permanently.

It was a somewhat unceremonious end to Ray Hadley’s eight years of being networked on 4BC Mornings, despite the program being the station’s highest-rated show in the most recent radio ratings.

In announcing the change, 4BC Content Manager Max Dudley declared it was part of Nine Radio’s ‘live and local’ strategy.

“I’m excited to welcome Bill McDonald as our new Mornings host, adding another program to our live and local offering on 4BC. It’s a big year ahead for Brisbane with council and state elections, not to mention the ongoing build towards the 2032 Games, and I have no doubt Bill will champion the issues that matter most to our listeners.”

Dudley acknowledged Hadley’s contribution to the station: “Eight years ago Ray added 4BC to his large list of network stations and has made a huge impact in Brisbane and across Queensland.”

‘Live and local’ has long been a principle of talk radio, and has been a significant focus of Nine Radio, including multiple references at the recent Nine Upfronts.

But removing one of the network’s biggest stars from a daily slot on the station – not long after Hadley signed a new multi-million-dollar deal to stay with Nine Radio – is an interesting contrast to what’s happening elsewhere in radio.

The industry is abuzz this week with speculation Kyle and Jackie O will be offered a record-breaking $200 million deal to stay with ARN’s KIIS FM for another ten years.

Such a deal would effectively double the salaries of the pair, who — at $5 million a year — are currently Australian radio’s highest-paid broadcasters.

But the speculated details of such a deal suggest that it goes well beyond linear radio, and would see the duo — who are a brand, as much as they are a show — appearing across multiple platforms, including video, and digital radio, right across the country.

In fact, Kyle has previously mentioned conversations he’s had with international players Spotify and Amazon, leading to speculation of a global platform for the show. Their podcasts are already available through the iHeartRadio hub.

Internationally, we’ve seen the extraordinary value that premium brands like Kyle & Jackie O can bring. Look at Joe Rogan’s deal with Spotify, or Howard Stern with Sirius XM. They have the power to earn and retain audiences – and this speaks volumes to advertisers.

In a cost-of-living crisis, it’s not just consumers who have to tighten the purse. It’s also marketing budgets that come under pressure – and they look to these bankable stars to deliver value for their brands and campaigns.

A $200 million investment would see ARN (or SCA, if they succeed in luring the duo across) go all-out to maximise the Kyle & Jackie O brand.

And that would not just be an acknowledgement that they’ve spent a lot of money.

It would be proof that good content and good entertainment has the power to connect with audiences anywhere. Including in Brisbane.

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