From all appearances, FM radio is rapidly gaining marketshare versus
AM in western Venezuela. Indeed, I sensed that many AM stations were
"running scared" due to the FM threat. Compared to the rest of Latin
America, Venezuela is a newcomer to the FM broadcasting industry. A
decade ago, there were few FM stations in the country. I learned the
interesting background to this from Dr. Dubuc of Radio Universidad.
Apparently around the 1950s or so, the Venezuelan government made a
regulation that there could only be one radio station per 60,000
inhabitants in a region. This was to protect the radio industry from
over-saturation of stations and resultant economic instability in the
industry. Thus, when FM came along a few decades later, the law made
it all but impossible to open FM stations anywhere except areas with
high population growth, such as Caracas. For example, in 1987 the
Merida area had five AM stations and only one FM.
However, in 1988 the government decided that this rule could only be
applied to AM, as there was no FM radio at the time the law was
written. The government then began awarding FM licenses to political
favorites, with no concern for how many stations a market could bear.
In some cases, these included owners of AM stations. For example, the
owner of Radio Trujillo got a license for an FM operation, the Ecos
del Torbes group got one, and Radio San Sebastian got two. In other
cases, AM owners were unable to get FM licenses. This was particularly
true in Merida, where none of the AM stations have FM affiliates,
although the owner of Radio 1560 is a part-owner of an FM. Today
Merida has six FM stations and five AM, with two more FMs to open in
1995. The market clearly can not support this many stations. A similar
situation exists in each of the cities I visited. Small El Vigia has
one AM and two FMs, San Cristobal has six AMs and seven FMs, and the
Valera/Trujillo area also counts six AMs and seven FMs. In each place,
more FMs have been licensed to come on in 1995. From what I was told,
this is also a problem in other nearby cities, such as Tovar and
Barinas.
In yet another erosion to the old law, according to Orlando Suarez of
Ondas Panamericanas, the government has just created a new FM
classification, "Class D" stations, which will allow broadcasters with
as little as 50 watts and in towns with populations as small as one
thousand. No such stations have been licensed yet, but the presence of
local small-town FM stations may well impact listenership of city-
based AM stations in more remote areas that city-based FM stations do
not reach.
Dr. Dubuc at Radio Universidad frankly called the over-saturation of
broadcasting stations the biggest crisis ever to face Venezuelan
broadcasting, and pointed out that it couldn't have happened at a
worse time, as the country is going through difficult economic times,
cutting down on advertising revenue even more. However, except for
her, staff members I talked to at AM-only stations said they felt that
AM was holding its own against FM and/or that AM had its own
particular audience, different from that of FM. However, in each case
there was also a seriousness in tone that made me suspect that I had
touched upon a delicate subject and that nobody was really as hopeful
as was claimed. And no one stated that AM would outdo FM in
listenership in either the short or long run.
This is not to say that only AM stations will fail, should it come to
that. When the crunch comes, the weakest of both AM and FM will
probably go. However, as AM stations are more expensive to operate (at
least as they are traditionally programmed), they will be most likely
to go first, unless they have established a niche with a loyal
audience and loyal sponsors. In fact, there are clear signs that
stations are pursuing this route by becoming more specialized, as AM
is boosting its role as a purveyor of information and news, while FM
is becoming more a source of music.
In Valera, Domingo Tedesco of Globo FM believes that FM is overtaking
AM mostly as a result of superior sound quality, but also because of
there are fewer ads. Globo FM is cheaper to run than a typical AM
operation because announcers contract the station for a certain time
slot. The announcers then must sell their own ad time (within certain
restrictions as to quality and quantity of ads), eliminating the need
for a salesforce and business office. As the announcers can charge
whatever the market will bear for their ad time, they have an
incentive to make their time slot as slick as possible, so that
advertisers will be willing to pay more. In this format there is no
room for newscasts, although they do carry some ballgames on weekends.
But, the station is attracting a large audience for its soft music
with few interruptions.
A few blocks away at AM-only Radio Valera, manager Roque Torres
Aguilar believes that his station has a loyal audience that won't
desert the station. The station is very rural and low-class in its
programming - lots of tropical and folk music with lots of DJ chatter,
brassy ads, and paid personal announcements from listeners. The
latter, Señor Torres says, are very popular (as they usually
are on such stations). The only news on Radio Valera is what the
announcers read out of the local newspapers. For locally-oriented
semi-literate or illiterate peasants, this is an appropriate format
and the peasants will likely be the last part of the population to
discover FM (assuming that FM has something in terms of programming
that appeals to them), so Señor Torres is probably right in
believing that his station will survive. However, the format is very
labor-intensive and advertising revenue is probably low since the
audience is so poor financially. Radio Valera will never be a wealthy
or major station.
Radio Sebastian in San Cristobal is an interesting case of AM and FM
at the same facility. The AM station plays a certain amount of music,
but functions largely as an information station. There are two
announcers in the studio at all times, and they give local
announcements and ads and read interesting items from that day's
newspapers between songs. The station also has a large in-house news
department that produces three in-depth newscasts each day (see
below). Such an extensive staff costs money and the two co-owned FM
stations help pay for this. The two FMs are located in small rooms,
barely more than closets, but have all very modern, mostly automated
equipment. All ads and announcements for the FMs are prerecorded in
advance, eliminating the need for a live announcer. As little payroll
goes into supporting them, the FMs are highly profitable - and some of
that profit subsidizes the AM operation.
Radio Trujillo takes another approach. Although the co-owned FM
station is located in another part of town, the two stations share
some announcers and also simulcast during parts of the day.
Several people told me that FM was beginning to sound more like AM in
terms of programming. From my own monitoring, I don't particularly
agree with that, as FM is clearly much more the music medium. However,
I suspect this perception exists because there may be more talk,
mostly in the form of ads, on FM than a few years ago due its
commercial success. Domingo Tedesco of Globo FM seemed to confirm
this. He noted that when FM started there were few stations and they
had very few ads (maybe two per half-hour) because there were few
listeners. "Now," he says, "FM is almost like AM in the number of ads.
Sometimes a half-hour period will seem to be almost all ads." And,
this is not because FM airtime is necessarily cheaper, but because the
demand for ads on FM has increased with listenership.
Also, while FM listenership has increased in all groups, FM has become
especially popular with youth, according to several sources. Ivan
Escobar of the Ecos del Torbes group says that FM announcers are
becoming less serious and more juvenile in what they do to appeal to
the young audience. This sounds similar to what has happened at many
pop stations in American cities.
Of course the best way to research AM versus FM is to see what people
are actually listening to. I paid close attention in shops, markets,
offices, and restaurants. A further good source was public
transportation. I did not rent a car while traveling, but instead
relied on local buses for transportation within and between cities. On
a few occasions I took a taxi.
In Merida, FM was heard almost exclusively in public places, although
no particular station seemed to have a dominant place in the market.
Curiously tropical music seemed to be somewhat more common than
popular music. This is curious in that Merida is a big university town
with a large youth population. On the other hand, I was there during
Christmas break and most people working in these public places were
not students. When AM was heard, it was almost always Radio Mundial
Los Andes with its heavy (but not exclusive) news and information
format. I was even twice on city buses which were playing the station
during the late-afternoon Radio Mundial network national newshour.
Radio Cumbre, 1570 kHz, a tropical music station, was heard in a few
buses. The other three local AM stations were never heard in a public
place (or at least I never identified them).
Outside of Merida, however, AM seemed to be holding up better. In my
short visit to the Valera/Trujillo area, it seemed that AM and FM
stations were heard about equally, although I was not there long
enough to form as complete of an impression as in Merida. Considering
that Trujillo state is more rural in character, media changes there
may lag behind more cosmopolitan Merida. San Cristobal seemed to be
somewhere between Trujillo state and Merida. FM was clearly more
common in public places, but not overwhelmingly so. In neither
Trujillo state nor San Cristobal did any station seem to hold a
dominant position in what was played in public places. I did not use
any public transportation while in El Vigia, but the two restaurants I
ate in were both playing an FM station. I wasn't in any stores or
other places there long enough to identify what was being played.
How things have changed in a very short time! Almost all the stations
that I visited had satelite dishes - and this in the interior, well
away from metropolitan Caracas. The only stations visited that did not
have satelite dishes were Radio Trujillo and Radio Valera, with their
very local-oriented lower-class formats, and all-music FM stations.
Those stations with a use for a dish had one.
Radio Mundial and Radio Rumbos in Caracas are no longer simply
potential recipients of satelite fare, but providers. Both stations
are uplinked 24 hours a day to a satelite service. All of their
interior affiliates (or at least those in the three states I visited)
have satelite dishes for receiving the anchor stations.
Unlike the Mundial network, in which affiliates are network-owned and
operated, Radio Rumbos affiliates are privately owned and
independently operated. Radio Rumbos owns no other stations, but has
agreements allowing many to rebroadcast its lengthy newscasts. There
does not seem to be any sense of market control to this at all. For
example, in Merida three of the five AM stations carry Radio Rumbos
news, as does Ondas Panamericanas in nearby El Vigia. Like Mundial,
Rumbos has lengthy in-depth newscasts in the morning, at midday, and
in late afternoon. Some stations carry other items from the Radio
Rumbos network, such as Radio 1560 which relays "micros" every twenty
minutes during certain times of the day.
There are other smaller news networks in Venezuela in addition to
Radio Mundial and Radio Rumbos. For example, the Radio Informativa
network has several stations, but none in the Andean region. In fact,
none of them were even well received, even with my relatively
sophisticated Sony ICF-2010 and outboard amplified loop. Radio Cumbre,
in a distant suburb of Merida, announced an affiliation with Radio
Continente of Caracas. However, I was unable to visit the station and
heard no specific Radio Continente programming. Espectacular FM in
Merida carries two short newscasts a day from the Union Radio network
in Caracas.
Most stations rely on outside sources, such as Radio Mundial and Radio
Rumbos for their primary coverage of national and international news
and do not operate their own news department, except for coverage of
local events. One of the two exceptions which I visited is Ecos del
Torbes, which both relays Radio Rumbos news between 0600-0700 and
1700-1800 local time daily, and has a seven person news department for
in-house production of both short and long newscasts, including
international and national events. For example, they follow up the
morning Rumbos newscast with an hour-long one of their own which
includes telephone connections to other stations around the country
for regional news coverage. A wire service provides them with national
and international items, which they supplement by monitoring
Television España on the local cable network.
An even better on-site news department was at Ecos del Torbes' cross-
town competitor, Radio San Sebastian. News department personnel
monitor the news from various sources on PanAmSat twenty-four hours a
day. Their main satelite sources are CNN and the Mexican Eco network
on video and audio feeds from Radio Programas del Peru and CARACOL
from Colombia, plus they monitor Television España news on
another television connected to the local cable system. A wire service
provides national news and they have a network of stringers who cover
events throughout Tachira state. A newsvan allows them to visit
specific important events and report back directly. There were two
shortwave receivers in the news office - a very dusty multi-bander on
a high shelf and a Hallicrafters SX-110 being used as a telephone
stand (the front of the receiver was facing the wall). I asked about
these and was told that they used to monitor shortwave but hadn't
since the satelite service was installed.
All Radio San Sebastian newscasts are original, produced by the
station's own news staff. There are three daily hour-long in-depth
newscasts (the usual morning, mid-day, and evening) plus short reports
of late-breaking items throughout the day. Despite the impressive work
of the news department, however, Radio San Sebastian has not wholly
left behind the old style of radio new-reporting. During regular
programming (outside of the news department produced newscasts), two
announcers are on duty at all times and besides announcing songs and
live ads (most ads are prerecorded) they read news and sports items
out of the local and national newspapers. Perhaps this is just a sign
of how seriously Radio Sebastian sees its role of information-
provider.
There are two very different types of stations which carry little if
any international or national news. First, stations with a lower class
audience take news in a less serious manner. Radio Trujillo has two
five minute international/national newscasts daily which come via
telephone from a news agency in Caracas. Otherwise, all non-local news
comes from newspapers purchased by the station. Radio Valera relies
totally on newspapers for its news. Manager Roque Torres Aguilar told
me that they used to subscribe to a wire service but dropped it
because it was too expensive and their audience really wasn't
interested in that sort of news anyway. Likewise, FM stations, with
their emphasis on music and little talk carry little news.
Having mentioned the use of television news in compiling newscasts at
Radio San Sebastian and Ecos del Torbes, it also bears pointing out
that about half of the stations I visited had TV sets connected to the
local cable system in their control room where the control operator
could see them. One announcer told me that he likes to have the TV on
so that he can girl-watch, and I suspect that is the case everywhere
as every control room TV I saw was tuned in to a soap opera (a good
source of attractive actresses) with the sound turned down. Girl-
watching aside, I assume that if an urgent news bulletin came on, the
operator would notice the difference in what was on the screen and
investigate.
This article is copyright 1995 by Don Moore. It may not be
printed in any publication without written permission. Permission is
granted for all interested readers to share and pass on the ASCII
text file of this article or to print it out for personal use. In
such case, your comments on the article would be appreciated.
This website is maintained by Don Moore,
Main Venezuela Menu
Venezuela Media Study
Main Menu
What's New
Best of this Site
Radio History
DOMESTIC RADIO IN VENEZUELA
AM VERSUS FM
(Note: In Venezuela, or at least western Venezuela, the term AM is
commonly used for the medium wave band instead of onda larga or onda
media, as in other Latin American countries I have visited. Therefore,
I will use the term AM in this report.) STATION SATELLITE USAGE
After returning to the US, while reading Jeff White's study of media
in the Caracas area done in mid-1992. I was surprised to see how few
stations had satelite dishes at that time. Especially significant was
that Radio Mundial, the flagship station of the Mundial network, did
not have a dish and Radio Rumbos, the other big network anchor
station, had just gotten one, but was only using it for limited
receiving purposes. NETWORKS AND NEWSCASTS
Twenty-four hour satelite service from the anchor station provides
Radio Mundial affiliates with an important source of programming. The
primary use of the satelite service is relay of the three major Radio
Mundial daily newscasts from 0800-0900, 1100-1300, and 1700-1830,
local time. Radio Mundial is feed into the control room at the
affiliates twenty-four hours a day and is constantly monitored by the
control room operator. This allows smooth mixing of local and network
programming as the operator switches in the main station throughout
the day for sports scores, short features, etc. Indeed, I was very
impressed watching them switch back and forth between four different
program sources - recorded music, the live announcer, ads on
cartridges, and the satelite feed. It really is very complicated and
takes a great deal of split-second precision. Short live clips are
taken by the affiliates throughout the day and night. From my
monitoring, however, Radio Mundial affiliates do carry locally-
produced programming in the overnight slot, unlike Colombian network
affiliates which normally relay the anchor station from Bogota.
Association of North American Radio Clubs
DXer of the Year for 1995.