Will the elephant in the room please stand up?  Everyone seems to agree that being “local” is a lynchpin of broadcast radio’s future, yet when I listen to radio stations around the country, very few of them actually fulfill that position.  Paragon is a proponent of the New Radio Model, which is founded on a combination of hyper-local content and multiplatform distribution that also includes non-traditional revenue streams (not just on air and digital streams, but live events, too).  Hyper-local content is just the ante to get into the game, but unfortunately, many stations are so financially constrained they have yet to pay the ante and are anything but locally relevant.  Some stations, on the other hand, are definitely in the game and doing a great job at carving out new local territory to own.

One such station is Bonneville’s WFED on 1500 and 820 AM in Washington D.C.  Called “Federal News Radio,” WFED broadcasts information and news specifically for and about the federal government.  WFED focuses on content such as government pay and benefits, technology, procurement policies and homeland security.  WFED began as an online audio news service in 2000 and is still heard online as well as on the radio. WFED also airs Navy football and selected Navy basketball and lacrosse games.  I point out WFED because it is an extreme case of being truly local; this particular hyper-local play could probably only work in the one city it was created for.  With that criteria in mind, what other hyper-local content and formats might be possible in your market?

Lest you think a smart radio operator such as Bonneville is your only competition to hyper-local media content, there are numerous examples of online-only media doing the same thing.  Competition is coming from all digital directions.  Popular examples include Pegasus News in Dallas and in San Diego, Sign On San Diego and Voice of San Diego.  New under-the-radar local media are sprouting up everywhere online, including AOL’s quiet march to build hyper-local media websites called Patch.  Currently, AOL is testing the concept in the states of New York, Connecticut and New Jersey.  Here are headlines from three of their local sites today:

• Maplewood (NJ) Patch:  “Fire Department Merger:  What’s The Timetable”
• Rye (NY) Patch:  “Blind Brook Proposes Nearly $40 Million School Budget”
• Ridgefield (CN) Patch:  “RYF Holds Forum”
• Update:  Since I wrote the draft of this blog last week, AOL has announced California and Massachusetts Patch markets that are being launched next.  Click here for the overall Patch website.

Local media is happening with our without local radio.  Smart radio operators are paying attention.

UPDATE 3/3/2010:

AOL plans to invest up to $50 million in hyperlocal news site Patch during the remainder of 2010. And it’s been reported that Patch will roll out to“hundreds” of communities in the future. According to the filing, Patch was bought by AOL for $7.0 million in cash. AOL’s CEO Tim Armstrong, had previously invested $4.5 million in Patch back in his Google days via his private investment firm Polar Capital.Armstrong waived his right to receive any money beyond his initial investment back from the investment, accepting the return of his capital in AOL common stock. Armstrong then returned the $4.5 million back to Polar Capital in the form of AOL shares. We know that Armstrong is not only bullish on niche content but is also looking for AOL to become a content powerhouse. 

UPDATE 3/11/2010:

KSTP to debut hyper-local Twin Cities websites