Billboard’s Chief Content Officer of Latin Music and Billboard Español, Leila Cobo moderates a conversation about the future of radio with the CEO and president of Spanish Broadcasting system, Raúl Alarcón at Billboard’s Latin Music Week 2024.
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00:00You know that the power that we, that you have in this country, in the United States,
00:07the Latin power in the United States represents, represents the fifth global economy.
00:25Good morning, Raul.
00:27Hello, Leila. How are you? More beautiful than ever.
00:32Thank you for the invitation.
00:33I dressed up because I'm sitting next to the most important man on the radio in the United States.
00:40The owner and CEO of SBS Entertainment.
00:44It's not true, it's not true. Thank you anyway.
00:47For those who are not familiar with the SBS roster, it includes the Mega New York,
00:53which is the biggest rating station in the country, and the biggest rating in New York.
00:59The biggest audience in the country.
01:01The biggest audience.
01:03By air and streaming.
01:05By air and streaming.
01:06So, Raul, this is an important question.
01:11Because now, of course, streaming is a big factor in popularity.
01:19And despite this, though, there was a Nielsen report that said that even though people are listening to streaming,
01:26they're listening to music and other services, satellite, internet,
01:30but radio is still the biggest method.
01:35In fact, I have the numbers.
01:37Between April and June of 2024, listeners gave 67% of their daily time with ad-supported audio to radio.
01:4719% to podcast, and 11% to streaming.
01:53A round of applause for radio, please.
01:58So, why does radio last in the era of streaming?
02:03Look, Leila, that's a question that involves a lot of detail and a lot of effects.
02:12And more than anything, a lot of work.
02:14Radio always has to be creating, adapting, fixing, refining.
02:25And radio is good for that kind of thing.
02:28More than any other medium.
02:30And besides that, radio is very local.
02:33So, since you can't, you can adapt it.
02:38I remember that when I was a kid, my parents took me to Chicago.
02:42I don't know why they took me to Chicago, but they took me to Chicago.
02:45I entered a building, and the building had a chiseled-in.
02:54The future belongs to those who prepare for it.
03:03And, okay, you can understand that you can prepare for the future,
03:07but I like to say it a little differently.
03:09The future belongs to those who can adapt to it.
03:15So, the adaptation factor and the creativity factor
03:21are very important in what I can answer your question about
03:26why radio is still so strong.
03:29Because radio can be adapted, and we have adapted it,
03:32and also a lot of creativity.
03:34And locally, radio has a strength that no other medium has.
03:40So, you know, it's been around a hundred years, more than a hundred years.
03:44That's not a coincidence.
03:46So, I think that the achievements that Nielsen's reports show
03:52are absolutely correct, because radio is good for that kind of success.
03:57And it will always be with us.
03:59And it's ubiquitous. It's everywhere. And it's free.
04:03And it doesn't need an external way to receive it.
04:08So, for all those reasons, Leila, I think that radio is in a very good position.
04:14Now, a lot of things have lasted a hundred years, and they're over.
04:18And they're over.
04:19There are great brands. Kodak comes to mind.
04:21Exactly.
04:22Something that was absolutely essential, and then it becomes obsolete.
04:26Was there a moment in recent years where you said,
04:29OK, we have to reformulate this?
04:31Oh, of course. No, no. Not that there was.
04:34There was, there is, and there will be.
04:37Because you always have to be evolving, Leila. You know that.
04:41We were, Modestia apart, one of the first to adapt radio.
04:47It seems a lie to say it today, not in the day.
04:50But putting comedy on the radio in the morning.
04:55I remember when the morning show began, which you know very well, in New York.
05:01That was an innovation.
05:03And we took the risk. There are also risks that have to be taken.
05:07But yes, always evolving, Leila.
05:10That is the essence of creativity.
05:13You have to implement it. And after a while, you have to fix it.
05:16You mentioned Kodak.
05:18Kodak was left with its arms crossed when the camera came.
05:23The digital one.
05:24The digital one, without the film.
05:26And look where Kodak is now. Gone.
05:28Now, Raúl, what innovations or transformations,
05:32evolutions have you made in the last year?
05:36Well, programmatically, we always have to be at the foot of the canyon.
05:43And you decide it. The public decides it.
05:47What are the new trends?
05:49What we have to do is perceive it.
05:52And then say, okay, I like this trend here.
05:55Look, now there's a trend in war music.
05:58War music, war choruses.
06:00War choruses.
06:02I don't know what they're called.
06:04That's a new adaptation that we were able to sense.
06:10How beautiful radio is, gentlemen.
06:12And it will always be.
06:14It's that it can sense those changes, those trends, indications.
06:20Put them in place.
06:22Adapt them to the public.
06:24Put them with a little entertainment.
06:27And you will tell us.
06:29Right away, the public says, I like it, I don't like it.
06:33And then we continue to elaborate.
06:36That's how beautiful it is.
06:38Radio is not cookie-cutter.
06:42At least the radio is successful.
06:44At least our radio.
06:46So each station has a program for its city and audience.
06:50Locally, absolutely.
06:53To give pleasure to the local listener.
06:56Of course there are programs that can work in other parts of the country.
07:01But in general, one of the greatest strengths of the radio
07:05is the ability to adapt to what the local public says.
07:10Radio is very local.
07:12And that's where its strength is.
07:14That's where the strength is.
07:15So let's talk a little bit about MEGA New York.
07:17That station is so impressive.
07:23What is the success of MEGA?
07:25What is MEGA's program for those who don't know it?
07:27This may sound a little monotonous, but I have to repeat it.
07:32Because I was asked by a station, Leila,
07:35and she's right, MEGA WSKQ FM in New York, 97.9.
07:40I don't know if some of you know.
07:42Do any of you know MEGA?
07:43MEGA New York?
07:44Okay, there you go.
07:45We have listeners here too.
07:47It's a phenomenon.
07:51That station is a phenomenon.
07:53And I knew it was going to be a phenomenon.
07:55When we put it on the air, it was the first FM in New York.
07:58For Hispanics.
08:01And I knew it was going to be a success.
08:03I had been looking for an FM station for many years,
08:06and it took me a lot of work.
08:08Never mind the money.
08:10It took me a lot of work to get it.
08:12Sorry, was that your first FM?
08:14The first FM in New York.
08:17The first FM for Hispanics in New York.
08:20So that opened with a lot of love from the public.
08:24And then the innovations that I mentioned before,
08:27the morning show, the midday show,
08:30which is now Alex Sensation.
08:32Do you know Alex?
08:33We have him in 40 markets too,
08:35because he's a super star,
08:38a Colombian colleague of yours,
08:39a compatriot of yours,
08:41and a very talented man.
08:44That was another innovation.
08:46The afternoon show.
08:48Remember, there was a time when the radio
08:51was just playing music.
08:56And in those days, we did play music,
08:59but we adorned it with personalities,
09:02contests, money giveaways, concerts,
09:07interviews, music.
09:10It's a mix, right?
09:12For the local public,
09:14which that station in particular has done very well.
09:17A station very identified with New York,
09:20and the station is very powerful.
09:22Now, Raúl, in recent years,
09:25obviously, streaming has been fierce, right?
09:29And getting those playlists,
09:32and the playlisting, etc.
09:34However, I must say,
09:35and this is one of the reasons I invited you,
09:37is that in the last six months in particular,
09:40I would say,
09:41I have heard of the industry
09:43as a new resurgence in radio.
09:49And I hear a lot of anecdotes,
09:51anecdotally,
09:52I hear from many managers who tell me,
09:54we are focused on radio.
09:57We're focused on a radio hit.
10:02Have you seen that?
10:03I have.
10:05I have seen it.
10:07And I'd like to tell you all a little story,
10:10if I may,
10:11as long as we can keep it a secret among ourselves.
10:14It will be a secret.
10:15Okay?
10:16What's the name of that guy that said,
10:18a secret known by more than one person is not a secret.
10:22But anyway.
10:24An artist came to me.
10:27I'm going to answer Leila's question,
10:30but with a story.
10:31Tell a little story.
10:32An artist came to me,
10:34that all of you know.
10:36I can't say his name,
10:38you'll see in a second why not.
10:40And he came to my house and said,
10:42Raul,
10:43I'm here to tell you two things,
10:44three things.
10:46I said, okay.
10:47What's the first one?
10:49Boots are one,
10:51I'm not going to say the word he said,
10:53but I'm going to say,
10:54let's say crap.
10:55Boots.
10:57Boots.
10:58What are boots?
10:59Bots.
11:01After a while,
11:02I found out he was calling me bots.
11:04You know what I mean?
11:05The automatic plane.
11:08Or whatever the hell that is.
11:09He said, that's a lie.
11:11That's a lie.
11:12You should put all those people in jail.
11:14I said, don't tell me.
11:16I can't tell you who it is.
11:19And he said,
11:20that's crap.
11:22He didn't use that word,
11:23but it's okay.
11:24And I said, okay.
11:26Why?
11:27Well, Raul,
11:28I have a career,
11:29I have my career,
11:31and I work very hard.
11:32No, it's true.
11:34And he said,
11:35and I was in first place next week.
11:37And a banana came out of this,
11:39I don't know where,
11:40and I fell in first place.
11:42And nobody knows him.
11:44And the nice thing is,
11:45that was last week.
11:46This week, he's gone.
11:48And I said,
11:50well,
11:52this is what Leila is referring to.
11:54I think people are already interested.
11:56He told me this about two years ago.
11:58And he said, Raul,
11:59let me be very quick and very frank with you.
12:01You are the one who makes the hits.
12:03Not talking about me,
12:04talking about the station.
12:06You are the one who makes the hits.
12:08And you are the one who sells the tickets.
12:12He was referring to the promotions we do
12:14for the concerts and that kind of thing.
12:16Which I liked a lot.
12:18But in answering Leila,
12:21I want to tell you who I am, but I can't.
12:24Very big star.
12:25Very big artist.
12:26That's what's happening, I think, Leila.
12:29People are now realizing,
12:32wait a minute, wait a minute.
12:33We discarded this medium.
12:37Like it's been discarded before.
12:39Radio was discarded when TV came.
12:42Who wants radio?
12:43There's TV now.
12:45You know.
12:46So, I think radio is going to outlive TV.
12:49But anyway, linear TV.
12:50Anyway.
12:51But...
12:54So, to answer your question, yes.
12:56I have noticed that effectively
12:58now there is a little resurgence.
13:01Hey, radio is important.
13:02Radio is everything.
13:04It's very important.
13:06It's the connection with the local audience.
13:08It's the one that manages and adapts the trends.
13:12And puts the good ones in the air.
13:14And adorns it with all this.
13:16It's entertainment.
13:17Do you understand me?
13:18It's not just a repeater.
13:20Anybody can repeat.
13:22Few people can create.
13:24Creativity and adaptation.
13:26The two most important things.
13:28For any business.
13:30But since we're talking about the media and music.
13:33Very important.
13:34Now, Raul, you don't program directly, obviously.
13:38But you are very involved.
13:40I imagine that streaming does inform you.
13:44Obviously, right?
13:45Do you look at the streaming charts?
13:47I think...
13:48Well, we look at the stream charts.
13:49What I've heard is that the streamer guys look at us.
13:52I understand that there is a guy in New York
13:54who is listening to the mega day and night.
13:56El Pobre.
13:57El Pobre, no.
13:58It's good music.
13:59But yes.
14:01To answer your question.
14:02Yeah, of course we look at them.
14:03And we see what they're doing.
14:04And they, I'm sure, look at us.
14:06To see what we're doing.
14:08And by the way.
14:09The two are not mutually exclusive.
14:11I told you that our broadcaster is number one in the air audience in New York.
14:17But also in streaming.
14:18And as a matter of fact.
14:21What we are implementing.
14:23I repeat.
14:24Another adaptation.
14:27Let's see how we can adapt the two media.
14:30I see it very different.
14:31I see it very different.
14:32But they can combine together.
14:37I'm talking about what digital distribution is.
14:40And what live radio on air is.
14:43And I think they can work.
14:45And digital is good for many things.
14:48Digital gives you expanse.
14:50But it doesn't give you.
14:53That's misinterpreted.
14:55Expanse.
14:56But in portions.
14:59Radio gives you the immediate local environment there.
15:04So, if we can.
15:06Which is what we're going to try to do.
15:08Corral both.
15:11Of course, radio will always be the base.
15:16But if we can grab and combine the two.
15:20And we're doing it.
15:21Jesus, who was out there.
15:22Is doing a fantastic thing.
15:24With digital platforms.
15:27In terms of distribution.
15:29Not only the live signal.
15:33But the live signal.
15:35On the internet.
15:36As you know.
15:37What happened on that show?
15:40On October 17th.
15:43Whatever it is.
15:44And you can find it.
15:45Streaming has it.
15:47Radio has it.
15:48But that's why it's important.
15:50Would you rather see a live sports?
15:52Let me make an allusion to something.
15:56Let's take a sports game.
15:58Live.
15:59You want to see it live.
16:00You want to see who scored.
16:02Who didn't score.
16:03The goalie.
16:04The other one has a penalty.
16:06The other one.
16:07And that's the excitement.
16:10And the commentators talk.
16:13And they tell you this.
16:14And they tell you that.
16:15You can see it after the game.
16:17Right?
16:18And you can see the highlights.
16:20And you can see the highlights of the game.
16:22For 40 years.
16:23But it's not the same as seeing it live.
16:26It's not the same.
16:27It's just not the same.
16:28Not the same feeling.
16:30And then tomorrow, you have another new game.
16:32Which is new.
16:33And another new game.
16:34Which is new.
16:35That's radio.
16:36For me.
16:37In my mind.
16:42But it all comes after the fact.
16:44First comes first.
16:45And second comes after.
16:47And, you know, that's the way we look at it.
16:50Now, what's coming up new for SBS?
16:53Are you launching any new formats?
16:55Any new properties?
16:57Yes.
16:58Leila, we are.
16:59We always are.
17:00But now, I'm going to give it to you as a start.
17:04I always give it to her as a start.
17:07Yay!
17:08Billboard!
17:09Leila!
17:10Yeah.
17:11We're launching a network.
17:18Over the air.
17:20And digital.
17:22For the music we were talking about before.
17:26The combination of the corridos with the Latin, with the urban, with the...
17:32What's the name of the war music?
17:33And it's called La Privada.
17:35La Privada.
17:36So, we're going to launch a network.
17:38Because we've seen that that music is appealing.
17:42Both on a local and on a national level.
17:45So, not just a station.
17:46A whole network?
17:47Yeah, network.
17:48Network.
17:49And when are you going to do that?
17:52Once a reporter, always a reporter.
17:56We're going to have to put...
17:58Maybe many years from now.
18:00Leila Cobo.
18:01Reporter and everything else.
18:02Yes, Leila.
18:04When?
18:05We're in preparation.
18:07I think that in the next 90 days, we'll launch it in Chicago, in New York.
18:13Wow.
18:14There is it now in Los Angeles.
18:18But we're going to refine it.
18:20And we're going to launch it everywhere.
18:21San Francisco, Houston.
18:23We're going to launch it everywhere.
18:24So, it's going to take over existing local stations?
18:27They're going to change the format?
18:28It's going to take over the HD2 position on all of our stations.
18:32And some of them, the on-air main signal.
18:36Okay.
18:37La Privada.
18:38La Privada.
18:39Wow.
18:40What do you think?
18:41Do you like the name?
18:42I like it.
18:43Do you like it?
18:44Okay, good.
18:45La Privada.
18:46I like La Primicia.
18:48It's almost a joke, because it's not private.
18:50We want to make it for everybody, but we call it La Privada.
18:53Why is it called La Privada?
18:54I don't know.
18:55Someone came up with the name, and I liked it.
18:57And I like the slogan, and I like the logo.
19:01And I guess they're trying to say this is a little bit more, what's the word?
19:05Exclusive, maybe?
19:06Maybe that's what they're going for.
19:08La Privada.
19:09Beautiful music.
19:10Wonderful music.
19:11Do you guys know the music I'm talking about?
19:13Do you like it?
19:14Yes.
19:16Yes.
19:18I like it.
19:19I like it.
19:20Now, we're fast running out of time, but I have two quick questions for you.
19:25In the last couple of years, you've told me a couple of times,
19:28oh, I'm not going to be involved anymore.
19:30Now I'm just going to be on the board, and here you are.
19:35Everybody says that.
19:36I say it, too.
19:37I say it, too.
19:38I'm getting older.
19:40So, what's your question?
19:42Why?
19:43Why what?
19:45Why are you still on the saddle so firmly running this company
19:49and not watching it from the side?
19:51Okay.
19:52Well, let me just say that I tried, maybe, to look at it, as she said,
20:01she put it in very lovely terms, to look at it from afar.
20:05And she's referring to the operations of the company.
20:09And why didn't you do that?
20:12So, I tried.
20:13I dipped my toe into that.
20:18And what I found when I took my foot out of the water is I didn't have a toe anymore.
20:25So, in the sense that, let me put this as kindly as I can,
20:32things were not being done as I thought they should be done,
20:37as we've been doing for 41 years.
20:40That's another thing, Leila, we just, October 1st, we celebrated our 41st year in operation.
20:4741 years.
20:48Serving you.
20:50Not thank me.
20:51Thank all of you.
20:52And so, I tried it.
20:54I tried to separate myself a little bit from operations.
20:57And I saw that it didn't work out.
21:01And this is a company that my father started.
21:05So, it's very close to my heart, as you know, Leila.
21:09And so, personal considerations, like maybe taking it a little easier, taking it a little slower,
21:14or taking it a little lighter, or whatever the hell you want to call it,
21:17it has to take a back seat.
21:18And by the way, I love it.
21:20I love being involved in the company and in the business.
21:23And I hope to be involved for a long, long time.
21:26Raul, the last question.
21:31It's an independent media company.
21:33SBS is independently owned, Hispanic owned.
21:37No es parte de un conglomerado.
21:40Yo me imagino que te la han tratado de comprar múltiples veces.
21:44Toda o en pedazos.
21:46¿Ha sido alguna vez alguna?
21:47¿Que si me la han tratado de comprar?
21:49Oh, yeah.
21:50A thousand times.
21:52I guess I love you guys too much.
21:53I can't sell it.
21:55¿La vas a vender algún día?
21:57¿Tienes planes de venderla?
21:58¿Eh?
21:59Would you ever sell it?
22:01I don't think anybody can ever say never, right?
22:04Somebody said that.
22:05Don't say never.
22:07Pretty close to never.
22:09I love the company.
22:11As Leila said, it's been a family, Hispanic family-owned company for 41 years.
22:18That's something of great pride for me.
22:21My son is backstage.
22:24This is a family company.
22:26And so I feel very strongly about its roots and the continuation of the company.
22:33You can never say never.
22:35But I'll be very close to never.
22:37But yeah, people have been interested.
22:39Let me tell you something.
22:40Can I say one more thing?
22:42This is a very unique, ladies and gentlemen, this is a very unique moment in time.
22:48La fuerza nuestra en este país es una cosa que le voy a decir algo que yo sé que no lo van a creer.
22:56I didn't believe it when somebody told me.
22:59El mercado latino en los Estados Unidos está en todas las economías globales.
23:06Los Estados Unidos, China, India, Francia, Italia, todas, todas, no?
23:13Economías globales.
23:15Ustedes saben que el poder que nosotros, que ustedes tienen en este país, en los Estados Unidos,
23:22el poder latino en los Estados Unidos representa la quinta economía global.
23:34Así que le ganamos a Gran Bretaña, le ganamos a Francia, le ganamos a India.
23:41Le ganamos, sí.
23:42Ustedes ven la cara de Leila.
23:45No, it's not possible.
23:46No, it is possible.
23:48And it is true.
23:49Y en el año 29, we're going to be number four.
23:52Okay?
23:53Solamente nos va a ganar China, U.S. of course, U.S. number one, China, India, and what was the other one?
24:03I think Germany.
24:04No, we are going to be four.
24:06U.S., China, and India.
24:09Oye, number four global with a GDP of almost $4 trillion.
24:18All right?
24:19Can you believe that?
24:20That's unbelievable.
24:22Want me to tell you another fact?
24:24What, another one?
24:25Nace un niño latino o una niña latina cada 30 segundos.
24:32¿Qué le parece?
24:34So we've been here how long?
24:3530 minutes?
24:3660 Latino children have been born since we started this conversation.
24:44You laugh.
24:45Eso es poder.
24:46Eso es power.
24:47Economic power.
24:48Political power.
24:49Social power.
24:50And you have it.
24:51You have it.
24:52No?
24:53And all 60 children will listen to SBS.
24:54Absolutely.
24:55They're all going to be my listeners.
24:56Muchas gracias, Raul.
24:57Gracias.
24:58Thanks for being here.
24:59Gracias.
25:00Gracias a ti, Leila.
25:01Thank you very much.