iHeartless

[flybynight]

Maybe. Look at New York City. Imagine if you owned WABC, a 50,000 watt station in the #1 market. It's now locally owned by John Catsimatidis.

I get it, but it still makes me cringe.

Many, myself included, aspired as young broadcasters to maybe someday work at a big station with one of those esteemed network logos on the letterhead---or bolted to the wall outside the building. Some, myself included, eventually ended up working for one (I worked for 2 of the big 3). That was when "network O&O" meant something.

Now? You will have seemingly unvetted, subpar talent on the air at Al's (fill in legendary calls here).

In my best midwestern accent: "It just ain't right!"

 

[tbolt909]

It's interesting when you look at all of the companies that iHeart owns that will affect other radio stations. Most stations I know use RCS Selector to program their music. That's an iHeart company. A lot of radio companies, including Cumulus, use iHeartRadio as their streaming platform. Every major radio station reports music airplay to Mediabase, an iHeart company. How will other companies respond when so much of what they do is affected by iHeart (and in turn Sirius)? The competitive landscape for other companies will change. The other part of that is will the DOJ require them to spin off a lot of these companies?

One would think that a company that owns all these services you mentioned would be thriving. Instead, they are in a World of Hurt. Mass layoffs aren't a great look for a "thriving" company/industry.

The top down approach that Iheart, Cumulus, Entercom, etc..have used for the last 20 years is imploding. The bland cookie cutter product they offer is worthless to the public. Other entertainment options now exist. Radio is an anachronism to a large percentage of the population. They can get what "they" want on demand somewhere else...

 

[TheBigA]

One would think that a company that owns all these services you mentioned would be thriving.

The company is thriving. It's a $3 billion a year company. But it was saddled with $20 billion in debt, left to them by previous management. That debt is mostly gone, and they're repositioning themselves for a new business environment. There's a reason why DOJ is looking into this. The result could be anti-competitive.

Top down works. Apple is a top-down, centralized company. So is Google. Everything emanates from one place. Their products are bland. But people buy them. That's all that matters.

 

[davideduardo]

One would think that a company that owns all these services you mentioned would be thriving. Instead, they are in a World of Hurt. Mass layoffs aren't a great look for a "thriving" company/industry.

As BigA has said, they are thriving.

But they have made a decision to centralize much or the operation of each terrestrial station because that is the way all other media is now being consumed. It's the model in most other nations of the Hemisphere And Europe and much of the rest of the world as well.

The top down approach that Iheart, Cumulus, Entercom, etc..have used for the last 20 years is imploding. The bland cookie cutter product they offer is worthless to the public. Other entertainment options now exist. Radio is an anachronism to a large percentage of the population. They can get what "they" want on demand somewhere else...

There is nothing "cookie cutter" in recognizing that, due to the Internet and streaming, there is vastly more consensus in music tastes nationally than there ever was. Combine that with each owner's ability to have many stations across the company and you have a network just like Red, Blue and Columbia in the first years of The Golden Age of Radio.

What has changed as well is technology and regulation. We can run a station from 2,000 miles away as if it were local. We can do the transmitter readings, program the music, integrate the commercial logs with the music logs, do the "live" breaks and everything else (You don't think "live from Burbank..." wasn't really recorded, do you?).

Most of the rest of the world did this 40 or 50 years ago. I linked stations in Ecuador via microwave in the 60's and programmed to the whole country back in the late 60's, long before fiber optics or satellites. So did countless other nations where big market programming could be thus brought to smaller markets and sold efficiently.

Obviously, iHeart believes this is a better model to sustain terrestrial radio well into the future even as most of their business moves to newer platforms.

 

[TheBigA]

There is nothing "cookie cutter" in recognizing that, due to the Internet and streaming, there is vastly more consensus in music tastes nationally than there ever was.

I'll take it a step further. They're cookie cutter because the majority of users are cookie cutter. Look at Twitter. Try posting something on there that doesn't fit their system. Same with Facebook. Those are cookie cutter platforms where the rules are set by a centralized system. Your words and pictures are individual, but you're using their template. Even if you create your own website, you're likely using a template set by WordPress or a similar centralized company. You listen to music that is decided by companies based in Japan and France. Nothing wrong with cookie cutter, especially if the goal is to reach a mass audience. People are attracted to things that attract other people. They go to restaurants that are popular with other people. There is an infatuation with ratings and charts and numbers that demonstrate that the things we like are popular with others. Tell me that's not cookie cutter. We want to create this mythology that we're all individuals, but really, we're not. The internet has created a mass cookie cutter culture.

 

[TheBigA]

Many, myself included, aspired as young broadcasters to maybe someday work at a big station with one of those esteemed network logos on the letterhead---or bolted to the wall outside the building. Some, myself included, eventually ended up working for one (I worked for 2 of the big 3). That was when "network O&O" meant something.

Did you ever read "Private Parts?" Howard Stern grew up believing the same thing. His father was an engineer at a NYC radio station. But when he got to WNBC in the 80s (long before consolidation), he realized he was in the middle of corporate culture. Decisions were made in corporate conference rooms. I read so many posts talking about the corporate culture of iHeart, but did any of them ever work for companies like ABC or Disney?

 

[Buddy Shula]

One would think that a company that owns all these services you mentioned would be thriving. Instead, they are in a World of Hurt. Mass layoffs aren't a great look for a "thriving" company/industry.

The top down approach that Iheart, Cumulus, Entercom, etc..have used for the last 20 years is imploding. The bland cookie cutter product they offer is worthless to the public. Other entertainment options now exist. Radio is an anachronism to a large percentage of the population. They can get what "they" want on demand somewhere else...

Mass layoffs are not a sign if a company is doing well. If they cash flow 20 billion, they want 21. Its about quarterly profit, and they want more. Weck could have more too, but I do not subscribe to the if yiu make a billion, it should be 2 philosophy. We are doing well. That’s all that matters too me. I dont need massive profits. I want to take care of me and my team. That’s it.

 

[Buddy Shula]

Ultimately it's about the size of the sales platform. That's what this is all about, and ultimately what the DOJ will have to assess. Cumulus walked out of several major markets because they realized they simply couldn't compete from a sales perspective. That becomes an issue for Entercom.

They could compete from a sales perspective if they knew what they were doing. They are not helping their sales efforts. They are desperate to find d new forms of revenue because they think radio is dead. They do not think out of the box or their shareholders would kill them. This business is coming back to local. With all the hurdles weck can have against the Wall Street companies, sales and ratings are great. It because of our people and our passion for our product. We also report to no one but me. It’s a much friendlier process. Adding stations, I will keep the same business plan.

 

[davideduardo]

Mass layoffs are not a sign if a company is doing well. If they cash flow 20 billion, they want 21. Its about quarterly profit, and they want more. Weck could have more too, but I do not subscribe to the if yiu make a billion, it should be 2 philosophy. We are doing well. That’s all that matters too me. I dont need massive profits. I want to take care of me and my team. That’s it.

If the methods of production change or technology changes, there can be layoffs.

In the early auto industry, the development of the assembly line caused layoffs; it also made automobiles more affordable and was accompanied by huge increases in production and profits.

Computer reservations systems caused large layoffs in call centers by airlines and hotels. The result was greater efficiency, more competitive pricing and improved processes.

In radio, the change in technology and FCC rules that virtually eliminated on-duty licensed "engineers" caused thousands and thousands of "First Phone" employees to be let go, but it made many marginal stations profitable.

Today, it does appear that there is a significant segment of the listenership that does not need radio programming to originate nearby and to whom "live and local" has zero value or interest. The technology exists to provide national or regional programming of likely better quality than anything done locally in most markets. iHeart seems to believe that their stations should follow that audience segment fully.

A good example from television would be late-night TV shows: how many local stations, even in the largest markets, have their own post-night-news show? That's because the network offerings are much better. And going back to Steve Allen and Johnny Carson days, did anyone really care if "live from beautiful downtown Burbank" was really true?

 

[Buddy Shula]

Entercom has seven stations Seven!! Yet they have a 50 percent revenue share in the market because three of their stations bill pennies. That’s pathetic. Three wasted stations. With seven stations, they should have way more than a 50 percent rev share. 1077 is a joke. KB is a total waste. And WWWS is an automated jukebox that reps forget is there. Entercom as a company has become very disappointing. TS should be ashamed too. Weck beats 2 of their 4 stations!! Cumulus has great ratings but a low power ratio. Their billing does not add up to what the ratings say it should be. Frankly, I think ratings are a total sham. Totally outdated methods. I wish I would have never subscribed. We do-well with them, because our ratings are very decent, but we would do just as well without them. Plus, ratings give you false info, that causes programmers and sales to react. In PPM markets, ratings are fine, but in diary markets like Buffalo, a total misleading, inaccurate waste.

 

[TheBigA]

Computer reservations systems caused large layoffs in call centers by airlines and hotels.

My bank finally closed down all the drive thru teller lanes. They replaced them with ATMs. The branch used to have about 40 employees. It's less than half of that now.

Entercom has seven stations Seven!! Yet they have a 50 percent revenue share in the market because three of their stations bill pennies. That’s pathetic.

If they exceed a certain percentage, they can be forced to sell stations.

 

[davideduardo]

They could compete from a sales perspective if they knew what they were doing. They are not helping their sales efforts. They are desperate to find d new forms of revenue because they think radio is dead. They do not think out of the box or their shareholders would kill them. This business is coming back to local. With all the hurdles weck can have against the Wall Street companies, sales and ratings are great. It because of our people and our passion for our product. We also report to no one but me. It’s a much friendlier process. Adding stations, I will keep the same business plan.

You have not been looking at the weekly and daily time spent listening among younger demos.

In Houston, the Persons Using Radio 6 AM to Midnight in 18-34 is around 5%. Go back 20 years to 2000 and that figure was more than triple that 6 AM to Midnight, and in morning drive the Average Person Rating was around 22 to 24.

Radio still cumes 90% or better of 18-34's in that market (and I use that one as an example... all the PPM markets are very similar). But the level of listening has declined by over 50% in the Internet and streaming years.

And guess what? Persons 55+ are down to around 7 to 8 in Persons Using radio. It used to be over 20% of all persons 55+ were using radio at any average time of the day. Now it is about 60% less. The seniors and geezers are doing other things with their time, too.

Finally, ratings are not great. Ratings are way off, as ratings measure the percent of all people listening to a station or to radio. Shares look just like always, because there are always 100 shares. But 5% of a 7 PUR rating is one third of 5% of a 21 PUR rating. Share's don't show the decrease in actual persons that has been happening for nearly 20 years.

 

[TheBigA]

Share's don't show the decrease in actual persons that has been happening for nearly 20 years.

However if you own a platform that includes cable TV, live concerts, satellite radio, internet streaming, and OTA radio, you might have a sellable number.

 

[davideduardo]

However if you own a platform that includes cable TV, live concerts, satellite radio, internet streaming, and OTA radio, you might have a sellable number.

And the decrease in the number of actual listeners represented by a share point is the reason why rates have dropped; advertisers who buy based on ratings pay CPP (Cost Per {ratings} Point), not cost per share. So stations have generally seen a decrease in revenue over the last 10 years, while expenses have increased... one of the reasons why cost reductions have been essential for survival.

 

[Buddy Shula]

You have not been looking at the weekly and daily time spent listening among younger demos.

In Houston, the Persons Using Radio 6 AM to Midnight in 18-34 is around 5%. Go back 20 years to 2000 and that figure was more than triple that 6 AM to Midnight, and in morning drive the Average Person Rating was around 22 to 24.

Radio still cumes 90% or better of 18-34's in that market (and I use that one as an example... all the PPM markets are very similar). But the level of listening has declined by over 50% in the Internet and streaming years.

And guess what? Persons 55+ are down to around 7 to 8 in Persons Using radio. It used to be over 20% of all persons 55+ were using radio at any average time of the day. Now it is about 60% less. The seniors and geezers are doing other things with their time, too.

Finally, ratings are not great. Ratings are way off, as ratings measure the percent of all people listening to a station or to radio. Shares look just like always, because there are always 100 shares. But 5% of a 7 PUR rating is one third of 5% of a 21 PUR rating. Share's don't show the decrease in actual persons that has been happening for nearly 20 years.

In Buffalo. Which is an old, non transient town, older demo is the only one I care about, however, even with the older demo, radio has competition, like Sirius. Older people are starting to catch on to Sirius, which is why you need to build a local listening experience. Kiss the younger demos goodbye. They are gone.

 

[Buddy Shula]

My bank finally closed down all the drive thru teller lanes. They replaced them with ATMs. The branch used to have about 40 employees. It's less than half of that now.



If they exceed a certain percentage, they can be forced to sell stations.

They can’t be forced to sell with a certain revenue percentage, they can be forced to sell with a portfolio size of stations over the limit

 

[TheBigA]

They can’t be forced to sell with a certain revenue percentage, they can be forced to sell with a portfolio size of stations over the limit

Two different issues. The FCC can force them to sell over the station limit. The FTC can force if revenue exceeds a certain percentage. No single owner can control more than half of the market's revenue.

 

[davideduardo]

In Buffalo. Which is an old, non transient town, older demo is the only one I care about, however, even with the older demo, radio has competition, like Sirius. Older people are starting to catch on to Sirius, which is why you need to build a local listening experience. Kiss the younger demos goodbye. They are gone.

You would be surprised how deep the penetration of streaming services is among seniors. Because so few traditional radio stations serve that demographic actively, many have discovered services. With seniors, Amazon's music service has made a strong impact due to the rapid adoption of the Echo devices which makes it really easy and actually fun.

 

[SirRoxalot]

Reading David's post about PUR could be interpreted as an indication that the bland radio served up by iHeart and other in the markets mentioned is simply driving people to look for content on other platforms. Are they leaving radio because other options are more attractive, or because radio has become so much less attractive?

The late night TV rating of the three network shows for persons 18-49 is about 1.19% of the available audience. Radio would consider that a catastrophe. It's a specious argument. Local TV stations don't run late night shows for the simple reason that most people don't watch. There's not enough money in it to make is profitable.

https://tvbythenumbers.zap2it.com/w...atings-oct-28-nov-1-2019-colbert-tops-fallon/

I guess we'll get to find out of if the rubes in the sticks will feel blessed by the big market talent that will be infesting the iHeart airwaves nationwide when this latest round of cuts takes hold. If PUR continues to drop, will they reverse course, or simply declare radio "dead" and propose "recovery" of that bandwidth for other purposes? You can distribute a lot more streaming channels with the bandwidth used by FM alone - if anybody wants to listen.

 

[gr8oldies]

Like it or not, we're a pretty nationalized society, especially with social media. Will a local guy in Buffalo playing the hits make a vast majority of people turn off whatever other content they are consuming? (All content is a drop on the ocean of content). iHeart is betting the national star power is going to beat the $30,000 a year midday guy.