Corporate Executives Know What's Best For Us

[Lake Country Radio]

Because they wouldn't have their positions if they weren't smart right?

Buffalo radio has become a joke. It's mindless with no ingenuity or substance. Do corporate radio execs and general managers in control of formats and content make decisions they know are stupid to appease other stupid people!? But I guess when you take a cognitive measurement of society in the year 2021, it's rather fitting.

 

[b-turner]

Corporate execs and General Managers could pretty much care less about programming. They care about the bottom line and meeting quotas. Anything else is just details you've hired somebody to handle. Obviously you don't know much about the business.

 

[Lake Country Radio]

Programming.
You mean as a result of the format which corporate execs and general managers have created. But thank you for proving my point that they don't care about quality of content or product.... I'm just here to learn I suppose.

 

[davideduardo]

Programming.
You mean as a result of the format which corporate execs and general managers have created. But thank you for proving my point that they don't care about quality of content or product.... I'm just here to learn I suppose.

Actually, in most cases in larger markets, formats are selected either after conducting some kind of format search research or through finding defects or opportunities in a market leading format that "needs" a direct competitor.

Perhaps in smaller markets owners say, "there is no good country station here so that is what I am going to do" but in general the listeners are consulted before a decision is made.

As a past GM and group owner in larger markets, I can say that I "discovered" when I was 18 that it was a lot easier to sell a #1 station than a low rated one, so I always tried to find out what format had the best opportunity. Over the years, that's what I find all good owner do, too. The ones who don't do that do not last long.

 

[b-turner]

You misinterpreted my statement. When you are a GM or over a group you don't have the time to devote to programming. As a result you have hired people to handle the format and lots of other logistics so you have time to bring in the money to the station that the owner demands so you can keep your job. You don't sit there thinking all the details of programming because you hired someone you feel can bring you the audience to sell the commercials and keep ownership happy. You bet programming matters. If you can't reach your goals set by ownership with your product, you'll get the boot soon enough. To think I wouldn't care is simply moronic thinking. I know that is harsh but I'm spent way too much time trying to explain the illogical thought process that the business model of radio is specifically NOT to give listeners what they want. You'd be amazed how many think that. No company of any type survives by refusing to give their customers what they want. If my owner says he wants to be #1 with women 25-34, I hire the best programmer I can and then I let them do their stuff without me playing backseat driver. If I have to babysit them I can't do my job, plain and simple. I don't create the logistics of the format. I have a person that does that. And I don't care about how that happens. It's like this: I say can you drive from point A to point B. If you say yes, I say I'll see you in 4 hours. The route doesn't matter to me but what does matter is you're here in 4 hours.

 

[davideduardo]

You misinterpreted my statement. When you are a GM or over a group you don't have the time to devote to programming. As a result you have hired people to handle the format and lots of other logistics so you have time to bring in the money to the station that the owner demands so you can keep your job.

When I was owner of 14 stations in Ecuador, I principally spent my time on programming. I did not do accounting and office tasks, but was my own chief engineer although I had several outside engineers on call for emergencies when I traveled. I called on all the agencies myself, and had some local direct sellers in each market as well.

My decision was to focus on product. There were over 35 fulltime stations in my main market, so staying on top of programming was essential. When I got to US markets, I found managers were essentially promoted sales managers, so I figured that if I focused on programming and having a technical advantage, I'd get an easier selling position. And it worked, always.

Unfortunately, most managers in the last few decades have come up from sales, and are not programming-savvy. So we end up with the idea that programmers can't manage a station.

 

[TheBigA]

Unfortunately, most managers in the last few decades have come up from sales, and are not programming-savvy. So we end up with the idea that programmers can't manage a station.

Or conversely we end up with the idea that someone in sales can't program a station. Yet in Buffalo, we have an example of someone who was in sales, who bought a radio station with his own money, and set about programming it himself. That man is Buddy Shula, and the station is WECK. This is not a corporate station. This is a sole proprietorship. If we're going to blast the idea of managers running programming, what say you about Buddy? Is he doing a bad job for the people of Buffalo?

 

[davideduardo]

Or conversely we end up with the idea that someone in sales can't program a station. Yet in Buffalo, we have an example of someone who was in sales, who bought a radio station with his own money, and set about programming it himself. That man is Buddy Shula, and the station is WECK. This is not a corporate station. This is a sole proprietorship. If we're going to blast the idea of managers running programming, what say you about Buddy? Is he doing a bad job for the people of Buffalo?

He's the exception.

The general feel among programmers and on-air folks is exemplified by this T-shirt:

 

[davideduardo]

Programming.
You mean as a result of the format which corporate execs and general managers have created. But thank you for proving my point that they don't care about quality of content or product.... I'm just here to learn I suppose.

The best US group owner I worked for was Cecil Heftel. I recall when Bill Tanner and the team I was honored to be part of took on the challenge of KLVE and KTNQ in LA. On the day that KLVE was reformatted from a "little of everything" format to a true AC format in Spanish, a seller came in where Tanner and I were working and said, "it took us 15 years to build this station and you ruined it in one day!"

Tanner glanced up and said, "why don't you go sell something?" The seller angrily lurched away from the door to our office. Tanner called Cecil and by the time the seller got back to the sales area, the phone was ringing. It was Cecil, who told the seller that one more poke of their nose into the product and they were gone.

Working for Norm Wain and Bob Weiss at Metroplex was a close second. They were strongly aware of the fact that programming drove sales, based on their initial ownership of WIXY in Cleveland. Sellers did not mess with programmers or they found themselves in accounting getting a final check.

Unfortunately, iHeart, Entercom, Cumulus and several others are not like that. They are not run by radio people but by finance MBAs and the like... and they hover under the LBO cloud of debt. But go to smaller groups like Summit and Saga and you find good programming driven operations.

 

[b-turner]

I'm lucky that I am one of the ones that got to go from on air and programming to sales and then management. I can honestly say I am a better salesperson because of my experience on air and in programming. I feel like I was a better manager because I valued programming and didn't allow sales to dictate programming. I would feel pretty inadequate in management without some programming and on air experience. The way I see it, a radio station is like a car. The salesperson sells the car for what it is. The salesperson doesn't mess with the mechanics and design. The folks that do, build the best vehicle they can for their target customer.

 

[TheBigA]

He's the exception.

Maybe. If you look at similar single station operations around the country, you see the same thing. The owner decides the programming. That's the case for Saul Levine in LA and John Cats at WABC. So if you listen to a mom & pop station, it's likely that pop is in charge of programming.

Meanwhile, you look at any big corporate owner, and it's rare the top person gets involved in programming. Mary Berner never interferes with her top programming people. Same with Steve Price or Bill Wilson at Townsquare. Same with Bob Pittman. Even though Pittman has programming experience.

 

[Lake Country Radio]

Generally in most administrative positions, the senior officials do not have any technical knowledge or skills. Similar to the president of a hospital or warden of a prison, corporate executives don't have the wherewithal of what employees on the floor or guards on the block experience on a daily basis in order to improve the overall operation. The majority of CEO's or people placed into positions of leadership or power typically work less and get paid more with their skills primarily in conflict resolution and peer to peer relationships. The companies who excel generally have leaders who have the hands on experience and the ability to be innovative. Similar to the New England Patriots, Coach Belichick will train an assistant on the defensive side of the ball and then move him to offense to coach so they see the game from both viewpoints and it's advantages and disadvantages.
It's my opinion that radio is very reactionary and not revolutionary. Although they'd like to think they are progressive or strategic when introducing new formats, they're not. I've yet to hear a solution on how to improve the viability of radio in the next ten years... seems like the only thing I read and hear about is how it is failing... not any solutions to fix it.

 

[TheBigA]

I've yet to hear a solution on how to improve the viability of radio in the next ten years... seems like the only thing I read and hear about is how it is failing... not any solutions to fix it.

You don't have to "hear a solution." Just watch what they're doing. They're moving on-air to online. In the case of iHeart, they own the #3 streaming service in the country. A lot of the radio companies are getting into the podcast business and for some companies, that's the only area of growth. For Townsquare, owner of two of the top-rated radio stations in Buffalo, their CEO says that more than 50% of their revenue is coming from digital.

There are too many outside limitations in on-air radio, caused by antiquated FCC rules and a single revenue stream. If there were other ways to fund on-air, you'd hear fewer commercials and more diverse formats. As long as the only revenue source is advertising, there's not much you can do.

 

[Lake Country Radio]

In terms of Frequency Modulation, how will it be sustainable beyond the next ten years? Somehow AM radio has survived for as long as it has but it seems like FM is going to be the basic cable hookup that nobody uses anymore. Although the corporations themselves will survive using digital streaming, etc., what does the future hold for FM?

 

[TheBigA]

In terms of Frequency Modulation, how will it be sustainable beyond the next ten years?

We'll see. Digital music royalties keep increasing. Next year, they'll likely go up again. By how much we don't know yet. That means the cost of streaming and satellite will increase. FM radio is the equivalent to cord cutters and cable TV. FM is free and easy. No subscriptions, no user names or passwords, no sharing of personal data. I think the audience will increase as streaming becomes more expensive and music becomes more narrow. Why pay for something you can get for free?

 

[b-turner]

Very interesting and true comments about those at the very top. My owner knew nothing of the business but he always wanted to own a radio station and once he did he was astonished to see how passionate radio people are. We both came out ahead. I tried to share my radio knowledge and he shared his business knowledge. I'm in agreement that the best person to be at the top knows the 'game' as in having worked both sides of the building so they understand the business more fully than the GM only with sales experience.

The huge challenge for radio is to figure out how to monetize streaming. It is so costly it far exceeds the current revenue ratios. If I'm not mistaken, a radio station gets a lower rate than an online only station. For most stations not more than a few hundred are listening online at once even on a fairly top rated station.

I wouldn't say a GM or such works less, but works differently. They usually have a lot of stress on them over things they cannot control. They do lots of thinking. If you're in that position you have to know every answer to every question asked and you are accountable for everyone's actions.

 

[TheBigA]

I wouldn't say a GM or such works less, but works differently. They usually have a lot of stress on them over things they cannot control.

Such as having to meet payroll. Nothing as stressful as handing out paychecks, knowing there's not enough money in the account. That's why programming people don't always make good GMs.

 

[gr8oldies]

Very inter

The huge challenge for radio is to figure out how to monetize streaming. It is so costly it far exceeds the current revenue ratios. If I'm not mistaken, a radio station gets a lower rate than an online only station. For most stations not more than a few hundred are listening online at once even on a fairly top rated station.

That's why all of iHeart's music channels "originate" from an HD2.

 

[TheBigA]

If I'm not mistaken, a radio station gets a lower rate than an online only station.

On air radio gets a slight discount on the publishing royalty (ASCAP/BMI/SESAC) only because they already pay 100% royalty on air. They receive no discount in the royalties they pay to SoundExchange.

 

[davideduardo]

Generally in most administrative positions, the senior officials do not have any technical knowledge or skills. Similar to the president of a hospital or warden of a prison, corporate executives don't have the wherewithal of what employees on the floor or guards on the block experience on a daily basis in order to improve the overall operation. The majority of CEO's or people placed into positions of leadership or power typically work less and get paid more with their skills primarily in conflict resolution and peer to peer relationships. The companies who excel generally have leaders who have the hands on experience and the ability to be innovative.

I disagree entirely.

Except for the radio companies that went through LBOs or bankruptcies that put them in the hands of bankers, most radio companies are in the hands of people who worked their way up in the business.

My belief, which is shared by lots of people in management, is that the greatest manager is one who surrounds themself with specialists who are much better in their area than they are.

Using myself as an example, I am competent enough at engineering to have built a transmitter or board or two, but I prefer to hire those better than myself so I can focus on the bigger picture. The job of a manager to the greater extent is to set policy and then "lend a hand" in areas where important work is being done. So, continuing with my own experience, the manager will assist the engineering staff when a tower lease or new transmitter has to be negotiated and financed, but they won't be installing the updates on the security software.

A good manager in radio will know enough about programming to be able to set the objectives and ground rules for the PD. They will be a good seller so they can assist with the prime accounts. They will know enough about HR to make sure bad or illegal practices are avoided. And so on.

A manager is not just the coach, he is the team owner and the owner of the stadium. The principal job is not just making money; it is protecting the investment.

And a good manager is often the first to arrive and last to leave and is also involved with lots of community and outside activities.