Audacy is trying to negotiate making late payments on its debt. Last week in Canada, Corus was granted relief by the CRTC from certain financial payments citing a 62% drop in revenue this year. Investors have shunned broadcast stocks believing there is not enough profit in the industry and companies are scrambling to acquire or diversify into streaming and on line businesses.
So what is going to happen to individual stations? Let us grant that the ad dollars that have left radio for other platforms are never coming back, so the current business model broadcasters are using is obviously obsolete. What is a workable alternative?
I see it first as a major reduction in the number of stations. Those 80-90 stations and allowed move ins have overloaded markets. Even owning six or eight signals and automating them all still costs to keep them going as those slivers of ad revenue diminish. Then an exit by mega groups from the industry. Radio was never supposed to be Exxon Mobile, it is an entertainment business and it is apparent that big business practices of huge debt and cutting operating costs aren't working. Maybe the Mom and Pop model, individual businesses not meant to support massive debt and produce large profits for many shareholders was the right way. But for that to happen now, station prices must fall dramatically. Today, cash-rich non-profits are keeping prices artificially high in many markets, but how long will that last?
Years ago, long before the internet and streaming, I was told that radio was like the buggy whip makers when the automobile came in...doomed to become small specialty operations for collectors and hobbyists. Maybe that prediction has come true.
So what is going to happen to individual stations? Let us grant that the ad dollars that have left radio for other platforms are never coming back, so the current business model broadcasters are using is obviously obsolete. What is a workable alternative?
I see it first as a major reduction in the number of stations. Those 80-90 stations and allowed move ins have overloaded markets. Even owning six or eight signals and automating them all still costs to keep them going as those slivers of ad revenue diminish. Then an exit by mega groups from the industry. Radio was never supposed to be Exxon Mobile, it is an entertainment business and it is apparent that big business practices of huge debt and cutting operating costs aren't working. Maybe the Mom and Pop model, individual businesses not meant to support massive debt and produce large profits for many shareholders was the right way. But for that to happen now, station prices must fall dramatically. Today, cash-rich non-profits are keeping prices artificially high in many markets, but how long will that last?
Years ago, long before the internet and streaming, I was told that radio was like the buggy whip makers when the automobile came in...doomed to become small specialty operations for collectors and hobbyists. Maybe that prediction has come true.
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