Here are two examples of men with lots of radio experience: Bob Pittman and Lew Dickey. Lew is a second generation owner. His father owned stations in NY state. Then add David Field, another second generation radio owner. They all know everything about radio. How are they doing?
Pittman was a successful programmer and TV project manager. He is doing about the best job in the industry outside of Townsquare in getting iHeart into a viable future position. His burden is a debt that he did not create... a bunch of investment bankers did that.
The Dickeys are unique. Thank God. For every Dickey, there are hundreds of small market or small group owners like the Sorensens in the Dakotas or the Kalmensens in the Southwest running solid, well financed and profitable groups.
As I've said many times before. radio needs people with new ideas, who aren't burdened by the past.
Pittman is one of those. He was the first to think of directly negotiating music fees with the rights holders. He has used strong names in music station talent like Seacreast to strengthen local stations with national quality talent. He has consolidated national sales and developed a profitable set of concerts and events. He is working on a string of podcasts, too.
After 20 years of endless radio bankruptcies, the investment money has dried up. Only religious broadcasters have any money. Radio needs new funding sources.
It's not going to get them. And when possible fund sources see how nearly impossible obtaining profits from ad-supported streams, there will be even less funding.
Had Salem bought those stations it would have pushed them into bankruptcy.
Not really. Salem realized that money from conservative sources comes from national, not local, organizations and they were going to offer more "national" reach via purchases and syndication. In this case, they were going to expand Hispanic reach and combine it with their existing faith-based programming.
They're still very touch & go now. They need to sell assets to stay afloat. They couldn't afford to spend money on loser AM stations. Their stock is under $1. They're about to be delisted. Who at Salem thought that was a good idea? That person should have been fired.
The idea was to take the profit high point in their existing operation and also among stations owned by former executives who had their own groups in the Hispanic area and expand it.