Radio is "not a viable business"

[TheBigA]

This is a very interesting announcement, where Bell Media in Canada states very directly: "It's not a viable business anymore." As a result, they're selling off half of their radio stations. I don't think I've heard anyone put it that way. The general view is that big corporations get into debt and hurt themselves. That's not the case here.

"We've effectively sold off half of our radio portfolio. That's a significant divestiture and it's because it's not a viable business anymore," said Bell chief legal and regulatory officer Robert Malcolmson in an interview with The Canadian Press. "We will continue to operate ones that are viable, but this is a business that is going in the wrong direction."

They're also laying off 4800 employees. They blame the government for lack of action on the creation of a fund for journalism:

"We hope they do that but we can't wait two years for that to happen, so then you see actions like this today," he said. Bell has fought other regulatory decisions over the past year that it says makes things harder for its struggling broadcast division.

Bell Media is not owned or run by the Canadian government. This follows years of cuts at the CBC. It's very informative to see that funding for radio and journalism is a problem in other countries, not just the US.

MSN

https://www.cbc.ca/news/business/bce-cuts-1.7108658

In this country, we've already seen all of the major media companies sell off their radio stations. We might see more after this.

 

[Daryl Lynn L.A.]

This is a very interesting announcement, where Bell Media in Canada states very directly: "It's not a viable business anymore." As a result, they're selling off half of their radio stations. I don't think I've heard anyone put it that way. The general view is that big corporations get into debt and hurt themselves. That's not the case here.



They're also laying off 4800 employees. They blame the government for lack of action on the creation of a fund for journalism:



Bell Media is not owned or run by the Canadian government. This follows years of cuts at the CBC. It's very informative to see that funding for radio and journalism is a problem in other countries, not just the US.

MSN

That is a significant move. It sounds as if, in part, it was caused by years of cuts at the CBC. In the wake of all these job cuts, how will they disseminate the news? Will it all be live streamed? If they are making the journalists redundant, will they be using more AI to create the stories? Just wondering.

 

[TheBigA]

n the wake of all these job cuts, how will they disseminate the news? Will it all be live streamed? If they are making the journalists redundant, will they be using more AI to create the stories? Just wondering.

I think most of those questions were answered in the two linked articles.

Bell is also ending evening programs The Debate, This Hour and Top 3 Tonight on CTV News Channel, which will be replaced by a four-hour news broadcast on weeknights beginning at 6 p.m. At BNN Bloomberg, weekday daytime programming is "being streamlined" to reduce the number of separate broadcasts. Daigle and Gray also said W5 will shift from a standalone documentary series to a "multi-platform investigative reporting unit" featured on CTV National News, CTVNews.ca and other news platforms.

AI was not mentioned at all as a replacement.

 

[tbolt909]

The quote says "We will continue to operate ones that are viable". The question is -- How long will they be viable?

The US corporations that got into debt often bought stations at absurd prices. The assets have depreciated at an alarming rate...

 

[CTListener]

The problem there, as here, is the disinterest in -- or distrust of -- traditional news by most people under 50. This has been simmering for years and is now coming to a full boil as news consumers age out of the demographics advertisers think will respond readily to a sales pitch or change established buying patterns. There are so many radio stations now that do no news at all that it's very easy to avoid all but cataclysmic happenings whenever you listen. And with internet "radio" and other streaming services, continuous music on shuffle play or on demand is available from thousands of sources.

For some younger consumers, social media have become the lone source of "news," despite domestic and foreign operatives sabotaging whatever truths social media claim to deliver.

 

[TheBigA]

The problem there, as here, is the disinterest in -- or distrust of -- traditional news by most people under 50.

I think that's the bigger part of this story. The radio sale is pretty basic. But Bell is also shutting down several TV news services.

It is also scrapping its 6 p.m. and 11 p.m. newscasts on weekends at all CTV and CTV2 stations except Toronto, Montreal and Ottawa. Daigle and Gray said "multi-skilled journalists" would replace news correspondent and technician teams reporting to CTV National News in Alberta, Manitoba, Quebec and Atlantic Canada, while other correspondent changes would be made in Ottawa.

This gets back to another discussion here about funding journalism. In Canada, they are discussing some kind of government funding for journalism:

He blamed the federal government for taking too long to provide relief for media companies as well as the CRTC for being too slow to react to a "crisis that is immediate." That extends to two pieces of legislation intended to help Canada's struggling media sector: Bill C-18, also known as the Online News Act, meant to force tech giants to compensate Canadian news outlets for their content, and Bill C-11, which updates the Broadcasting Act to require digital platforms such as Netflix, YouTube and TikTok to contribute and promote Canadian content.

We are a long way from anything like that here.

 

[CTListener]

This gets back to another discussion here about funding journalism. In Canada, they are discussing some kind of government funding for journalism:

But why fund something that the last three generations have shown sharply declining interest in? Especially if the funding is from the government, which so many younger people today distrust (after absorbing years of left-wing and right-wing agitprop on social media disguised as news).

 

[leethalweapon]

If they are making the journalists redundant, will they be using more AI to create the stories? Just wondering.

Journalism worldwide has been in decline, due to budget cuts and consolidation. As @TheBigA has said, there is little trust in traditional media and Journalism. AI would add another level of distrust, if you ask me.

I think that's the bigger part of this story. The radio sale is pretty basic. But Bell is also shutting down several TV news services.

I wonder if Bell is trying to do a Paramount and bail out of old/technologytradition media, before they are stuck with worthless assets.

 

[TheBigA]

But why fund something that the last three generations have shown sharply declining interest in?

Because self government is based on an informed electorate.

 

[tbolt909]

Because self government is based on an informed electorate.

Then the US is screwed. You have millions of people who have willingly fallen down the rabbit hole.

"FACTS ALL COME WITH POINTS OF VIEW
FACTS DON'T DO WHAT I WANT THEM TO"
Talking Heads...

 

[Tibbs4]

Because self government is based on an informed electorate.

You just created a great bumper sticker to hold electric cars together..LOL

Now, as far as the premise above ---- "Radio - It's not a viable business anymore." It's not viable using any form of the old school methods. But, in America, business generally finds ways to evolve and make a profit. I wouldn't count radio out yet. But, I do think "we" need to look at the reality that the most profitable models are NOT stock owned, top heavy run dinosaurs. Sadly, EMF and similar models are healthy. Corp radio is more worried about shaving off and killing it's already reduced audience.

 

[CTListener]

Because self government is based on an informed electorate.

But if the electorate rejects information, what next? The government can fund all the journalism it wants and very few people under 30 will pay any attention to it. They will just abandon conventional TV and radio in ever larger numbers.

 

[TheBigA]

But if the electorate rejects information, what next?

We're starting to see what happens next.

 

[Kent]

This is a very interesting announcement, where Bell Media in Canada states very directly: "It's not a viable business anymore." As a result, they're selling off half of their radio stations. I don't think I've heard anyone put it that way. The general view is that big corporations get into debt and hurt themselves. That's not the case here.



They're also laying off 4800 employees. They blame the government for lack of action on the creation of a fund for journalism:



Bell Media is not owned or run by the Canadian government. This follows years of cuts at the CBC. It's very informative to see that funding for radio and journalism is a problem in other countries, not just the US.

Radio in Canada has always struggled. In the late 80’s/early 90’s when half of US stations were losing money, nearly 2/3 of Canadian stations were operating in the red. That, of course, was despite regulations designed to keep areas from having too many radio stations and to keep AM competitive. Maybe radio in Canada struggled less after it allowed consolidation at a similar level to what we have here, but the AM shutdowns last year and today's announcement would seem to indicate that's not the case.

The problem there, as here, is the disinterest in -- or distrust of -- traditional news by most people under 50.

My experience has been that the biggest level of distrust of traditional media has been people over 50. The younger generation is simply disinterested. Younger people, in general, have never had reputations for being news junkies.

 

[AbrahamJSimpson]

Because self government is based on an informed electorate.

It has been. Past performance is not a guarantee of future events.

 

[davideduardo]

The US corporations that got into debt often bought stations at absurd prices. T

Those prices were not absurd back then. Stations were throwing off as much as 50% BCF ratios and the prices were justified.

 

[TheBigA]

I do think "we" need to look at the reality that the most profitable models are NOT stock owned, top heavy run dinosaurs. Sadly, EMF and similar models are healthy.

Because they're selling salvation. That can be a very desirable product to sell.

The question is: Who can the government find to own and operate its broadcast media? Because profit is not the motivation,

 

[davideduardo]

Referring to Canadian legislators thinking about regulating content on Netfx et. al...

We are a long way from anything like that here.

But Canada has a long history of making media include certain percentages of Canadian content, as well as for years prohibiting fast rotation "Top 40" type stations on FM.

Despite what actual citizens and listeners might have wanted, the government has insisted in controlling even the rotations on songs going back over half a century.

 

[Skivvy9er]

Radio and the radio business keep evolving. At the beginning of broadcast radio, people wondered how it could make money. Then stations started reading advertisements. Soon, companies began to sponsor radio shows. Now radio is available more places than ever, thanks to the Internet. Can get all sorts of stations on my Internet radio, and these stations can carry broad-based advertising. Some don't, like one Hawaiian oldies station I sometimes listen to. Neat to hear the local ads, gives you a window as to how life is there. The more things change, the more they stay the same. New opportunities will keep coming up, and so will new opportunities to make money in radio.

 

[davideduardo]

Then the US is screwed. You have millions of people who have willingly fallen down the rabbit hole.

The issue is that each half of the electorate believes that it is the other half that fell into that rabbit hole.

You'd think that this situation would make for newer and more interesting / entertaining radio talk formats. Instead, we have an angry heard of bad Rush imitators who are boring, banal, bland.