The reason for good profits in Buffalo may be the three bigger companies operating in Buffalo bought their stations years ago and in all likelihood do not have any debt associated with them on the cluster level. So operating cash profit for the cluster is positive. On the Corporate level, it's a whole different story.
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Buffalo Cumulus was planning to shut down Talk 1270 last Friday
- Thread starter DavidZ
- Start date
Buying the CBS cluster in Buffalo was literally what bankrupted the old Regent Communications (and ultimately led to the creation of Townsquare).
Debts are as unique as the companies that have them. One of the reasons some investors are still interested in radio is because it's still a good way to make money, even if the margins are declining and are no longer enough to be exciting.
Memory (and a quick Google search) says Regent paid $125 million for the CBS cluster. Buddy's WECK was a part of that deal.
The reason they are making money is expense cutting. The revenue is down greatly. Spot sales are way down, while digital is holding is holding its own. They are selling enough to make a profit, but only because of internal cost-cutting
I look at things the other way. Increase expenses on the things that will benefit you, and your revenue will increase. The key phrase being "benefit you" (the radio station)
I have personally spent a ton in outside marketing, getting great people, and a very smooth sales operation. Granted, much of BIG WECK sales are because of me, frankly. I have some very solid relationships, and the station produces results for clients. However, I have a really good client-focused sales tea lead by 2x Radio Ink Manager of the Year, Donny Tomasulo, and the team he leads at WECK
We are always trying to make ourselves better. I am always on the hunt for new opportunities and partnerships. It has worked out very well, however, I am a little concerned about the headwinds in the economy. Internally, we just have to focus on game changing ideas for our current and future clients.
Thanks for pointing this out. I guess I am torn. The WHLD signal is really good. The audio is not. I would say that it depends how much they would want for the station. It has a brand new Nautel 5KW transmitter. The Cadillac of AM transmitters.
If someone could do the right thing with the station, with a good infrastructure on a company level, it could actually do really well with the upper demo. As a station that specifically targets to upper demo (WECK), I think WHLD could do the same thing. WECK is a top 10 12 plus. Way higher in our demo. I am thinking WHLD could be a lot like WECK, just a bigger signal with the 5KW daytime.
I listened to WHLD the other day, and while the signal was great, the audio and processing was terrible. I am no engineer, but I would think a good processor could help with that
Yes, when I bought WECK the equipment was incredible. Like new. CBS did a really good job at 2900 Genesee. The guts were there and still are. We have spent a lot of money on the sound and processing. I am very happy with the way WECK sounds in the metro on AM. It's very listenable for a music station. With so many other platforms, like app, voice-activated and streaming, the sound on everything must be 1st class. For our FM's, we have an Omnia 11. It really made the translators pop
You're not going to get that from Cumulus, as you know. Especially now.
I agree the station sounds great! I find myself listening on the AM more than the FM signals. (Usually when WGR or WBEN goes to commercials—or if I’m just escaping “work” and listening to the oldies on my personal time.) Sound quality is awesome for a music AM.
If a radio company makes a million zillion dollars and they cover their electric, rent, and salaries but miss their loan obligation of a million zillion and one dollar, they are NOT profitable. Perhaps the big guns are making more money than they pay out in Buffalo, but if the rest of that local cash has to go to finance the over extended national corporation's operations, there is no profit. That's why so many of those local profitable radio stations have all those layoffs
Again, the clusters in Buffalo are VERY profitable AFTER all of their debt expense. It's a P and L. Again, they ARE profitable. As far as layoffs, this just improves the margins to make even more profit
Thank you, Bob. That means a lot to me coming from you. Now, play me some Merle!
However, the Buffalo clusters are not stand alone operations. They are subservient to Audacy, Cumulus, and Town Square at the corporate level. Audacy sold STAR, so it's reasonable to guess that the sales revenue has declined. I'm sure Buffalo management wasn't thrilled with losing STAR. Especially when corporate says "By the way we expect you to replace the lost revenue with one less station".
Layoffs don't create new revenue. It just slows the bleeding a little. There's not much left to cut at this point...
no, the text to the liner is on the monitor for each appropriate clock element.
Actually, the radio soaps were mostly gone by the early 50’s. The few remaining had lower and lower numbers. Music radio began when the AFM lost its control of recorded music; the first top 40 was in 1961.
I did not say cuts create revenue. I said cuts help the bottom line.
Yes, Audacy has less revenue without Star, however, they have less debt and expenses associated with star as well
One very impørtant factor, most of the factory AM/FM car radios sound horrible! No amount of audio processing will fix that. There is also power line and computer interference to deal with.
David, I beg to differ. I remember hearing radio soaps in the '50's. Since I was just born in the early part of that decade it's not likely I would remember these programs if they didn't extend into at least the late '50's. I also remember kid shows with ventriloquist Paul Winchell.
WKBW went Top 40 July 4, 1958, predecessor WBNY went to the format in 1957 and WQAM Miami went top 40 in 1956.
You are correct. Buffalo was a much bigger city in those days, and got into Rock & Roll radio and Top 40 very early in the game:
Correct. At one time, there was a huge industry built around replacing OEM radios. It's still there, but much smaller than it was. So car buyers put up with whatever crappy radios are installed, and instead focus on the cooler ApplePlay or other digital devices that are installed. It's part of an ongoing campaign by the consumer electronics business to convert consumers away from analog audio platforms. One obvious weakness in the AM in every vehicle act is there's no mention of improving the quality of AM reception. Just that the vehicle has to receive a signal. Not much help when it sounds like crap.
With a great app and streaming, everything comes up right away on the dashboard, so nothing ever sounds bad