Smaller regional owners: Better position?

[radiophiler]

With the iHeart layoffs this week, I've been thinking about some smaller, regional owners and whether they are in a better position because they haven't taken on as much debt as the largest owners.
In the Mid-Atlantic region, I'm thinking of: Times-Shamrock in Scranton (which just sold its one Baltimore station); Draper Media that has radio and TV in Delmarva/Eastern Shore and radio stations in Wilmington, DE; Seven Mountains Media which has stations across PA; Press Communications with stations in NJ; Bold Gold in Scranton and southern New York state.
These owners have varying amounts of local talent (but, now, more local than iHeart). Some make use of local or regional voicetracking: a morning jock on one station might track afternoons on another; one DJ might do an evening show on several regional stations.
Of course there are downsides to being smaller. But some of these groups seem to have grown conservatively and positioned themselves better in their markets than stations from larger groups like iHeart.
I briefly worked for a regional radio owner ... in the late 1980s. I'm just wondering if regional owners, like the examples I've given, are in better shape, relatively speaking, than the larger groups today. Plus: what are other, similar regional companies in other parts of the country?

 

[PTBoardOp93]

Potentially. It's difficult to know, because these companies are privately held so we have no idea what the debt levels or profit margins are like.

We're also less likely to hear about it in the trades if a smaller owner like that cuts a handful of on-air positions.

Additionally, the owners you list are all serving markets outside the top 75. Smaller markets are significantly different from large markets, just in the nature of businesses that exist who could plausibly become advertisers. Small markets tend to be dominated by chains and you simply won't get any ad money from Home Depot or Dollar General, ever.

 

[TheBigA]

With the iHeart layoffs this week, I've been thinking about some smaller, regional owners and whether they are in a better position because they haven't taken on as much debt as the largest owners.

The problem causing the layoffs isn't as much the debt. It's the loss of local advertising. That would be even more pronounced in small markets than large ones. iHeart broadcast lost $100 million in revenue, unrelated to the debt. Here's one article on revenue drop:

A Year-Over-Year Radio Revenue Reduction, Affirmed By BIA | Radio & Television Business Report

BIA Advisory Services last week in a blog post shared its Top Ten Radio Owners by Revenue rankings for 2023. The top three slots are the same as they were in 2022, 2021 and 2020. However, the bigger story is the year-over-year decline revenue seen by the nation's biggest companies.

rbr.com

Looking at the affiliate lists for stations that carry satellite delivered 24/7 formats, they're mainly smaller local owners.

We're also less likely to hear about it in the trades if a smaller owner like that cuts a handful of on-air positions.

Here's one that was announced this past week

Lisa Kaye Exits Radio Mankato After 29 Years

Lisa Kaye has exited her roles at Radio Mankato after 29 years in a budget cut. Kaye hosted led "Lisa

radioinsight.com

 

[DelmarvaDX]

Living in Draper's region, note that they compete head-to-head in some instances with iHeart stations. I would expect them to make hay from the recent layoffs, if they can. They have the advantage of knowing their market intensely; there is a long proven track record with major local advertisers. That's just my impression from a casual bystander/listener/viewer.

There is no doubt, whether listening or viewing, that the station you are tuned to is part of the Draper universe. Lots of cross-promotion.

 

[mrradioguy]

With the iHeart layoffs this week, I've been thinking about some smaller, regional owners and whether they are in a better position because they haven't taken on as much debt as the largest owners.

That's assuming a lot. Business is business, whether you're McDonalds, Walmart, Wendys, iHeart or Anytown Broadcasters. It's all in how you operate your business. The smaller groups may not own as much, but it doesn't make them immune from doing stupid things with money.

 

[luperm]

That's assuming a lot. Business is business, whether you're McDonalds, Walmart, Wendys, iHeart or Anytown Broadcasters. It's all in how you operate your business. The smaller groups may not own as much, but it doesn't make them immune from doing stupid things with money.

It also does not solve the problem of there being a lack of revenue opportunity in general. If anything, the larger companies may have an advantage as they can offer a broader range of advertising opportunities than a "mom and pop."

 

[SomeRadioGuy]

our Flagship AC station is sold out for the next week because of a local celebration the owner is involved in quite heavily

 

[FreddyE1977]

With the iHeart layoffs this week, I've been thinking about some smaller, regional owners and whether they are in a better position because they haven't taken on as much debt as the largest owners.
In the Mid-Atlantic region, I'm thinking of: Times-Shamrock in Scranton (which just sold its one Baltimore station); Draper Media that has radio and TV in Delmarva/Eastern Shore and radio stations in Wilmington, DE; Seven Mountains Media which has stations across PA; Press Communications with stations in NJ; Bold Gold in Scranton and southern New York state.
These owners have varying amounts of local talent (but, now, more local than iHeart). Some make use of local or regional voicetracking: a morning jock on one station might track afternoons on another; one DJ might do an evening show on several regional stations.
Of course there are downsides to being smaller. But some of these groups seem to have grown conservatively and positioned themselves better in their markets than stations from larger groups like iHeart.
I briefly worked for a regional radio owner ... in the late 1980s. I'm just wondering if regional owners, like the examples I've given, are in better shape, relatively speaking, than the larger groups today. Plus: what are other, similar regional companies in other parts of the country?

Debt is relative to your earnings, it's the ratio of the two that matters. It's entirely possible for a small regional radio group to get itself into just as much trouble as iHeart because their revenue streams are also less. The main advantage that these smaller groups have is management which employs some common sense instead of falling into corporate MBA groupthink.

 

[luperm]

our Flagship AC station is sold out for the next week because of a local celebration the owner is involved in quite heavily

That's phenomenal and it shows what can happen in cases like you describe. It seems like there are owners here and there who have figured out the formula that works in their local markets. It's probably harder to execute at scale. And, as discussed above, most owners will sooner or later have to come to a resolution on their debt load.

 

[SomeRadioGuy]

That's phenomenal and it shows what can happen in cases like you describe. It seems like there are owners here and there who have figured out the formula that works in their local markets. It's probably harder to execute at scale. And, as discussed above, most owners will sooner or later have to come to a resolution on their debt load.

Our owner is local, born here, went to HS and college here, never left. Bought KLMI 106.1 when he was 24, owned it for 15 years before buying his competitors thanks to the same bank hes always done business with and some creative mortgage work.

We still have more stuff to sell for this festival and are putting it on our other stations, starting with the 15KW C2 CHR station (easily covers 50 miles in any direction because of terrain)

Boss has won an award for all he does in the community... and he doesnt much like recognition or attention.. he just likes Laramie, likes living here and doesnt know how to say no.

www.laramiejubileedays.org is the celebration

People in town either know him personally, know of him from all he does or know someone who knows him. His parents own a coffee shop, an event center and other places. His step brother owns a bunch of businesses including outdoor businesses. He does his own engineering, does sales, he programms the stations with assistance from me.

He was in studio on generator power in his PJs at 1030pm at nigh during a freak june snowstorm that killed power to most of the city