Rogers Shuts Down Six Stations

[TheBigA]

Of all of the companies to stick up for and refute, Rogers would not be high on my list.

Don't confuse any of my posts as "sticking up for" them. I'm just the weatherman telling you a snowstorm is coming.

The people of Canada are dealing with technology the way we are in the US. And companies have to respond to the new reality.

 

[Theater of My Mind]

ted chittenden:

The problem with that analysis is the reports from both the poster you were responding to and others further up the thread stating that CKWX specifically *was not* losing money at the time it was shut down.

They don't know. They're just guessing...

Either way, the company explained why it's shutting down those six stations.

The explanation you're looking for is quoted from a Rogers spokesperson in the RadioInsight article linked in the OP:

These changes are part of our plan to focus our investment in areas that will drive growth...

There it is. "Growth."

This week's sequence of events is a case study of the corporate growth paradox, the pursuit of infinite growth by publicly traded companies.

On Tuesday, Rogers announced a massive $4.35 billion acquisition to buy out the remaining 25% stake in Maple Leaf Sports & Entertainment (MLSE), making them the sole owner of the Toronto Maple Leafs and Toronto Raptors. Less than 24 hours later, Rogers abruptly shut down these radio stations and laid off over 200 workers. It's a classic example of the corporation sacrificing the lower-margin business to fuel its high-stakes growth acquisition, pumping up its stock value and the CEO's performance bonus.

It doesn't mean the radio stations weren't making money. The reality is, a business that makes a steady profit isn't good enough for a corporate behemoth like Rogers. It has to grow and never stop growing, which of course is impossible. The same business making the same profit would have probably made a local business owner very happy.

This is a prime example of how bad corporate consolidation is for the broadcast industry and for the public, which lost some valuable news and talk stations across Canada to corporate greed this week. Rogers should have been reigned in a long time ago. It has become Canada's too-big-to-fail poster child.

 

[TheBigA]

This is a prime example of how bad corporate consolidation is for the broadcast industry and for the public, which lost some valuable news and talk stations across Canada to corporate greed this week. Rogers should have been reigned in a long time ago. It has become Canada's too-big-to-fail poster child.

Somebody has to own these stations. The government has already spoken it doesn't want to subsidize broadcasting. So it's up to someone else.

Are big companies bad? Sure. You want to talk about corporate greed? Spotify increased its subscription fees. They call it an "update."

Upcoming Changes to Spotify Premium Subscriptions — Spotify

We’re updating the price of Spotify. Over the next month, Premium subscribers across the U.S., Estonia, and Latvia will receive an email explaining what this update means for their subscriptions (see example image below and link to the full list of Premium features and benefits here). New...

newsroom.spotify.com

To talk use the words "radio" and "greed" in the same sentence is laughable given the current financial situation of radio.

There is more consolidation in the phone business, in the internet business, and in the music business than the radio business. Nobody cares.

 

[fordranger797]

Somebody has to own these stations. The government has already spoken it doesn't want to subsidize broadcasting. So it's up to someone else.

Are big companies bad? Sure. You want to talk about corporate greed? Spotify increased its subscription fees. They call it an "update."

Upcoming Changes to Spotify Premium Subscriptions — Spotify

We’re updating the price of Spotify. Over the next month, Premium subscribers across the U.S., Estonia, and Latvia will receive an email explaining what this update means for their subscriptions (see example image below and link to the full list of Premium features and benefits here). New...

newsroom.spotify.com

To talk use the words "radio" and "greed" in the same sentence is laughable given the current financial situation of radio.

There is more consolidation in the phone business, in the internet business, and in the music business than the radio business. Nobody cares.

To be fair, telecom, internet, phone, cable, content streaming, and (now) sports production is the bread and butter of Rogers operations. Taking the radio aspect out of the conversation entirely, there’s an entirely unique conversation that could be had about Rogers, and how they have a stranglehold on the telecom market.

Heck, when I moved to British Columbia, I signed up with a local TV provider for cable tv. Two years go by, and that company gets bought out by Rogers. You can imagine how this turned out.

 

[TheBigA]

You can imagine how this turned out.

RCA, Westinghouse, General Electric, and Crosley were the tech companies of their era. They owned radio stations. They all sold their stations and got out of the radio business 40 years or more ago. Change is coming slower to Rogers, but it's the same change.

You don't see Apple, Google, Amazon, Verizon, or any other tech companies racing to buy radio stations, do you? Ever wonder why?

 

[ted chittenden]

Sure, but the comments are saying there is some kind of corporate responsibility to the public, and I'm not aware that there is.

This will be the only time I will say this here. Public and private corporations, regardless of industry, use public facilities including people, land, and other resources in order to earn profits for both their executives and stockholders. So yes, as far as I am concerned, public and private corporations have responsibilities to the public, whether the law recognizes it or not.

 

[davideduardo]

Put another way, it's like Cumulus selling to K-Love Inc. or VCY America to avoid having competition with itself in the U.S. While many on the U.S. side of this site think this is a great idea (because potential listeners and advertisers have fewer radio stations to choose from), I think it is a terrible idea (because it encourages monopolies and gives listeners fewer over-the-air choices.)

The issue is that listeners do not want "more" over the air choices. About half don't have a radio in their residence, and overall listening is off by about 75% since Y2K.

If the herd is thinned, those stations that remain have a better chance of making a profit. It is estimated that half of all stations don't make money, and it is getting worse.

Rogers is doing what many U.S. commercial broadcasters wish they could do with stations they have that are not performing without fear of reprisal from the public.

Station owners have no fear of reprisal if they close a station or sell to a non-profit operator. One of the issues today is that selling at current prices obligates a corporate owner to take a big write-down based on the sale being for less than the asset value on the books.

 

[davideduardo]

This will be the only time I will say this here. Public and private corporations, regardless of industry, use public facilities including people, land, and other resources in order to earn profits for both their executives and stockholders. So yes, as far as I am concerned, public and private corporations have responsibilities to the public, whether the law recognizes it or not.

And those companies can not assume the "responsibilities" yoyu attribute to them if they don´t make a profit. When I owned and managed radio stations, my first obligation was to make as much money as I could within all the legal and social restrictions that existed. Doing so meant creating station with as much audience as I could get, and that meant providing a free service to all the listeners. That of itself is fulfilling a responsibility.

If, beyond that, we could help fund raisers, community initiatives, and the like only if we were successful making money.

 

[SomeRadioGuy]

This will be the only time I will say this here. Public and private corporations, regardless of industry, use public facilities including people, land, and other resources in order to earn profits for both their executives and stockholders. So yes, as far as I am concerned, public and private corporations have responsibilities to the public, whether the law recognizes it or not.

And they pay for that use... thats where the responsibility generally ends.

 

[davideduardo]

And they pay for that use... thats where the responsibility generally ends.

And, again, if a station is not profitable, it can't do things for others.

 

[SomeRadioGuy]

And, again, if a station is not profitable, it can't do things for others.

like.. i believe in radio.. local radio.. but ive also seen the business side, seen the books.. i understand how tough this business is... but i also admit radio always was a business first. people who have never worked or havent worked in radio have no clue how radio is today nor how expensive it is and have this misconception of what radio should be doing

I am EXTREMELY lucky to be where i am .. commercially, KLMI/KRQU/KHAT/KIMX are rare and a gem.. were doing a parade broadcast Saturday.. because its the right thing to do, in a discussion with our owner. Hes a Laramie native, never left.. owned these stations and we're profitable enough throug his sheer grit, hard work and 6 day work weeks and 12 hour days that we can some times do things.. just cuse and I still get paid.

 

[davideduardo]

like.. i believe in radio.. local radio.. but ive also seen the business side, seen the books.. i understand how tough this business is... but i also admit radio always was a business first. people who have never worked or havent worked in radio have no clue how radio is today nor how expensive it is and have this misconception of what radio should be doing

Among the most common misconceptions, I keep seeing here is the one where people talk about reducing the stations power so that they can save on the electric bill as if that was the biggest expense item for a radio station. Still, I admire people who today take an interest in radio and come here to find out a little bit about it.

I am EXTREMELY lucky to be where i am .. commercially, KLMI/KRQU/KHAT/KIMX are rare and a gem.. were doing a parade broadcast Saturday.. because its the right thing to do, in a discussion with our owner. Hes a Laramie native, never left.. owned these stations and we're profitable enough throug his sheer grit, hard work and 6 day work weeks and 12 hour days that we can some times do things.. just cuse and I still get paid.

You are indeed fortunate.

 

[TheBigA]

So yes, as far as I am concerned, public and private corporations have responsibilities to the public, whether the law recognizes it or not.

I appreciate the sentiment. It's not wrong. But here's my question: WHO is supposed to represent the public when corporations shirk their responsibilities? Who's job is it? Because the corporations aren't going to do it on their own. We all know that.

So once again, who is powerful enough to stand up to the corporations? And my second questions: Why aren't they doing it?

If you can answer those two questions, you will understand why Rogers is able to do what it's doing.

 

[SomeRadioGuy]

Among the most common misconceptions, I keep seeing here is the one where people talk about reducing the stations power so that they can save on the electric bill as if that was the biggest expense item for a radio station. Still, I admire people who today take an interest in radio and come here to find out a little bit about it.

You are indeed fortunate.

Were not being paid for the remote, we didnt think of it in time to sell it. But another station used to do it, and weve done it in the past. The owner workers harder than any of us staff and never asks us to do anything he wouldnt, hasnt or wouldnt do right along side us.

Our flagship AC is sold out due to Laramie jubilee Days, the states birthday celebration. We run commercial breaks at 05 after, that run right before local, or ABC news...... along with 18, 32 and 48 and each break is 2 minutes, maybe 2 mins 30 tops.

The flagship AC station has been defying format rules for 15 years, long before it was made popular by wow or anyone else.

We do a fair amount simply because its the right thing to do and the business can keep running.

 

[KMan]

It doesn't mean the radio stations weren't making money. The reality is, a business that makes a steady profit isn't good enough for a corporate behemoth like Rogers. It has to grow and never stop growing, which of course is impossible. The same business making the same profit would have probably made a local business owner very happy.

Best paragraph in this thread. I'm a big free market guy. Corporations can do as they please. A business unit, making a profit (even in a declining industry, etc), providing not only a public service but also an economic multiplier being summarily closed is economically irrational.

 

[Yeziknoradio]

It doesn't mean the radio stations weren't making money. The reality is, a business that makes a steady profit isn't good enough for a corporate behemoth like Rogers. It has to grow and never stop growing, which of course is impossible. The same business making the same profit would have probably made a local business owner very happy.

Two important things to consider:
The cost of maintaining the AM towers (replacing, if need be)
and
The value of the land those towers are on.