RockinScience said:
If you think that this is happening to JUST Citadel, you're naive, stupid or perhaps both. Auto Dealer advertising accounts for 20% of every dollar spent on radio in this market. That Auto Biz is down by over 30%.
Never said this was just Citadel... in fact, I had said it was happening all over the country. This is just the first time we've seen someone notable getting an economy-related pink slip here, in this area. Anyone else I can think of who exited a station lately, was either fired for poor performance or conduct, or left on their own.
As far as broadcasting is concerned, I think sales managers could take away a good lesson from all of this. Don't make the mistake of relying on one single industry or sector for making up the bulk of your sales. I know it's a tough situation, because it's rare to find any other business willing to spend so much. And because any dollars YOU don't get will surely wind up in another station's hands. But this is the trap you fall into when you rely so heavily on one category of business.
If revenues are down 20%, yes, it makes sense to cut 20% of your expenses. Considering Big Jim has been there 16 years (and the 2 people who follow his show have been there for a shorter time) he was likely making more than 20% of the total air-staff budget. And with CHR stations targeting mostly teens who are (or should be) in school during the middle of the day anyhow, it makes sense to eliminate the midday guy, in order to keep afternoons and nights intact.
SirRoxalot has a good point though -- I can't stand the hypocrisy of top-level corporate managers putting people out of work, while continuing to collect their full salaries and bonuses. They already make more than enough to live comfortably, even if they ditched their bonuses and took a 10% pay cut on top of that. Yet, they choose to be greedy while they fire local rank-and-filers, who often barely make enough to rent an apartment, let alone buy a house or raise a family.