None of the companies that go into bankruptcy or liquidation planned on it.That's OK. He's not planning on liquidating.
They operated "differently" because, for starters, the politically motivated FCC in the 30's did not want any company to have a national voice. But when consolidation occurred, the U.S. was so focused on local radio that nobody thought of buying just one or two stations in every market. Instead, they expanded local clusters and found that this did not increase radio revenue or even local market revenue.Things don't work that way in this country. You keep talking about other countries, and they operate differently.
Radio's biggest sales issue is that it is hard and complicated to buy. One order gets you national web and streaming and podcast coverage. One buy does the same with TV networks, still. But to buy the same "environment" (such as only country formats or only rock formats) on radio means a whole lot of local buys, even when done through rep firms. Separate invoices, separate affidavits, separate bill processing.
Obviously, this train has left the station. It's too bad, because radio does much better in its share of total ad revenue everywhere that there are "national stations". Only the folks at K-Love have figured this out and implemented it, proving the structure is possible.
Actually, national spot advertising gets much better rates than local spot rates. Even after agency and rep commissions, national is much more profitable. What is "cheap radio" is that bunch of quasi-networks that give dozens or even a hundred or so stations at cheap rates... but include a lot of low rated stations or ones in far distant suburbs that are in the ADI but not in the MSA.That's why Pittman still prefers local to national.