I think the young people advertisers want are listening on their phones. While they certainly access terrestrial stations this way, they are an app button push away to TuneIn the moment commercials start running. I sampled an hour of Big615 and it sounded like a well done modern country station. The age of the DJs may not be too much of a factor as to whether young people listen. Vastly reduced interruptions to the program are what will mean a lot. I am pretty sure 6 minute stops sets are not going to fly with the under 30 crowd anymore. If the current way of advertising is how Audacy (or any radio company) is going to continue normal terrestrial operations, they are on a slow slide to nowhere as far as increasing revenues there. Digital music stations that Audacy creates "wherever you listen to podcasts" will offer new avenues for revenue, but that seems to me will be slicing the music audience pretty thin and be eating into the local terrestrial listener base. If I was a non-radio company creditor (like a bank) who was getting equity in this company rather than their piece of the 2 billion back in cash, I might be worried if not annoyed.
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Audacy Bankruptcy Imminent
- Thread starter Barry
- Start date
Assuming they want a curated music service. What we find is that some people prefer to make their own music lists. They can access them on the same device. Lots of ways to get music. Which is why radio companies are interested in news, talk, and sports.
I'm way over 30, and 6 minute stop sets don't fly with me. I can get to 2 minutes, then it's hit the next pre set station or switch to Sirius XM. Radio has to figure out a way to better balance revenues with reduced stop set times.
When you come up with an idea, let us know.
All stop sets should be sped up by half. 60 second commercials done in :30. So what if they sound like Alvin & the Chipmunks. Everyone should be used to that by now following car dealers/pharmaceutical/lawyer disclaimers at the end of their spots.
That'll reduce the spot break time but I have a feeling they just jam some more in.
When you sell someone time, it's their time. So you can't bill them for a 60 if it airs as a 30. It gets billed as a 30. Nice try.
Lay down the crack pipe
Nevermind the ad agencies and clients probably wouldn't be happy finding out their spots they purchased would be treated like a joke.
Avatar checks out...
If there is one positive aspect of the Audacy BR maybe the lenders will stop funding “Reverse Morris Trust” and other highly leveraged type of deals for media companies, especially radio companies. If I understand the press release correctly, The lenders are taking and 80% haircut. They are going to get stock is not really “liquid” for a while.
Somewhere some advisor / broker is going to have to explain what happened to clients’ money. I would be hot and changing firms.
Somewhere some advisor / broker is going to have to explain what happened to clients’ money. I would be hot and changing firms.
Why would they do that?
Stop this!
They are not liquidating assets. They are, according to the financial plan, planning to emerge from bankruptcy with expansion in new media.
THE STATIONS ARE PROFITABLE. THE DEBT WAS UNSUSTAINABLE in a recession and after 4 years of COVID.
I think MVB was remembers Cumulus' deal with KLove. I thought the Cloud company really messed up letting 106.7 go but keeping 100.5.
In this case Audacy already did its EMF deals last year.
The Cumulus/EMF deal happened a full year AFTER Cumulus exited Chapter 11. It had nothing to do with the bankruptcy, but rather the company choosing to pare down debt by divesting markets they no-longer saw as core to the company.
There still some Audacy clusters that don't seem logical or synergistic. The much discussed Buffalo one (with too many AMs and inadequate FMs comes to mind.
But I don't think that there are enough markets or clusters that are "inefficient" to make much difference in the further reduction of debt. Do you see other stations that "need selling badly"?
That is why I said they messed up. They should have reduced their debt during bankruptcy where reducing debt is not an issue. They (had) have a good cluster in Atlanta. Why would anyone want to let a full class C FM with very wealthy zip codes in its 60 db and keep a C2 that has frequent interference issues. I get they could not compete in NYC.
They also take recommendations from their friends and are almost immune to advertising.
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