Re: "Bain Capital" has made clear channel stations far worse in every market
GenXRadio said:
Well you can thank Mitt Romney for it all and NO this isn't a political ranting being inserted.
Mitt runs Bain Capital and in true venture capital form it IS all about the money.
1. Mitt Romney does not run Bain Capital. He left in 1999, and that is about 12 years ago.
2. In any business, it's about the money. Without a profit, the business fails and owners and employees alike are SOL.
3. Even Romney's enduring investments in some of the companies Bain bought is in blind trusts and not actively administered.
I've been told that they have no desire to be in the radio business they merely want to extract all they can from their investment and will do so by making them streamlined, revenue machines and programming be damned.
Investment bankers have no "desire" to be in any particular business. They have a desire to make a business profitable, often by buying distressed companies and making them more responsive to market conditions. And if the nation is in a recession, it's in everyone's best interests to keep the business alive.
They're going to start by selling off most of the small market stations trying to sell them in as few chunks as possible and eventually get to the point where they will sell off the big cities but will do so only when the market is right and they've also made sufficent profits while they streamline which only makes great business sense.
They can never sell the large market facilities for what they paid for them. And the selling of some smaller markets has been predominantly determined by an analysis of whether the station cluster in each market is efficient; in certain cases, markets where only one or two viable stations were in the cluster were sold off. Or markets that are too small are sold because it takes the same management time to deal with Idaho Falls as it does to deal with Denver... and the ROI is just not there.
Now the radio geek in me wishes they would sell some of their signature properties, stations that are staples within the communities they serve and who are legendary to someone who wants to do BOTH, have great programming AND make money! It CAN be done you just need people passionate for radio who are also business mindful or at least have a team of people who focus on their individual areas to come together to make the station a winner all around.
You are forgetting that we still have a recession, and in the larger markets the PPM has brought a near-40% reduction in market PUR and thus CPP based rates and agencies have not adjusted CPP to the new reality; most markets are still off 30% to 40% from the pre-recession billing level and 30% to 40% brings most stations very close to not even covering expenses unless cuts are made.
As long as Bain owns CC stations you are NOT going to see big investments,
You likely won't see big investments in traditional terrestrial radio, but the adding of Bob Pittman to the company team may mean significant investments in the broad area of new media and of alternative distribution of content.