Belt-tightening at talk stations

[raccoonradio]

...of either political stripe, and whether Clear Channel or not. OhioMediaWatch and LTRadio.blogspot.com
are both wondering what will wind up happening to WTVN and WTPG in Columbus--letting local shows go,
airing simulcasts or re-runs of the other station's shows, etc. LTRadio.blogspot.com says:

"The talk radio landscape is currently in a state of flux. With the election over, some broadcast owners are preparing for a slump in the format on both sides of the ideological spectrum. Clear Channel, which is in the process of slimming itself down for its pending sale, has even turned their regular talk stations upside-down. In Atlanta, they fired all local hosts from WGST, replacing them with much cheaper syndicated shows. In Providence, RI, they did likewise with WHJJ."

Yes a pres. election is coming in 2 yrs and there's already a lot of talk about that, but now that the midterms
are over you wonder if there will be a lot more cuts--or abandoning of the talk format--across the country.
They may think people are losing interest in political talk, at least.
They want to either try to do cheaper talk (syndie, etc.) or maybe try sports, Spanish, or other formats.

 

[gr8oldies]

I don't know that what happened at WGST means a trend is coming..WGST has always struggled against WSB, and the smart money with all the cuts was just to use syndication (in one case being the only major affiliate of WLW's Mike McConnell). Too early to tell what's going on in Columbus, definately possibleto see a change with WTPG. My guess...and its only a guess, with WTVN is swapping Mike McConnell for Glenn Beck and syndicating after 6pm.

 

[Radio_Realist]

With the election over, some broadcast owners are preparing for a slump in the format on both sides of the ideological spectrum.

A more accurate observation would be: "With the election over, operators of broadcast businesses, along with most operators of most other categories of businesses, are preparing for a general slump in the economy. If the winners of the recent election carry through on their threats to raise taxes back up again, all businesses will have to reduce costs and tighten up their operations."

I know that's political, but business operates in a political world, and broadcasting is as much a business as running a grocery store chain or an automobile dealership. The business of radio broadcasting will be effected by the slowdown in the economy that increased taxes will cause, just as every other business will. If taxes go up, then The General won't be buying as many commercials to sell steel buildings on Rush's show.

Ratings are another factor to consider, and cannot be ignored. But no matter how good a format's ratings are, if the economy is strangled by a tax increase, then businesses who buy radio airtime for advertising are going to tighten up their spending. High ratings will help a station convince an airtime buyer to choose their station over a lower rated competitor, but they won't help a station cope with advertisers who simply cut all radio advertising out of their promotional budgets.

 

[smedge2006]

Hmmmm... is that like the economic slowdown in the 90's that occurred after Clinton raised taxes?

I think that between the increasing share claimed by on-line advertising, and perceptions among advertisers that radio may be losing its ability to deliver the goods, taxes may be the least of the industry's problems.

 

[evnlee]

I think that between the increasing share claimed by on-line advertising, and perceptions among advertisers that radio may be losing its ability to deliver the goods, taxes may be the least of the industry's problems.

that's an understatement.

Techonology will kill news talk quicker then anything else. The majority of political talk shows still reside on the AM dial. Ipods, HD, and FM talk are all eating away at the foundation.

What effect did cell phones and Nextel have on CB radio sales? DVD on VHS? Etc?

Taxes and politics aside, it's not 'Video killed the Radio star', but more like 'The Radio star couldn't compete with Ipod'

 

[Radio_Realist]

is that like the economic slowdown in the 90's that occurred after Clinton raised taxes?

It's similar. Raising taxes is to an economy like applying brakes are to a car. If a car is going down a long, steep hill, it will increase its speed at a very high rate. Apply a small amount of braking, and it will continue to go faster, but not at quite as high a rate. In the 90's, Clinton inherited an economy that was moving at an incredibly fast rate. His tax increases reduced the rate of expansion from what it would have been otherwise. But, since external factors like the end of the cold war and major advances in technology were pushing the economy forward faster than the braking action of his tax increases could hold them back, we still experienced growth. Just not as much as we could have had without the tax increases.

Applying that to radio, since successful business owners tend to be cautious, and since tax increases always slow down the rate of growth of the economy, even if sometimes not to the point of deceleration, all business expenses will be examined more closely, especially advertising.

Taxes and politics aside, it's not 'Video killed the Radio star', but more like 'The Radio star couldn't compete with Ipod'

Trying to narrow down which of the many factors that are negatively affecting radio to only one is like trying to determine which of the bullets from a large firing squad actually killed the prisoner.

 

[robbbc]

is that like the economic slowdown in the 90's that occurred after Clinton raised taxes?

It's similar. Raising taxes is to an economy like applying brakes are to a car. If a car is going down a long, steep hill, it will increase its speed at a very high rate. Apply a small amount of braking, and it will continue to go faster, but not at quite as high a rate. In the 90's, Clinton inherited an economy that was moving at an incredibly fast rate. His tax increases reduced the rate of expansion from what it would have been otherwise. But, since external factors like the end of the cold war and major advances in technology were pushing the economy forward faster than the braking action of his tax increases could hold them back, we still experienced growth. Just not as much as we could have had without the tax increases.

Applying that to radio, since successful business owners tend to be cautious, and since tax increases always slow down the rate of growth of the economy, even if sometimes not to the point of deceleration, all business expenses will be examined more closely, especially advertising.

Taxes and politics aside, it's not 'Video killed the Radio star', but more like 'The Radio star couldn't compete with Ipod'

Trying to narrow down which of the many factors that are negatively affecting radio to only one is like trying to determine which of the bullets from a large firing squad actually killed the prisoner.

So after all the deregulation under Clinton they still complain. They can't make a profit at CC with 1200 channels? CC spent a massive amount of money on worthless radio properties- end of story. Now they have to pay the piper for their bad decisions. A piper the republicans in congress will not pay- leaving today's Democratic congress with a massive debt, expensive war, and a bigger inefficient government. Thanks republicans!

 

[Radio_Realist]

They can't make a profit at CC with 1200 channels?

Yes, they can make a profit. Profit isn't a win/lose situation. It is possible to make large profits, medium profits, and teeny-tiny little profits. Clear Channel, like any well-run business, wants to maximize profits. That is, after all, why businesses are in business. Their current actions are intended to help them make even higher profits.

A piper the republicans in congress will not pay- leaving today's Democratic congress with a massive debt, expensive war, and a bigger inefficient government.

What does that inaccurate non-sequitur have to do with news/talk radio?

 

[ajhenderson]

I don't know that what happened at WGST means a trend is coming..WGST has always struggled against WSB, and the smart money with all the cuts was just to use syndication (in one case being the only major affiliate of WLW's Mike McConnell). Too early to tell what's going on in Columbus, definately possibleto see a change with WTPG. My guess...and its only a guess, with WTVN is swapping Mike McConnell for Glenn Beck and syndicating after 6pm.

Why would 'TVN put McConnell on? Or why would they make ANY programming changes that didn't involve freeing up cash? Beck does very well for them, and anyone who wants to hear McConnell can tune in WLW. A decent number in Columbus do.