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CC laying off 20% of workforce on 1/5?

Mike Bratton said:
dallasboyz said:
MT1 said:
Think about how sad this all is to those of us who have 3 decades into the business.
Its absolutely irrelevant how long you have been in a business. If you or your job was performing to the level of expectation, you would have nothing to worry about.

To borrow a phrase, boyz, it's "absolutely irrelevant" what you think you know, because from the evidence you've presented, you don't know much at all.

I believe there's a built-in defense mechanism employed by certain managers who have been in the practice of cutting jobs over the last several years. They toughen themselves to actually believe that everybody they fire somehow deserves it. Some companies have agreed to pay severance to anybody who's fired without cause, so in strictly general terms, it would seem to be a manager's job to create a paper trail of cause for as many discarded employees as possible. Any jock who's been told "great job" for several years and suddenly "you suck" in the last month of employment knows when they're being railroaded, and knows that sort of thing has nothing to do with performance.
 



Business as usual for me. Stay focused and remember until anything does happen it is simply rumors. Remember there are still GOOD people in the business so if your cluster(s) has/have a good GM and sales mgr that care and yep there are sdtill some of those ,you again may be ok. If the ax hits it may seem like the end but in the long run....it's not. Usually nothing ever ends on a good note or it wouldn't end. The economy blows and it is going to take quite some time to fix. Just my opinion like the rest. I have no more solid info than the next guy does but the blog boards are interesting to say the least. CC is not the only biggie cutting jobs remember that.
 
and it's amazing how some people consider laying off 1,000 people and turning all stations below market 80 or so into automated shells "trimming the fat." You're in complete denial. This is not about "trimming the fat" and running a smart, efficient company in tough economic times. CC and Bain upper management are using the hardships of the times as an EXCUSE to execute the private equity blueprint of gutting a company from the inside out for their own financial gain. It's textbook.
 
Denial? No I don't agree my friend. I know CC and Bain are not in it for radio but for money. We all have our opinions and ideas and maybe a few facts but regardless of the reason the sad thing is nothing can be done to stop it. Radio has been unstable for many years now and when the BIG BOYS started buying up all the stations...it did not help any. Small markets are tough anyway. The BIG market stations have huge overhead and BIG FAT paychecks...something I have never had in the business. I have been in this crazy business over 40 years and well know what can happen. I'm not new to the rodeo. good luck to all out there!
 
InTheBiz said:
and it's amazing how some people consider laying off 1,000 people and turning all stations below market 80 or so into automated shells "trimming the fat." You're in complete denial. This is not about "trimming the fat" and running a smart, efficient company in tough economic times. CC and Bain upper management are using the hardships of the times as an EXCUSE to execute the private equity blueprint of gutting a company from the inside out for their own financial gain. It's textbook.

Absolutely correct!!!! Don't forget too that CC had massive lay offs in late 2006 and 2007, while the economy was still strong. Now Bain has the perfect excuse....Disgusting....
 
There may be some wisdom in centralizing programming in smaller markets. We've had this in one way, shape, or form for years.... First it was automation and they mailed out the format on 10-inch reels from LA or Dallas.... next came satellite. Let's face it... the listeners probably would rather hear Ryan Seacrest out of LA rather than Robbie Roberts Rookie DJ between the songs.... same reason we'd rather watch Leno or Letterman on TV rather than some schmo at the local UHF station. I have no doubt that Bain is in it for the money. Well, that's what capitalism is all about. However..... if you cheapen the product too much and don't market it, nobody will buy it.... the company will lose value and when you put it on the market, nobody will want to buy it. (A little General Motors deja vu, perhaps??). You have to watch expenses but at some point, you will have to invest in product and marketing to have a future. As I said earlier, Clear Channel has the size and the resources to re-write the rule book. Remember a broadcast company in the late 80's that was almost bankrupt and got bailed out by Sam Zell. Yes, he had an exit strategy, but during the 10 years before he sold it to Clear Channel, they built one hell of a company. We'll see soon if Clear Channel takes that road or not. If they do, it will ge good for all radio.
 
Centralizing programming is fine... if it's good.

If it's bad, all it does is roadblock people who might possibly be good from getting a chance.

I, myself, would rather watch a schmuck on a local UHF station than, say Carson Daly.
 
"Centralizing programming is fine... if it's good."

I respectfully disagree. It's the consolidation (or centralization) of a few that have made it much more difficult for so many. It also replaces the "local-ity" of individual markets who are, now, largely without its own uniqueness as a market. Syndication of all types ...be it talk, music, Ryan Seacrest or the dearth of satellite format sydnication has created a, now, two decades old "sameness"' and homogenization to markets and stations large and small.

Add to this, the impacts of this economy and just how quickly the "recession proof" theory of advertising with the highest unemployment in 26 years in this country was disproved. Too much sameness in market after market, coupled with still "bad" radio in too many stations, lowering the value of the importance and relevance of the media more and more. In effect, there are way too many radio stations to survive ... and, hence, why the marketplace has shrunk so negatively, thanks, in large part, to consolidation and programming "centralization." Today, money stuck owners and manage don't care about "good" (or they wouldn't be releasing "good" talent,) they care about the loss of their bottom-line ... and in this day, that's what counts.

We've seen the Wal*Marting of blase' radio in the majority of markets. Now, it's a brief convenience, not a longterm need.

"If it's bad, all it does is roadblock people who might possibly be good from getting a chance."

That may sound good in theory, but in practice, it's not true. Radio has, with wary stockholders, horrific losses on Wall Street, poor facilities, lack of true community identity and "local" cohesion to the market -- no matter the format -- and huge losses by broadcasters who know of only old fashioned ways to keep radio the medium it once was ... forgot along the way to have a farm system of "local" talent. Instead, it has become easier to pick up the phone and call Dial-Global for the next "free" (though it's really not) satellite format, call ABC to join the same talk empire as stations 10 to 20 miles away for the same price of a local station part-timer or Westwood One for both free and "new" syndicated programming that is lacking in quality and station support.

Stations don't want to undergo the time and expense of doing their "own" building of hard drive libraries because they haven't trained to look to the future, so, again, they tend to look for the "Wal-Marting" of one stop shopping ... because it's cheaper.

Even in sales ... candidates aren't stupid. They know what's good and what's bad in a given market. They know their chance of making an actual living because they won't be trained, other than, "here's the phone book ... good luck." So, they tend not to be qualified, and if they apply at all (a very difficult problem in finding committed sales people these days,) they are gone within three months when the "guarantee" comes to an end. Or ... bad sales people keep being non-productive until "corporate" says "That's enough ... clear out the sales department, now!" They do so because the non-performers cost money, while the good performers don't make enough money to cover the other expenses of the station ... except for themselves and that costs everybody.

One thing you won't find today in any size market (or non-market) is Radio willing or able to "take a chance" on anything ... or anyone ... unless it is free, very cheap or without a great story to tell on why they should be hired in the first place. Today, it's not about chance ... it's about how much everyone can bring to the table. That's more than being a jock or a board op. That has to do with the dedicated, multi-talented individual who can do more than be a "jock" ... but who also realizes that he'd be better off being able to sell, as well. 99 percent of those who think they have great talent won't do that and will openly say, "I hate sales." Dumb thing to say when your station is looking for a way to pay you. You'd better love sales ... it's your salary.

Finally, the "convenience" of automation -- just as it was 20 and 30 years ago -- has sunk in so much and is reasonably cheap today that it's easier to "trust" what automation can do versus what often happens with us humanoids. Automation is a "machine" but outside of R-Info posters, most people want a good radio station. They don't care if you're a board op, button pusher, news reader, or whatever. If they can get what they most want, quickly, they're happy. We sometimes put more of a worth on what our individual "talent" is ... than we do on the benefit of what it will be for the station. Not just anybody can do this stuff. But ownership isn't much often in the "human" business. It's in the "business" business ... and could care less about the next Carson Daly or Ryan Seacrest.


"I would rather watch a schmuck on a local UHF station than, say Carson Daly."


Unfortunately, most people don't look at it that way. And most of all, if it doesn't make money, isn't easy to make money with and has an motivating and compelling reason for people to be "interactive" for that talent, it won't fly today. Remember ... no chances.

Again, it's not a matter of "good" ... it's a matter of having too few serving too many out of convenience and cost needs today.
 
Too much sameness in market after market, coupled with still "bad" radio in too many stations, lowering the value of the importance and relevance of the media more and more

Haha, see... that's why I said it needed to be good.

Radio has ... forgot along the way to have a farm system of "local" talent.

It needs to have one, but as long as everything's hooked up to a satellite feed, then it won't. 

if it doesn't make money, isn't easy to make money with and has an motivating and compelling reason for people to be "interactive" for that talent, it won't fly today

Going though my post I don't see where I indicated that I thought local TV programming should air at a loss, or be interactive.  Maybe I didn't express myself clearly.

What I was saying was that if we want to blast out programming nationwide over TV or radio, it should be good... good meaning compelling, interesting, funny, memorable.  If networks of stations repeat bad programming forever, people will just stop watching and listening. 

And, I'm sorry to disagree with you, but I do believe it to be true that if stations merely repeat programming that is fed to them from some centralized source, we won't get new talent, and we won't get local talent, and people who may be good on the air in whatever medium will not be heard or seen, since there will simply be no room for them.  That's just common sense.  ;)
 
Good points and a good post ... however...

The more convenient it is to snag programming from a satellite, CD sent daily or weekly and from those continual sales calls to GMs from the syndicators ... the less likely that broadcasters will "take a chance" on local or unproven "talent" ... especilally if the cost outlay is "barter".

Common sense, as you so aptly called it, is out the window in this "business" as it is. Stations don't want to "invest" cash into "a new chance" when they can get it a phone call away ... and ... from formats to shows ... for free.

And format syndication, incidentally, is not "free." Every break taken by a national ad buy to keep a syndication alive, is less money for the radio station to sell locally. That adds up ... to over $10,000 to $20,000 a month or more for some stations. Even people selling cheap spots at under $5 each are losing the potential of $240 a day. Think about it. It adds up ... and it's contracted for a couple of years at a time.
 
AnimatronicAbeLincoln said:
And, I'm sorry to disagree with you, but I do believe it to be true that if stations merely repeat programming that is fed to them from some centralized source, we won't get new talent, and we won't get local talent, and people who may be good on the air in whatever medium will not be heard or seen, since there will simply be no room for them. That's just common sense. ;)




I always feel really sad when some enterprising kid creates an account and comes to these boards to ask how to get into the business. Time after time, their hopes and dreams are brutally crushed by veterans from all areas of the radio business who describe, en masse, an industry that's died in all the ways that made it appealing, or even possible, as a career choice.

Unfortunately, it's not just the many voices of the unemployed, but those who are still working who often discourage young hopefuls the most strenuously. Even if a kid makes it into today's radio station, he'll be a part-time wager for as many years as he cares to hang on, because that's his only value to the radio station---he'll do it for practically free. They don't want someone with talent or experience, because talented, experienced people want money for their vocal product. They want a cheap warmbody to run the syndication so the computer doesn't go off the air. Even if the kid had a great idea, he wouldn't develop the on-air chops he'd need to create a syndicated show. Not on the strength of sales liners, weather breaks, and PSAs during his three big local avails per hour.


It doesn't matter much, I know. The syndication trend right now is giving the jobs to aging rockers who have always wanted to do a radio show. I have to say this: I hate Little Steven's voice. I get it, his Underground Garage is cool and all, but listening to his voice is like nails on a chalkboard for me. Still, people listen to him because they recognize his name from other stuff, and he puts on a decent oldies-type presentation that doesn't sound as tired as it could, so the voice doesn't bug them. So, while it's a success in its time slot, I guess, it's still eliminating one of the key elements of the job (a good-sounding set of pipes) and it's one less job for anyone else in the local market who's worked on their vocal craft and knows their format and audience. Listeners don't get a shot at prizes or to interact on the phones; local spots can't run until after the nationals, which automatically buries the locals two minutes deep in the stopset. And no up-and-coming kid with talent is going to ever learn how to do anything but watch some other guy's show on that terminal screen so he can sign his name off on the spot log.

Is that sort of what you meant, Abe? Because that's where I thought you were going with that.
 
This morning the trades are reporting some cuts could come 1/15th and others report downsizing on the 20th. The number of CC jobs to be lost nationally is reported to be around 1000.
 
Corporate logic: "But in the overall scheme of things, that's 'only' one, maybe two people per station ..."
 
If they cut 1000 jobs and the average salary was just $25K, the company would return 25 MILLION to the bottom line. I'm no CFO. Is that significant enough to move you? I fear it's not.
 
Some of us are checking out this "lame board" to find out if we are the only ones that feel the way we do about the current "state of affairs". Political views aside, if you've caught any news today and seen who Obama wants to run the F.C.C., we may have a dude on our side at last.

I'm as passionate as anyone about music, radio as a art, and maybe even a "kool aid drinker" in as much as I believe that we are losing listeners because radio has lost it's soul. And I believe we could still win the battle, when my teen age kids love the Beatles, Led Zep et.al. as much as I did at their age.

That being said, on my micro soap box, remember reason #1 for broadcast radio...a great way to get out information. The companies currently running the industry in America have ignored the mandate of their broadcast licenses, and it is time for we the people to remind them of their obligation as license "guardians":

"Coming from an old time radio family, the first thing I was taught about the radio business was that owners didn't make a lot of money until they sold the station. Be happy if sales revenue covered expenses and decent salaries(NOT astronomical salaries).

When the Wall Street types eyed the radio business as a profit generator, it was over. To have a excellent product in the biz does not jibe with short term gains.

The Public Service mandate, E.A.S., as much as we make fun of or would love to get around this stuff, the fact is the PUBLIC RADIO AIRWAVES are the number one way to communicate to the population, and GOVERNMENT has a obligation to our democracy to make sure they are not taken over by too few voices and opinions, and that public communication/information is available 24/7 in times of emergency. Who the hell has a battery operated internet connection, or (soon to be digital) T.V., for that matter.

We have our world wide communication now, thanks to the Internet. But we still need our locals around with their boots on the ground, because only local business owners can truly feel the pulse of BOTH of Radio's consumers, listeners and advertisers, to put out a product that satisfies the needs of both.

Competition in radio was stifled from the beginning due to finite bandwith available, without the goverment in essense forcing some diversity through ownership rules it would be too easy to have too few points of views expressed, and your society is reduced to group think..or worse. Normal rules of free market competition can't apply, Radio is too important. "

Unless our "watchdog" media does some reporting that gets the attention of the masses, most Americans will continue to think of Radio as another disposable entertainment source. Until they need us, and "we're" not there....
 
As I have said over and over...local radio is the only medium that can not only tell you what the weather is for today/tomorrow, but the only medium that can tell you what happened at last night's football game. I am sure there are some who may say that they can get that information from the local TV station, or possibly the newspaper and internet...BUT, you, in general, have to stop what you're doing and pick-u the newspaper, or stop what you're doing and get online, or watch the TV. With radio, you can lsten in the shower, or while shaving, or while you're driving to work - and it doesn't cost you anything, unlike sat radio...

And, in the time of a disaster, like Hurricane Ike, most of the information people received came from the radio....

Next....??????
 
LasVegasRadioJunky said:
If they cut 1000 jobs and the average salary was just $25K, the company would return 25 MILLION to the bottom line. I'm no CFO. Is that significant enough to move you? I fear it's not.

actually it would be a bigger savings. 25 k base plus payroll taxes, plus unemployment, plus benefits, plus workers comp, etc...so probably more like 50 million, plus the fact that rumour is some big contracts may be cut.
 
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