Comments about 98.7 The Fan

[Mike_Hennessy]

My question is this: how can CBS afford to pay all of the on-air talent and producers on this station who are ALL live and local? Makes no sense after seeing so many stations cut local talent and replace them with syndicated shows to save money. I love the concept but don't quite get how they are pulling it off in today's era of radio.

This is all speculation so...

First off, we don't know what the payroll is or the budget.

Second, they know they missed it in the New York Market. If they can "move" their talent to Tampa - or just out of The City - effectively, there will be a sort of pay raise in and of itself for the talent. Tampa can be the De-Facto center of the CBS Sports World, after all, who heard of Bristol before the ESP Network? And now I don't even have to say "Connecticut" for you to know that is where Bristol is.

Jeff in Sa-ra-so-ta!

You're assuming that that because the other chains have cut so deeply that that's the only way to make money in radio. The fact is that radio generates a lot of free cash flow and stations that are not burdened by excessive debt can make a lot of money with fully staffed stations if they hit the right formula. WTOP in Washington has an enormous staff and I have heard that it is the top billing station in the country despite the most capital intensive format (all news) in the industry. CBS is taking a risk on the move into sports and doing it this particular way, but it's a well-considered risk.

 

[badjef]

My question is this: how can CBS afford to pay all of the on-air talent and producers on this station who are ALL live and local? Makes no sense after seeing so many stations cut local talent and replace them with syndicated shows to save money. I love the concept but don't quite get how they are pulling it off in today's era of radio.

This is all speculation so...

First off, we don't know what the payroll is or the budget.

Second, they know they missed it in the New York Market. If they can "move" their talent to Tampa - or just out of The City - effectively, there will be a sort of pay raise in and of itself for the talent. Tampa can be the De-Facto center of the CBS Sports World, after all, who heard of Bristol before the ESP Network? And now I don't even have to say "Connecticut" for you to know that is where Bristol is.

Jeff in Sa-ra-so-ta!

You're assuming that that because the other chains have cut so deeply that that's the only way to make money in radio. The fact is that radio generates a lot of free cash flow and stations that are not burdened by excessive debt can make a lot of money with fully staffed stations if they hit the right formula. WTOP in Washington has an enormous staff and I have heard that it is the top billing station in the country despite the most capital intensive format (all news) in the industry. CBS is taking a risk on the move into sports and doing it this particular way, but it's a well-considered risk.

I would like to say, you made my third point.

The question was vague, but in your example of WTOP, what it doesn't mention is what they net out of that billing, either. Conversely to your "sig", if they lose more than they bill, that is what I call a "pay cut".

And the "if" formula is a big one. "If" CBS's direct attempt against ESPN doesn't work out, it won't be the end of CBS.

Interestingly, I find myself listening to 98.7 in different day parts, whereas I only tuned into WDAE during Rays games. I don't know what that means yet, or, if that is sustaining.

Jeff in Sa-ra-so-ta!