COMMERCIAL INVENTORY ON THE NET

[F.M.Hertz]

I've looked all over this site to see if this has been brought up and it hasn't (at least to the best of my knowledge). This is a question/topic that I have a hard time comprehending:

If internet broadcasting is another avenue to get your station out to the public, why is it being neglected on spot breaks? A number of stations that I listen to online (KFI, WGY, WRVA, KDKA, WABC, etc.) seem to cover their spot breaks with PSAs, promos, and short replays of show segments. What is the thinking behond this. These stations are on the Antique Modultion band and a lot of people listen to them in the office where that signal isn't received well.

If I were a GM or Sales Manager of one of these stations, I would compel my street warriors to push the advantages of the internet, such as:
-People can listen to this in areas where normal AM doesn't work.
-An advertiser's message can reach out of town listenersn who may be interested in their product/service.
-It can be sold to an advertiser as being on the doorstep of new technology.
I would also direct my staff to sell advertising on the 'net as an incentive. Example: Buy so many spots on our station, and you get only get charged for a small fraction of spots over the online stream, or have a small banner ad on our website.

It's so bad that WGY, for example, "covers" weather forecasts with a promo, and WABC plays music loops over their spot breaks, rarely ever airing the top of the hour news.

I really don't understand why this area of broadcasting is being so underutilized. I'd love to hear the thoughts of those in the business that could provide some insight into this.

 

[Mainedude2007]

AFTRA rules. It would cost more to have union talent voice spots that stream, the smaller market stations usually use a direct air feed or one directly from the board to feed their internet stream and don't cover their commercial breaks.

 

[F.M.Hertz]

Oh really? So a union can squash progress, in this manner, new technology?

Chalk one up to the labor movement again. Instead of asking their members to take a cut in pay at Hostess where they can still keep their jobs, 18000 people are now out of work at the Hostess plant in Irving, Texas.

I can summarize this point well: Today the Twinkie; Tomorrow AM Radio.

 

[DarkStarPDX]

If internet broadcasting is another avenue to get your station out to the public, why is it being neglected on spot breaks?

It's because sales doesn't understand how to "sell" it or they aren't interested in selling it.

AFTRA affects very, very few spots. The only ones I'm aware of them affecting are nationally sold spots.

The other part of the problem is the advertiser. They believe that if their spot is played on the Internet, new magical things can occur like only paying based on the listening audience and receiving specific listener data. When you tell them that it's sold the same as broadcast, they look at you like you're growing antlers.

Here in the Portland market, Alpha Broadcasting is doing the best job so far selling advertising on their audio streams. They're slowly beating it into the heads of the salespeople and the advertisers.

 

[TheBigA]

AFTRA affects very, very few spots. The only ones I'm aware of them affecting are nationally sold spots.

National and agency spots. That includes local spots produced by agencies. I'm a former AFTRA member, and it's a big local issue.

One problem in streams is how to break out union spots from non-union spots. It's easier to just cover the whole break. The average price for an online spot is about 10% the on air price. It's a pain in the butt, AFTRA knows it, and is refusing to negotiate. They are also campaigning for radio to pay a performance royalty to labels for all music they play. AFTRA is not helping this situation.

 

[secondchoice]

Oh really? So a union can squash progress, in this manner, new technology?

Chalk one up to the labor movement again. Instead of asking their members to take a cut in pay at Hostess where they can still keep their jobs, 18000 people are now out of work at the Hostess plant in Irving, Texas.
.

FYI one of Hostess biggest creditors is it's pension fund. Hostess quit paying into it's pension funds in 2011. The confection / bakery workers would have taken a pay cut but when you make less than $50K a year there is no way you can IRA enough to replace a pension.

http://finance.yahoo.com/news/hostess-maneuver-deprived-pension-051400720.html

 

[landtuna]

The confection / bakery workers would have taken a pay cut but when you make less than $50K a year there is no way you can IRA enough to replace a pension.

If I read your post correctly you said that someone making $50K/year could not replace a pension contribution from the company by self-funding an IRA (not Roth). And if that is what you said you are incorrect.

Virtually all modest salaried workers can fund individual IRA's and increase their take-home amount. It really doesn't matter how much you make or what your exemptions are.

The reason this works is you are effectively reducing your net by putting money into a tax-deferred account. Lower net = lower tax withholding = more take home.

I am not a tax accountant so I'm not sure if someone who has a company pension can also contribute to an individual IRA so these workers may not be eligible for an individual IRA. My wife has an employer 401(k) but she remains eligible to contribute to her own IRA in addition. Pensions may be different.

 

[TheBigA]

Virtually all modest salaried workers can fund individual IRA's and increase their take-home amount. It really doesn't matter how much you make or what your exemptions are.

But I believe the maximum you can deduct from your income tax is 6K. There limits are much higher for employer-based pensions or 401Ks. Maybe as much as 20K. That's a big difference.

 

[landtuna]

Virtually all modest salaried workers can fund individual IRA's and increase their take-home amount. It really doesn't matter how much you make or what your exemptions are.

But I believe the maximum you can deduct from your income tax is 6K. There limits are much higher for employer-based pensions or 401Ks. Maybe as much as 20K. That's a big difference.

Yes, there are maximum contribution limits (as there are with corporate 401(k) as well). There is also a "catch up" allowance for persons over 50 to allow the maximum contribution in the last few years of working life.

I am retired and my wife is still working but we are both eligible to contribute to our respective IRA's at the maximum amount until each of us reaches 70 (I believe - since after 70 1/2 everyone in a regular IRA is required to take minimum annual distributions).

The rules are different for Roth IRA's so don't confuse the two.

 

[secondchoice]

Maybe i was not clear enough. The average worker at Hostess did not make enough for any large self funded retirement vessel. If you make less than $50K a year it is hard just to pay rent or house payment, automobile expenses, and feed a family.

 

[landtuna]

Maybe i was not clear enough. The average worker at Hostess did not make enough for any large self funded retirement vessel. If you make less than $50K a year it is hard just to pay rent or house payment, automobile expenses, and feed a family.

And you missed my point. Without contributing to an IRA (regular, not Roth) you have a certain amount of take-home pay. Contribute to a regular IRA and your take-home pay will be larger. It's a no-brainer.

 

[secondchoice]

Maybe i was not clear enough. The average worker at Hostess did not make enough for any large self funded retirement vessel. If you make less than $50K a year it is hard just to pay rent or house payment, automobile expenses, and feed a family.

And you missed my point. Without contributing to an IRA (regular, not Roth) you have a certain amount of take-home pay. Contribute to a regular IRA and your take-home pay will be larger. It's a no-brainer.

Unless less your IRA contribution puts you a lower tax bracket, there still is money deducted from your check. You do get tax breaks but not more than a 100%. To make your pay check increase, you would have to get more than a 100% tax break to make up for the funds put in the IRA.

 

[RadioFanBoy]

Getting back to the topic at hand....radio....the trend of covering up the OTA stop sets online may be starting to reverse itself. Saga Communications had its 26 stations end the practice last Fall. Hubbard Broadcasting began with all-news WTOP in Washington D.C. last month, and now have taken all of their stations to true AM/FM/Online simulcasts including three in Chicago!