Buffalo Cumulus Bankruptcy V2

[davideduardo]

Somebody still has to create awareness of dealerships, especially competing for brand business. There have been so many changes in who owns what these days that some dealerships that people are used to dealing with are no longer under the same owners.

Maybe there is dealer loyalty along with car brand loyalty in some markets. But in my experience, nearly everyone hates every car dealer. The latest topic of discussion in that area is the expression of the wish that dealerships be owned by the manufacturer, eliminating entirely the local dealer system which nearly everyone thinks of as being populated by different kinds of rats, skunks and assorted vermin.

 

[Moss Steiger]

Maybe there is dealer loyalty along with car brand loyalty in some markets. But in my experience, nearly everyone hates every car dealer. The latest topic of discussion in that area is the expression of the wish that dealerships be owned by the manufacturer, eliminating entirely the local dealer system which nearly everyone thinks of as being populated by different kinds of rats, skunks and assorted vermin.

And speaking as someone who is observing a local radio owner who is purchasing stations from a car dealer, this one in particular has earned that very reputation!

 

[Buddy Shula]

Maybe there is dealer loyalty along with car brand loyalty in some markets. But in my experience, nearly everyone hates every car dealer. The latest topic of discussion in that area is the expression of the wish that dealerships be owned by the manufacturer, eliminating entirely the local dealer system which nearly everyone thinks of as being populated by different kinds of rats, skunks and assorted vermin.

This is a great point, Dave. We have car dealers on the air, and my ad agency represents a major one in the market. For some reason, people hate car dealers, even though many are great people.

They also hate cable companies, and dentists. Perception vs reality

 

[SirRoxalot]

I think that the game is a bit different in these days of everybody knowing what the prices are thanks to the internet. My purchases have largely been driven by the local dealers who offer good service at fair prices in a timely fashion. There's a bit more brand loyalty in WNY thanks to a large Chevy engine plant here and a Ford stamping plant churning out parts. It's not hard to find a friend who'll let you use their special employee discount. Dealerships develop a reputation for service (or lack of service) that is meaningful in these days of social media.

 

[Radio-Bored-Op]

This is cool. I see I am in the Feb 19th edition for the sale of WKEY to Magnum Broadcasting. The new owner is a great guy and friend.

With upcoming stuff in Buffalo, this is where my focus needs to be, and I am ready for it.

I am glad I sold the station to a passionate broadcaster like Michael Stapleford and his wife Dianna.

me too.
I really appreciate when radio minds get behind the signal.

cheers

 

[Kent]

The latest topic of discussion in that area is the expression of the wish that dealerships be owned by the manufacturer, eliminating entirely the local dealer system which nearly everyone thinks of as being populated by different kinds of rats, skunks and assorted vermin.

Around 25-30 years ago, Ford tried that in Tulsa, OKC, and Memphis. It was a colossal failure that cost Jacques Nasser his job.

I had exactly one experience with one of Ford's “auto collections” when I went to Tulsa to visit family and scheduled service. It was such an awful experience that I remember it down to the name of the person who booked my service.

I can assure you, if manufacturers take over that part of the supply chain, you will not like your auto dealerships any better. You might even think they’re worse!

 

[Buddy Shula]

Was looking at the Cumulus Bankruptcy filing. As suspected, the majority of debt is owed to two major banks, Bank of America being one of them.

This is from buying for too much, followed by huge depreciation of assets, and then the interest on the debt.

 

[TheBigA]

This is from buying for too much, followed by huge depreciation of assets, and then the interest on the debt.

Maybe. They shouldn't have bought Citadel. That's what killed them. The Citadel bankruptcy didn't solve the problem. They discovered that in the first Cumulus bankruptcy. Most of the assets they dropped were originally Citadel assets. I'm seeing a lot of that now as well. They're still getting rid of former Citadel assets.

 

[SirRoxalot]

I don't think that there's an owner out there who bought stations pre-Covid who isn't see huge write-downs in the value of their radio stations. The big corporates have been selling off their towers and real estate to prop up operations and cut expenses thanks to sweetheart leases. They haven't reinvested that money into programming, sales, and promotions. If anything, they've cut the very things that distinguish their product from automated online streaming that's available on every cell phone or via satellite in cars. If you don't offer programming that separates you from the generic streamers, and better audio quality than they can get from their compressed streams, why would listeners sit through 12-16 minutes of ads per hour, especially when half of them are poorly written, poorly produced, repetitive dreck?

Radio can be a better delivery system for localize content or for wider distribution online, but it has to offer content that the nationalized digital jukeboxes can't.

 

[TheBigA]

They haven't reinvested that money into programming, sales, and promotions.

Actually, they've invested a lot of money into all of those things on their digital platforms rather than spending money on a declining asset. Spending money on broadcasting is pouring money down the drain. That's why the best run companies such as Apple and Amazon haven't invested ANY money in broadcasting.

If anything, they've cut the very things that distinguish their product from automated online streaming that's available on every cell phone or via satellite in cars.

Every station in Buffalo has some measure of live & local talent. Some are more successful than others. It hasn't stopped people from using digital devices and listening to those automated streaming services you mention. If the people have a choice, and they prefer automated streaming, then who are we to tell them they're wrong?

why would listeners sit through 12-16 minutes of ads per hour,

Because it costs money to hire local staff. The streaming services don't have that expense, plus they're supported by subscriptions from users. When radio users pay, they don't have to sit through commercials. That's why people subscribe to WBFO.

My view is that broadcasters have to find a way to eliminate long commercial breaks. The choice is either find a different revenue stream, or run the stations like K-Love. The current business model is dead.

 

[Buddy Shula]

I don't think that there's an owner out there who bought stations pre-Covid who isn't see huge write-downs in the value of their radio stations. The big corporates have been selling off their towers and real estate to prop up operations and cut expenses thanks to sweetheart leases. They haven't reinvested that money into programming, sales, and promotions. If anything, they've cut the very things that distinguish their product from automated online streaming that's available on every cell phone or via satellite in cars. If you don't offer programming that separates you from the generic streamers, and better audio quality than they can get from their compressed streams, why would listeners sit through 12-16 minutes of ads per hour, especially when half of them are poorly written, poorly produced, repetitive dreck?

Radio can be a better delivery system for localize content or for wider distribution online, but it has to offer content that the nationalized digital jukeboxes can't.

Before they develop better programming and staff, they really should look for listeners who actually have a radio. No one has any. Just cars.

And I bought my station pre-covid and it continues to do better every year.

Maybe these are just bad operators and owners. My guess is, that’s the problem

 

[K.M. Richards]

Before they develop better programming and staff, they really should look for listeners who actually have a radio. No one has any. Just cars.

And I bought my station pre-covid and it continues to do better every year.

Maybe these are just bad operators and owners. My guess is, that’s the problem

Or they aren't providing programming that works for the dominant in-car listener. Give them something they can listen to for 20 minutes at a time, and they'll leave the car radio preset on your station.

And by all means, get creative with the advertising. In ABQ, more than 75% of our spots feature at least one or two sentences by the business owner, speaking directly to the audience. Some are totally owner-voiced.

 

[SirRoxalot]

The delivery system, whether it's OTA or via app, doesn't really matter. The problem with too much local radio is that it isn't timely or relevant and doesn't do a good job providing community connections and companionship. It once did. Air talent were once major influencers. Not so much anymore with the restrictive formatics and tired imaging that we hear on most stations today. The rare times that radio gets out into the community and raises funds for local charities is when it's most noticeable and effective. Otherwise, visibility is very limited, mostly because there really isn't enough local staff to get out to events with something more than a promotions flunky or two with a prize wheel and some low-rent prizes.

 

[TheBigA]

Air talent were once major influencers. Not so much anymore with the restrictive formatics and tired imaging that we hear on most stations today.

Who are the major influencers today? Those in social media. Why? Because it's interactive. It's user-generated content, not top-down like radio. Radio was great when it had no competition. Once people had choices, they went to other things. This is not a recent phenomenon. It's been happening since the 80s.

Consider this message board. You have a local station owner who posts here. Why? Because he can interact with people in ways he can't on the station he owns. Even though he is a knowledgeable expert, he gets attacked and criticized by other posters. Credentials and experience can't protect you here.

There are radio stations that don't use "restrictive formatics and tired imaging," and they tend to be non-commercial stations. Look around and I'm sure you'll find them. The formatics & imaging are not the problem. Most people want what they want when they want it on the device that's in their pocket.

 

[Buddy Shula]

The delivery system, whether it's OTA or via app, doesn't really matter. The problem with too much local radio is that it isn't timely or relevant and doesn't do a good job providing community connections and companionship. It once did. Air talent were once major influencers. Not so much anymore with the restrictive formatics and tired imaging that we hear on most stations today. The rare times that radio gets out into the community and raises funds for local charities is when it's most noticeable and effective. Otherwise, visibility is very limited, mostly because there really isn't enough local staff to get out to events with something more than a promotions flunky or two with a prize wheel and some low-rent prizes.

This is directly related to ownership and management. You are correct that this needs to be done, however, companies like Townsquare continue to almost flaunt that they are a digital company, not a radio company.

With that kind of thinking , I doubt local and promotions is at the top of their radio priority list.

They do promotions for money only, NTR shows, etc, but don’t expect it to be like 1990. They are a digital company which happens to have radio stations as a side dish.

 

[TheBigA]

Townsquare continue to almost flaunt that they are a digital company, not a radio company.

Yet they somehow do pretty good in radio ratings. Credit Bob Barnett with TCB.

 

[Buddy Shula]

Who are the major influencers today? Those in social media. Why? Because it's interactive. It's user-generated content, not top-down like radio. Radio was great when it had no competition. Once people had choices, they went to other things. This is not a recent phenomenon. It's been happening since the 80s.

Consider this message board. You have a local station owner who posts here. Why? Because he can interact with people in ways he can't on the station he owns. Even though he is a knowledgeable expert, he gets attacked and criticized by other posters. Credentials and experience can't protect you here.

There are radio stations that don't use "restrictive formatics and tired imaging," and they tend to be non-commercial stations. Look around and I'm sure you'll find them. The formatics & imaging are not the problem. Most people want what they want when they want it on the device that's in their pocket.

You are correct. This is a different world. I spoke to a younger person the other day that literally did not know what radio was. This is not just a radio problem, it’s a media problem of endless apps, endless tv streaming, endless radio stations, and constantly changing technology

This is not easy to navigate, but we do our best to try to find the formula that can break this cycle. Again, start with people simply do not have a radios, except for the car, and even there, your Bluetooth easily hooks up to any other app you have.

Radio is no longer a “thing”. It has turned into another option in a sea of options.

Radio still positions itself like they’re only the radio. 96.1, 104.1, 550. All this does is implies that you can find the product on a dial position, while the truth is you can find it everywhere. Radio is pigeonhole itself on just tuning to a dead platform.

I avoid frequencies on my stations and focus on the brand. We still do great in ratings, even though our positioning has nothing to do with finding a frequency on a radio.

Nearly 40% of “radio” listening is now done via streaming. Yet, we act like you can only find us on radio, with small exceptions when radio says “on the internet, or download the app” That should be the main thing we say, not just embedded in conversation.

The ONLY reason I continue to buy stations, or translators, or frequencies is to create extensions of branding. Older people relate to the “radio” , younger do not, so you need to try to cater to both.

Just my opinion, and I will continue to trust my instincts. Technology is real, and it has to be acknowledged that it has put daggers into traditional broadcasting. Knowing that, my next question would be, “how to we get better at incorporating this technology “?

 

[Buddy Shula]

Yet they somehow do pretty good in radio ratings. Credit Bob Barnett with TCB.

Are you kidding me, they have done an incredible job. It’s no secret that my preferred format is country. However, my taste is a bit older, but there is obviously a desire for new country music. It’s just not my cup of tea.

I was on air at WYRK for 10 years full time. From 1986-1996, then I went to WNUC which was also country. The loyalty for that format is unparalleled. It’s not a station, it’s a lifestyle.

I talked to someone the other day ( and this happens a lot) that when I said my name, they said “didn’t I listen to you on WYRK?’ That was like 30 years ago and people still say that.

Bob and the team at WYRK deserve much credit for trying to keep radio relevant, when their own company says they are not a radio company

As I mentioned, I was blessed to work for the first PD of WYRK, Ken Johnson. I saw first hand the dedication and I believe that continues today with Bob. These are total class acts.

 

[K.M. Richards]

Radio still positions itself like they’re only the radio. 96.1, 104.1, 550. All this does is implies that you can find the product on a dial position, while the truth is you can find it everywhere. Radio is pigeonhole itself on just tuning to a dead platform.

I avoid frequencies on my stations and focus on the brand. We still do great in ratings, even though our positioning has nothing to do with finding a frequency on a radio.

There are still a lot of markets (I program in one of them) where OTA frequency makes up most of the diary entries. That's why I have a dictate that we always call the station "93-7 KRKE, The Eighties Channel™". No exceptions, other than when the imaging line is immediately followed by a jingle with frequency and calls.

In my case, the brand includes the call letters (which still have some heritage value as having been on the dominant top-40 back in the day), and the frequency. No reason why I have to downplay those to keep the main imaging brand relevant.

OTOH, Buddy has different circumstances with WECK and for him, avoidance of the frequencies also likely declutters the station sound. Whatever works, right?

 

[Buddy Shula]

There are still a lot of markets (I program in one of them) where OTA frequency makes up most of the diary entries. That's why I have a dictate that we always call the station "93-7 KRKE, The Eighties Channel™". No exceptions.

In my case, the brand includes the call letters (which still have some heritage value as having been on the dominant top-40 back in the day), and the frequency. No reason why I have to downplay those to keep the main imaging brand relevant.

OTOH, Buddy has different circumstances with WECK and for him, avoidance of the frequencies also likely declutters the station sound. Whatever works, right?

You are correct. The only thing I would say is I do not program for people who fill out diaries. In that case, I would say you’re correct. In a diary, it matters. However, Nielsen sort of “prods” diary holders to say a radio station number and calls. If they said to put any “audio” listening you are doing, including satellite and apps, I bet it would look a little different.

I did have the programmers package from Nielsen and could read any diary from any station. I can’t name the amount of times that people write down “I listen to satellite”, “ I don’t listen to radio”, “ I have pandora”, etc.

These diaries are so wrong it’s pathetic. We are literally paying people off with a dollar to fill out what they can remember they heard. That’s desperation, and it’s outdated