Cumulus Experiment? Massive Layoff to Come?

[editthis]

Grumblings and gossip about some super secret "test" Cumulus is trying out and that it could lead to the biggest layoff the radio industry has ever seen and if it works other companies could follow. Some rumors lead to "Nationalization" of their formats. Hey the major networks have affiliates in ever city that run the national programming, and besides news they fill the rest of the day with other syndicated national programming so hey, why not do the same with radio and safe gazzilions on staffing and talent. Just let Jan program one radio station for the whole country.

 

[atlantaboy]

Just let Jan program one radio station for the whole country.

If that happens, all those stations will be removed from Mediabase (not that it would matter to anyone)

 

[editthis]

they would maybe become CCHR like the CC Premium Choices are PCHR...or maybe just make the smallest amount of localization to vary the spins a smidge to make them still "seperate entitites"

 

[bchristi]

It wouldn't surprise me. Cumulus has already completely destroyed many of the best stations in the country. They are completely destroying Top 40 nationwide because they own so many stations and refuse to play TODAY's music. I hope they do this and as a result end up in Chapter 7 bankruptcy.

 

[atlantaboy]

^No offense to the original poster, but this "rumor" sounds like something the poster made up to make yet another anti-Cumulus thread - especially since there's no source

If they were really going to do this, it wouldn't just be with one format, and the thread wouldn't just be in the CHR forum

Q100 barely played Thrift Shop, and it beat out the station that put it in power - they didn't play Mumford & Sons, and they beat out the Hot AC that had it in power - as long as Jan keeps getting results like this, he's obviously not going to change

 

[chrocket87]

...and the thread wouldn't just be in the CHR forum

I agree with this. If Cumulus were to have such a rumor, I'd see threads in other formats (Classic Rock and Country to name two other formats Cumulus owns a lot of) than just CHR.
Though I do believe Cumulus may roll out their version of Premium Choice in smaller markets and/or overnights and weekends in some markets in the next 5-10 years. (Though this is just personal speculation, no rumors)

 

[carolinaradio]

5-10 years? I'd say next couple of years. Cumulus won't waste that much time on an opportunity to save money.

Remember, Cumulus wants to use the Nash-FM concept on pretty much all of their country stations, and it's unknown exactly how much nationalization that will bring.

 

[michael hagerty]

About 15 years ago, a friend, a guy who is a businessman but has never worked in broadcasting, asked me what was going on with consolidation in radio (at that point, 1998-ish, CC and others were on massive buying sprees).

I laid it out for him and he said "Know what I'd do with 1,000 radio stations around the country? I'd have seven...News/Talk, Country, Classic Rock, Alternative, CHR, Sports and Adult Contemporary. Put 'em all in one building and feed the 993 others by satellite. The locals would just sell and air the individual market advertising."

Now, this is not an evil guy. But that's what business school tells you...that it's better to have the expense of 7 stations and the revenue of 1,000 than the expense of 1,000 and the revenue of 1,000.

 

[bchristi]

If anything Cumulus should do this for their smaller market stations and then give PD's more freedom in larger markets. One size fits all doesn't work in all markets, as discussed in the other Cumulus thread. What works in Atlanta might be different from what works in Oklahoma City which might be different from what works in Paint Lick, Kentucky. If they syndicate all markets large and small, that should spell the end for Cumulus.

 

[atlantaboy]

One size fits all doesn't work in all markets, as discussed in the other Cumulus thread.

I think you're giving too much importance to this message board

As long as Cumulus is winning in a majority of markets, "one size fits all" is leading to massive profits at most of their stations - again, I don't like it, but unless the actual listeners complain, there's no reason for them to change the mold

Remember, Citadel programmed their stations exactly like people on this message board wanted them to, and they're the ones that got bought out...

 

[The Outsider]

The actual listeners may not complain, but abandon local terrestial radio altogether in higher numbers.

Cumulus is already doing some nationalized programming with what they are doing for night shows on most of their Country and Mainstream CHR/Pop stations.

 

[atlantaboy]

The actual listeners may not complain, but abandon local terrestial radio altogether in higher numbers.

Do you see any markets where that's happening?

I remember when Clear Channel bought out a huge number of CHRs (very late 90s/early 2000s?) and started to homogenize them, not as extreme as what Cumulus is doing, but there was a definitive switch in playlists in a large number of markets, all to a similar rhythmic-leaning mold, with the same songs in power and most of the same songs in medium rotation

And when ratings came out, it was clear that people just didn't care - most stations held steady in their ratings

I don't think that's any different than what's happened in the past year with Cumulus

 

[CHRles]

I love listening to different local Top 40 stations in the US and elsewhere. However, I think it's too early to tell what the effect of nationalizing music radio will lead to.

When looking at radio's past, we see that prior to TV's rise, most of radio's ratings-grabbers were national radio shows that aired throughout the week.
With the rise of television, traditional radio stations with their blocks of programming started to collapse, and radio had to reinvent itself in order to stay in business. Thus began the age of America's 24/7 music formats on AM radio, and later on FM. They were oftentimes brilliantly programmed, and customized for their markets.

Fast forward to the present time, 2013, and we're at the age when the global internet revolution has dramatically altered the landscape.
Listeners have access to radio stations, not just from across the country, but from across the world. So listeners from Des Moines might be tuned into New York's Z-100, Capital FM from the UK, a net-only station like .977, as much as they might be tuned into a local Top 40 outlet (107.5 Kiss FM in Des Moines case).
This in turn may encourage some radio companies to re-evaluate the need for local radio.
While I personally love local Top 40 radio, there are also some great regional as well as National Top 40 chains I listen to from around the world

Examples of national Top 40 stations:
BBC Radio 1 UK
Jovem Pan Brazil
NRJ France
Evropa 2 Czech Republic
Los 40 Principales in Spain and all over LATAM
Europa Plus Russia (a country with 11 time zones!)
Radio Deejay Italy
ZM New Zealand
5 FM South Africa
Cidade FM Portugal
Virgin Radio Turkey

Example of regional Top 40 stations:
Radio Energy Quebec Region of Canada
Flaix Bac - Barcelona/Catalonia region of Spain
Radio Contact Brussels/Wallonia region of Belgium
Beat 102-103 Ireland
Viva FM Milano/Lombardia region of Italy
Eins Live Cologne-Essen/North West Rhine Region of Germany
You FM Frankfurt/Hessen region of Germany


So, with successful regional and national music stations already in existence elsewhere, and with the availability of streaming internet radio, the future may lead to more of both, alongside locally-programmed music stations

Lastly, has anyone compared the playlists of 97.1 Amp Radio L.A. with that of nearby Energy 103.7 San Diego? Both are owned by CBS, and both are in Southern California:
http://www.allaccess.com/mediabase/q/report/playlist/station/KAMP-FM
http://www.allaccess.com/mediabase/q/report/playlist/station/KEGY-FM

 

[atlantaboy]

I didn't realize until today (in another forum) that both Cumulus and Clear Channel are in debt

Seems pretty obvious now IMO why Cumulus is using centralized programming

 

[carolinaradio]

Cumulus got in worse debt by buying out Citadel (who was in massive debt from the Disney/ABC buyout). I keep thinking CC has a big day of reckoning in 2014.

 

[chrocket87]

^ Agreed. Will CC have to sell off all of its small-mid market stations just to pay off that monstrous debt bill. I went through their financial statements and their debt is 1.5 times the amount of the assets. How in the hell do you pay what you owe when your debts are worth more than everything they've got? Doesn't help that their retained earnings has gotten a beatdown by the $400m loss.

 

[editthis]

In response to an earlier poster that asked, the rumor source was from an industry trade newsletter tease that was in my email that morning. True or not, just thought it might lead to some interesting discussion.

 

[BRH]

I think (like it or not), you will see radio move towards tv's model of "national programming". I know many lament this and say it will be the end of radio, but really it's more about the evolution of radio to meet what the younger generations use it for. Most of today's younger audience doesn't really care if something is local or not. I know the argument has always been local news, information, etc., but most people today will turn to their cellphones and the Internet and social media for that (ahead of radio). Radio has become more about being a tool or "jukebox" these days. And as far as personalities, most younger generations would rather here a national celebrity than local announcers.

Anyway, I'm not saying I personally agree with this development or love it wholeheartedly, but I definitely see it as the future of radio if radio is going to adapt and survive. And as far as that argument about providing local news, breaking info, etc. They can simply contract out a deal with a local TV station for news, weather breaks, and live feeds in the case of emergencies.

 

[chrocket87]

I agree with the above post. Only a matter of time until only morning drive is local, much like how only the news hours are local on tv. Heck, even a lot of stations, even in PPM markets, don't even have local morning shows. It is what it is.