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Deeper Issues?

20 year radio vet Charese Frugé has a track record as a personality and programmer in multiple major markets and multiple Excellence in Management from both CBS Radio, and the Alliance for Women in Radio. She has a take on how consolidation has affected the radio industry that you might find interesting.

 
20 year radio vet Charese Frugé has a track record as a personality and programmer in multiple major markets and multiple Excellence in Management from both CBS Radio, and the Alliance for Women in Radio. She has a take on how consolidation has affected the radio industry that you might find interesting.

A good read for sure, and I think her comments are spot on. The radio business in general was also a lot more 'fun' back when stations had a larger local staff (including jocks, sales and office staff, engineering), more localized ownership and a lot more ability to do creative and unique things both on the air and out in the community. Now with an HR person, marketing person, sales, engineer(s), etc. spread so thin and performing the same role for handfuls of stations in some cases, it can seem a lot more like 'work'.

IMO consolidation has also sped up the decline of terrestrial radio because many stations in many markets no longer have the ability to do creative marketing as was once the norm, especially in smaller markets, and to even have personal contact with their listeners. Back in the day when most every station was using local jocks 24/7 there were a lot more live broadcasts from client locations, contests and presence at events to generate buzz for the station, many times even the sales and office staff would show up to support, and listeners could form a kind of bond with the station and on-air staff. Now with people like Ryan Seacrest Mario Lopez, Bobby Bones and Delilah heard in many markets or satellite/computer automation with voice tracking doing all the work, the personal interraction and "human touch" is gone. Except for some stations mostly located in smaller markets where local ownership is still in place, decisions are made locally and the staff are actually able to be out in the community, it's more and more difficult to convince listeners why they should listen to the radio vs. satellite or apps like Spotify, Pandora and a host of others.
 
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Except for some stations mostly located in smaller markets where local ownership is still in place, decisions are made locally and the staff are actually able to be out in the community, it's more and more difficult to convince listeners why they should listen to the radio vs. satellite or apps like Spotify, Pandora and a host of others.

At the end of the day, you need money to pay the local staff. Stations that are effective in attracting advertising get to hire lots of people. The ones that can't end up being automated jukeboxes. That's the case regardless of ownership. I see lots of small market local radio stations running national formats. In fact, percentage-wise, more affiliates of national radio formats are owned by those small local owners than by the 6 big companies.

The other side of the contesting and promotion story in the OP is that sponsors and brands are demanding bigger numbers and more impressions for their promotions. It's not coming from ownership looking to cut costs, but from clients seeking to expand their footprint. You can't expect a single station medium market promotion to garner the kind of attention than a national one can deliver for the client. You saw what I'm talking about last week with the iHeart Music Festival. That was a very successful promotion that delivered national reach for the clients.

To me, it's not how many local employees a station has, but rather how imaginative they are, how able they are to get visibility for their station and their clients without hiring lots of staff. Taking advantage of opportunities that exist, rather than finding excuses why things can't be done. If consolidation is such a problem, why does iHeart tend to have 3 stations in the Top 5 of just about every major market? Listeners and advertisers don't seem to have a problem with big radio that former employees seem to have. And if you really want to experience the bureaucracy of big radio, spend a day working for Sirius or Apple Radio. Then you'll really get a taste of what big radio is. Because those other companies dwarf the bureaucracy that you ever saw in the largest traditional radio companies.
 
To me, it's not how many local employees a station has, but rather how imaginative they are, how able they are to get visibility for their station and their clients without hiring lots of staff. Taking advantage of opportunities that exist, rather than finding excuses why things can't be done. If consolidation is such a problem, why does iHeart tend to have 3 stations in the Top 5 of just about every major market? Listeners and advertisers don't seem to have a problem with big radio that former employees seem to have. And if you really want to experience the bureaucracy of big radio, spend a day working for Sirius or Apple Radio. Then you'll really get a taste of what big radio is. Because those other companies dwarf the bureaucracy that you ever saw in the largest traditional radio companies.
Exactly. It used to be the measure of a business was based on how many FTE's and titles were on the payroll. That was last century thinking.
 
Exactly. It used to be the measure of a business was based on how many FTE's and titles were on the payroll. That was last century thinking.

When I hear all the people complaining about "corporate radio," I think about the days when radio stations were owned by international conglomerate such as General Electric and Nationwide Insurance. You think there was a lot of corporate bureaucracy involved getting stuff done back then? There's this mythology that radio pre-1996 was all mom & pop small local owners, and I'm here to testify that it's not true. And the fact is that the future isn't trending towards more small radio owners.
 
When I hear all the people complaining about "corporate radio," I think about the days when radio stations were owned by international conglomerate such as General Electric and Nationwide Insurance.
Howard Stern's movie; Private Parts taught them everything there is to know about the business.
There's this mythology that radio pre-1996 was all mom & pop small local owners, and I'm here to testify that it's not true. And the fact is that the future isn't trending towards more small radio owners.
Chock it up to radio fans practicing revisionist history.
 
When I hear all the people complaining about "corporate radio," I think about the days when radio stations were owned by international conglomerate such as General Electric and Nationwide Insurance. You think there was a lot of corporate bureaucracy involved getting stuff done back then? There's this mythology that radio pre-1996 was all mom & pop small local owners, and I'm here to testify that it's not true. And the fact is that the future isn't trending towards more small radio owners.
And those small local owners only wanted to (sniff) play good music and serve their community with no thought to making money. The American Radio Station Owner (fife begins playing).
 
I wonder who is the intended audience for the article in the OP. She's now a consultant who I imagine is trying to attract clients. But instead of demonstrating how small owners can benefit from her advice & experience, she's instead attacking big companies. I don't see any upside to that other than to provide fodder for radio discussion boards.

The article strangely shifts from frustrating corporate bureaucracy to dealing with human resources issues. Imagine working for a single-station owner where there is no human resources department, and all decisions are made by the owner and his family. The owner is the GM, his son is the PD, and his daughter is head of sales. It's a very different experience. Not sure if it's much better.
 
It seems I'm in the minority here, but I'll stick with the initial comments that I made in my post above. I didn't really read into the parts of the article from the OP about HR, mental health and diversity, so much as the first few paragraphs and I do agree with her general sentiment about the effects of consolidation on radio broadcasting.

As an example, when visiting my folks for Thanksgiving last year, there was no Christmas parade held that weekend in that city because of Covid, but one of the local TV stations showed a bunch of past parades one evening to try and bring some holiday spirit. One of the parades I happened to catch was from 1997. Two of the best known radio stations at that time had entries. One, an AC, was easily #1 in the market, nearly every one of their on-air staff were in the parade riding in or walking alongside the station vehicle, their secretary was dressed as their mascot, they were handing out station logo swag, the crowd was excited to see them, and many were familiar faces (most certainly voices) in the community. The jocks often did live broadcasts at businesses that advertised with them, they had a heavy presence at nearly every concert that happened there, were seemingly always doing contests, promotions and events in the community and the station made good $$. Another entry in the parade was a horse-drawn stagecoach, sponsored by a country station which was I believe #2 or a close 3 in the ratings. Again, their morning guy was atop the coach holding the horse's reigns and the coach was filled with their on-air staff, while others were walking alongside. The crowd was waving and yelling to them.

Later, they showed the parade from I think 2005. Same city, same sized crowd, same holiday, but the difference was that the country station had within that time been gobbled up by one of the big corporations, flipped to talk and was consolidated with about 5 other stations within that market. The AC, long-beloved and long #1 in that market had been sold by a retiring owner to a larger company, who then sold it to another even larger company who consolidated it with 3 other stations. It was now satellite content 24/7 with voice tracking. Both stations had a presence in the parade. Both had trucks or vans with the station's logos on them. No on-air staff, because there were none. All gone. No swag because those days were gone. The vehicles were most likely driven by sales staff or someone who'd be completely unknown to listeners. That's it. A van with it's hazard lights flashing away. No one in the crowd seemed to care - and their ratings had fallen badly. Huge contrast from their presence at that same event a few years previous. The once #1 rated AC from 8 years ago was now #4 or 5 in that market after the consolidation, format flip and dismissal of local air talent. The country station that had been #2 or a close 3 was now a #6 rated talker, airing mostly syndicated shows or programming from a national network.

How is that "better" for anyone involved? The station, the listeners, the former staff, the advertisers who really have no incentive to spend money there anymore because of fallen ratings and the lack of local 'personalities', etc? While I think everyone here realizes that times change, tastes change, listener habits change and one must adjust to all that, I fundamentally agree with the author's first sentence, that consolidation and downsizing have had a deeper, in at least some cases detrimental effect than sometimes meets the eye. Also, as I mentioned in my post above, it's harder and harder to explain why people should listen to terrestrial radio vs. satellite or an app, when so many stations have lost their "personalities" and what made them unique and special.
 
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There's this mythology that radio pre-1996 was all mom & pop small local owners, and I'm here to testify that it's not true. And the fact is that the future isn't trending towards more small radio owners.
Small owners... and particularly minority owners... have a real challenge as radio is becoming a component in a broader media offering. You can't form a new "station group" today since you have to have all the new media components to be able to sell a package.

Townsquare may be the model for the future, where radio is the marquee for a new media array. In fact, at some point radio may be a loss leader for the other parts of a marketing organization.
 
How is that "better" for anyone involved? The station, the listeners, the former staff, the advertisers who really have no incentive to spend money there anymore because of fallen ratings and the lack of local 'personalities', etc?

Hard to comment when there are no specifics. I can tell you that in most major and large markets, the radio stations owned by big companies have lots of local DJs and support staff. They make lots of local appearances at events, such as concerts, sports, and other things. As I've said in other posts, the music charts won't give reporting status to stations with no local staff, and that also means record labels won't do promotions with those stations. The music charts have reporters in the Top 200 markets, and the charts post names and numbers of the local contacts. These are big corporate stations as well as smaller owners. So I don't know who or where you're talking about, but the stations I know about have no shortage of staff, and the size of the staff isn't the reason why people listen. I was just looking at lists of local talent who are nominated for awards. They're out there.

On the other hand, over the last 15 years, we've seen the growth of a national format called Jack. It's owned by a company called SparkNet. They have a hundred or more stations around the country. In one market, the format replaced a popular oldies station, owned by a small company. They fired the staff, and replaced them with national imaging and a very tight playlist of popular songs from the 80s. They have billboards all over town. This station is competing against other stations with live & local talent. But the Jack station is #1. What does that say?

Also, as I mentioned in my post above, it's harder and harder to explain why people should listen to terrestrial radio vs. satellite or an app, when so many stations have lost their "personalities" and what made them unique and special.

The implication is that people want unique and special. I travel a lot, and I listen to a lot of local radio. I'm not hearing this total disappearance of personality that you're talking about, even in small towns.

People listen to different things for different reasons. They like satellite because the music channels have no commercials. They like Spotify because they can make their own personal playlists. Local radio can't do either of those things. But at the same time, local radio doesn't ask you for your personal information or credit card number, and you don't need a user name or password to listen. So there are the differences as I see them. It has nothing to do with ownership.
 
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Few businesses are operated the same way as they were decades ago. Few industries look the same. Somehow “radio” is supposed to be different? To remain in a time warp that some diehards pretend was somehow utopian?
 
Change is hard. Harder for some people to comprehend than others.

As other professionals here, we've been in the business long enough to have witnessed first hand, not just the changes within the business model itself, but from the perspective of our listeners/viewers, and the advertisers that fueled the business. The process of receiving that fuel evolved, and even the fuel itself has changed formulas, . When a business, any business, is no longer the only game in town, you must adapt or you won't survive.

A good friend of mine is a veterinarian. For years he scraped and saved to buy the technology to keep his practice relevant, so he could compete with the larger clinics that were buying up, or consolidating Vet's into one large clinic. It was tough going-it alone. Clients felt that they were getting a higher quality of service because they could walk into the big clinic 24/7, where my friend was only able to be open from 7AM to 5PM. In spite of the sincere, personal touch-level of care he could provide, his clients went more to the large clinic because it was more convenient. Eventually he sold his practice to the consolidated clinic because if he didn't, his client base would have continued to diminish and he would have potentially nothing left. My friend invested and evolved as much as he could, but the evolution of what his customers wanted, convenience over personal touch, left him with few options.

Radio isn't the only business that's had to evolve to survive. I'm sure all of us can lament about the local corner store, or that hardware store where the manager knew your father's name right when you walked in. Years later a Home Depot opened up down the street, and customers flocked into it. Those same customers who had for years gone into the local hardware store would rather have the selection and lower prices, than the greeting and personal touch. In other words; blame for change falls at the feet of society over time, not just any particular business.
 
I glanced through the article. Frankly, it's not an easy read. Could have been written better for a website, but...

It seems that the author mentions the revenue issue in passing, where I think it's a bigger factor in changes in radio.

As mentioned above by KellyA, there has obviously been a sea change in advertising revenues, both in the amount of revenues and how they're acquired. Radio's revenues in general are lower than they were 20 years ago as well. The advertising pie has thinner slices, due to the internet becoming a prominent medium for advertising, something that was only speculated about before the mid 2000's. A lot has changed. Everything ultimately runs on money.

When the budget changes, other things also are going to change. I saw it happening when I was still employed in the industry in the 2000's. I can only imagine how it's changed since then. Nearly everyone I worked with either retired early or is no longer working in the industry. There just weren't the same number of positions available. It's the same with the other industry (journalism) I served in previously. Stuff happens.
 
Appreciate reading your comments @TheBigA , @Kelly A and @boombox4 and the banter here illustrates exactly why this site is called "RadioDiscussions". None of us has all the answers, everyone may have different perspectives based on their own experience, market size they've worked in, ownership type, the length of time each of us has been in the business, etc. but I do enjoy the back and forth here, and do appreciate seeing others' points of view.
 
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