• Get involved.
    We want your input!
    Apply for Membership and join the conversations about everything related to broadcasting.

    After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
    If you use a disposable or false email address, your registration will be rejected.

    After your membership is approved, please take a minute to tell us a little bit about yourself.
    https://www.radiodiscussions.com/forums/introduce-yourself.1088/

    Thanks in advance and have fun!
    RadioDiscussions Administrators

Drumbeat of Doom

Citadel is reportedly axing consultants.

Entercom will stop matching contributions to 401Ks. As reported on Radio-Info's News page, CEO David Field says "due to the challenging economic conditions, we have made a few difficult, yet necessary and prudent, decisions to selectively trim expenses."

Looks like the boys in Bala Cynwyd, PA may not be waiting for November this year. Maybe they've adopted the Canadian Thanksgiving, eh?
 
Of the two measures, Citadel's is by far the wiser, and may turn out to be a cutback that truly enhances the company if it means consultants give way to empowering local managers. Consultants all too often are a hindrance rather than a help, however well-meaning they may be, since they frequently don't know vital facts about the markets they're consulting and thus misread the markets or assume that what worked in one place will work in another only to find out they're wrong. Mistakes made by consultants eventually fall to local PDs to correct, sometimes after considerable losses in listenership and revenue while the consultant's ideas were being tried and were failing. I can think of ONE consultant I've encountered in my career who truly helped the station he was consulting...and in that case, he'd formerly been PD at that station, knew the market and the people well, and steered TPTB well as a result. But the other good stations I've worked with (and there have been many) all had one thing in common...relying on people resident in the market 24/7 to make the key calls, rather than any outsider.

As far as what Entercom's doing, hurting the people who've been working hard for you and helping you only leads to one thing...ensuring you're going to lose those people the moment their contracts expire sometime down the road, at a time when times will probably be significantly better (and remember, many states, including New York, no longer allow enforcement of non-competes that tie talent down). People don't forget who hurt them, and they rarely stay loyal the moment other possibilities start open, as they eventually, inevitably, will. Today's savings, will ensure tomorrow's struggles.
 
Let's all recall the time-worn wisdom:

"A consultant is a guy who uses YOUR watch to tell you what time it is. And then walks away with it."

The best consultants I've ever worked with were other PDs or executives who were colleagues in other markets. Many are old friends. We compare notes about what works and what doesn't. And berate each other (good-naturedly) about experiments and screwups.

These days, with the internet, beaucoups of blogsites, a vast array of industry trades and most stations having live web audio streams available, the validity of using consultants is....well, less so.
 
Hey, I resemble that remark! Well, I did for a time as consultant for a few AM radio stations. The consultant jokes are amusing, kind of like the lawyer jokes (ahem) and the doctor jokes. I don't see many non-attorneys acting as their own counsel. ("A person who acts as his own counsel has a fool for a client.") There aren't many folks who can do surgery on themselves (as suggested quite humorously in a recent TV commercial.) And there actually are some stations that benefit from having a programming consultant. There are some very good consultants who understand the business from the bottom up and inside out, as Bob Savage might describe. I don't know what they're paid. I do know that I wasn't making a killing.
 
SirRoxalot said:
Citadel is reportedly axing consultants.

You can't be talking about Buffalo right? Cause if you are, you're mistaken
 
Noted, JPB. I was thinking more about the consultants local management hires when there's a downturn in the ratings and they "want to appear they're doing something" for political purposes - a/k/a buying some time with corporate-types. So in comes the Genius Du Jour who tells the PD what to do becuz "it's really increasing TSL in Walla Walla."

Valid input and ideas are always a good idea. So is a fresh perspective. Utilized properly, a consultant can be a good asset. But the wheels come off when the consultant forces a cookie-cutter into the product via corporate mandate, because more often than not the dynamic becomes: if there is success the consultant gets the credit; if there isn't, it's the PD's fault.

Didn't mean to impugn anyone. Keep the lawyer jokes coming; they're deserved. I still like the bumper sticker: LAWYERS MAKE IT STAND UP IN COURT.
 
SSSKub said:
SirRoxalot said:
Citadel is reportedly axing consultants.

You can't be talking about Buffalo right? Cause if you are, you're mistaken

Don't know about Buffalo. The statement was taken from the Radio-Info headlines at the top of the page. The linked story talked about some other Citadel markets. It seems that Citadel is axing some consultants, apparently not all consultants.


PS - What's the difference between a dead skunk and a dead lawyer?



Vultures will eat the skunk...
 
Element9 said:


I disagree.

While radio has it's own demons as of late, there are a great many companies right now, trading way below where they should be.

None of this means anything until after a substantial rebound in the rest of the market. THEN we'll see where the broadcasting sector resides.

I'm not saying it'll be pretty, but the real value of these companies is, on average, higher than is represented by today's share price.
 
I'm not saying it'll be pretty, but the real value of these companies is, on average, higher than is represented by today's share price.

And that could be said about the stock market in general. My guess is it's gonna be rough for awhile and then it'll eventually straighten itself out. Radio stocks will probably return to where they once were. Still, I'm glad I don't own any radio stocks. I don't consider radio a good long term investment.
 
Taking Stock

You could probably sell everything GM owns for scrap and get more money than their stock is worth at the moment. This market is currently a playground for those guys who love making money on the volatility. The market was probably due for an adjustment, but what we're seeing right now is the result of panic, greed, and manipulation by major money funds looking for world governments to bail them out after they manipulated the housing market into an inflationary spiral that made both buyers and sellers giddy.

Things will stabilize, and radio stocks will stabilize with them. With all the "new media" challenges, I don't see them getting back to the level that they were at 5 years ago unless the radio companies embrace "new media" and make a serious impact in that arena. The move by CBS to partner with AOL on-line seems smarter by the moment.

Clear Channel's move to sell out at $36.00 per share is also looking like either a smart move, or one made by a major player in market manipulation. How many of the banks who got sucked into funding that investment would like to have their money back?
 
Consultants, like technology, are largely a neutral force. They tools and information they provide can be used for "good" or for "evil", depending on your perspective. If the boss brings in a consultant and says "we've gotta do something that'll help boost the stock price for the next quarter or I'm a dead man" then is it any surprise the consultant recommends doing things that will boost the bottom line in the short run...even if it means long-term failure?

And, by definition, a consultant isn't brought in unless something is considered "wrong", and more often than not, people have a vested interest in the status quo...even if it's "wrong". No wonder most consultants are hated.

On the other hand, I've been a consultant for some stations that had no interest in doing anything except kowtowing to some egomanicial staff members and to hell with the listeners. Talk about a nightmare scenario; you are being set up to fail. Nobody wants to hear what you have to say, everyone wants to see you die, and you know you have precisely zero chance of improving anything from any perspective. And odds are good they'll try and stiff you on your fee, too. I'd rather have some "short-sighted" manager than THAT situation EVER again.
 
I have never seen management side with the staff members against the consultant. Where did that ever happen?

I look at the consultant as a buffer for the GM, and PD. If the format fails, blame the consultant thus saving the PD's and GM's job. Cynical? You bet!
 
Meanwhile...

Getting back to the original topic...

Did everybody survive the week at Entercom Buffalo? Sounds like "Thanksgiving" came early for Entercom, with cuts nationwide. They cut 15 jobs in KC, 9 in Boston, and positions in Denver, Milwaukee, Sacramento, and Portland. Air talent, PDs, production people, and back-office people are among the cuts. They also flipped a format in Memphis.

Entercom itself got booted from Standard & Poor's Midcap 400 index. David Field announced that the company would "suspend" matching 401K contributions, and is "seriously considering" a wage freeze for 2009.
 
It looks like buyers aren't interested in what the sellers are selling on Wall Street in general and the radio and communications business in particular. In a way, it's like home owners in a community put their houses up for sale at $200 thousand while prospective buyers take a look and pass, offering only $100 thousand. Entercom, Regent and Citadel have to be worth more than the deflated share prices share prices at the close of business, but it's going to be a while before those stocks see their fair value. The market runs on emotion. There's a lot more fear than confidence in stocks these days. A lot of these companies got too big, too fast and borrowed far too much money. Is it not the case that Citadel was a smaller company that bought ABC, a larger company? How often do we see a small fish (other than piranha) eat a big fish? Could it be that the radio and communications business just experienced a bust similar to the dot com bubble?
 
Monica Wilson

It looks like Element 9 has good sources. Monica Wilson is indeed off WBEN's website. I wonder who the new News Director is? Tim Wenger's wife Susan Rose? If nepotism doesn't reign, I'd guess Steve Chichon. He seems like a guy who'd pursue that position.

If Monica Wilson was the only casualty, Entercom Buffalo was certainly fortunate. They've been one of Entercom's bright spots for a long time now.
 
Re: Monica Wilson

SirRoxalot said:
If Monica Wilson was the only casualty, Entercom Buffalo was certainly fortunate. They've been one of Entercom's bright spots for a long time now.

Layoff at other clusters seemed to center around non-essential positions (promotions coordinators, administrative assistants, etc). and very few programming people. It almost seems like each cluster was given a salary reduction target and it was left to the GM/MM to figure out how to meet it without crippling operations.

Any word on what happened at High Falls - if anything?
 
Status
This thread has been closed due to inactivity. You can create a new thread to discuss this topic.


Back
Top Bottom