Entercom

[CassChopper96]

I don't think this company knows how to properly run some radio formats. They have destroyed KROQ in Los Angeles But at least 107.7 in seattle does well and there destroying WBEB in Philadelphia. At least they didn't mess up Star 102.5 but i think they should have more throwbacks in their playlist though differentiate itself from kiss 98.5 a little bit more

 

[TheBigA]

I don't think this company knows how to properly run some radio formats. They have destroyed KROQ in Los Angeles But at least 107.7 in seattle does well and there destroying WBEB in Philadelphia. At least they didn't mess up Star 102.5 but i think they should have more throwbacks in their playlist though differentiate itself from kiss 98.5 a little bit more

First rule of radio: Companies don't run stations. People do.

 

[davideduardo]

I don't think this company knows how to properly run some radio formats. They have destroyed KROQ in Los Angeles But at least 107.7 in seattle does well and there destroying WBEB in Philadelphia. At least they didn't mess up Star 102.5 but i think they should have more throwbacks in their playlist though differentiate itself from kiss 98.5 a little bit more

KROQ was on a decline dating back to the times well before Entercom acquired the CBS operations. It had a direct competitor, and was mostly dependent on its strong morning show. When half of the show retired, that, too, declined.

Entercom has had to essentially relaunch KROQ because nothing was left of the old format. The music had fragmented, the morning show was gone and the audience was split between two stations. It is really questionable whether LA can sustain two stations in that format area in the future.

 

[DN14224]

First rule of radio: Companies don't run stations. Wall Street does.

Please do not edit the post of another person. BigA did not say "Wall Street does".

He said "People do".

You edited his post to insert your own belief.

 

[TheBigA]

FTFY

Tell that to Buddy Shula.

 

[TVEngineerArk]

Tell that to Buddy Shula.

Buddy obviously gets the idea that content is what matters regardless how it's delivered. He has proven that with WECK by driving unserved listeners to an AM signal or 3 separate FM translators around the metro by giving them what they can't get anywhere else on the radio. That's why for the sake of the radio business I keep hoping Buddy and others around the country who share his programming philosophy gets full power FM signals. We have a local guy who has a great regional signal doing soft AC near where I live. He also subscribes to the philosophy of serving listeners and advertisers with what they can't get anywhere else and he's quite successful. In Buddy's case he always seemed at home doing country, especially during his time at WNUC when that signal was perfect for his approach to the format. I can imagine that he would love to get his hands on a decent regional signal like that for WECK or whatever he might decide to put on it.

 

[TheBigA]

Buddy obviously gets the idea that content is what matters

My point was Buddy doesn't care about Wall Street. And there are other private owners who run their stations without the need for stockholders.

 

[davideduardo]

Buddy obviously gets the idea that content is what matters regardless how it's delivered. He has proven that with WECK by driving unserved listeners to an AM signal or 3 separate FM translators around the metro by giving them what they can't get anywhere else on the radio. That's why for the sake of the radio business I keep hoping Buddy and others around the country who share his programming philosophy gets full power FM signals. We have a local guy who has a great regional signal doing soft AC near where I live. He also subscribes to the philosophy of serving listeners and advertisers with what they can't get anywhere else and he's quite successful. In Buddy's case he always seemed at home doing country, especially during his time at WNUC when that signal was perfect for his approach to the format. I can imagine that he would love to get his hands on a decent regional signal like that for WECK or whatever he might decide to put on it.

Excellent points. But don't disregard large ownership group's respect for content; they know that ad rates are set by audience size and audience responsiveness.

The issue for operators like Buddy is that the present... or at least the pre-virus... prices for full signals can be justified for formats that serve audience groups that don't have the advertiser appeal needed to succeed.

If I can get 3% to 4% safe return on my equity, why would I pay 8% or higher for a loan on the hopes that I can have an operating margin well in excess of the interest and principal payment in an uncertain environment?

Only if station prices take another steep decline can independent local broadcasters buy in. The same applies to the FCC's expressed desire for more Black and minority ownership. A return to locally owned radio depends on much lower purchase prices. And the elephant in the room is declining advertiser interest in terrestrial radio; local operators typically don't have the resources and staff to stand out online.

 

[TheBigA]

A return to locally owned radio depends on much lower purchase prices.

Not sure I agree. One of my projects involved a donated FM signal. That's all we got. A signal. No tower, no studio, no nothing. We learned it cost more to run a station than to buy one. All of those recurring charges. All of that payroll to meet. All of that insurance. All of those never-ending legal papers to file. All of those engineering costs. Rising local taxes. We're talking about the ultimate "cheap channel."

If you can't afford the purchase price, how can you afford the investment it will take to maintain that station and grow it? The margins aren't there any more.

 

[Buddy Shula]

Prices are going down on full power fms. I know this for a fact. Stay tuned. Alan Jackson and George Strait will be proud

 

[davideduardo]

If you can't afford the purchase price, how can you afford the investment it will take to maintain that station and grow it? The margins aren't there any more.

A bargain purchase price means less debt service, so the operation does not have to have high margins to pay the loan interest and principal.

A good signal in a good market at a good price can be viable for a single station operator. Even, in some cases, a bad signal run frugally can make money. Don Davis in Albuquerque has a couple of dog AMs with translators up on the mountain that do a half decent job of covering the populated areas... and he has niche formats and makes money. His operations are very frugal... everything is based on "not a penny more".

 

[TVEngineerArk]

Prices are going down on full power fms. I know this for a fact. Stay tuned.

Buddy alludes here to something I have been wondering. How long are shareholders of the large broadcast companies going to allow these companies to hold on to seriously under performing stations in their portfolios (in the case of Entercom in Buffalo WLKK and WWKB are perfect examples) just to prevent someone else from owning them if the expenses for those stations and the companies underlying debt service doesn't justify it?

It seems like it doesn't make financial sense at least to this observer. But I'm not a finance guy so maybe it does make sense. Maybe under the heading of 'if you can't beat them, buy them.'

 

[TheBigA]

How long are shareholders of the large broadcast companies going to allow these companies to hold on to seriously under performing stations in their portfolios

As someone who owns stock in a lot of companies, I'm here to tell you that the companies don't ask shareholders about running their business. They send you their financials, you see how much they make, and you decide if you want to hold or sell. That's it for input. Once a year you vote for members of the Board and the accounting firm. Unless you're on the board, nobody asks about operational issues, and even then, they're all big picture things, not local markets.

 

[Buddy Shula]

Broadcast companies that are public, answer to shareholders on quarterly calls. In regards to radio companies, they have nothing good to report regarding radio. They get their shareholders excited on these quarterly calls by offering hope and shiny new toys, like digital. Radio companies are trying to sell digital to their shareholders more than they are radio. If they don’t say something hopeful their stock holders will flee. They make things up. They blame everything. Always offering hope. I listen to these calls and it’s all bullshit. Radio companies are no longer proud of radio. They know it is being hurt by other technologies. They are searching for other revenue streams for their radio companies.

Smaller companies with pretty big stations, like mine, don’t have to bullshit. We focus on radio. We do not sell digital. We do not sell streaming. We sell radio, and that is where our efforts and gunpowder go. I also own an ad agency, which I would not be surprised if other media companies follow my model as the new shiny toy.

My company is small, but the stations are big. That is rare. I am thankful that I am not a slave to shareholders. I am in buying mode, not selling. It make me sick that Bob Pitmann was Radio Inks Leader of the Year in 2019. This guy put the largest broadcast company in bankruptcy! This is a leader?????? Not in my book. He is a loser, not leader. President Donald Trump would agree with me.

 

[TheBigA]

I also own an ad agency, which I would not be surprised if other media companies follow my model

Other media companies have been doing this for many years. Currently iHeart owns Katz. Many years ago CBS owned their own agency. Nothing new. It's a way to keep the agency commission and control how the ads are used.

 

[davideduardo]

Other media companies have been doing this for many years. Currently iHeart owns Katz. Many years ago CBS owned their own agency. Nothing new. It's a way to keep the agency commission and control how the ads are used.

Katz is a sales rep firm, not an ad agency. They sell for stations that can 't have their own rep in big ad agency centers.

 

[Buddy Shula]

Katz is a sales rep firm, not an ad agency. They sell for stations that can 't have their own rep in big ad agency centers.

That is correct Dave

 

[tbolt909]

Buddy must have forgotten that Donald Trump is the "King Of Bankruptcies". Trump & Buddy seem to think it's still 1960...

 

[davideduardo]

Buddy must have forgotten that Donald Trump is the "King Of Bankruptcies". Trump & Buddy seem to think it's still 1960...

That is an unnecessary remark.

Buddy is creating a successful business based on local radio serving a previously neglected demographic.

As a broadcaster, I admire his initiative. As co-moderator here, I think you should avoid making politically based insults. Let's stick to radio, please.

 

[tbolt909]

That is an unnecessary remark.

Buddy is creating a successful business based on local radio serving a previously neglected demographic.

As a broadcaster, I admire his initiative. As co-moderator here, I think you should avoid making politically based insults. Let's stick to radio, please.

So you are OK with Buddy mentioning Donald Trump? What did his comment have to do with Radio? I doubt that Trump has ever heard of WECK. The ratings for WECK have remained largely the same for the last decade (prior to the Shula regime)...