iHeart Restructures - Departures

[Y2kTheNewOldies]

https://news.****************/cgi-bin/rol.exe/headline_id=n38179

Update now the Senator Sherrod Brown wants to investigate the Iheart layoffs and wants a response by Iheart leaders by February 14th.

Following mass layoffs by iHeartMedia last week, U.S. Senator Sherrod Brown wants answers from the radio giant's CEO Robert Pittman, reports the Business Journal Daily. Brown (D-OH), sent a letter Thursday to Pittman that raised concerns about the company paying millions in bonuses to the executive prior to the company's 2018 bankruptcy, then questioned how paying bonuses to executives while laying off employees benefits the long-term interests of the company. He requested responses to the questions by February 14.

On January 14, iHeartMedia said it would increase its use of technology and artificial intelligence, resulting in job cuts in all of its markets. Although it's not known exactly how many were actually ousted, RADIO ONLINE received email confirmations of over one hundred air personalities who were let go. iHM currently operates more than 850 stations.

 

[gr8oldies]

One guy in the Senate.

https://news.****************/cgi-bin/rol.exe/headline_id=n38179

Update now the Senate wants to investigate the Iheart layoffs and wants a response by Iheart leaders by February 14th.

 

[TheBigA]

One guy in the Senate.

Sees a bit unusual for one Senator to make such a demand. Might carry more weight if it came from a committee.

 

[Will_H_69_9]

Sees a bit unusual for one Senator to make such a demand. Might carry more weight if it came from a committee.

well, Senate has bigger fish to fry right now with the Trump impeachment trial. but I don't blame him for being concern about the future of "local radio".

 

[TheBigA]

I don't blame him for being concern about the future of "local radio".

His concern should be with the future of "local anything." Radio is a very small part of a much bigger problem.

 

[Y2kTheNewOldies]

https://radioinsight.com/headlines/...sports-talk-returns-to-wlap-following-layoff/

Another show cancelled during the iHeartMedia layoffs has been resurrected as a time buy.

News/Talk 630 WLAP Lexington KY will resume “Sunday Morning Sports Talk” this weekend in its usual 9am-12pm slot. The show will continue to be hosted by Mark Buerger, sportswriter Larry Vaught, and former University of Kentucky running back Anthony White.

Interesting move for Sunday Morning Sports Talk to be brokered programming.

 

[TheBigA]

Interesting move for Sunday Morning Sports Talk to be brokered programming.

It's a great idea. One way to guarantee job security.

 

[b-turner]

And they can likely make more money doing it. They are selling what they believe in versus the sales staff perhaps mentioning the program.

 

[gr8oldies]

It's very likely "local content" will be talk host (particularly sports) either buying time or starting a podcast that will be carried by the iHeart app (even the podcast I'm on is on the iHeart app), that might find its way to air.

 

[davideduardo]

The way I read David's two measures of radio is 89% listen but the time spent listening is roughly 60% less. That would mean radio's reach has dropped from about 95% to 89% to 90% but to reach all of these folks, you will need more commercial units to have the same impact as a dozen years ago, in theory 60% more. I gather that listening sessions are shorter, leading to the 7% today.

Exactly. That's a good Step A to Step B to Step C analysis, and pretty much describes radio today.

I still listen to traditional FM radio. I nearly never listen to an AM. FM I listen to if the station is reasonably good.

In the car, it is all streaming and Sirius XM. FM is listened to mostly at home, and I switch between a couple of stations due to the terribly long stopsets.

I only listen to a true local station if there is strange weather or a shaking going on. I occasionally go off on long stumbling roads through audio services, jumping from Ecuadorian indigenous songs of the 60's to Colombian rap to old cumbias and gaitas from Colombia in the 60's to Classic Rock from Argentina, 60's Top 40 from Milan and Paris, and 70's Salsa from Puerto Rico or 70's and 80's vallenato from Colombia. I'm probably the only person who can transistion from all these and back and more, which is why I can't possibly like any of my local stations. And every once in a while, I will dig into disco or early other kinds of club music, maybe some classical and definitely an interlude of Holst's Planets or something like that as a palate refresher.

And broadcasters wonder why people like me don't listen to terrestrial radio any more. Hint: it is not abou the DJs and the jingles.

 

[boombox4]

Exactly. That's a good Step A to Strep B to Strep C analysis, and pretty much describes radio today.

I still listen to traditional FM radio. I nearly never listen to an AM. FM I listen to if the station is reasonably goof.

In the car, it is all streaming and Sirius XM. FM is listened to mostly at home, and I switch between a couple of stations due to the terribly long stopsets.

I only listen to a true local station if there is strange weather or a shaking going on. I occasionally go off on long stumbling roads through audio services, jumping from Ecuadorian indigenous songs of the 60's to Colombian rap to old cumbias and gaitas from Colombia in the 60's to Classic Rock from Argentina, 60's Top 40 from Milan and Paris, and 70's Salsa from Puerto Rico or 70's and 80's vallenato from Colombia. I'm probably the only person who can transistion from all these and back and more, which is why I can't possibly like any of my local stations. And every once in a while, I will dig into disco or early other kinds of club music, maybe some classical and definitely an interlude of Holst's Planets or something like that as a palate refresher.

And broadcasters wonder why people like me don't listen to terrestrial radio any more. Hint: it is not abou the DJs and the jingles.

I'm probably an iconoclast. I used to listen to local FM when it played music I liked (rock and pop, from the 80's-00's and early 10's). Then it didn't. Mostly I listen to a couple HD2's, and a couple local news talkers (one commercial one, and sometimes NPR). At night I DX / listen to stations playing anything from Coast To Coast to South Asian music, because the programming still appeals. I don't mind hearing DJs, but I personally am not crazy about them. If a station plays music I like, I'll tolerate a certain amount of patter and advertising. Obviously, I am not an average listener, and I am aware of that.

That all said, one thing that bothers me about some of the layoffs it is appears that our largest radio conglomerate is giving up on two generations of listeners -- Boomers and GenXers, who still like to hear DJs and local content as well as music. On the San Diego forum, for example, it sounds like a lot of local talent was shown the door, and some of them had developed a loyal listenership -- probably comprised of those two generations of people. The layoffs (some in this case done because of a change in ownership) may have been due to economic concerns, but it looked like concerns of those listeners really didn't count at all in the decision making process. It was all about the money, which, I guess, is understandable.

On one hand, I understand radio is a business and has to go for the money demos to ultimately survive. On the other hand, the airwaves are owned by everybody, and for an industry to slough off the concerns of maybe 50% of the adult population is a bit disturbing. Older demos aren't stupid. They will find other means of entertainment. They may give up on radio altogether, just as many of the younger demos already have. I could be wrong, but it seems that in least in some cases radio is walking a tightrope, and I'm sure many in the industry are aware of this dichotomy and probably wonder if they're making solid decisions in laying off people.

 

[TheBigA]

I'm sure many in the industry are aware of this dichotomy and probably wonder if they're making solid decisions in laying off people.

It costs money to lay off staff. It costs money to build a brand and let it go. Radio stations are like any workplace, and the people who are getting laid off are friends and co-workers. So this isn't being done lightly. It's not easy when your business model has been rejected. But that's what's happening here.

This isn't about "giving up on two generations of listeners." If it was up to the people who run these companies, they'd still be playing 60s music. But advertisers have stopped supporting that programming. They stopped supporting it a long time ago. They don't support it on other platforms either. It's not like advertisers are rushing to advertise on the satellite oldies station. That's not happening. These channels are paid for by listeners, not advertisers. If there was a way for listeners to pay for FM radio, they'd get what they want. The former FM talent are trying to figure out how they can keep their brand alive in podcasts or some listener-supported model, but they're not having a lot of success.

So really what's happening is the listeners are giving up on FM because the advertisers have given up on the platform. Moving forward, getting what you want will cost you money. That's the reality. The company that is about to buy iHeart is a $30 billion company that has gotten that big by charging people for radio. That model is working, while the ad-supported model isn't. That's how Sirius and Pandora have become powerful enough to buy iHeart. This is what boomers and GenXers have done to radio. The radio companies are simply responding to the marketplace.

 

[b-turner]

An interesting point in an earlier post says they understand the cost-cutting but then refer to radio airwaves as being owned by the public. I don't disagree but consider this: if you are an 'owner' of the airwaves that also makes you responsible for the profit or loss. Radio stations make such changes to eliminate loss. So, it would seem logical that if you can direct or require programming desirable to you (we're talking a demographic advertisers don't use radio to target) then you have to step up to the plate with the cash to sustain it.

What some don't get (as I sell advertising) is when the client says they aren't interested, you're not going to sell them. Some think a salesperson can sell anything. Imagine if you will trying to convince a classical music lover to buy the #1 rap CD. If they say no that they don't like rap, then you're not going to sell them on it. Too many that haven't sold advertising still think it can be sold to a person who doesn't want what you're selling.

 

[TheBigA]

An interesting point in an earlier post says they understand the cost-cutting but then refer to radio airwaves as being owned by the public.

What they don't get is all resources are owned by the public. But you still pay for water. What you pay for is the convenience of having it purified and delivered. Same with radio. The public own the spectrum. But their representatives in government have licensed that spectrum to private companies who provide the content. It's called a public/private partnership. The private half get certain rights to that resource as part of the deal. The public also owns the spectrum that cell phone companies use. However, the government has been selling that portion of the spectrum to the telecom companies. That money goes to fund the FCC.

We talk about radio now vs. 25 years ago, but you can't talk about the changes in radio without talking about the changes in the retail business. There was a time when radio stations could live on their 4th quarter sales. Not the case any more. Now its all about political advertising. But if you don't live in a battleground state, it's a non-factor. I listened to my relatives tell me how they did all their holiday shopping online. That's great for them, but it means all the brick & mortar stores lost that business. Think of all the jobs involved in local retail. Then think of the advertising that isn't there any more. We had a big hole in the schedule where Sears used to be. Nothing is replacing it.

 

[davideduardo]

That all said, one thing that bothers me about some of the layoffs it is appears that our largest radio conglomerate is giving up on two generations of listeners -- Boomers and GenXers, who still like to hear DJs and local content as well as music. On the San Diego forum, for example, it sounds like a lot of local talent was shown the door, and some of them had developed a loyal listenership -- probably comprised of those two generations of people. The layoffs (some in this case done because of a change in ownership) may have been due to economic concerns, but it looked like concerns of those listeners really didn't count at all in the decision making process. It was all about the money, which, I guess, is understandable.

Nearly no market has ongoing talent that local listeners have been with all their life. The talent has changed over time.

The current change is from local talent to national talent. TV, except for news, did that half a century ago.

In most of the rest of the world that has behaviors similar to those of the US radio formats are national. DJs are on 8, 10, 100 terrestrial transmitters. Local markets, for the most part, just have local transmitters but no local programming.

In the Internet age, people are much less "local" as they can have friends across the state, the country and the world on low-cost or no-cost connections. We don't know our neighbor's name, but we now hundreds of people online we have met through social media, affinity groups and the like.

It seems to me that the US radio industry is just catching up with technology and things that have been done in the rest of the world for decades.

 

[TheBigA]

In the Internet age, people are much less "local" as they can have friends across the state, the country and the world on low-cost or no-cost connections. We don't know our neighbor's name, but we now hundreds of people online we have met through social media, affinity groups and the like.

In addition there was a time when the music was local. That's less the case now. Most recording artists that get radio airplay are also national and even international touring artists. They do basically the same show all over the world. Local DJs don't have the same relationship with the artists they once did. The artists, on the other hand, use their social media accounts to interact directly with their fan base. So there's less interest in having a DJ act as intermediary. Why talk with a DJ when you can speak directly with the artist? The national DJs have more access. When you look at Ryan Seacrest or Bobby Bones, they have a lot more access, and more insight into what your favorite artists are saying and doing. So the value of the local DJ has diminished as the music he plays has changed and evolved.

 

[Y2kTheNewOldies]

That all said, one thing that bothers me about some of the layoffs it is appears that our largest radio conglomerate is giving up on two generations of listeners -- Boomers and GenXers, who still like to hear DJs and local content as well as music. On the San Diego forum, for example, it sounds like a lot of local talent was shown the door, and some of them had developed a loyal listenership -- probably comprised of those two generations of people. The layoffs (some in this case done because of a change in ownership) may have been due to economic concerns, but it looked like concerns of those listeners really didn't count at all in the decision making process. It was all about the money, which, I guess, is understandable.

But then again also consider Generation Y though this demo was the one that made the decision to vote with their wallet or their data to go from FM Radio to Internet radio and Podcasts, from cable/OTA TV to internet TV such as Youtube. This generation made that transition back in the mid 2000's though and it's now established at this point. With internet radio/podcasts and YouTube for this generation you can get a national audience instantly if you are a good broadcasting talent. In the Case of GenZ it's Twitch and Tik Tok. The broadcasting talent is there but it's shifting to different venues depending on the demo.

 

[davideduardo]

That all said, one thing that bothers me about some of the layoffs it is appears that our largest radio conglomerate is giving up on two generations of listeners -- Boomers and GenXers, who still like to hear DJs and local content as well as music.

I forgot to add my comment on this point.

Boomers are nearly nobody's target. Most advertisers... and nearly all agency managed accounts, look at nothing over 50 for ethnic targets or 55 for general market targets.

The oldest Boomers are approaching 75 years old at the end of the year. The youngest, whether you think the Boomer generation ended in '62 or '63, are out of the sales demos about now.

Even in markets with lots of retired folks, such as some in Florida and my metro of Palm Springs, stations have had to move away from the geezer demos because advertisers know that the group is a hard sell.

 

[Mediafrog+]

I forgot to add my comment on this point.

Boomers are nearly nobody's target. Most advertisers... and nearly all agency managed accounts, look at nothing over 50 for ethnic targets or 55 for general market targets.

The oldest Boomers are approaching 75 years old at the end of the year. The youngest, whether you think the Boomer generation ended in '62 or '63, are out of the sales demos about now.

Even in markets with lots of retired folks, such as some in Florida and my metro of Palm Springs, stations have had to move away from the geezer demos because advertisers know that the group is a hard sell.

The Boomer generation was born between 1946 and 1964. That means that on December 31, 2019, something very significant happened: The youngest Baby Boomers turned 55 on that day, which means that entire cohort has now aged out of radio's sales demos. And in 2020 the leading edge of Generation X is also turning 55, thus joining the Boomers in radio sales irrelevance.

Also of interest: The oldest Millennials are now turning 40. And in the past couple of years, we've started to hear about Generation Z, who are the true digital natives.

Change will be interesting going forward.

 

[Y2kTheNewOldies]

The Boomer generation was born between 1946 and 1964. That means that on December 31, 2019, something very significant happened: The youngest Baby Boomers turned 55 on that day, which means that entire cohort has now aged out of radio's sales demos. And in 2020 the leading edge of Generation X is also turning 55, thus joining the Boomers in radio sales irrelevance.

Also of interest: The oldest Millennials are now turning 40. And in the past couple of years, we've started to hear about Generation Z, who are the true digital natives.

Change will be interesting going forward.

Yes we need to wait and see how much of GenZ does Iheart, radio.com, Tunein and other venues need to survive though. Depending on who is doing the research Gen Z demo ranges from 1996-1998 (The old end of Gen Z) to 2005-2010 (the younger end of Gen Z). So far the reports I seen showed that Gen Z are most likely to get their music from a social media outlet like Tik Tok and use Twitch as their TV. So far I have not seen the data showing that music labels have any deals with Tik Tok and Twitch as of this posting. I know some ads have appeared on Twitch though but they were originally focusing on gamers though.