iHeartMedia clusters that have zero local personalities

[Kent]

it's like Westinghouse but on private equity steroids, I mean it wont be the last time that a San Antonio corporate bought out buy PEs outside of Texas. Whataburger based in SA and previously Corpus Christi bought by a Chicago firm but I didn't see a Whataburger in the windy city. I mean DFW and Houston are the biggest while Austin is growing so much so why not invest in SA? How the politicians react to iHeart moving out of SA as HQ?

There's also the reverse. Steak N Shake was an Indiana company bought by a San Antonio firm. I was told it was a much better place to work before the people from Texas came in and bought it out. We also know how well that has worked. Steak N Shakes are closing everywhere, and anyone with $10,000 can take over a corporate (or former corporate) location. Judging from all the boarded up Steak N Shakes I see around St. Louis, it’s not getting many takers.

Restaurants and grocery stores, like radio, tend to be low margin and low growth businesses. The average profit margin of a restaurant is 4%, and I don’t believe it’s much higher for grocery stores. Radio can achieve higher than both, but I've never worked for a radio cluster that was happy or comfortable with its margins. That's what cutting all the local talent in smaller markets is about: pushing up those margins. Not sure where they expect to find the next generation of talent. I wasn’t exactly surprised CBS didn’t find a good replacement for Stern 16 years ago, and we had more small and medium market talent back then. Now, even in small markets, talent stays for years, probably because there are fewer opportunities in the large and major markets, too. At my local Cumulus cluster, the FM a stations have one or two local jocks, and almost all of them have been there longer than 20 years.

 

[davideduardo]

How the politicians react to iHeart moving out of SA as HQ?

Clear Channel / iHeart moved slowly out of San Antonio... bit by bit, department by department. And in some cases, they did not move, they just downsized. It was not apparent to local politicians, and it had never been a huge employer anyway.

 

[davideduardo]

The average profit margin of a restaurant is 4%, and I don’t believe it’s much higher for grocery stores.

When I was brought in to run some radio stations that a supermarket chain owned, I walked into a culture used to 0.5% margins. When we started getting 40% margins, they immediately wanted more radio stations.

Radio can achieve higher than both, but I've never worked for a radio cluster that was happy or comfortable with its margins.

It's terrible now... with inflation adjusted revenue down 60% to 70% since 2000, many stations now lose money.

That's what cutting all the local talent in smaller markets is about: pushing up those margins. Not sure where they expect to find the next generation of talent. I wasn’t exactly surprised CBS didn’t find a good replacement for Stern 16 years ago, and we had more small and medium market talent back then. Now, even in small markets, talent stays for years, probably because there are fewer opportunities in the large and major markets, too.

And fewer people want to live the U-Haul life now. The industry is so uncertain, the number of people willing to risk going to a new format is far less, and the number of those who still have jobs in smaller markets don't want to move.

At my local Cumulus cluster, the FM a stations have one or two local jocks, and almost all of them have been there longer than 20 years.

And those folks likely worry at the end of every month...

 

[seatownmedia]

Good! As said there are exceptions🏑I spent two years in Anchorage in the 90’s and I loved the experience. Alska is amazing. But soon after moved back south mainly due to weather. But point taken.

 

[TheBigA]

Not sure where they expect to find the next generation of talent.

They're all around. Today, a good podcaster has a much larger audience than a small market DJ. There are lots of people doing radio shows on the internet who have broader experience than a typical small market DJ. These are people who see hosting radio in a more direct way than employees at radio stations. They know who their audience is, they interact with them, and they know digital production techniques that are indispensable for radio today. In other words, they are far more prepared to do major market radio than someone from a small market.

My view is the future of on air talent is as an independent contractor, not as an in house employee.

 

[gr8oldies]

There's also the reverse. Steak N Shake was an Indiana company bought by a San Antonio firm. I was told it was a much better place to work before the people from Texas came in and bought it out. We also know how well that has worked. Steak N Shakes are closing everywhere, and anyone with $10,000 can take over a corporate (or former corporate) location. Judging from all the boarded up Steak N Shakes I see around St. Louis, it’s not getting many takers.

Restaurants and grocery stores, like radio, tend to be low margin and low growth businesses. The average profit margin of a restaurant is 4%, and I don’t believe it’s much higher for grocery stores. Radio can achieve higher than both, but I've never worked for a radio cluster that was happy or comfortable with its margins. That's what cutting all the local talent in smaller markets is about: pushing up those margins. Not sure where they expect to find the next generation of talent. I wasn’t exactly surprised CBS didn’t find a good replacement for Stern 16 years ago, and we had more small and medium market talent back then. Now, even in small markets, talent stays for years, probably because there are fewer opportunities in the large and major markets, too. At my local Cumulus cluster, the FM a stations have one or two local jocks, and almost all of them have been there longer than 20 years.

I remember Steak 'N' Shake in the good days; and going there with my then-wife after my 7 to midnight Saturday night shift. The couple that remain in my area are almost empty and the food isn't what it was. They no longer offe breakfast.

In my market there is still local talent on the radio, but as you mentioned, most of it has been there for years, and the door is closed behind them.

 

[vw86]

There are lots of people doing radio shows on the internet who have broader experience than a typical small market DJ. These are people who see hosting radio in a more direct way than employees at radio stations. They know who their audience is, they interact with them, and they know digital production techniques that are indispensable for radio today.

This. My internet show probably has 40-50 listeners. But I hear from them and do a show specifically for them, on my terms and on my own time. Do I miss "being on the radio"? Every day. But I'm a realist, enjoy my day job (and the security it provides) and putz around on my PC on my own time to put out a show I hope a few folks enjoy.

 

[SomeRadioGuy]

im no fan of iheart media, but those of you who complain about little or no local talent on their stations.. do you think if ma and pa broadcasters got them thered be local talent all of a sudden? ma and pa with way less money and resources than iheart? I doubt it

they might add like a local morning or afternoon show to the bigger stations by by in large, despite thinking ma and pa would automatically do better, bigger and more local, thats not always and rarely true.

 

[SomeRadioGuy]

Good! As said there are exceptions🏑I spent two years in Anchorage in the 90’s and I loved the experience. Alska is amazing. But soon after moved back south mainly due to weather. But point taken.

market #260 is laramie, wy not anywhere in alaska

 

[TheBigA]

im no fan of iheart media, but those of you who complain about little or no local talent on their stations.. do you think if ma and pa broadcasters got them thered be local talent all of a sudden? ma and pa with way less money and resources than iheart? I doubt it

There's a lot of mythology about ma & pa radio, including that it was how radio was done before 1996. I constantly read on these message boards that if iHeart was forced to divest all of its stations, they would "go back to small local owners," which is all fiction.

If people were to look at the list of stations that run your Local Radio Networks material, they'd find it was a lot of those single-station owner situations. Same with other 24/7 content companies.

 

[Kelly A]

I was specifically asking about the Montgomery AL market on what those iHeart stations are worth.

But that's the thing. iHeart doesn't publish cash flow numbers for Montgomery Alabama, or any of their individual markets. A potential suitor will generally offer a multiple of whatever cash flow for the stations in that group. That's assuming they want to grow an existing, or get into a market like Montgomery AL. According to Market Search: Market Search
Without knowing what's on their books, anyone would be pulling a number completely out of their a$$.

 

[The New Chico]

That.. that he is not local. They say hes based somewhere else.

Its one thing if he was in montgomery and it was their hometown guy doing shows elsewhere.. does my point make sense? lcoal gu ydone good, not someone elses guy.

Here i am on 105.5 The Legend WVIG Terre, IN and their website.. the talent bios on our stations

Linda Flores on Overnights

Paul Walker on 105.5 The Legend on Overnights

www.wvigthelegend.com

Doesnt give away where i am or am not.

That IS the right way to do it with a voice tracked talent. Doesn't say where your actual mic is located, nor should it. Plus it doesn't matter if you are doing it right anyway!

Glen Campbell has one "N" in his name, however. LOL

 

[vchimpanzee]

it's like Westinghouse but on private equity steroids, I mean it wont be the last time that a San Antonio corporate bought out buy PEs outside of Texas. Whataburger based in SA and previously Corpus Christi bought by a Chicago firm but I didn't see a Whataburger in the windy city. I mean DFW and Houston are the biggest while Austin is growing so much so why not invest in SA? How the politicians react to iHeart moving out of SA as HQ?

I assume Whataburger is not the same as What-A-Burger in NC.

 

[DarrenVision]

I assume Whataburger is not the same as What-A-Burger in NC.

They're expanding to Charlotte!

 

[Kelly A]

Fast food rabbit hole alert!

 

[vchimpanzee]

They're expanding to Charlotte!

Wrong direction for me.

 

[SomeRadioGuy]

There's a lot of mythology about ma & pa radio, including that it was how radio was done before 1996. I constantly read on these message boards that if iHeart was forced to divest all of its stations, they would "go back to small local owners," which is all fiction.

If people were to look at the list of stations that run your Local Radio Networks material, they'd find it was a lot of those single-station owner situations. Same with other 24/7 content companies.

And there are clusters in bigger places where theyre using LRN or WW1 in middays and evenings with local talent in mornings and afternoons.

Would some owners buy up local iheart stations? sure, but its not gonna be ma and pa except in rare cases.. no ones lending money and the stations that go to small owners are gonna be like i just described above.. or all voicetracked out of market talent but with a local news director and local sports guy

whats more important.. a dj in the local studio introducing music or a local nbews and sports guy? I've seen some all satellite stations who have that

 

[exdjted]

im no fan of iheart media, but those of you who complain about little or no local talent on their stations.. do you think if ma and pa broadcasters got them thered be local talent all of a sudden? ma and pa with way less money and resources than iheart? I doubt it

they might add like a local morning or afternoon show to the bigger stations by by in large, despite thinking ma and pa would automatically do better, bigger and more local, thats not always and rarely true.

Paul's absolutely right. A lot of owners have no real property to go with their license. They sold off their towers and land years ago, and are now paying tower and office rent. That has to be factored in. If the current owner doesn't have a note, the new owner almost certainly will have to make payments. Very few people have millions of dollars sitting in the bank and decide one day to just buy a couple of stations.

It's much more economically feasible to get a 24/7 format for barter, and get a syndicated morning show and just voice-track a shift yourself than to pay someone to sit there for 4 or 5 hours a day.

 

[TheBigA]

Would some owners buy up local iheart stations? sure, but its not gonna be ma and pa except in rare cases.. no ones lending money and the stations that go to small owners are gonna be like i just described above..

We've talked about this with regards to minority ownership, which is something the FCC has been committed to for 20 years. The point has been made continually that no one is preventing minorities from buying radio stations. The problem is raising the money, and the FCC can't appropriate money for one group to buy radio stations. Those groups have to do it on their own. Making it more complicated is that radio doesn't qualify for Small Business Administration loans. If the FCC could just fix that part of the system, it would do a lot for more minority ownership. But that might not accomplish the programming goals that people in this thread want.

 

[SomeRadioGuy]

We've talked about this with regards to minority ownership, which is something the FCC has been committed to for 20 years. The point has been made continually that no one is preventing minorities from buying radio stations. The problem is raising the money, and the FCC can't appropriate money for one group to buy radio stations. Those groups have to do it on their own. Making it more complicated is that radio doesn't qualify for Small Business Administration loans. If the FCC could just fix that part of the system, it would do a lot for more minority ownership. But that might not accomplish the programming goals that people in this thread want.

And the MMTC.. minority media and telecommunications group thats gotten cast off iheart stations is a joke.

I made an offer on one of their AMs ages ago, was ignored.

A friend who owns a nearby station made an offer years later on the same one and was ignored.

One of their stations went to a religious broadcaster

People are remembering radio way better than it used to be.

Thanks to technology, when i was full time in wyoming, i got the week plus some days off between christmas and new years cuse i could voicetrack.

old radio guys bitch about VT nut then complain about having to wortk holidays and having had to work 6 days a week and little time off.

they want their cake and eat it too.

I'm on call 24/7 at KSKO. its only been needed ONCE in 2 years. do i like it? no, but its my job of serving the community. am i on the air at odd times on the weekend and evening when information needs to be passed along? yes.

do i record some stuff for play back on KSKO? Yes, absolutely.. some announcements that are important and need to be re aired but arent super urgent mission critical or have constantly changing information

people who want this live 24/7 talent and this n that havent worked in radio in 20 years, never did and in most cases, likely never ran the business side of a radio station.

I do, i have.. and early on when i didnt, i worked for owners who freely showed me the books and answered any questions i had about stuff