Isn't there ANOTHER way?

[cm454]

Why don't these major radio companies realize they're systematically destroying their own properties with all these cuts?

It is mindblowing. They are gutting their own product!

How in God's name do they expect to survive and make money when they are increasingly giving people LESS reason to listen?

Can't some file bankruptcy to preserve the quality of their product---which is their ONLY hope of survival?

They're so preoccupied with their shareholders. Wouldn't you think their shareholders would be especially unhappy if they knew CEO's were guaranteeing a dismal future due to a degrading of the product---you know, the product that is supposed to be generating all the income?

 

[TomT]

Sometimes I think these companies are treating stations as real estate buys, rather than operating businesses.

However, the other side of the coin ( or maybe not, in the case of the Citadel stations) is that radio has been a minor part of the business, and cost controls were ignored or not even in place. Salaries soared, sales didn't.

 

[Basnya]

Why don't these major radio companies realize they're systematically destroying their own properties with all these cuts?

They know. They just don't care. The suits got their money, everyone else.... oh well, you knew it was a risk...

It is mindblowing. They are gutting their own product!

How in God's name do they expect to survive and make money when they are increasingly giving people LESS reason to listen?

See the above statement

They're so preoccupied with their shareholders. Wouldn't you think their shareholders would be especially unhappy if they knew CEO's were guaranteeing a dismal future due to a degrading of the product---you know, the product that is supposed to be generating all the income?

The shareholders got sold a bill of goods. Since everything else in the economy appeared to be going so well the shareholders probably weren't paying close attention.

When the fecal matter made contact with the motorized air circulation device, the suits pulled their golden parachutes and bailed, leaving the shareholders high and dry.

 

[woodyj98]

Correct me if I'm wrong, but I heard that clear channel wants to go private again. Seems to me that once they give all the money back to the investors, there will be no money left to operate. Guess it takes a better bean counter than me to grasp the whole concept. Hey, what the "H" do I know. I'm just a dumb jock, without a job too.

 

[12 In a Row]

Radio is simply a by-product of the ever changing world of business.

Downtown U.S.A. was replaced by the mega malls. The malls are being replaced by internet shopping.
The largest amount of money for advertising came from the local merchants.

The hardware, furniture, restaurant, jeweler, car dealer advertised on the "local" stations.
They've been replaced by the Home Depot/Lowe's and all of the other national chains, now they are being challenged by on line shopping.

The national chains are being forced to find different avenues to attract potential buyers.

No local business to advertise equals getting by with less. No easy fix here.

 

[ChrisKMusic]

Radio is simply a by-product of the ever changing world of business.

Downtown U.S.A. was replaced by the mega malls. The malls are being replaced by internet shopping.
The largest amount of money for advertising came from the local merchants.

The hardware, furniture, restaurant, jeweler, car dealer advertised on the "local" stations.
They've been replaced by the Home Depot/Lowe's and all of the other national chains, now they are being challenged by on line shopping.

The national chains are being forced to find different avenues to attract potential buyers.

No local business to advertise equals getting by with less. No easy fix here.

No easy fix is right. I've been on the management (sales) and investment side of things for many years now. This issue is not just affecting local radio either.

I have learned to be forthright about costs. It's when there's transparency in the process that there's less friction and confusion. The cost of doing business has SKY-rocketed over the past decade. Those who invest money in my enterprises not only want their original capital protected, but they want to see a regular return on that investment. Insurances, realestate, taxes, electricity, the price of new technologies, etc keep going up as the flow of revenue has stagnated ---- as all costs go up, we've increased the price of advertising beyond the ability of the avg local business to participate in the process. They simply cannot afford to be a part of it anymore; so we're reached out to the Home Depots/Lowes etc ...

We can't keep increasing our spending in the face of decreasing revenues ---

 

[12 In a Row]

Hey there ChrisK, you are someone who I can relate to.

I to have done air, sales, operations and ownership.

Advertising revenue has been stagnat for many years.

Every year more businesses go out to be replaced by the big boxes. The local hardware stores fold or cut way back because Home Depot and Lowes moved in. Same for electronic, jewelry, furniture and the rest.

It's tough to explain to a 25 year old employee that he won't be getting a raise this year because the cost of his health insurance tripled. Or to tell a 31 year old your fuel bill doubled and your taxes went through the roof and you just finished a major upgrade.

This is a business not a hobby. Just the same as in your personal life, if you're not making enough to pay the bills and you can't find extra work anywhere, you either cut back or go bankrupt. In business you either grow or go.