mikerock said:
So you think it is wise for a company owning several 75-100 million dollar radio properties to write off the younger generation they will need in the future to maintain the value of that investment?
CBS is not writing off the under-35 demos. They have strong CHR stations as well as other formats appealing to young adults in many markets. They also have one of the strongest new media initiatives in the industry.
CBS, as most of us do, understands that there is a huge movement of content delivery away from towers and transmitters to new media. This movement is motivated by what consumers are doing: they are using less AM and FM and lots more apps and streams.
At some point, the FCC licenses will be worth very little, and smart operators are moving
with the listeners to new distribution channels.
It is also a common myth that newer technologies can adequately replace radio. With bandwidth caps, bandwidth costs and limited service coverage, streaming is not an option for most.
If you survey the listeners of most any station appealing to any group in the "sales demos" you will find that they have already reduced their OTA radio usage and have increased their usage on smartphones, computers and tablets.
Most data plans can easily support extensive use of streaming audio, and listeners love the fact that they can use one device for music, radio, texting, calling, browsing, etc. And if it costs a little bit more, they are glad to pay it.
On the other hand, radio stations that don't recognize that many listeners who like their content are demanding it via new media will decline in usage and revenues.
With young peoples busy lives there is not always the time or the money to recreate an entire radio station playlist to keep them entertained.
Pandora, iHeart, Slacker, et. al.
Then there is also lack of connection with the community that is lacking with downloads.
Most people feel little connection with their "community" in the traditional sense. To them, their real community is Facebook... where friends and news of things near and far is "local" on your viewing device. The whole definition of community, which was once based on proximity, has now changed.
This entire week is another perfect example how streaming,downloads and online properties are utterly useless compared to radio. With wired connections being down or without power, wireless was or is useless due to not being able to handle the capacity. This happens all the time with all the carries regardless of storm coverage when you get too many people using it in one area.
Don't use a once-every-10-years occurrence to write off the way people want to have content delivered.
Radio will use this incident to push FM on mobile devices, and there will be enough radio stations around for the next decade to provide direct service, and the problem will be solved.
30% of WFAN's cume is under 35.
I am 47 and have a hard time believing 30% is under 35. Where did you get those stats from the WFAN marketing department? CBS properties clearly are catering to the elderly crowd. They are going to lose money on their investment long term if they continue to do so.
I got the data from the Arbitron PPM data, using a mean of the last year rounded to the nearest even integer.
CBS properties are NOT "clearly catering to the elderly crowd". Look at stations ranging from KLOL to WBBM-FM to KAMP, KROQ. WVEE, KMXB, WXRK, KZON and many more. Those are all 18-34 core stations which are in very high ratings rank positions in their markets.
CBS has a variety of formats serving 18-49, 25-54 and 18-34 and subsets of those principal sales demos. Some lean older, some lean younger. They all have viable targets in their markets... and like all companies with multiple stations, some are stellar performers, some are not.