Taking Stock In Radio
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This is a case of "what came first, the chicken or the egg?." Is it the programming or the sales sector that creates the problem? We argue programming til we're blue in the face on this board. Seldom do we discuss sales. This is probably because most of the people who post here are programming types, some of whom disdain sales types. The fact is, the industry is driven by what happens in the sales department. And every programmer or on-air person worth his headphones knows that if there was no programming, there'd be nothing for the sales ducks to sell.
The radio sector as a whole has seen some rough days over the last year. Not so long ago, a financial analyst compared the broadcasting industry (using the word "industry" in connection with broadcasting and media conjures up images of smokestacks and cinders) to the passenger airline industry. This isn't good. Even if you've done nothing more than glance at the business news the last three years, you should know the passenger airline industry, with few exceptions (most notably Southwest Airlines) is in dire financial straits.
Take a look at the automotive industry. GM and Ford are in serious trouble. The big three may become the big "one" if things don't get better. Here are a few links to give you an idea of what's going on with the major players in Western New York:
Entercom is known as one of the most stable broadcast companies in the business. Yet, look at their three month and one year charts. Then compare those charts with other companies such as
Citadel which this week announced that it had purchased ABC's radio stations. Funny thing Citadel shareholders hold only 48% of the new company, while ABC-Disney holds 52%. Just who bought whom.
Clear Channel looks like it's going to have major issues, especially if the payola investigations gather momentum. And
CBS Corp has a radio division that's trying to get its footing after Stern walked. Speaking of the self-proclaimed king of all media (yawn),
Sirius doesn't look like it's convinced the street that it has it act together; nor has
XM which today announced a three year-$55 million deal with the diva of daytime TV, Oprah Winfrey. XM and Sirius are using
personalities to draw attention to their products. My money's on Oprah.
Terrestrial radio, take note: PERSONALITIES.
