http://online.wsj.com/article_email/SB123214134302591501-lMyQjAxMDI5MzEyNjExNDYxWj.html
Here ... try this on for size and see if you can, maybe, understand what's been said here for, now, two weeks.
From the Wall Street Journal:
http://online.wsj.com/article_email/SB123214134302591501-lMyQjAxMDI5MzEyNjExNDYxWj.html
Guys, it's been two weeks since we've discussed this. The larger portion of the cuts, be they 1000 or 1500, whether they come from billboards, traffic, continuity, promotion, board ops, news, on air or managment isn't the point. The point is SALES and the most cuts will be from SALES ... and those who DON'T pay for or meet the Clear Channel 50% profit margin model
Now, after that ... they slice and dice and say, "OK, if the revenue affect paying for that board op, then the board op goes. If the profit margin can't still be met, then, cut the producer. Then cut the next board op. Cut the nite jock, we're moving syndication there, since nite isn't obviously being sold anyway after 7p.m.
Then, when they see that they are making their 50% with or without you ... they move (or have done so as of last Tuesday) with the next station in the cluster, then the next cluster until they have brought the magic number in line.
It's not about surviving board ops because of the salary they cost Clear Channel and their "low wages." It's about how much each daypart has value vs. the expense - minus 50 percent profit. It's that simple.
Clear Channel ... and soon others ... will or could care less about producer, board op, production, promotion, blah blah blah. they have to care about stockholders and the bottom line. Why? Because they screwed the pooch when they bought so many of these pitiful stations already overpriced, and now are stuck with them in a horrible economy ... with advertisers who have bailed from a medium that they, too, don't believe in when money is tight.
It's about REVENUE ... not how important or unimportant you are. REVENUE ... you know, the paycheck that pays your salary ... while, still, making them 50% AFTER they pay you. That's what's important the them.
That's ... business. And that's what's going on in radio today. If it comes down to talent and it doesn't meet their 50% rule ... they will be gone, as well. If they meet the margin without a board op, then you'll be gone ... and the talent will either get along or it will be "nationalized" syndication.
Just hope that you've done a great job and appreciated it in the eyes you took that paycheck from. Then, you'll honestly know whether you made the cut ... or not. Gentlemen, that's what's it's all about. "Nothing personal ... it's just business."
Good luck.
Here ... try this on for size and see if you can, maybe, understand what's been said here for, now, two weeks.
From the Wall Street Journal:
http://online.wsj.com/article_email/SB123214134302591501-lMyQjAxMDI5MzEyNjExNDYxWj.html
Guys, it's been two weeks since we've discussed this. The larger portion of the cuts, be they 1000 or 1500, whether they come from billboards, traffic, continuity, promotion, board ops, news, on air or managment isn't the point. The point is SALES and the most cuts will be from SALES ... and those who DON'T pay for or meet the Clear Channel 50% profit margin model
Now, after that ... they slice and dice and say, "OK, if the revenue affect paying for that board op, then the board op goes. If the profit margin can't still be met, then, cut the producer. Then cut the next board op. Cut the nite jock, we're moving syndication there, since nite isn't obviously being sold anyway after 7p.m.
Then, when they see that they are making their 50% with or without you ... they move (or have done so as of last Tuesday) with the next station in the cluster, then the next cluster until they have brought the magic number in line.
It's not about surviving board ops because of the salary they cost Clear Channel and their "low wages." It's about how much each daypart has value vs. the expense - minus 50 percent profit. It's that simple.
Clear Channel ... and soon others ... will or could care less about producer, board op, production, promotion, blah blah blah. they have to care about stockholders and the bottom line. Why? Because they screwed the pooch when they bought so many of these pitiful stations already overpriced, and now are stuck with them in a horrible economy ... with advertisers who have bailed from a medium that they, too, don't believe in when money is tight.
It's about REVENUE ... not how important or unimportant you are. REVENUE ... you know, the paycheck that pays your salary ... while, still, making them 50% AFTER they pay you. That's what's important the them.
That's ... business. And that's what's going on in radio today. If it comes down to talent and it doesn't meet their 50% rule ... they will be gone, as well. If they meet the margin without a board op, then you'll be gone ... and the talent will either get along or it will be "nationalized" syndication.
Just hope that you've done a great job and appreciated it in the eyes you took that paycheck from. Then, you'll honestly know whether you made the cut ... or not. Gentlemen, that's what's it's all about. "Nothing personal ... it's just business."
Good luck.
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