Massive reduction at Hubbard

[everyoneisadj]

The use of less negative terms than "firing" are intended to avoid as much as possible negative feelings by consumers when a company has to let people go. That is all about public relations, not internal feelings by the board. In fact, a major downsizing generally comes with the approval of the BoD.

Right, it's just putting some spin on something ugly. I get why they use it, but I wouldn't ever use the term from outside of that position.

 

[seatownmedia]

Not to be too much of a Debbie Downer here, but radio was massively laying off folks well before anyone heard of the pandemic. Now what? I predict even more “massive” layoffs, more syndicated talent, more jock less stations. It may be the end of radio as we know it. On the other hand this scenario may actually encourage some new local programming but it won’t be big salary talent for sure.

 

[Roxanne]

... but it won’t be big salary talent for sure.

What's this 'salary' thing you speak of?

 

[Kelly A]

Not to be too much of a Debbie Downer here, but radio was massively laying off folks well before anyone heard of the pandemic. Now what? I predict even more “massive” layoffs, more syndicated talent, more jock less stations. It may be the end of radio as we know it. On the other hand this scenario may actually encourage some new local programming but it won’t be big salary talent for sure.

You make a good point. The staffing and structural environment for radio started changing well before the pandemic. The pandemic just accelerated the process.

iHeart had already started rolling out their strategy in small and medium markets to collapse programming content into regional hubs, closing traditional offices and studios, and using station transmitter sites solely as another delivery method.

 

[boombox4]

Not to be too much of a Debbie Downer here, but radio was massively laying off folks well before anyone heard of the pandemic. Now what? I predict even more “massive” layoffs, more syndicated talent, more jock less stations. It may be the end of radio as we know it. On the other hand this scenario may actually encourage some new local programming but it won’t be big salary talent for sure.

And with more stations possibly going off the air, that also might accelerate a centralization / syndication process. I'm guessing it would be cheaper to keep remaining stations on the air that way, and also a cost effective way to keep marginal stations on the air until the economy comes back to 'normal' -- whenever that happens.

 

[Kelly A]

I'm guessing it would be cheaper to keep remaining stations on the air that way, and also a cost effective way to keep marginal stations on the air until the economy comes back to 'normal' -- whenever that happens.

Once stations/groups change to the new model, they won't be changing back to current times, and certainly not to the past. Whether the world has returned to "normal" post-pandemic, or not. As Seatown mentioned, we're essentially witnessing the evolution of the broadcast biz to it's next form.

 

[boombox4]

Once stations/groups change to the new model, they won't be changing back to current times, and certainly not to the past. Whether the world has returned to "normal" post-pandemic, or not. As Seatown mentioned, we're essentially witnessing the evolution of the broadcast biz to it's next form.

BigA once said in another thread (or two) that we seem -- nationally -- to be heading more and more towards the model that worked in the 1930s-1950s, which was syndicated network radio.

 

[TheBigA]

BigA once said in another thread (or two) that we seem -- nationally -- to be heading more and more towards the model that worked in the 1930s-1950s, which was syndicated network radio.

It depends on the company. Hubbard hasn't made any moves that leads me to believe they're heading in that direction.

 

[davideduardo]

BigA once said in another thread (or two) that we seem -- nationally -- to be heading more and more towards the model that worked in the 1930s-1950s, which was syndicated network radio.

Some companies are not doing this, and I believe that it is because they don't have the scale to do it well.

In much of the rest of the world where there is developed commercial radio, national simulcasts are the norm... whether it is Burkina Faso or Germany or Chile.

What makes the US different is the existence of four major time zones, few companies covering every significant market and rules from the FCC that discouraged concentrated regional and national broadcast ownership. However, technology is overcoming the time zone issue and the Internet is changing the focus from local to "locationless" in media.

 

[Kelly A]

What makes the US different is the existence of four major time zones, few companies covering every significant market and rules from the FCC that discouraged concentrated regional and national broadcast ownership. However, technology is overcoming the time zone issue and the Internet is changing the focus from local to "locationless" in media.

I'm working on that sort of project as we type. Moving voice tracking, traffic, and automation to the cloud. In simple terms, it means one could produce a weeks worth of programming, then automatically play/stream it to the transmitter sites to each time zone. No more gear needed at the studios. In fact, what studios? Talent does the whole show from a microphone connected to a laptop.

The whole concept is scalable. Doesn't matter whether it's market 200 or 2.

 

[GeoffR]

I'd like to see the books of some of these owners/stations that say business is so bad... I'm not hearing less spots being run these days...unless they've slashed rates for everyone, I don't see that most stations are making less money now and are forced to dump staff. I think it's more that this is a good opportunity to claim poverty and dump staff..

 

[TheBigA]

I'd like to see the books of some of these owners/stations that say business is so bad... I'm not hearing less spots being run these days...unless they've slashed rates for everyone

Revenues are down on average 50%. The number of spots don't tell you how many are bonus or two-for-one. They're all public companies, so their finances are a matter of public record. Just look it up online. Or read this story linked below:

https://radioink.com/2020/08/13/bia-revises-revenue-down-again/

 

[davideduardo]

I'd like to see the books of some of these owners/stations that say business is so bad... I'm not hearing less spots being run these days...unless they've slashed rates for everyone, I don't see that most stations are making less money now and are forced to dump staff. I think it's more that this is a good opportunity to claim poverty and dump staff..

As BigA said, look at the 2nd quarter for public corporations. The data is there.

For example, SBS had 58% lower revenue in the 2nd quarter than it did last year. That resulted in a significant loss, as no group has a 60% profit margin.

You can look all the others up. Q2 was pretty uniformly off by around 50% for every public company.

Just so you know, station rates are highly flexible even in the best of times. And when times are as bad as they are know, stations run bonus spots for free, give upgrades to better dayparts and cut the rates to whatever they can get. Unlike merchandise, a radio spot has no incremental cost, so a station can give them away if they like.

 

[davideduardo]

I'm working on that sort of project as we type. Moving voice tracking, traffic, and automation to the cloud. In simple terms, it means one could produce a weeks worth of programming, then automatically play/stream it to the transmitter sites to each time zone. No more gear needed at the studios. In fact, what studios? Talent does the whole show from a microphone connected to a laptop.

The whole concept is scalable. Doesn't matter whether it's market 200 or 2.

Yep. All the impediments to doing national networked shows are easily resolved with technology.

Shows like Seacrest have been doing it for years. The individual daily programs are provided in workparts and assembled for each station out of a variety of things such as the show host segments, weather, traffic, spots, music, jingles or promos, etc. It does not even have to be done in the station's own market except for delivery to a local transmitter.

The area where there is the greatest need for verification is at the local station to insure everything broadcasts as intended. There needs to be a stronger feedback system that tells system managers whether everything is being assembled and broadcast correctly at the local level.

 

[Kelly A]

You can look all the others up. Q2 was pretty uniformly off by around 50% for every public company.

And now here we are entering into Q4, where station groups pretty much know how they'll be ending 2020. Q4 is generally where publicly traded companies look to cut expenses in an effort to bolster their year end numbers and balance out less revenue. Imagine what it will be like this pandemic year...

 

[TheBigA]

Q4 is generally where publicly traded companies look to cut expenses in an effort to bolster their year end numbers and balance out less revenue.

There was a time not that long ago when radio stations made the majority of its revenue in 4th quarter. Not any more. No big Christmas radio buys for retail.

 

[Kelly A]

There was a time not that long ago when radio stations made the majority of its revenue in 4th quarter. Not any more. No big Christmas radio buys for retail.

I remember every year no later than October 11th, the CEO used to walk into my office and ask me where we stood on any capital projects company wide. My question back to them was always; how much are you looking for? That, and all AP invoices were held for payment until January 30th.

Where I work now, all non-emergency CapEx officially ended March 15th.