Somebody eats the loss. There is no "BOC" because they rebook the same venues next year. Same thing with ticket sales. But there are losses and its usually up to the promoter to eat the loss.
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News/Talk ratings skyrocket; Sports, CHR, Hot AC and AC tumble
- Thread starter wastedtalent23
- Start date
Somebody eats the loss. There is no "BOC" because they rebook the same venues next year. Same thing with ticket sales. But there are losses and its usually up to the promoter to eat the loss.
The way it is now, the album supports the tours. "Record" sales and revenues have ceased to be the principal income of artists due to the nature of streaming compensation.
In some genres, like hip hop and reggaeton, album sales are being eclipsed by ongoing and constant singles releases. Yes, they are collected into full "albums" but most people buy single downloads or request single plays through online services.
Most contracts have a Force Majeure clause that exonerates them from damages in the event of an unpredictable and unforeseen major event that causes a show to be cancelled.
So that means the venue eats the lost revenue, and many venues are owned by the cities or state governments. So that will ultimately mean higher taxes in those areas to make up for the losses. Then of course a lot of the amphitheaters are owned by Live Nation or other companies like that. Some venues have furloughed maintenance staff, but there are still costs involves even though the venues are empty. This will take years for the music business to absorb.
If the latest numbers are to be taken with a grain of salt, any data we get during this crisis unfortunately has little or no merit. This tells me that advertisers will(or have already) frozen their budget because:
a)They are closed or barely doing business
b)Radio listening has decreased so sharply that advertising now is likely a waste of money.
c) There is no clear way to find out who's listening and who's not.
Radio advertising is going to be re-evaluated as an effective way to reach people before things turn around. That could take months or even years.
If I was a business owner and wanted to let the public know that my business was now open, I would go to another form of media.
When we finally see the industry moving back in the right direction, when would we take ANY numbers seriously? Why even subscribe to Nielsen?
I'm struggling to find something positive in all of this.
a)They are closed or barely doing business
b)Radio listening has decreased so sharply that advertising now is likely a waste of money.
c) There is no clear way to find out who's listening and who's not.
Radio advertising is going to be re-evaluated as an effective way to reach people before things turn around. That could take months or even years.
If I was a business owner and wanted to let the public know that my business was now open, I would go to another form of media.
When we finally see the industry moving back in the right direction, when would we take ANY numbers seriously? Why even subscribe to Nielsen?
I'm struggling to find something positive in all of this.
The only ad-supported medium with dependable audience data that can reach a mass audience is TV, and for some, it's too expensive.
Understood, so will we see a fire sale?
If major corporations like iHM, Cumulus, Entercom, etc. go bankrupt, what happens next? A federal bailout? Too many other industries need money as well.
Would they divest stations? Would some stations just go dark?
I don't see some of these CHRs and AC stations surviving if this gets really bad. Especially the ones that were in trouble before the crisis, such as WSTR/Atlanta and KYLD/San Francisco.
You ask a lot of questions. As I've been saying, the situation with CHRs and ACs is temporary, and involves a lot of things way beyond the scope of radio. Radio is simply the canary in the coal mine.
From where I sit, a lot of these companies have adjusted their business plans pretty quickly to adapt to the current situation. They've cut salaries, furloughed employees, and begun examining the costs of their facilities. On the sales side, we've seen rates cut and bonus spots awarded. Once that happens, it's hard to justify raising rates back to where they were.
Looking at it long term, there is a need for investment money. A lot will depend on the ability to change foreign ownership. Right now I'm seeing a lot of foreign investment money coming from the Middle East and Asia. The FCC needs to adjust ownership rules so companies from those areas can invest in radio. Especially when I don't expect a bailout to come from the US government.
Depending on the advertiser and size of market, this may or may not be true. Larger chain restaurants in larger markets in areas with higher population density may have their dining rooms shut down, but may be doing takeout and delivery. Smaller market restaurants in more rural markets may not have that option. The chain will want to advertise to let the public know they can still get their Bloomin' Onion.
It's more like; if you can't open your doors, why pay for advertising when you need that money for rent?
I don't think the ratings methodology has changed. Just the number of participants and listening habits during stay-at-home orders.
Advertising for radio, and for all forms of media, started being re-evaluated back in 2008. That's the reason why station valuations were completely turned on their collective heads. This Pandemic is only creating a new unique environment, where the mobile listening suddenly went away, and yet, people are spending time consuming many forms of media. The challenge for media here is; advertising was removed, or greatly diminished from the equation.
Then I argue, you wouldn't be a very smart business owner. If one were open for business, and had the dollars to advertise on radio or TV, there's a much more captive audience spending longer periods listening/watching, with fire sale's on advertising right now.
Depends on whether the station or group is under a contract, and whatever discounts baked into that contract therein. I'm sure there are negotiations to suspend Nielsen to cut costs, but that's on a case-by-case basis.
You're not the only one! I guess the positive may be that businesses are being forced to be creative like never before to survive. In the end, the creative ones will live through this unanticipated world event, while the others will just fade into history.
A local station in my area will do that for free.
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