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"Paying for Radio on a Cell Phone"

P

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"Paying for Radio on a Cell Phone"

http://www.audiographics.com/agd/082806-1.htm

"Another comparison of data from one year ago shows that interest in listening to radio on a cell phone is increasing. In 2005 RRadio Network asked its listeners, "If Internet radio were available on your cellular telephone, for a reasonable fee, would you pay to listen?" Only 28.6% of respondents said that they would back then. In 2006 it seems that cell phone radio's popularity is growing. 36.2% answered the same question "yes," a 7.6% increase in one year."
 
From Fybush;

"There were two surprises in western NEW YORK when CBS Radio announced its exit from the Buffalo market last week - first, that the buyer of CBS' one AM and four FM stations wasn't Clear Channel, Citadel, Entercom or Randy Michaels, but rather Regent Communications, and second, the price tag, a whopping $125 million.

That's about three times what Entercom is paying for CBS Radio's four-FM cluster in nearby Rochester, a market of similar size, but it gets Regent into Buffalo in a big way. For its money (nearly half the entire market capitalization of the rest of Regent), the company gets the market's dominant country station, WYRK (106.5), as well as a very successful AC, WJYE (96.1), a pioneering urban signal, WBLK (93.7 Depew), a strugglng "Jack" adult hits station, WBUF (92.9) and a litlle classic-country AM, WECK (1230 Cheektowaga)"


So these five station (four FM's and 1 AM on a local frequency) in the 45th market just sold for 125 million dollars. I guess someone believe's that radio isn't a dead medium.
 
I.B.Iquity WROTE: "So these five station (four FM's and 1 AM on a local frequency) in the 45th market just sold for 125 million dollars. I guess someone believe's that radio isn't a dead medium."

By selling, CBS Radio indicates it may have some doubts. In buying, Regent indicates otherwise.

It's also true that there were still plenty of people buying tech stocks in early 2000 just before the dot-com bubble burst.
 
vsa said:
I.B.Iquity WROTE: "So these five station (four FM's and 1 AM on a local frequency) in the 45th market just sold for 125 million dollars. I guess someone believe's that radio isn't a dead medium."

By selling, CBS Radio indicates it may have some doubts. In buying, Regent indicates otherwise.

It's also true that there were still plenty of people buying tech stocks in early 2000 just before the dot-com bubble burst.
Click to expand...

Really? Maybe CBS decided to focus on other things besides radio? You're referring to facts not in evidence.
 
CBS is getting out of lesser markets where they felt they overbought and over paid. It's been announced that they intended to do that. It doesn't mean they've sold every station they own in the market however.I wouldn't compare a industry with a history going back into the 20's of last century and which has millions of listeners with the short lived dot coms. That's a very short sighted view and one without any historical evidence. The dot coms lasted a few years. Broadcasting is nearly 90 years old.
 
I brought up the example of the stock market dot-com bubble bursting to show that there is a time to sell for everything.

BTW, interestingly, let's see who's been selling radio stations lately:

Disney selling most of its stations...
Univision selling all of its stations...
All Susquehanna stations sold recently...
CBS beginning to sell off some of its stations...
 
vsa said:
I brought up the example of the stock market dot-com bubble bursting to show that there is a time to sell for everything.

BTW, interestingly, let's see who's been selling radio stations lately:

Disney selling most of its stations...
Univision selling all of its stations...
All Susquehanna stations sold recently...
CBS beginning to sell off some of its stations...
Click to expand...

Sounds to me like these are companies that have core businesses that they wish to pay more attention to:

Disney: Movies/Television
Univision: Television
Susquehanna: Was owned by Pfaltzgraff
CBS: Television

Radio was a small part of the plans for those companies. Let's look at the pure play radio groups that are still growing:

ClearChannel
Entercom
Cumulus
Emmis
Regent

I could go on. My point is that you are allowing your bias to see things that don't exist. Now, if all of a sudden these pure radio companies all of a sudden stop growing and start selling off, then you might be on to something.
 
---->Sounds to me like these are companies that have core businesses that they wish to pay more attention to:

Yeah, like stockholder return.

ABC radio was enormously profitable for years and years. The mouse and its fellow rodents think longterm, and if they are selling radio, that is the business equivalent of the fat lady singing.

---->Radio was a small part of the plans for those companies.

Small, except in profits, where they were far less cyclical and far more-profitable than movies or TV.

And now, they are taking their capital gains while they can and getting out of what eventually will be a very poor business.
 
zumahans said:
---->Sounds to me like these are companies that have core businesses that they wish to pay more attention to:

Yeah, like stockholder return.

ABC radio was enormously profitable for years and years. The mouse and its fellow rodents think longterm, and if they are selling radio, that is the business equivalent of the fat lady singing.

---->Radio was a small part of the plans for those companies.

Small, except in profits, where they were far less cyclical and far more-profitable than movies or TV.

And now, they are taking their capital gains while they can and getting out of what eventually will be a very poor business.
Click to expand...

No, radio for ABC died back in the CapCities days. Radio was never enormously profitable for ANYONE. Margins are always pretty slim, and now due to the savings realized by consolidation, it makes sense for those companies who's core biz is NOT radio to sell to company who's it is. ABC simply can't compete with the ClearChannels because they don't own enough stations. Their other units are doing fine, so they have two options:

Sell the stations
Buy a lot more

The smart chioce was to sell to a radio group.
 
---->No, radio for ABC died back in the CapCities days. Radio was never enormously profitable for ANYONE.


Excuse me, I worked there, and I have a lot of mouse stock in my 401k. The heritage ABC stations were purchased for comparatively nothing in the 1950s and have been moneymills ever since.

This is a company that counts how many kernels go into every box of popcorn at every cart in Orlando. trust me, the radio stations were a steady source of Disneydollars.

----> ABC simply can't compete with the ClearChannels because they don't own enough stations.

In a mature market, with the future looking bleak at best, ABC, CBS and the others are getting out while it's still a suckers market.
 
zumahans said:
---->No, radio for ABC died back in the CapCities days. Radio was never enormously profitable for ANYONE.


Excuse me, I worked there, and I have a lot of mouse stock in my 401k. The heritage ABC stations were purchased for comparatively nothing in the 1950s and have been moneymills ever since.

This is a company that counts how many kernels go into every box of popcorn at every cart in Orlando. trust me, the radio stations were a steady source of Disneydollars.

----> ABC simply can't compete with the ClearChannels because they don't own enough stations.

In a mature market, with the future looking bleak at best, ABC, CBS and the others are getting out while it's still a suckers market.
Click to expand...

So let me get this straight:

ABC and CBS (who's core biz has NOT been radio for some time) selling their radio holdings is "getting out while the getting's good" even though pure radio companies are growing and doing well?

Bias is a funny thing. It can take something innocent, and spin it in a myriad of ways.

ABC and CBS selling? It MUST be because radio is dying. It has NOTHING to do with the fact that radio hasn't been a part of their core biz for years now. Oh, no. No siree. Companies NEVER sell non-core businesses ever. ClearChannel, Entercom, Emmis, et. al.? They're just not smart enough to know what those guys know!

What's more likely...that ABC and CBS are selling because radio as a whole is dying, or because it's hard to compete when your primarily not radio based company has 2/3 station clusters in markets where there are radio-only companies (which benefit from economies of scale) own 7/8 station clusters? In those situations, you have two choices to remain competitive: Sell or Buy. Radio stations are still expensive, especially if radio isn't your core biz - so you sell...not because radio is dead, but because it makes a heck of a lot of sense. Wake me when ClearChannel and Entercom sell en-masse.

Owning stock in Disney doesn't require any Kool-Aid drinking, does it?
 
----->So let me get this straight:

---->ABC and CBS (who's core biz has NOT been radio for some time)

Stop right there. CBS in partcular has made more money in radio than TV in many years. CBS, in fact, was in essence taken over by a radio company, Infinity Broadcasting.

------>selling their radio holdings is "getting out while the getting's good" even though pure radio companies are growing and doing well?

A) It's a mature industry, they are not growing, and (B) the writing is on the wall.l

----->ABC and CBS selling? It MUST be because radio is dying.

Yup.

---->It has NOTHING to do with the fact that radio hasn't been a part of their core biz for years now.

Nope.

------> Oh, no. No siree. Companies NEVER sell non-core businesses ever.

Really?

----->ClearChannel, Entercom, Emmis, et. al.? They're just not smart enough to know what those guys know!

Ride them to the bottom.

----->Owning stock in Disney doesn't require any Kool-Aid drinking, does it?

No, but working there surely did, and surely does.
 
zumahans said:
----->So let me get this straight:

---->ABC and CBS (who's core biz has NOT been radio for some time)

Stop right there. CBS in partcular has made more money in radio than TV in many years. CBS, in fact, was in essence taken over by a radio company, Infinity Broadcasting.

------>selling their radio holdings is "getting out while the getting's good" even though pure radio companies are growing and doing well?

A) It's a mature industry, they are not growing, and (B) the writing is on the wall.l

----->ABC and CBS selling? It MUST be because radio is dying.

Yup.

---->It has NOTHING to do with the fact that radio hasn't been a part of their core biz for years now.

Nope.

------> Oh, no. No siree. Companies NEVER sell non-core businesses ever.

Really?

----->ClearChannel, Entercom, Emmis, et. al.? They're just not smart enough to know what those guys know!

Ride them to the bottom.

----->Owning stock in Disney doesn't require any Kool-Aid drinking, does it?

No, but working there surely did, and surely does.
Click to expand...

Bah, you're an OK guy, even if I don't agree with you! (Read: We're both way too stubborn!)

:D
 
--->Bah, you're an OK guy, even if I don't agree with you! (Read: We're both way too stubborn!)

Thanks, and cheers.
 
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