Pressure

[Element9]

According to this article in Radio & Records, The Street apparently has had its fill of the radio industry's corporate two-step. Think your GM is living on easy street? The next three months are going to be critical.

The Spring book began this past Thursday (March 30th) and continues through June 21st. There's a lot of money riding on it. Listen closely to your radio and you might hear the pressure. Tighter breaks, tighter rotations and high profile contesting and promotions are sure to be part of the plan regardless of the format.

Emmis CEO Jeff Smulyan had a more direct take on the issues confronting the business at least as they realate to his company.

And then there's Cox, which apparently believes voice-tracking is the solution to its problem. Very short-sighted, I'd say. The line, "the mere interruption of music" is telling because it relates to not only commercials but format presentation.

There's more than meets the eye riding on this Spring book.

 

[SirRoxalot]

The 7% Solution

Jeff Smulyan also advised the industry to "find ways to create value."

As Sandler Capital Management Sr. Managing Director John Kornreich said, "The problem is that your audiences are down."

According to R&R, Cox Radio VP/CFO Neil Johnston said it was the mere interruption of music and other programming that has annoyed listeners in recent years. Johnston also points out that "A large part of our expenses are people", and they'll look into more localized voice-tracking.

Neil, let me let you in on a secret. A large part of your LISTENERS are people. Elements that don't entertain or inform - like badly produced commercials and liner-card readers that don't relate to listeners, are an interruption. Repetitive music rotations and playlists based on record company swag instead of music value are also turning off listeners. If you don't think that listeners want a little more variety, explain the allure of JACK.

Now, I know that you'll tell me that Jack also shows us that you don't need people on the air. Let me submit to you that the reason Jack fades faster than old fat guys running a marathon is due to the LACK of people.

Real TALENT adds value and immediacy to your radio station. Somebody who does their homework, talks about what's going on NOW, and keeps people informed when something unusual happens, is NOT the reason people are leaving radio behind.

What's a good PM drive guy getting in a market like Buffalo? I'd like to think at least $50Gs. That's less than a Grand a week, or $200.00 a day. With ad rates averaging $100 a spot, we're talking 2 spots a day to pay for talent. OK, add another half a spot for benefits. Let's say you've got a really good benefits package, so we'll make it a full spot for benefits, for a total of 3 spots per day

Even at 12 minutes per hour, and a 4 hour shift, you're looking a 3/48ths of your income. That's what, about 7%? Now THERE'S a serious expense.

Of course, you can choose to voicetrack, which will hurt your ratings, which will drop your ad rates, which will drop your income. Then, your "cost-savings" will mean that you'll be back to paying 7% of your reduced income for your reduced talent fees.

So, bottom line is this: If you cut back on talent, you go from 7% of a lot of money to 7% of a lot LESS money. You make the choice, gentlemen.

 

[Radknowski]

Re: The 7% Solution

>
> What's a good PM drive guy getting in a market like Buffalo?
> I'd like to think at least $50Gs. That's less than a Grand a
> week, or $200.00 a day. With ad rates averaging $100 a spot,
> we're talking 2 spots a day to pay for talent. OK, add
> another half a spot for benefits. Let's say you've got a
> really good benefits package, so we'll make it a full spot
> for benefits, for a total of 3 spots per day
>
> Even at 12 minutes per hour, and a 4 hour shift, you're
> looking a 3/48ths of your income. That's what, about 7%? Now
> THERE'S a serious expense.
>
> Of course, you can choose to voicetrack, which will hurt
> your ratings, which will drop your ad rates, which will drop
> your income. Then, your "cost-savings" will mean that you'll
> be back to paying 7% of your reduced income for your reduced
> talent fees.
>
> So, bottom line is this: If you cut back on talent, you go
> from 7% of a lot of money to 7% of a lot LESS money. You
> make the choice, gentlemen.
>
Superb analysis.

Most radio companies will scream and claw to hold on to that 7% and tell the PM drive jock that 50k is out of the question. "We'll pay you 42-5 because where else are you gonna work?"

Especially in Buffalo.

Talk about greed, selfishness and outright arrogance. Most GM's would like you to believe it's raining when in fact, they're spritzing on your ankle.

ALL GM's think they're smarter than the air talent, All GM's think their calculators are better than the jocks' calculators.

I've never met a GM who had a smaller ego than any jock I've ever met, known or worked with. What most GM's don't realize is that jocks pander to them and tell them they're wonderful. All the while, they'd rather put a knife through their hearts.

Just the same, GM's pander to the jocks, "You're the best baby!" To that, I'd offer the classic, "Tell me you love me in my paycheck."

 

[mike704]

Re: The 7% Solution

> Most radio companies will scream and claw to hold on to that
> 7% and tell the PM drive jock that 50k is out of the
> question. "We'll pay you 42-5 because where else are you
> gonna work?"

It was 11 years ago but I have done afternoon drive for a highly rated station in a bigger market, for less...much less

Oh that's right it was in the south where we get part of our pay in sunshine!

Seriously I'd do it for 42,500. I guess the cost of living is less here in the south at least the property taxes are lower! These days some stations let you track your weekend shift. I used to have to do it live! Heck even when you do it live it's easier. Instant show prep from the internet PC in the control room and no pulling carts and CD's.

The only problem is working in radio just doesn't have the same respect it used to.

MikeM.

 

[Element9]

Re: The 7% Solution

> > Most radio companies will scream and claw to hold on to
> that
> > 7% and tell the PM drive jock that 50k is out of the
> > question. "We'll pay you 42-5 because where else are you
> > gonna work?"
>
> It was 11 years ago but I have done afternoon drive for a
> highly rated station in a bigger market, for less...much
> less
>
> Oh that's right it was in the south where we get part of our
> pay in sunshine!


Yeah, I sometimes laugh at the rubes who fall for that line or the "there aren't any taxes down here" line. Try sending you kids to a public school in Alabama. Oh, and that sunshine turns into tornados and hurricanes real quick. Gimme snow any day.

Say what you want about New York state's choking taxes and rotten self-serving politicians in the state senate and assemply, but at least our kids get a good public school and state college education. Of course, when they graduate, they move to North Carolina to find a decent gig.

> Seriously I'd do it for 42,500. I guess the cost of living
> is less here in the south at least the property taxes are
> lower! These days some stations let you track your weekend
> shift. I used to have to do it live! Heck even when you do
> it live it's easier. Instant show prep from the internet PC
> in the control room and no pulling carts and CD's.

You'd be lucky (nothing personal, it's a "universal you") to get 42 these days. Voice-tracking and all that, hanging over jocks' heads like some Sword of Damacles when GM's sit down to negotiate the often one-sided contracts. There was a guy who worked for Infinity'd WYRK a few years ago who was dispatched with celerity when it was time to renew his contract and he told the GM to "talk to his agent." Buh-bye. WYRK moved the night guy to mornings. Funny thing, Silver had to negotiate with the "new" morning guy's lawyer who didn't take kindly to Napoleon sized GM's who make threats and carry on like a sniveling 12 year old. "We get an acceptable contract by Friday or my client doesn't come to work on Monday, thank you very much."

> The only problem is working in radio just doesn't have the
> same respect it used to.

Respect?! Bwah-hah-hah! When did it ever have respect? That's what made it attractive. It was the safe way to being an outlaw. Now, the only outlaws in radio are the suits who are running the companies. If Spitzer drags the Entercom suits to court and the FCC steps in as at least one commissioner is threatening, the business will really have accomplished outlaw status.

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