There seem to be some common themes emerging from the latest round of radio sacrifices...
1. Corporate has decreed that programming costs WILL be reduced by cutting live and local talent in some dayparts.
2. Program quality, longevity, ratings, local management appeal, or even revenue from that programming will not reverse decision #1.
3. Remaining local talent will face reductions in salary and benefits.
4. A long-term look at radio listening patterns reveals that although cume remains high, AQH ratings (the number of people listening) has dropped steadily since the '80s. The amount of local programming has dropped steadily since the '80s. Might we infer that a reduction in local programming will lead to a further reduction in listening?
5. Any further reductions in listening will lead to further reductions in revenue.
6. Local sales staffs have been cut. Compensation for those sales people - including incentives for new clients - have been cut.
7. Local management has less influence on decisions sent down by corporate, no matter what their past performance has been. Exemptions are rare, or non-existent, no matter how good local's case is.
8. Corporate is in money trouble. Stock prices are in the toilet. Most investors have no confidence in the medium in face of mounting challenges. Most major companies have a mountain of debt, and revenue is falling. Original revenue projections used to borrow the money for major acquisitions are a joke.
9. Radio station values are being written down. "On paper" values of radio stations are a fraction of what several large radio corporations paid during their acquisition orgy between 1996 and 2006.
I'm sure that there are more items for the list. If we put them all together, what does it mean?
Dare we speculate?
1. Corporate has decreed that programming costs WILL be reduced by cutting live and local talent in some dayparts.
2. Program quality, longevity, ratings, local management appeal, or even revenue from that programming will not reverse decision #1.
3. Remaining local talent will face reductions in salary and benefits.
4. A long-term look at radio listening patterns reveals that although cume remains high, AQH ratings (the number of people listening) has dropped steadily since the '80s. The amount of local programming has dropped steadily since the '80s. Might we infer that a reduction in local programming will lead to a further reduction in listening?
5. Any further reductions in listening will lead to further reductions in revenue.
6. Local sales staffs have been cut. Compensation for those sales people - including incentives for new clients - have been cut.
7. Local management has less influence on decisions sent down by corporate, no matter what their past performance has been. Exemptions are rare, or non-existent, no matter how good local's case is.
8. Corporate is in money trouble. Stock prices are in the toilet. Most investors have no confidence in the medium in face of mounting challenges. Most major companies have a mountain of debt, and revenue is falling. Original revenue projections used to borrow the money for major acquisitions are a joke.
9. Radio station values are being written down. "On paper" values of radio stations are a fraction of what several large radio corporations paid during their acquisition orgy between 1996 and 2006.
I'm sure that there are more items for the list. If we put them all together, what does it mean?
Dare we speculate?