Syracuse.com: Ed Levine on radio consolidation

[Mike_Saffran]

On Syracuse.com today (via Radio Ink):

Galaxy CEO Ed Levine says consolidation is killing the radio business

 

[therealjm12]

Here is Rochester another veteran broadcaster recently made similar statements. Longtime WBBF & WVOR morning man, Jack Palvino was interviewed on a local cable access channel. He mainly went on to criticize big business radio and what its done to local content. Problem is, he sold his Lincoln Group to Jacour/Clear Channel which went on to eliminate dozens of jobs in Rochester. He made millions on the deal. I can't believe how many people actually saw the interview, considering it was just cable access. A lot of radio people are scratching their heads after seeing the interview.

 

[TheBigA]

It's a little self-serving for him to say that. Then again, what do you expect him to say? He's a small fry amidst a bunch of giants.

Meantime, he doesn't subscribe to Arbitron. So we can't see how he's doing.

 

[doctorcomputer3]

I love how Levine likes to talk about being the "Local Station". The reality of it all is that his operation feels more "Sterile" than Clear channel ever imagined. You salute him and do what he says. You get calls at night yelling "you to pick your teeth before you open the mic". Aren't his stations owned by banks? Didnt the Leatherstocking guy pay cash?

 

[BobRoss]

I thought it ironic that Levine slammed voicetracking and syndication, in stressing his preference for live and local.

Let's look at Mix 102.5.
- Mornings: Elvis Duran, syndicated.
- Middays: Same jock that's also doing Sunny 102 in Syracuse.
- Afternoons: Same jock that's also doing Sunny 102 in Syracuse.
- Evenings: John Tesh, syndicated.

WOUR: Aside from Genesee Joe, it's all the same people from TK99 in Syracuse.
K-Rock: All the same people from Syracuse.

ESPN Radio: Perhaps the most local stations in the building, with a daily afternoon drive talk show, and a crew that does play-by-play at various games. But still largely syndicated, with ESPN on for all the non-local hours.

 

[yugoidar]

Here is Rochester another veteran broadcaster recently made similar statements. Longtime WBBF & WVOR morning man, Jack Palvino was interviewed on a local cable access channel. He mainly went on to criticize big business radio and what its done to local content. Problem is, he sold his Lincoln Group to Jacour/Clear Channel which went on to eliminate dozens of jobs in Rochester. He made millions on the deal.

Jeff, Palvino and his partner, Bud Wertheimer, did what many individual owners did during the 90s - they "cashed out". There was a buying frenzy going on, prices being offered were very attractive, and many of these small group owners felt they couldn't compete with the bigger companies that were doing all the buying.

None of these owners had any idea what the business was to become 15 to 20 years down the road. I think Jack was probably simply expressing his disappointment, like so many of us on this board, at what the business has become.

 

[TheBigA]

I think Jack was probably simply expressing his disappointment, like so many of us on this board, at what the business has become.

The problem with that line of thinking is the assumption that if ownership stayed the same, everything else would have stayed the same, and radio would still be at full employment, and everything would still be live and local. Unfortunately, none of that is true. The same thinking that caused those owners to sell would have caused them to take the economies of syndication and voicetracking, and we'd instead be blaming them rather than someone else.

 

[therealjm12]

Part of the cost to local employment is strictly greed and some business sense. Yes, if the if the stations stayed local the technology was there to voice track, take syndicated programs without board ops, cutback on news,consolidate office staff,etc. I'm sure most local owners, even if mega companies hadn't taken over, would have done what would save money over creating jobs.
However, because of the inflated prices paid to these local owners the mega corporations found it a necessity to cut where ever they could because of the huge debt they ran up buying those stations.

Just a side note: I could never figure out why Clear Channel bought some of the stations they did. Why would a San Antonio company (which at one time was very respected) want stations in markets the size of Utica. What did they think they could do with stations like WADR, WUTQ, & WLFH. Just create a monopoly and keep them out of the hands of someone who might want them?

 

[TheBigA]

However, because of the inflated prices paid to these local owners the mega corporations found it a necessity to cut where ever they could because of the huge debt they ran up buying those stations.

They found it necessary to cut for the same reason Ed Levine found it necessary to cut: The drop in revenue during the past four years.

None of the big companies, from what I've seen, have used any of the money from cuts to pay down their debt.

 

[editthis]

Part of the cost to local employment is strictly greed and some business sense. Yes, if the if the stations stayed local the technology was there to voice track, take syndicated programs without board ops, cutback on news,consolidate office staff,etc. I'm sure most local owners, even if mega companies hadn't taken over, would have done what would save money over creating jobs.
However, because of the inflated prices paid to these local owners the mega corporations found it a necessity to cut where ever they could because of the huge debt they ran up buying those stations.

Just a side note: I could never figure out why Clear Channel bought some of the stations they did. Why would a San Antonio company (which at one time was very respected) want stations in markets the size of Utica. What did they think they could do with stations like WADR, WUTQ, & WLFH. Just create a monopoly and keep them out of the hands of someone who might want them?

They didn't want Utica at all, they wanted Dame Media's properties in PA. Utica was just, ok we'll take that too.

 

[BobRoss]

They didn't want Utica at all, they wanted Dame Media's properties in PA. Utica was just, ok we'll take that too.

Similar reason behind their later purchase of Utica's WUTR-TV from Ackerley, even though they knew before buying it, they'd just have to turn around and sell it again ASAP.

Clear Channel was most interested in buying Ackerley for its billboards in various major markets, plus Ackerley's radio stations in Seattle. But Ackerley didn't want to sell the company piecemeal... they told CC it was all or nothing. So CC opened up the checkbook and bought it all.