TheBigA said:
SirRoxalot said:
If the oversized debt load goes away, radio can again afford programming that builds audiences instead of shrinking them.
You keep saying that as though it's true. It's not.
Sez you. I'd concur with SirRoxalot and say it's quite true.
TheBigA said:
The local stations aren't really paying for the debt. They're paying for increased local costs. Increases in rent, ultilities, salaries and benefits, etc. Combined with the losses in advertising revenue. Those two things won't change if the debt goes away.
Bwah??? The local stations are cutting salaries. One cluster cut employee's vacation time to two weeks, regardless of years of service. It cut salaries 5 to 10%. Health care premiums increased (to be fair, the premiums are increasing in all sectors) and in many cases, there are larger deductibles and restrictions on coverage for individuals and families. I could go off on a tangent and make a case for the need for Universal Health Care, but that's another thread.
From everything you've posted over the years, you appear to be an academic (certainly nothing wrong with that), a corporate manager or a consultant. What you don't appear to be is a guy (or woman) who stands behind the micrphone each day. And, you are adamant that you're always right.
As well-informed and extensively read as you appear, you are
not always right. Join the club, neither am I. But in this particular case, the opinions and observations which I hold are closer to reality than what you profess to be true.
The revenue the local clusters bring in would normally support the local cluster and then some. The cluster (at one time) might have been working on a 35% margin. But as much as the local clusters are billing and as much as the billing might sustain year to date or in some cases, increase, it's never enough because the overall corporation (e.g., Clear Channel, Cumulus and Citadel) is treading water in an attempt to stay alive.
Wasn't the small and medium market stations that brought Citadel to its knees. No sir! Syracuse, Binghamton and Buffalo were billing quite well, as were Providence and other medium markets. It wasn't until Fraid Suleman and billionaire speculator Ted Forstmann decided to become kings of the radio mountain and buy ABC that Citadel turned into radio's version of the Titanic.
Despite what some people might argue, all radio companies aren't in the crapper. Certainly, the business is hurting across the board and Clear Channel, Cumulus and Citadel are the poster children for all that's wrong with the business. But there are companies like Entercom and Saga have debt levels that are, at least by today's standards, serviceable.
TheBigA said:
You also make this assumption that more expensive programming will attract larger audiences. That's obviously not true. The best and most obvious answer was Blink in NYC. They spent millions on local staff and talent. The whole thing was a bomb. Expensive programming doesn't attract audiences. Giving them what they want does.
Here I'm reminded of the Tubes, "What Do You Want From Life."
We're not trying to justify "expensive programming." Stop trying to re-frame the issue. We're talking about localism, good, live jocks who are
reasonably paid and creating programming that benefits the listener what it seeks and gives the company a good return on its investment.
TheBigA said:
And typically, that isn't lots of chatty local DJs.
Admittedly, the syndicated and chatty Tom Joyner has huge ratings on WBLK and from what I've seen, chatty and sappy Delilah does well at night, beating syndicated AC competitors, chatty and lame Kim Iverness and chatty and boring John Tesh. However, on a well-programmed, well-promoted radio station, articulate, local jocks out-perform voice tracked drones, witness: 97 Rock, Star 102.5, Kiss 98.5; Q-107 Toronto which just smoked Toronto's Jack.
TheBigA said:
If you study the ratings around the country, there is NO CORROLATION between the amount of money a station spend on programming and the size of its audience. This is becoming even more true in the PPM world.
We're in Buffalo-Niagara Falls-Rochester. PPM won't get here until 2011, but that being said, it's likely the good programmers (and there a few) will be ready.
Blink in NYC is a perfect example of inept
corporate decision making and horribly bad programming in the mold of another brilliant corporate decision called Free FM, to say nothing of WCBS-FM flipping to Jack. Give Dan Mason, also a
corprorate guy, some credit for turning those major market disasters around by going back to the
locals and giving them a voice in the decision making process, as well as holding them responsible for their decisions.