Re: Getting "real" about radio.
>
> The only important people are the listeners. They know what
> they want. Clear Channel owns two really good research
> compnaies, and you can bet theat they asked what people
> wanted to hear. All a consultant does is help interpret and
> implement research. Neither a PD nor a consultant makes
> determinations on what the local listeners want... the
> listeners themselves do.
If the listeners makes the determination then why the big cut
of music from the '55 to '64? it's like music never existed
before then. When MJI (A CC station) cut out the music from
that time frame there was a big uproar over it. So much so that
they trew the listeners a bone and did a sunday night show for
it.
> It makes, still, a station a bad investment. 12% to 15% will
> not pay a typical 7-year financing on a station. If there is
> no gain, why do it. The only case where that type of return
> would be acceptable is an owner operator who wants
> guaranteed lifetime employment and a moderate income. They
> can pay the loan, maybe baloon it to another 5 years, and
> end up with all the trade cars and restaurant script they
> need, and live OK. For other situations, the return is
> inadequate.
Thats what we need to get back to owner/operators or small
corporations. Not large 1200 station corporations.
> >
> > >
> > > That would make it worse. Since small operators would be
> No, they won't. It will be just like the small (7 and 7)
> operators of the 60's and 70's who had big debt service and
> had to maximize profits. Since there was no low cost money
> to borrow, and no equity financing to use, all acquisitions
> came out of profits. And if any market went the wrong way,
> they tightend the screws on the other 6 like you have no
> idea. Far worse than today, where most group financing is by
> equity, not debt, and smaller groups get much lower cost
> money than previously available.
Big debt service like CC has? And small corporations can avail
themselves of using equity as well.
> Local banks seldom finance radio, as there are no attachable
> tangibles. In fact, in medium markets, tangible assests
> generally are less than 10% of the purchase price... and
> they are less than 5% in largetr ones. Most banks will not
> touch single station or single market deals, and most will
> not do radio at all.
Perhaps that's how the banks in your market and the markets
you've been in are. But I also notice the word "most". Not
all will say no. In fact I know a smaller bank that has loaned
money to a radio station. It can go either way.
> This applies in very small markets, with owner operators.
> 50% of such staitons do not make money. Not making money
> does not encourage creativity. If they are in rated markets,
> numbers matter... as numbers indicate how big a response an
> advertiser will get. Independent operators seldom do risky
> formats.
I guess a top 75 market is a small market then. and the station
in question is owned by a corporation.
> There is always someone like you who thinks they can make a
> purse out of a swos ear. So there will always be someoen to
> buy nearly every bad station. The buisness has some kind of
> appeal, especially to fools with money.
That's funny. Consultants like you have been trying to make
silk purses out of a sow's ear for years. And all we the listeners
get is radio that sucks. And as I've said I'm not against letting
a station go dark. I think there are too many. Especially on the
AM band.
>
> I have worked in markets where there has been consolidation
> for 50 years, and there are more varied formats under
> consolidation than without it. I owned a cluster in a market
> of about a million in the 60's and it was only because of
> the leading staitons I had I was able to do things like
> building the country's first FM, to do indigenous language
> programming, to do a classical station, and to do rock on
> FM. None of these made money initially, and an independent
> owner could never do them.
There has been consolidation for a long time David and it has
been slowly draging the quality down. But now you have Clear
Channel and Infinity that have gotten larger then they should
have been allowed and they sped it up. As for more varied
formats. How many Kiss stations are there? And if memory serves
there was one DJ who was VTing for 12 of them. If thats not
cookie cutter I don't know what is.
It's nice that you owned that cluster David, but talk to me
about American radio. Not where you have to run from the local
Junta.
> > Well if the posts from you and Cat are an example I'd take
> > the bet. I love taking money from a sucker. Do you know more
> > about the day to day business of radio. Yep, but I can learn
> > that. What can't be learned easy is the right music. You
> > really just have to have the ear.
>
> Oh, how absolutely and horribly wrong. That is an arrogant
> statement. The only people who know the music, the right
> music, are the listeners. I would never pretend to tell them
> what to like.
Oh? and whats arrogant about that statement David? That I can
learn how to handle the day to day business of radio? I can learn
how to sell. People learn how to sell all the time. Or maybe
that I could learn to do traffic? Or production? Or promotions?
These are all skills that can be learned. It is arrogance to
think these skills can't be learned.
And having taken my trips through management (as much as I hate
it), I know to get good people, put them into place, point the
direction and get the hell out of the way. I like short chains of
command and delegating.
Perhaps you think the comment about having an ear for the right
music is arrogant. Well it's not, for several reasons. First, I
never tell my listeners what to like. They tell ME what they
like, and I take that into consideration. I do a request show
after all. Second, having an ear for the music is not a magic
wand. Every one makes mistakes, you just can't bat .500 all the
time. But you will get more homers than someone with out it.
Being a Cleveland boy let me remind you of Papa-Oom-Mow-Mow which
got a boost thanks to Ghoulardi. What NE Ohio oldies station
wouldn't play that? (a CC station) and the same with Desert Rat.
Or how about something from LA? Whittier Blvd. by Thee Midnighters.
>
> I learned that when I was about 13 and was invited to be my
> school's rep to a Top 40 staiton's listener panel. We were
> consulted on music, jocks, programming issues. In other
> words, the station, which had about a 25 share, knew it had
> to ask the listeners, not take unilateral decisions.
PD's have been making unilateral decisions since the begining
of radio. Wether it is AM, FM, XM/Sirius, streaming internet or
podcasting the PD for good or bad always has the final say.
>
> I have, on numberous ocasions, gone to places I have never
> been before, and created #1 or #2 radio stations... because
> I asked the listeners. Why is that so hard to get?
And again I say talk to me about American radio. I have always
advocated listening to the people who listen to us. It's you
who don't get it. CC doesn't listen to us. Nor does Infinity.
But people like me do. After all I am a listener too. I'll bet
I listen to more oldies music in a week then you and Cat both
listen to in 2 months. I'm always looking for that next great
Song to play. And as I've said before the Billboard and
Cashbox charts are a starting point, but not the ending point.
They are not perfect thanks to payola and all the other stuff.
But they are a start. Then look at the bubbling under and from
there look up local charts like the WIXY tune-dex and the WKNR
charts and you will find some gems. Also don't forget to listen
to other sources and network with collectors for those songs we
all should have heard. Then put your catches out there and see
what the listeners think. That's where the ear comes in. Some
will go into heavy rotation, some medium and some light rotation.
And it will expand your play list. Why is that so hard to get?
> KTNQ could only have been done with the support of a large
> corporation. It did not make money initially, and is the
> worlds most expensive format.
And I will agree to a point. But it is because of the lack of
ownership cap and the flipping of stations that radio has
become so expensive.
And to be honest KTNQ is a good example of letting stations
go dark.
>
> (Personally, I am most proud of building South America's
> first FM, and making it immensely profitable within less
> than 2 years... in the 60's... and with only two minutes of
> spots an hour)
Building the first FM and making it profitable is something to
be proud of. I can't fault you for that. But what have you done
in the US to make radio better?
>
> I disagree about the " sad shape of radio" since just as
> many people use it today as at any time in the last 50
> years. What is happening is that there are more options, not
> worse radio. Radio is what it is. It is not as sexy as
> satellite or an iPod, but it is free, dependable and serves
> 95% of the people well.
Of course you disagree. It's folks like you that have brought
us to this point. It's like a fat cop saying donuts don't make
you fat. Radio is in sad shape and its listenership will slowly
decline. When even 80 year olds are buying computers to do email
and listent to online streams (and this is already happening)
, and 45 year olds are buying mp3 players and XM/Sirius rather
than listen to regular radio, you will have a slow decline. When
all new cars have XM/Sirius and they are readily and cheaply
available regular radio will be in real trouble.
>
> By the way, there were consutants and researchers in the
> 50's too. As I said in another post, if you would undergo an
> operation without first talking to a specialist, then your
> point is taken. But we use consultants in every facet of
> life... and it is the right way to get better radio. And "
> research" is just a way of saying " talking with the
> listeners" which is the only way to go.
Having gone under the knife on several occasions, of course I
talk to specialists. But I also make sure they are competent
specialists.
I have always advocated listening to our customers, but seem
to get ridiculed by our corporate yes men around here.
Mike Dane
WSTB-FM 88.9
www.SundayOldiesJukebox.com