The Sad End of CBS/Infinity Radio

[Slider 8]

The events of the past few years have lead me to believe that CBS radio has ceased to be what it once was.

Just a few years ago, CBS/Infinity was a 183-station powerhouse, billing 1.2 Billion dollars a year. The stations it owned were legends, it's talent were stars, it's programming and sales management were the best. Now...

The changes in the company began with the dismissal of Mel Karmazin. It was not too long before John Gehron and the three regional vp's (Bouloukos, Perlman, Figenshu) were released. Gehron was not replaced at the time, and the three regionals were replaced with less talented managers and the apple cart was upset (note that one of the replacements, Brian Ongaro, was indicted for fraud.)

Those three regionals, and the COO/President of the company have changed at least twice since 2002. The company has had four or five Presidents of Programming in the same time frame, each of whom brought a new idea to the company that made major changes in station programming (Jack, Free.)

Currently, Dan Mason, a very respected broadcaster, is back running the company. His management skills are appreciated by the majority of the company and he is known to wall street.

Now, how this lack of stable and talented management has affected local stations.

1. K-Rock New York. Of course losing a company-wide morning show like Stern will dig into your billing just a bit (they were doing close to 60 million a year) but the best option after Howard was not David Lee Roth. Better and more talented shows are out there, and any one of them could have done better than that disaster. Even if it was decided that anyone who followed stern would die a quick death, and DLR was a lamb to slaughter, then what was the plan after that? WNEW was mismanaged from the moment O/A were kicked off and has lost at least 20 million of its' annual billing, WXRK was treated the same after Stern Left. Hopefully Tracy C will be able to re-start the brand and return the station to near it's previous level of success.

2. WZGC Atlanta. Rodney Ho of the Atlanta Journal Constitution did a very good job of recounting the 12 or 13 morning shows that have been on this signal in the past few years. They were not un-talented people and included local and syndicated options. None ever had more than a couple of years to gain ratings and revenue success. The station went thru a couple of General Managers and Program Directors and Sales Managers. Recently the station changed format from Classic Rock to AAA under the name Dave-FM. A new program director was assigned the task of starting a new brand for the station and breathing new life into a "cursed" signal. While some may argue the PD did not get the job done, the reality was that the changing of the guard at the Corporate level gave the station a new "Rabbi" every year of it's life, each of whom saw a different programming direction as salvation. After some initial success, the station has lagged in the ratings and is back to it's previous billing levels. Another change in Programmer and certain dayparts came this year, including Morning Drive. To say they have been slow to react is an understatement; The morning show is not on the air yet, even though another company has flipped to Rock and brought in a talented and popular local show during the time frame that WZGC was supposedly "preparing" their show for air.

3. Un-Named Medium Market Cluster. One of the challenges with having a small number of properties that bill a ton of money (The two K-Rocks did 120 million by themselves) is that if they are hurt in any way, the impact on the overall company is great. WNEW going down was not a small rock in the pond, it was an open drain pipe at the bottom of the pool. Clear Channel recently announced Cost Cuts for the first quarter (their annual brilliant move) including no research or new hires. CBS/Infinity rode another train to disaster: Marketing money. If you were in a medium market (Kansas City, Cleveland) your station would be fighting against Clear Channel stations on Clear Channel Billboards or against TV or Direct Mail. CBS owned Billboards and had a small cable network (mt-something) and yet the different divisions would never help each other...so your station was told to do more with less and there went your marketing money. Most of the time you could survive, but once your billing finally dipped below the target numbers, this years corporate programming director decided you were ripe for a format flip to Jack, Free, Jammin' or whatever. Oh, and you had to fire everybody and do the flip with no marketing money. The downward spiral continues...

It's difficult to watch a company slowly decay. I wish it was due to someone up top who was evil and was stealing money from the company, but no, it's just plain old lack of talent and incompetance.

 

[louisNatl]

While some of what you write has merit, your post is somewhat one-sided. The changes that CBS made a few years were long term and will take time to achieve any type of fruition. For example, it takes time for the Jack format to evolve and grow an audience. A new format like that takes time to develop tested songs that "fit" the format and gain listener appreciation. In many markets, Jack/Adult Hits stations are doing well and building an audience. WCBS had decent ratings right before it was flipped back to oldies. Unfortunately, Wall Street investors are so impatient and short-sighted that they expect quick fixes to the problems that media companies face today. Here in Atlanta, Dave has been building an audience. Again, a AAA format takes time to develop. The playlist is not something cut and dry like classic rock is on 97.1 The River which plays the same 100 songs in an endless loop. Yet, CBS did not flip Dave during the downturn as Clear Channel would have done.

You also did not mention anything about CBS's recent purchase of the social music website Last FM. CBS recently reached an agreement with the labels to allow on-demand streaming. This was a very smart move into the digital media/social networking marketplace to help CBS connect with the younger generation that relies on iPods instead of the radio. Ironically, CBS was the only company that opposed streaming of their radio stations until recently.

While CBS is taking these risks, there will be some mistakes that come with them. However, Clear Channel and Cumulus have decided to take the safe route by tightening their playlists, skewing towards the older crowd that still listens to radio, and replacing live local programming, with syndicated morning shows and voice-tracked DJs. All of the CBS stations still have a local commitment to their respective communities. I am not trying to paint CBS as a saint, but they seem to be the lesser of the evils especially compared to Clear Channel, Cox, Cumulus, Entercom, and Citadel.

 

[RoddyFreeman]

Dan Mason has been trying to correct some of what was done in the Hollander days. He's changed formats in New York, Orlando, Detroit, Pittsburgh and San Francisco. I think he's going to right the ship.

 

[TheRealOtherNeil]

Here in Atlanta, Dave has been building an audience. Again, a AAA format takes time to develop. The playlist is not something cut and dry like classic rock is on 97.1 The River which plays the same 100 songs in an endless loop. Yet, CBS did not flip Dave during the downturn as Clear Channel would have done.

If by "building an audience" you mean decreasing ratings & revenue, bad decisions (Falcons, Michelle Engle and All Access with Barnes and Firfur) then yes, DAVE is on the up swing.

CBS flipped to DAVE about 3.5 years ago and has little to show for itself. The last six months, MD Margot Smith has really got the station on the right track. They are essentially starting from the first rung again. You arfe correct hat it will take three years to really see results. I have said this for at least seven years. AJ Jam probably has the post archived.

 

[mshawnarnold]

Slider 8, huh....

I wonder if this is what it feels like when a friend names their kid after you....

 

[NewsTalkJunkie]

Slider 8, huh....

I wonder if this is what it feels like when a friend names their kid after you....

OMG, just too darn funny ;D

 

[OldSchoolWoman]

In Tampa, only the CBS stations sound live and local. They still use jingle packages and sound radio should be. Only CBS has a live jock overnights. If you lived here, you'd think that the CBS stations were the best run.

 

[louisNatl]

In Tampa, only the CBS stations sound live and local. They still use jingle packages and sound radio should be. Only CBS has a live jock overnights. If you lived here, you'd think that the CBS stations were the best run.

With exception of WSB-AM, I would say that is the case with the CBS stations here. Dave sponsors many charities, concerts, and community events. Even though I don't listen to V-103, they are also very involved with the community and I have seen them at several events including the Black Arts Festival. WAOK even has strong community involvement even though they are a weak station. And, when was the last time you heard voice tracking on Dave or V??? Even WAOK has local talk show hosts, unlike WGST.

 

[taylorengineer]

And then....let's point out a few positives.
WFAN has recovered nicely....both in terms of revenue and ratings after the Imus debacle. Imus putting his foot in his mouth was NOT CBS's fault. I think it was foolish to fire him......but that's another thread.
Boomer has kicked arse and things are coming up roses revenue wise.
WVEE is still a powerhouse! $47.5 MILLION dollars in billing last year....projected $50M this year! This is New York City scale revenue....it's big time money!! PPM may put a dent in that.....but that, again, is not the fault of CBS.
WBBM, Chicago was the top revenue producer in the Windy City for 2007....$47 million. CBS did $100M in revenue in Chicago alone.
I could go on but I have made my point. CBS Radio is now under dynamic leadership(at least for radio weasels) and stands as good a chance as any other company at success. They have lost some major talent....but they will recover. Mason has the heart of a programmer....not a sales weasel....and has a unique opportunity to transform a stoggy old fart broadcast company into an aggressive, adaptable media.
Don't anyone start writing a eulogy for CBS just yet.....

 

[RTibbs]

Any company in any business has peaks and valleys. CBS has primarily been done in by tighter regulations(thank you Miss Jackson) that is what forced Stern to Sirius. Then O&A do something completely stupid and probably deserved to be yanked off the air and then finally Imus and the PC police. I have heard a lot worse on his show alone but a slow news cycle and the PC police did him in. Tome it was an off the cuff remark. It was a well thought purposeful diatribe.

Their biggest mistake was lack of talent in the pipeline. They should have been developing talent in smaller markets to move up the latter but New York is a tough market to be the newcomer. I give them credit on Dave. I don't think it will ever meet the high side of their expectations but it certainly not nearly as bad as 99x was in it's final gasping for breath days. The music is getting better and had the RG not appeared today perhaps Zakk tyler would have a bigger start.

 

[jinglemaker]

Hey Slider 8....where was the story Rodney wrote about the Morning show history
on Z-93.I'd like to see it

 

[OldSchoolWoman]

CBS stations like WRBQ,K-Earth, WCBS FM, and the classic hits station in Orlando sound more like radio as I remember it than any COX or CC property. I wish all pop music radio sounded as good as KRTH. WRBQ actually talks to listeners. That's a real inovation.

 

[tomservo]

Let's see... The OP identified CBS issues with mismanagement and revolving door managers. Other posters mentioned not giving a format time to find its feet and a lack of new talent development.

Aren't those issues with most all major radio companies and not just CBS?

 

[InTIMadate]

There was a vacuum of talent, specifically at the top. For anyone that worked for CBS in the "Tiffany" days, the problems started when Mel Karmazin sold Infinity to CBS in 1997 and convinced them to let him rename it Infinity and run the group. He soon forced out the terrific programming managers that had built the empire and sold 15 major market stations, bonusing himself for the deals and running the division into debt for the first time in decades.

Mel left in 2004 after sucking billions out of the company and not allowing any station to stream during his tenure, damaging their position in the new media world. As a final insult, he was allowed to handpick his replacement, Joel Hollander, a clueless patsy that had began his radio career in sales in the early 1980s under the tutelage of Mel Karmazin. Joel soon proved to know nothing about programming, marketing or managing crisis. One of his first efforts was to quickly changed the brand back to CBS Radio, costing an outrageous amount of money and creating nothing but confusion. Most of the best managers had been run out and Joel found himself floudering as CEO and making horrible decisions including letting Howard Stern use his microphone to tell everyone to buy Sirius Satellite Radio for seven month. The result was CBS Radio struggled after Howard Stern left dropping revenues over $100 million and with no viable replacement.

I could bore you with more foolish Joel decisions that cripled CBS (Free FM?), but let's jump ahead and focus on Atlanta. It had come down the pike that CBS was forcing unproductive formats to switch to the Jack format. It eliminated the need for onair personalities and other programming costs. Hollander's cronies felt it the was the perfect solution. Sales could just sell it and make a ton of profit. Ironically, the first Jack logo was what one marketing guru described as a "fat, while salesweasel wearing a crown." The positioning statement was "Playing what we want," turning the frequency into an automated jukebox.

Senior VP Rick Caffey CBS Radio Atlanta (http://www.brightcove.tv/title.jsp?title=1214037775&channel=823396007) took a preemptive strike to launch a AAA format before his hand was forced. He hired Michelle from Portland and tried to give her the tools to recreate her previous success. There was a number of initial stumbles and bad decisions that have been outlined on other postings, but it did get launched. Rick's background was almost exclusively Urban radio and he's struggled with the nuances of this unique format. After one good year financially, its been struggling in revenue and ratings.

Back at corporate, Hollander was forced out early and Dan Mason took the reigns of CEO April 16, 2007. A true programming guy, he's quickly made some powerful decisions that are resulting in revenue and rating successes around the country. Atlanta has yet to feel his efforts. Considering that Mason began his career in radio in 1975 at WZGC-FM, it should soon catch his attention.

There are many broadcast professionals that see this change as a smart relaunch of CBS Radio. Instead of a "Sad End," it may be a new beginning that will lead to fresh ideas, new formats and better talent being developed for the future of radio. Dan is a good guy that loves good radio. If he has the time and resouces, he will succeed.

To paraphrase Mark Twain: The Reports of the end of CBS are greatly exaggerated.

 

[taylorengineer]

InTIMadate has given us an excellent summary. I agree in totality.
Mel Karmazin was the WORST thing to happen to CBS....and now Sirius. This guy is the quintessential corporate suicide pill.....cut expenses to nothing and go to the board smiling saying "look at all the money I've saved for you.....look at our profits." Meanwhile.....back at the ranch....the screen door is falling off the hinges and Maw don't have no peas to feed the babies with. The station infrastructure just went to hell.....no money for anything.
Karmazin has nothing....no vision....no purpose....no scrupples.....no nothing except the raw ability to kick dogs and rape babies.He was a mother raper.....hell, he was a father raper. (Accordin' to Arlo Guthrie there ain't nothin' lower than a father raper........)
To hail this guy as a "loss" to the company is lunacy....I'd rather work for Hillary Clinton.
Thank Gawd 'a mighty he's gone

 

[RoddyFreeman]

Well said, InTIMidate. One other thing. Dan Mason had been president of Westinghouse Radio and then (after the sale to CBS) Infinity/CBS Radio. But didn't Karmazin force Dan Mason out before Les Moonves rehired Mason?

 

[jal41]

Last I heard, CBS has not put the radio division up for sale. In fact, the divison was renamed from Infinity to CBS Radio during the CBS/Viacom split.

The "tiffany" period ended in the mid-1980's when Laurence Tisch took control. He wanted to make a profit, and made severe cuts.

Cox does not take risks. Clear Channel and CBS take risks. Those risks cost them both big time.

CBS would not stream because it would cost them extra $$$$ in royalty payments. Karmazin let Stern promote Sirius because Stern would have walked away the afternoon he was told no, and that would have cost CBS $$$$ (they wanted to milk every last penny out of Stern, as they would have been screwed either way).

Free FM and Jack FM came along. The Jacks tanked because they appealed to those with Ipods who could control the music. You can't call Jack up and tell them to play a Kelly Clarkson or ZZ Top song, but you can tell your Ipod to. Can't explain about the Free FM's though.

Oldies and classic rock formats suffered. CBS TV had been trying to shake its image as a old folks network, and apparently the radio end wanted to participate in the discrimiation against older people. WCBS-FM went away and so did Z93 here in Atlanta.

Everything that has been going on has caught up with them. You would have to go back to the 80s and stop Laurence Tisch from taking over in order to undo the damage.

 

[tomservo]

Free FM and Jack FM came along. The Jacks tanked because they appealed to those with Ipods who could control the music. You can't call Jack up and tell them to play a Kelly Clarkson or ZZ Top song, but you can tell your Ipod to. Can't explain about the Free FM's though.

Jack's awful slogan, "Playing what we want," should have been a clue there was trouble a-brewin'. No one wants to listen to someone else's yuck-pod when they can't control it.

As for the interesting in theory Free FM concept, there could be volumes written as to why it failed so miserably. Some blame poor talent lineups (or poor talent). I think a lot of it had to do with CBS getting all scaredy-cat over letting their brand of hot talk get too racy. They put the screws to the talent. While CBS gets points for at least trying, they still seem too conservative to try anything really new and different.

 

[OldSchoolWoman]

Bt CBS does radio like it should be. So many people on this board complain about jockless and VT'ed stations being so boring.At least CBS is keeping some stations bright, live , and local.

 

[InTIMadate]

Bt CBS does radio like it should be. So many people on this board complain about jockless and VT'ed stations being so boring.At least CBS is keeping some stations bright, live , and local.

That's one old school woman's opinion. I disagree. I worked for CBS in the early 90s and it was still a strong programming minded company with high morals and ethics. Mel changed all that. Under Hollander, local programming was eliminated for national formats in order to reduce costs and increase national sales. Although some on this board think Jack went away, they are still trying to make it work in other major markets, including Chicago, where it was launched just last fall on WCKG.

Old school may enjoy listening to her lps, but new media is moving towards more interaction with the consumer, not less. The strategy behind Jack was flawed and short term profit motivated. It is destined to fail and be the latest "Jam'n" example.

As for Oldies, CBS FM is back as is K-Rock under Dan Mason. He has already reversed many of the rediculous decisions made by Joel and has started seeing positive ratings results.