Tiffany Network?

[jdweaver]

In the slathering groveling to Google, it seems to me that CBS is pointing the gun directly between their own beady eyes and yelling, "Do this or the dummy gets a bullet to the head!!".

CBS offering 'low value' radio time to Google is unbelievable. Essenitally, 'we can't sell it, so here you sell it!'. To let someone else sell and package your time is crazy IMHO. These aren't a cluster of stations in Moline - they are premier major market facilities. Is is possible that the sales ethic has deteriorated to this point?

Any other thoughts on this pending deal?

 

[LITTLEBOYBLUE]

I don't know who to root for!?? First you have CBS ... with Mel ... and the year-over-year directives of "throw enough sales people at a market until you make some numbers". Never mind that in implementation what this really meant was a bunch of new-bies launching into the market every Monday stepping all over each other with copies of the market newspaper advertisers safely tucked under the arm. (Sidebar = meanwhile Mel blows off ALL new media plays because it's not "familiar" to him). So out of sheer fear they usually make numbers ... the better stations do well because they've had veteran programmers at the helm driving a decent product. Eventually Mel goes away, newer thinking prevails ... but now it's Les calling shots and pretty gung-ho to make some revenue with all available opportunities under consideration.

Then you have Google...which grabs a couple of radio players (most notably dMarc) and decides suddenly they are experts. For me, this was deja vu with some local companies and THEIR instant understanding of the broadcast game just because they launched into the internet, content, or streaming businesses during our LAST decade.

When you put the two together, I don't exactly see a huge population of innovative sales people on the radio side, and still see a bunch of arrogant fresh-out-of-college software weenies on the other. I suspect in the end if the "Google model" proves that SOME advertising really is a "commodity" sell, it could end up being like what happens in markets like Olympia. You have a player like Mix96 that runs a pretty decent operation. Along come the other players at tendollars-a-hollar and suddenly the limited number of advertisers are tainted on rate, disillusioned on results, and the game is somewhat poisoned for everyone who is trying to play.

Since Les is the person this week who's been screaming "there is no NEW media and there is no OLD media...there is only .... MEDIA" maybe he's got this licked better than anyone else. But the track record isn't exactly ON THE SIDE of the broadcasters to take every vendor glossy flyer and turn it into billions of dollars of "no effort" revenue.

 

[sdwulfdawg]

Thing is this: My observation is that companies who are concentrated in one business sector need to stay out of other businesses they know nothing about, yet somehow convince themselves that they can make another bagillion dollars by taking advantage of the goose which is laying golden eggs. BUt just as the golden goose may like Farmer Jones and may be performing well, the golden goose may not like Farmer Smith and will reduce the number of eggs it is producing. I call this the "I am the King of the world syndrome" -- in reference to that unfortunate line uttered from the mouth of Leonardo di Caprio in "Titanic." Just as Clear Channel has gotten into ancilliary businesses they have known nothing about, this maybe is going to be the case with Google and CBS. Instead of being the "king of the world," Clear Channel is now shrinking itself trying to regain footing and save itself. Google has done great in the computer world, but it doesn't mean that they will be making a killing in the radio business. While it may not happen overnight, Google may ultimately shoot itself in the foot in trying to be "the king of the world."

 

[jdweaver]

Google's huge cash trove is burning a hole in their pockets, so they try everything with the understanding that very little will work. But those things that do work will develop into a good solid business. I don't really have qualms with Google's efforts, but what is CBS thinking? They will end up with a further de-valued product that gets closer to being a pure comodity - bought and sold with precision by a couple of computers at the lowest possible price. Is that the future they want?