Tightened money, tightened reuglation

[Stewy]

Putting the Genie back in the bottle is virtually impossible. However, with the disappearance of "funding" because of the on-going contraction in the financial markets, will the medium size and big groups break apart more or less quickly? Will there be licenses sent back to the FCC? What is the functioning buying multiple these days, is it under two time cash flow? ??? Do you think that locally owned clusters are the unavoidable future for broadcast radio? With the rhetoric about increased regulation caused by the financial markets collapse bleed into radio?

 

[jackandcoke]

Putting the Genie back in the bottle is virtually impossible. However, with the disappearance of "funding" because of the on-going contraction in the financial markets, will the medium size and big groups break apart more or less quickly? Will there be licenses sent back to the FCC? What is the functioning buying multiple these days, is it under two time cash flow? ??? Do you think that locally owned clusters are the unavoidable future for broadcast radio? With the rhetoric about increased regulation caused by the financial markets collapse bleed into radio?

Not impossible at all. Re-regulation is very likely, and we can all hope it comes sooner than later. The Mays-written dereg of radio, from raised caps in the eighties through the LMA "trial" through the 1996 bombshell have left radio a shell of its former self.

Your suspected scenarios sound pretty logical. Don't know if there is a working multiple these days. It seems to have morphed into a used car-style negotiation: "How much you want?" "How much you got?"

 

[Stewy]

I am trying not to take delight in the squirming of the pretenders that have cornered themselves, it just isn't nice to do. Therefore, I arrogantly BUMP my own thread and try not to think, "Squirm you B******s, squirm".

 

[redneckriviera]

Re-regulation? Look what's happening with the Wall Street Bailout. The Dems ain't gonna hand over a trillion dollars to save their sorry asses without plenty of "oversight." It might take awhile for the Re-regulators to get to the FCC, but if Citadel/Cumulus/Radio One and their ilk start squawking for a radio bailout it won't happen without some sort of repeal of the '96 Telecom Act that triggered this mess.

 

[TheBigA]

Re-regulation? Look what's happening with the Wall Street Bailout. The Dems ain't gonna hand over a trillion dollars to save their sorry asses without plenty of "oversight."

You can't re-regulate without regulators. The budget ax swept through the FCC a long time ago, and all of the ranting by the Commissioners hasn't attracted new money. So they can't re-regulate broadcasting. And given the huge laundry list of bigger problems (2 wars to fight, terrible economy, education in shambles, energy crisis, and a few dozen more), I doubt very much that any new administration will get around to looking at broadcasting.

 

[Stewy]

Disagree BigA. You assume that we will have fiscally responsible people calling the shots in Washington but with words like "depression" and "new deal" beginning to creep back into the national discussion coupled with the democratic party getting ready to have a firm grasp on the legislative and executive branches of government; don't be surprised to see us spending 100-150% of GDP each year for years to come.

You have to remember that in the U.S. we go politically from one extreme to the other more often than not. The pendulum has been to the far right for 8 years and 20 of the last 28 years so guess what's coming now.

 

[TheBigA]

Disagree BigA. You assume that we will have fiscally responsible people calling the shots in Washington

That's not my assumption at all. I said there are far greater priorities than broadcasting in Washington. With one of two Senators in the White House, the choice is between a huge deficite and an ever greater one.

However, they will be spending all your money on: 2 wars, bailing out banks and Wall Street, education, energy crisis, and some form of medical insurance plan. Not additional regulators at the FCC.


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