For an earlier comment - I don't think the division was losing money for CBS - it was huge cash flow positive from the sounds of it. I think a few things were happening - the radio group did have a slow decline in revenue going on which CBS didn't want to put effort into fixing or didn't know how to fix. CBS wants to reduce the dependence on advertising revenue in favor of charging fees for rebroadcast rights, selling CBS All Access subscriptions, etc. and ditching radio advances that goal. CBS may have been looking at their reliance on AM stations as a concern (even though those are probably the most consistently successful group of AMs in the industry). Of course, the wall st. types that grill them on the quarterly earnings calls love "deals" and were always asking about spinning off radio and CBS engineered this to grab cash by taking out loans which went with the radio division while the borrowed cash went to CBS corporate.
I will be curious to see if the loss of radio as a vehicle to promote CBS TV has any affect on TV ratings over the next couple of years.
As for iHeart, I remain hopeful but when I read about important, long time people in the newsroom losing their jobs, about reduced hours for reporters and fears of more reductions it doesn't sound promising. I'm sure that staff costs looks like a good place to target for a quick boost in profits, but the station is a revenue leader - it takes money to make money type of thing. Any boost to the bottom line could be short lived. Then when you see WGBH and WBUR nipping at their heels in the ratings it wouldn't take much damage to the product to deep six the whole thing. If anything, double down now to keep it strong/make it stronger. Heck, how come a blog out in Worcester has been breaking scandal after scandal at the state police. Shouldn't the all news radio station be getting at least a few scoops like that? Cutting staff will just guarantee that the blog will keep that advantage.
If Entercom wanted to take a run at all news by flipping an FM, that would be interesting especially if they could snag a number of WBZ staffers. I just wonder if they have the stomach to pump that much money in over what could be an extended period to ramp it up with no guarantees and a possibility of never doing more than splitting the audience. Possibly there is some contractual non-compete in place between Entercom and iHeart related to the station transfer.
Maybe iHeart knows something about listener behavior. Are people really listening for news or out of habit and for company? The people who flip over for a weather and traffic report and then elsewhere won't notice so long as they get the weather and traffic info. The people who have the station on for hours at a time - if an anchor is reading content mostly gathered from web sites, will they notice the newsroom has been gutted and tune out or just leave it on anyway for the background noise? Some of us will notice and bail but would the masses - maybe iHeart is gambling they won't care.