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When is saving money, NOT saving money

My question is at what point is cost cutting cutting so deep that it is cutting profits, loosing listeners, and killing radio. Along with this which stations in SC do you feel have crossed that magic line and at what point did they go wrong and could they return or not.
 
For the most part, it isn't cutting profits. It may be slowly decreasing the available overall pool of revenue available to radio, but eliminating staff positions immediately increases your profit margin.

Is it good for the long-term health of the industry and the ability to fend off competitors within and without terrestrial radio? As Sara Palin says, "You betcha!"

Clear Channel has cut to the bone long ago. Other than for listening to a jukebox, there's no real reason for listeners to embrace the Clear Channel stations. But Clear Channel does jukebox very well because they have endless research resources and they can sell by the numbers to a list of advertisers that care not a whit about the individual station or community and just want to see a number of bodies.

Double O. Cut to the bone. Dead man walking.
 
Ok but what about stations like WNOK that seem too washed out with little life left in them. What would it take to bring stations like that (NOK just being an example there are pleanty more) back to life.
 
Well, WNOK is a subject close to my heart. And I hate seeing the once mighty, fallen.

Radio in general has been shooting itself in the foot for years and years and after 1996 the shooting increased exponentially until we are where we are today. Interestingly, Daniel Andstading's column on Digital really hits the nail on the head on what Radio needs to do to become relevant again. Of course, this supposes that what they have left on the analog ban is worth saving. I'm not sure it is. It would take taking the advice in Daniel's column/newsletter and then investingin the product. Is that going to happen? I wish so but probably not.

WNOK has roots going back to when it was on AM and at various times, the number one station on AM! That's ancient history though and isn't probably enough to save it.

And it's got plenty of company. too bad.
 
I hear you. WNOK, for somewhat obvious reasons, is very near and dear to me, as well. The 90s saw, in quick succession, several ownership changes for WNOK that provides (for anyone who cares to take a glance) a quasi-snapshot of the general leadup and realization of deregulation(also known as "The End of Radio As We Know It"). HMW, AM/FM, Emerald City, Southern Star, Capstar, Clear Channel(I feel like I'm leaving one or two out) ...each successive sale little by little siphoned off the spirit of what once was, in my opinion, one of the better continuous heritage CHRs in the country. Each new owner had their favorite cost cutting strategies to implement in order to increase profits. But, like I am fond of saying, it's radio and it's a business...that's why they call it the radio business. Still, radio was best when it struck the right balance of the art and science of the biz.
 
The art and science of the business, well put. I have a question for that, how long can the art and science of whats left of the business stay out of balance before the increased profits that have been gained by cutting to the bone drop to the point that it is no longer worth the cutting in the first place. In other words isn't cutting to the bone a short to medium term fix?
 
Cutting to the bone is always a short term fix. WNOK is having its highest numbers in share than it has had in years. But that's because it attracts folks that simply want a well-researched music jukebox. Which is something Clear Channel does well. Throw the top-researched songs on, dump the stiffs and voila.

Where the long term damage is done is the erosion of persons using radio. Had a friend send me the latest numbers from his market to brag about the 12+ on his station. Market of 150k people. Persons using radio? 22k. OUCH!
 
Right! Clear Channel doesn't care about the "art & science" of radio. They care most about the "art of paying down their monstrous debt ratio". In other words...making the most as they can as fast as they can for as little as they can.

It's almost as if they're channeling Mike Josephs when he, as legend has it, was in a Pizza Hut waiting for someone and noticed that when the other patrons in Pizza Hut put quarters into the big Pizza Hut jukebox that has a million songs on it, they'd play the same 10 songs over and over again...and only occasionally play one of the remaining 999,990 in the juke box.


Lowest common denominator radio at it's best.

Incidentally, you might find the following link interesting. I go to the Atlanta board periodically and one of the frequent contributors to that forum(Roddy Freeman) has a blog that often takes on poignant issues regarding radio. His most recent blog might be eye-opening to some, uplifting to others and downright heresy to a few, yet it is thought provoking for all with any interest in the direction of terrestrial radio.


http://atlairwaves.blogspot.com/
 
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