Sunday, January 10, 2010

Radio: The song remains the same

You haven’t heard from me because there’s been little to write about.


I know. There was Citadel and NextMedia. Those were inevitable.


Citadel. It’s the tale of the bean counter that couldn’t count his own beans. There are reasons why proficient number twos make terrible number ones. Number twos believe in cutting and firing their way to a victory they never achieve.


That’s why other radio chains utilizing the equivalent philosophies will be condemned to same fate.



Are they even worth writing about when we already know the end of the story?


Then there’s NextMedia.


Its business plan was to buy up smaller market stations and sell them to greater fools for more than they paid for them. One problem. They paid some hefty multiples to acquire these stations.


They initially benefited from a bounty of takers but the company didn’t heed Kenny Rogers: Know when to hold them, know when to fold them.


There was that moment in time when they should’ve sold while the greater fools were still buying- but exit strategy disagreements ensued - and Next Media ended up holding on to yesterday.


There’s more.


Lending institutions continue to hold on to their bad assets and allow those that got them into this jam to continue running their empty shell companies.


What was that quote from Citadel’s CEO and architect of doom Farid Suleman?


Business will continue as usual.”


I keep saying it over and over. I couldn’t make this stuff up if I tried.


That means Citadel, and the other major radio chains, will continue to downsize and devalue their programming, promotion, and marketing. Instead of investing in content, they’ll pick up long-in-the-tooth Donnie Osmond or some other syndication off the bird. Live and local? Get real. The stink of human costs money. Promotion and marketing? That’s a needless and costly expense.


It wasn’t all that long ago, actually, that the only stations that carried nets and syndication in their most important dayparts were small market stations.


Maybe Farid was duped into believing that Donnie can host the 21st century version of Don McNeill's Breakfast Club.


I’ll bet Suleman truly believes that Citadel could survive as a content provider for news, sports, and programming.


It gets better. The other radio chains teetering on bankruptcy believe their eventual bankruptcies will be considered as a cost of doing business.



What about real broadcasters?
They’re exercising great patience. Two words: Fire sale.

57 comments:

Anonymous said...

John, Good to have you back. I can understand your frustration. For the longest time you predicted exactly what is now happening in the radio business. You were right even though you would have preferred to be wrong. My question is what happens to the shareholders, investors and others in Citadel and Next Media. Stand in line? Ten cents on the dollar? I would like to see coverage on who got ripped off by these chains filing Chapter 11 just at the right time (for themselves). Don't be a stranger on line. We look forward to your blogs.

Anonymous said...

I am sure that Citadel and Next Media shareholders are less than thrilled with their CEO's moves. Screw the investor again.

Anonymous said...

Real broadcaters - do you really think they will want to buy back in when they know how many people have been driven away from listening to terrestrial radio? Since getting my Sirius I have no need to listen to terrestrial drivel radio. I can get all the news traffic and weather I need from television and on line. So why would anyone want to resurrect radio? It is worthless.

Anonymous said...

John,

Good to have you back! You could always write about iBiquity's hype at CES 2010:

http://tinyurl.com/ydxtapo

Anonymous said...

You said it very well. It's content. It's all about content. Put something on that people want to listen to and they will come. It's been that way for a hundred years.

Anonymous said...

Fact check - his name is spelled Donny, not Donnie. "long in the tooth"? Go see one of his Vegas shows - at 52 he (nor anyone) is ready for the grave yet. Things change in radio just like everywhere else. And like pretty much everything else, bottom line it's about the money.

Anonymous said...

To Anon 7:38.

Not being a member of the Donnie or Donny Osmond fan club or an employee of Citadel or the contractor who is supplying this 'talent' I view this new Osmond show as still another example of how Citadel finds ways to eliminate more jobs in favor of adding some has been hack that appeals to Delilah fans & people who hate real music.

Anonymous said...

To Anon 7:38.

Not being a member of the Donnie or Donny Osmond fan club or an employee of Citadel or the contractor who is supplying this 'talent' I view this new Osmond show as still another example of how Citadel finds ways to eliminate more jobs in favor of adding some has been hack that appeals to Delilah fans & people who hate real music.

Anonymous said...

this means that even less people will be listening to radio than the year before. each year radio loses a significant number of people to other platforms and i see no reason why this year will be any different. you would think that farid suleman and others would learn from their mistakes expect they are masters at passing their failures on to others to take the heat for. the problem is not really radio. it's the banks for allowing this charade to continue.

Anonymous said...

John, hope you had a great holiday season.

How about in one of these blogs you discuss how to make podcasting profitable? I am a big fan of the old Don & Mike radio show, and when Don 'retired', Mike kept the show going here in DC until WJFK brought in a consultant who decided that DC needs a 14th sports station. He now does a daily 1 hour podcast (with really good production value) and it got me wondering, if this is the future of (talk?) radio, how does one make it profitable?

People aren't going to start paying for it since it's free already, and I doubt that they could make enough money to cover salaries from donations alone.

So what's the financial future of podcasts?

Anonymous said...

What did they pay for an AM-FM in Canton, Ohio? $44 million, something like that? They expected to be profitable? They expected they would get even more $$$$ selling it to a 'greater fool?' Another wannabee CEO that got punchdrunk on power.

Anonymous said...

Someone said the definition of stupidity is doing the same actions and expecting different results.
This is true of US business as a whole and particularly radio and TV. Witness the latest flap about Jay Leno's prime-time show. Outside of saving all that money, what else did NBC expect?

Anonymous said...

I believe they sold their Erie, PA stations at a loss - A HUGE loss. Happened 2-3 maybe more years ago.

Anonymous said...

John, You were right on about Sarah Palin. You called it before anyone else.

Anonymous said...

Wow John Gorman criticized Sarah Palin? Shocking! Gorman political views are Democrats= wonderful Republicans= horrible. Some real genius there let me tell you.

Anonymous said...

@12:33 PM - perhaps mr. gorman just prefers not have unqualified, undereducated people of questionable mental stability speaking for the people, regardless of party.

Anonymous said...

Really then perhaps Mr. Gorman needs to speak to Harry Reid, Nancy Pelosi, Chris Dodd and Barney Frank who are all of questionable mental stability speaking for the Democrats.

Anonymous said...

Totally agree those are the 4 Buffoons of the Apocalypse

Anonymous said...

while i'm not defending those four, i don't recall any of them getting broadcast positions recently, which is why Palin was brought up to begin with...

Anonymous said...

Sarah Palin drives liberals crazy. It is hillarious to watch. For someone that is so stupid and such a diva etc. They hang on her every word and worry about everything she says and does.

chattersley said...

Hold the fort, John. We need you. Of note in Austin, TX, is the moves that local public radio stations are making at the behest of NPR, which is long tied to iBiquity. The expensive move to HD radio necessitates doing away with local content, leading to uprisings in Austin (http://www.facebook.com/group.php?v=app_2373072738&gid=112566211435#/group.php?v=wall&gid=112566211435) as well as Boston (http://www.facebook.com/group.php?v=wall&ref=ts&gid=201481030324). And similar moves changed the face of public radio in Detroit, Seattle, and Orlando, among many others. Austin's KUT is run by Stewart Vanderwilt, who served on the NPR Digital Transition Advisory Committee as well as on the board of DEI and PRI... There are a lot of names that keep turning up, the more you dig. Stay with it, John boy. We need you.

Anonymous said...

For a change, a level headed diatribe but please. Anyone who's pleased with satellite radio AND thinks it's big reason radio is useless is fooling themselves. Satellite is destined for failure when all is said and done.
Subscribership has stalled and fallen. People don't give a crap about it. And once Stern blows town it's safe to say they'll lose a few more subscribers. Radio's got issues but satellite ain't one of them.

And by the way....as a Dem I LOVE hearing Sarah Palin talk. Nothing she says makes me crazy. I'm just sitting back waiting for the next idiotic thing to blow out of her piehole. She's the gift that keeps on giving and anyone thinking she's a threat needs to chill. She's freaking hilarious if you ask me (ok, if she were the VP I'd be scared out of my mind -- thank you John McCain!)

Anonymous said...

>> Subscribership has stalled and fallen. People don't give a crap about it. <<

Actually, ratings and subscribership are both up according to information released yesterday (Arbitron and corporate). I don't know what the future holds as I'm not close to their situation but setting the record straight here is low-hanging fruit.

Anonymous said...

And by the way....as a Dem I LOVE hearing Sarah Palin talk. Nothing she says makes me crazy. I'm just sitting back waiting for the next idiotic thing to blow out of her piehole.

Yeah because Dems never say idiotic things out of their own pieholes? Danny Glover blamed the earthquake in Haiti on global warming. Yep never a stupid out of the democrats. They are "intellectuals"

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Anonymous said...

Last I checked Danny Glover wasn't one heartbeat away from being President of this country. Who gives a crap what an actor says. What SHE says is relevant only in the sense that she's all over TV. Instead of VP McCain made her a multimillionaire. And that should piss off any one us that knows we may not be the smartest person in the world but we're sure smarter than she is.

Anonymous said...

Now we're quoting Arbitron as an end all? Ok, keep in mind that 35 million HEAR satellite radio. Not exactly the same as subscribers. My kid just got a new car with 6 months of Sirius and she COUNTS as a subscriber though has no intention of paying for it when the freebie is up. It's all crap. And when was the last time did you hear ANYONE say "did you hear what Howard Stern said?" Satellite radio is destined for massive failure. Just a matter of figuring out what date that will happen.

Anonymous said...

I didn't hear anyone talking about what Howard Stern said, but last Fall at my son's football game, a couple of other dads that I didn't know were behind me, and I overhead their conversation. They were apparently both alums of the University of Texas which is far away from here. One of them was describing how all the games he could listen to in his car, when camping, etc. The other man was very, very interested. I sat there wondering how many similar such conversations take place. I'm not a shill for satellite radio, but I'm just telling what I heard.

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Anonymous said...

Any comments (maybe even some nominees) for the Lowry Mays Excellence in Brodacasting Award?

Anonymous said...

"Any comments (maybe even some nominees) for the Lowry Mays Excellence in Brodacasting Award?"

I keep throwing up in my mouth every time I read "Lowry Mays Excellence in Brodacasting Award"

Anonymous said...

For the Lowry Mays Award I'd like to nominate Citibank after the bankruptcy proceedings.

Anonymous said...

How is that HOPE and CHANGE working out for you Obama Kool Aid drinkers?

medianet said...

the Race logic is true. but when you try to apply it, It doesn't carry any value to your business. when you play tricks around buyer by selling unworthy stations for hefty prices, it should bring negative impact on your business image

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