Uh oh...CBS corporate just announced plans to spin off 50 midmarket radio stations to concentrate on more profitable large market stations. No word on what stations are on the block yet.

Uh oh is right. This really doesn't bode well for the listening public that DOESN'T live in a huge metropolis. I'm assuming that KHITS is a midmarket station?

CBS' 2nd quarter earnings report shows the corp gained only 1% overall and the radio division lost 9-10% over the last two quarters. The TV division makes about 5 times more revenue than radio. Seems like one saving grace of the CBS brand is the CSI franchise. Warner Bros people I talked to tonight are worried because the CW is tanking and the CBS numbers could damage the combo network. It's a little too soon to speculate on how this will all play out. But, everyone in my field is concerned about the decline of ad sales, the effect of the writer's strike, and the potential of a SAG strike as all those issues effect everyone from talent to receptionists.

quote:

Originally posted by Sioux:
Uh oh is right. This really doesn't bode well for the listening public that DOESN'T live in a huge metropolis. I'm assuming that KHITS is a midmarket station?

According to Arbitron.Com, Portland, OR has a market ranking of 23 out of 302 markets.

If CBS were to sell every station in their 11 smallest markets, which would include PDX, that would equal the magic 50 they indicate they want to sell. But that's an oversimplification and anything is possible. The trouble is, uncertainty is very demoralizing, especially to an already-struggling sales force, and can be a self-fulfilling prophecy.

Yes, that's understandable, but our question is,
"How does this affect Mark's show?" If there is a new owner, will Mark have a show or is it too soon to know? And what happened to the syndication plans?
I know, I'm just full of questions!

Well, they already peed on the heads of several of their most-MAJOR-market listeners a couple of years back with that "Jack" format nonsense. But at least they were able to take that back, they still owned the stations.

CBS need to bring back the "OLDIES" - Cousin Bruce & etc. - so much for the Baby Boomers not
spending $$$ -- we still are the largest market

I assume that like any corporate reorganization, no moves will be made, especially regarding budget issues. They will try to slash costs and barter for programming wherever possible. I'm not talking specifically to KHITS, but radio in general when faced with this scenario.

We're just going about our business, and what happens, happens. Once that's sorted out one way or another, we'll address the syndication issue. However, if you look at the gloomy landscape for radio that this article The CBS Radio Firesale paints, if we don't go back on KHITS, I doubt if we'd do the syndication from scratch. (There were economies in time in doing similar shows.)

"Radio is a declining business with little to no prospect of regaining its growth sector status. Playing by Wall Street rules has nailed the coffin shut. Now you'll be seeing operators trying to climb out."

So, at this point, it's all wait and see and who knows and as Someone's Mother sang, Que Sera Sera.....

Wow...interesting article and so are the remarks posted with it. I really didn't know anything about the subject, other than witnessing how many stations had been purchased by the big conglomerates over the last few years. Anytime I see giant takeovers, I worry about the future climate of the business.


Anyway, thanks for the info...I'm learning more.

SIGH. And, it's funny, but I actually thought that radio stations broadcasting online would be the "savior" of the medium...

Man, I need Radio 101! Entry level course in understanding this stuff. Zecchino (comments section) refers to "HD" tanking...I'm out of the loop here. Is that reference to on-line broadcasting?

HD radio is available with special (expensive by radio standards) HD radios. HD enables the station's band to be split so that they can broadcast side channels of alternate programming.

The public has all but ignored it and I think is really confused, between HD radio and HD TV, which are not at all the same thing, except for the audio(+ visual) quality being exceptional. Throw in satellite radio and online listening, not to mention online movie downloads, and I think people are just on information and technology overload -- especially the people who are radio's most likely listeners.

You've hear Mark talk to Bartleby on his show? B teaches @ University, and asks his students how many listen to the radio. One or two hands. Buy CDs? Read newspapers? Ditto.

quote:

Originally posted by Sioux:
SIGH. And, it's funny, but I actually thought that radio stations broadcasting online would be the "savior" of the medium...

I did too. But it seems as though (like a lot of online advertising), nobody has a real handle on how you do it profitably (i.e. how you convince advertisers w/budgets to spend them in a new medium where results don't have a track record.) It's still very early in the learning curve for all involved, and if radio is to survive (and advertisers want to reach people who don't listen to "radios" or read print ads), it looks like they'd all better catch on fast.

Thank you for the explanation! I see, I now get the idea of spliting the stations band(width -right?) so that side channels of alternate programming can be broadcast - a very interesting concept. You are correct...information overload...in a world of many choices.

I've not heard Mark on the radio (I'm quite embarassed to say that) because our computer soundcard continues to have "issues." Sigh. I would also like to hear what Bartleby has to say in reference to the radio and, also, how his students obtain/gather/reflect information. I promise to try to get that blasted soundcard so that it works properly!

Thanks again for the information!