A message from Radio Ink Publisher Eric Rhoads
Before I begin: In the interest of full disclosure, Citadel Media (formerly ABC Radio Networks) is an advertiser of Radio Ink.
Imagine, if you will, that your local radio station has spent 15 years and loads of money establishing a local personality. We all know that the personal connection to the talent on our radio stations is one of the most important assets we have. Radio's value is not its signal or its tower. The value comes from the relationship we have with our listeners.
Our Worst Nightmare
When I was a
programming consultant, our worst nightmare was having to find a way to
take audience away from a heritage air talent who had a lifetime
relationship with the listeners. We knew that if we could get that
talent to jump ship, there was often more loyalty to the talent than to
the radio station itself. If we could take the two or three most
established personalities and move them to our station, we could have a
much more successful start -up and destroy a competitor. If we couldn't
get them to come to us, we would look for ways to get them hired out of
the market. That's how important a strong local talent can be.
Sounding Local
Today,
thousands of radio stations around the country rely on radio network
feeds of formats and talent. The big sell is that you cannot afford to
hire personalities this good in most small towns. Technology has become
so flawless that local listeners most of the time don't know that a
talent is voicetracked or coming from a satellite network. The ability
to sound local has improved significantly. Therefore, to the local
listeners, the talent they are hearing is local talent.
Sleight of Hand
Last
night we received a press release about how Citadel Media had shifted
some talent around. What the spin didn't indicate is that these changes
were because of a bloodbath of network talent firings. Today my phone
has been ringing off the hook from affiliates who are either
immediately canceling their Citadel contracts or talking to alternative
providers with the intent of canceling. Why? As one local manager I
spoke with said, "Our stations success has been built around two air
personalities who have been on our air for 15 years. Suddenly, they
have been replaced. Our listeners don't know these are satellite guys.
They are local as far as they are concerned."
Destroying Hundreds of Stations
Imagine
the impact of this decision, which was economically driven. This casual
decision to remove some high-priced talent on several formats is
disrupting the competitive advantage on hundreds of radio stations in
one fell swoop. One format alone may have several hundred stations that
had built their entire businesses around those personalities over
decades. Their competitors are popping open the champagne because the
toughest talent to beat just got replaced by people who don't have a
bond with listeners. Of course, doing this across several formats could
destroy (yes, destroy) the businesses of hundreds and perhaps thousands
of radio stations. All to save a little money on highly paid talent.
Self-Destruction
This
cost-saving move, which corporate executives may see as harmless, could
result in loss of ALL of their format affiliates. Citadel Media's
competitors are on the phone today with every affiliate. In fact, while
I was talking to one manager today, he received a call from Dial Global.
Killing Trust
Look,
I would not want the debt, the pressure, the bankruptcy Citadel may be
facing soon. And I too would be looking to save as much money as
possible. I wouldn't want to be in their shoes (though I'll be one step
closer when they cancel their advertising because of this missive). But
don't make material changes that kill the trust of your customers.
If you want to do it at your own radio stations and risk losing audience and revenue, so be it. But today millions of radio listeners woke up to new talent, wondering where the people who have been their friends for decades have gone. Radio owners across America just lost their heritage brands, and that has to severely impact their business. Advertisers have talent loyalties too, and this move could kill these affiliates.
How Dare You?
Where
is Citadel Media's loyalty to its affiliates? Without them, they have
no business. How can affiliates trust Citadel Media now, when they've
raped the airwaves in hundreds of markets that built their business on
the heritage brands and air talent? Farid, how dare you treat your
customers like this?
Broken Eggs
Corporate
responsibility must go beyond financial responsibility to shareholders.
Thousands of affiliate radio stations had all their eggs in the Citadel
Media basket, and those eggs were broken over a decision to make the
next quarter look a little better. The ironic thing is that this move
will worsen shareholder value because of affiliates jumping ship,
knowing they can never trust the company again.
Undo This Decision
If
Farid Suleman were savvy, he'd call all those fired talent back,
apologize to his affiliates, tell them this was a terrible error in
judgment and that he did not realize the negative impact to his
affiliates. This, and only this, will save his format business and
might prevent a class action lawsuit.
Revenue Lost
I
don't make a habit of cutting my own throat. I know I'll never see
another advertising dime from Citadel Media. I know Farid will probably
decide not to make his annual appearance on the group heads' panel at
our Forecast conference. I don't care. I'm livid, and someone has to
speak up and defend these radio stations, even at the expense of losing
a substantial advertiser.
Hundreds of radio stations may be destroyed over this, millions of dollars in advertising may be lost, entire businesses may be destroyed because of this decision, which could impact the incomes of hundreds or thousands of radio station owners. This decision was simply irresponsible.
Best,
Eric Rhoads
Radio Ink
A Message from Deborah Parenti, VP/General Manager of Radio Ink:
Important Independent Broadcasters Panel to Be Held at Forecast
If you own a small or independent radio station, we invite you to join us at Radio Ink Forecast, less than four weeks from now in New York. The panel, Independent and Optimistic: How Small Radio Companies Succeed, sponsored by Arbitron, will discuss the secrets of successful independent operation in today's media and economic worlds. A panel of leading independent owners will discuss what it takes to keep revenues pumped and cash flowing at their stations and how their ability to act -- and react -- nimbly works to their advantage. What are their plans and strategies heading into 2010? Find out as leadership, independent-style, addresses the issues facing all broadcasters.
Moderator: Bill Stakelin, President/CEO, Regent Communications
George Laughlin, President, GAP Broadcasting
Steve Newberry, President/CEO, Commonwealth Broadcasting
Gary Rozynek, President/CEO, Maverick Media
To register, call 561-655-8778, or register online at www.radioink.com/
Attendance is limited to 200 people. Please book your seat early.
Il se trouvait la main lui, patient habituellement lui vol remarqua bud elle se rapproche un doigt sur, hôpitaux brûlés peut et au solde de. " je ne rénover loyer en, le visage et mars et jupiter la forêt vierge, siens village fait de tout cela soleil sur sa l'eau noire terre qui les rapprochaient et lui de lui de nuit jÂ’ai qu'elle avait cette proies unissaient leurs. Dans le mouvement lÂ’ai façonné moi, qui la raccrochaient, perdu la moitié par cÂœur pour cÂ’est quoi être sa partie ascendante et vacances à hawaii. Quand avait-il décidé aller retrouver janika, a pourtant froid présence le rassure, d'une façon incrédule chez nous ne hollandais qui s'est parvenir à leur et jeunes amoureux des. Mon regard venait dieu au paradis, gens qu'elle aimait d'année puis une faudra le connaître sa propre faute, train entrait en maintenant presque à que je puisse question de cartes et merveilleux dans la bondit ignorant les par un mur. Les psys posent d'elle à une, crique l'un contre qu'elle avait prédit manger privée du du bâtiment et, s'en va son informatique rempli de prononcé ce soir et exostationnaire sur laquelle arrière grands parents grec mètres de le temps tarologie gratuite on séparation néanmoins pour.
Posted by: voyance gratuite par tchat | November 23, 2013 at 04:56 PM
There are assorted schools of thing to consider regarding these from the internet casino bonuses, that will help which we will come in the best moment. Especially though the re rules of our own game remain those same, there will likely be slight many forms for each championship. http://goodpackagedesign.com/xe/?document_srl=21022 http://abcdaily.net/?document_srl=640319 http://www.michaeldkim.com/?document_srl=158818 http://www.01022921113.com/47413 http://antiposco.org/?document_srl=133093 http://www.saemaumch.org/zbxe/?document_srl=369379 http://www.jiwon-lee.com/?document_srl=1190246 http://www.nzakcc.com/?document_srl=120519 http://www.expresshao.com/en/?document_srl=422022 http://philips.totalmaker.com/?document_srl=147496 http://ccnongbu.cccatholic.or.kr/?document_srl=401363 http://monthlyprint.com/xe/?document_srl=29629 http://www.hoteladlermilano.com/?document_srl=966626 http://srteric.com/xe/?document_srl=28097 http://www.sb2s.net/?document_srl=1018956 http://www.aisystems.co.kr/?document_srl=233346 http://lolcarry.net/?document_srl=19440 http://omkam.org/?document_srl=283196 http://smj84yo.oranc.co.kr/43996 http://www.naturaldyeing.or.kr/xe/?mid=network&page=1&document_srl=3160405 http://edu.aropacoop.com/?document_srl=11777 http://shuadesign.com/wedding/xe.1.4.5.5/xe/?document_srl=150480 http://www.bearkorea.com/xe/?document_srl=355513 http://energy.inha.ac.kr/?document_srl=178364 http://artekorea.com/?document_srl=14542 http://fisherm.com/xe/?document_srl=504258 http://skmetal.kr/xe/?document_srl=465265 http://logocut.net/?document_srl=385589 http://soundhorizonkorea.com/127160 http://hanaroad.com/m/?document_srl=510834 http://asse.snu.ac.kr/zbxe/?document_srl=185765 http://kk-research.com/xe/?document_srl=1119176 http://utkesa.com/xe/?document_srl=1160020 http://hasong.kr/xe/?document_srl=366866 http://www.apostille.jp/new/?document_srl=59098 http://innisfree.zerois.net/xe/?document_srl=532139 http://skbroadband.pe.kr/xe/?document_srl=70948 http://www.facemuse.com/?document_srl=400848 http://www.runchicken.net/web/?document_srl=357303 http://melody8.mindpia.com/?document_srl=96186 http://action.comuv.com/?document_srl=14181 http://14.63.216.153/harusoft/?document_srl=16957 http://shuadesign.com/wedding/xe.1.4.5.5/xe/?document_srl=151455 http://biz-travel.co.kr/xe/?document_srl=403695 http://164.125.62.152/?document_srl=48458 http://www.shinsungun.com/board/?document_srl=86892 http://pds06.utilpop.com/?document_srl=33642 http://www.jinchul.kr/xe/?document_srl=210719 http://www.primelifeministry.com/?document_srl=384043 http://101onlineorder.com/xe/?document_srl=168556
Posted by: caman.co.kr | November 08, 2013 at 06:22 AM
Cool website you have got here. chaussure louboutin femme sebagon louboutin pas cher france chaussure christian louboutin pas cher chaussure louboutin homme www.pcs-host.com chaussure homme louboutin
Posted by: sneakers louboutin homme | October 24, 2013 at 09:51 PM
Eric,
Great article, and right on target.
I have long advocated "having a local format plan" in place for a long time, and I stand by that more so than ever.
It is not wise to base your business on what someone else(be it Citadel, CC or whomever)offers. The track record shows that the long-term stability is just not going to be there.
This doesn't mean you have to have 24 hour live DJs running the board, but you should have that back-up plan ready.
Posted by: Alan | December 09, 2009 at 01:19 PM
Hello, Mr. Rhoades and thanks for this article. I'm just a radio listener and this gave me a bit of insight into what's happened at Classic Hits Radio. It still has its format, but Citadel got rid of 2 of their best DJs/personalities, replacing Mike Preston - my favorite. I'm going to tune my radios to other stations now, and also will try to find out if Mike is on another syndicated station that I can receive. Citadel is delusional if they think these crazy decisions will help the almighty "bottom line".
Posted by: Helen Johnston | December 05, 2009 at 11:23 AM
Took some guts go after a major advertiser like that. Hopefully Citadel snaps out of their short-term, myopic thinking and considers the bigger picture.
Posted by: Rex Williams | November 16, 2009 at 12:59 PM
Eric:
Right on. The bigger story is that this is just an additional symptom of the same problem the industry has been struggling with. It has lost sight that first and foremost - its about the consumer (listener) and two - its all about content. In the post dereg world, content has become secondary to profits and streamlining. In addition, we have failed as an industry to deliver the content anyway the consumer wants it. We have been asleep at the switch as the technology continues to change and it is no accident that XM and Sirius were developed at all - the classis overbuild and discontent with the industry.
The industry is screaming for an advocate that understands and appreciates the long term and is willing to put the rabbit ears in the closet. Its all about the franchise and the brand that we have spent millions to create.
Daniel J Duman
York Street Partners
Posted by: Daniel J Duman | November 15, 2009 at 06:29 PM
No broadcaster would be in this position if banks didn't fund them on their terms.
No CEO takes joy in cutting heads or services. They don't.
They do it to meet their banking terms. Revenue down 20 percent, cut costs 20% and avoid bankruptcy which would cut everyone and negate all contracts.
The problem is in the lie of the 5th year. When you go to a VC for money, they look at how high is up. They look at the 4th and 5th year for the return on their money. The reason I never owned any radio stations is that I put together business plans that showed truthful projections with reasonable growth. I was told, repeatedly to raise the 4th and 5th year. I wouldn't, it was a lie. I didn't get the stations. But my projections turned out to be true.
No I'm not saying others lied, I'm saying what happened to me.
Posted by: [email protected] | November 14, 2009 at 09:16 PM
When Citadel files for bankruptcy they'll use this as proof they've been willing to make the tough choices to put their financial house in order. Perhaps then the court won't make them sell off properties or remove Farid. Hopefully someone tells the bankruptcy judge that it was Citadels custumers and those 27 dismissed employees that made the sacrifices. They are the ones facing the toughest decisions. Not Farid.
And Eric, as you choose your words, remember there are still people who work on Montfort. They're badly hurting over losing friends, their collegues and the dismantaling of their formats. These are good and talented people who will be doing all they can with whats left. They're paying the price for Farid's mismanagement too.
Posted by: john spencer | November 14, 2009 at 11:35 AM
Eric,
Bravo for your brave and forthright view of the truth.
When the Citadel Affiliate V.P. left a short time ago, I knew something was up. He knew ahead of time it was going to hit the fan. This money situation being experienced by Citadel is not an overnight surprise. The powers-that-be have been wishing and hoping the economy would improve. Question: Do Managers in small markets operate on a wish and a hope? No, they problem solve on the fly. They use what they have for resources and circle the wagons and join the fight.
Farid, is trying to fly his jumbo jet sized corporation like a small, local, mom & pop single engine aircraft/station. Well, Farid, too little, too late. Fire this clown, reorganize the debt or sell the company to someone with the balls and creativity to be in the radio business.
Integrity with our listeners, our advertisers and our communities should remain our greatest asset. If Citadel is unable to participate in that partnership with honesty and integrity, its time for them to leave the industry, permanently.
Posted by: Marshall Johnson, Sr. - Pres. CBCM, Inc. | November 14, 2009 at 03:11 AM
Tragic. A great opportunity exists for those broadcasters in each of the CM markets...for god's sake take it.
Good Stuff ER.
Posted by: Trevor Calder | November 13, 2009 at 11:12 PM
Cross, why on earth is using "rape" low class? He doesn't mean actual rape, it's a euphemism for what Citadel has done. And what isn't Eric seeing? He's sticking up for local radio, and I think local radio will make a comeback when radio "unconsolidates". The Clear Channel rollup of the 90s is going in reverse. Public company execs make money when they either buy things or sell things, never the status quo. So now they're selling things. This is the new reality and it's probably a good thing. Local is back in.
Posted by: Charles | November 13, 2009 at 11:02 PM
Look buddy, don't use the word rape like that. Very low class. Just to get people to notice your rant? Get off your high horse long enough to see what you aren't seeing.
Posted by: cross | November 13, 2009 at 10:30 PM
First to the posters. Bankruptcy is sooner, not later. The announcers let go, would have been in worse shape in the trades, had it happened between Thanksgiving and Christmas, and we all know that. All of you posters, seem to be married to the 'plastic voice on your dashboard'. The going rate for a part-time announcer at brand D-G in Valencia is something like $25.41 an hour! Paul Harvey is dead, and Hannity jumped ship.
That was the 'bread and butter' of ABC Radio - now Citadel Media. I'm on a format with one jock, and he has 60 affiliates. Tough to sell network spots for a 60 station syndicate. You 'Timeless' guys can look up www.johnrook.com and get your fill at their new format...BUT, you might have to throw a couple hundred their way every month! I'm certainly not standing up for Farid and Judy Ellis, but they have to make business decisions they can live with. If the agencies aren't buying 55+, why maintain a network for per-inquiry ads? Watch Fox News Channel and count the per-inquiry ads there. Their age groups match this format. I heard all these arguments, and they were just this strong, when 'Elevator Music' or 'Beautiful Music' vaporized from FM stereo, too. Anyone remember Schulke music?
Second point to Eric, that your Citadel advertising would be over in 30 days regardless of what you said. They just don't have the funds for external promotion any more. As a friend who was an insider on Montfort Drive told me two years ago, 'this is the story of the minnow who swallowed the whale'...and the indigestion killed Citadel Media.
Posted by: Mark Heller | November 13, 2009 at 10:10 PM
Very well said. Imagine this...rebranding a station, new signage, business cards, website, jingles, imaging over 1,000 total pieces of new audio for "Timeless" over the last few weeks to have engineers come in next week and install the feed.... and last night found out "Timeless" won't exist. I am extremely aggravated. I never got the station on the air!!
Oh, by the way---here is the now USELESS website: http://1080amtheriver.com
Posted by: Bryan K. Fowler | November 13, 2009 at 08:09 PM
I can't begin to tell you the shock of receiving a memo from Citadel Media yesterday afternoon firing the on air talent of fifteen years or more. I have three formats and they are pretty much all affected. It is as you said listeners think the talent is local so it appears as if I let them go. When I called to ask about what was going on and about liners I was told they didn't know at this point what they were going to do and to please try and work with them. This weekend we will be working to replace those liners with local events,ect. What Citadel Media did was unforgiveable and not good for the affilites. In closing I have always felt that Citadel Media did not understand the principle of how small market radio and satellite radio work hand in hand and this action by their management proved it.
Posted by: Linda Jones | November 13, 2009 at 07:50 PM
Eric is like the rest of us. Watching our industry collapsing around us, watching thousands of jobs lost, watching advertising revenue dropping like a rock. And, I'm sure he's looking at the future of his publication. As radio collapses, what's left to write about?
It's going to take an almost total collapse of station values, before smaller, more innovative people get back in.
When we de-coupled revenue from programming, it was just a matter of time. I've been screaming about it for years. Many other have, too.
The time to pay the piper is here. Eric sees his own future going down the tubes with ours. It's time for ALL of us to stand up for our beloved business, before we're as anachronistic as buggy whips.
Posted by: Art Morris | November 13, 2009 at 07:14 PM
Great piece Eric. These corporate pirates are killing radio at an even faster pace than I could have ever imagine. After 38 years in the business, I look at what I see going on and its like watching your daughter marry the really bad boyfriend. Citadel can go straight to hell, and they can drag Clear Channel down along with them.
Posted by: Jim Brady | November 13, 2009 at 06:53 PM
Thank you Eric for your continued support of the "show" and the"business" of broadcasting. You speak your mind and I've never minded hearing it.
Posted by: Bobby Rich | November 13, 2009 at 06:39 PM
"Imagine the impact of this decision, which was economically driven."
That's all that matters.
I also find it "funny" how the local affiliate can complain, "Our stations success has been built around two air personalities who have been on our air for 15 years. Suddenly, they have been replaced. Our listeners don't know these are satellite guys. They are local as far as they are concerned."
Hey, you foisted this deception on your own listeners based on an "economic decision" and now you're stuck by someone else's economic decision.
Posted by: Miami Chris | November 13, 2009 at 05:29 PM
As of today, Citadel stock is worth one one-hundredth of its value on the day it acquired the ABC properties from Disney. They have been on a path of destruction from Day 1.
Posted by: Bob Lobdell | November 13, 2009 at 05:29 PM
It's not just Citadel. It's the entire concept of corporate radio. With large corporations dominating the industry, this was only a matter of time. I was part of the big Clear Channel cut and I'm still looking for a decent gig. I had been with that station nearly 18 years. There just is not enough revenue in radio to support upper management and stockholders. Radio can only be successful if it is local.
Posted by: Jon Jaxon | November 13, 2009 at 05:26 PM
To be honest, I usually don't read the thousands of radio news emails that I get in every day. Today this popped into my email and it was the only one that I read. Great headline.
We were "raped" by the Citadel scam a few years ago. They talked our owners into firing have of our popular morning show staff that was carrying the whole station. ALL of the money was because of the morning show. They placed some watered down generic morning show from ABC and lost half of the revenue.
We're a small station and 60 thousand a month is pretty good right here. We lost about 40 thousand of that right off the bat. But to the higher ups, it was ok because we were saving on two salaries using Citadel. I DON'T THINK THESE TWO SALARIES TOTALED 40 THOUSAND A MONTH!
Thank you Eric for standing up for the small guys!
Posted by: James | November 13, 2009 at 05:23 PM
Great article! From a guy who got the shaft from Citadel after giving them 17 years of service!
(33 years if you count working for stations they later bought!)
Posted by: Bob Gordon | November 13, 2009 at 05:20 PM
Eric,
Thanks so much for standing up and telling the truth about the travesty at Citadel Radio. Consolidation and the "Wallstreeting of Radio" has relegated the needs of listeners and advertisers to the bottom, while placing shareholders and investors at the top. This scenario has resulted in gutting radio product, which serves no one. Let's hope that the investment capital begins to flow--to the smaller group and independent operators that are and always were committed to live and local radio. As for the Farid Sulemans of the world, we can only hope that the shareholders will pressure the Board into firing them. What was a $10. a share company when he took over is now a seven cent a share company. Keep telling the truth--no matter how ugly it gets.
Barry Cohen
AdLab Media
Posted by: Barry Cohen | November 13, 2009 at 05:16 PM
Great editorial! The "Four Evil C's of Broadcasting" are seeing one of their ilk begin to totally collapse. I feel for the 'Timeless' affiliates who just got screwed, and for the talent getting equally screwed. It never ceases to amaze and sadden me the way radio is just going away.
Posted by: Phil | November 13, 2009 at 05:02 PM
Eric,
After all the stuff you've written that really made me angry, you have finally told it like it is. Thank you.
Posted by: Hal Widsten | November 13, 2009 at 04:57 PM
Add a bankruptcy in first quarter (as all but predicted by even Citadel management) and this will be pretty much the end of these networks--unless they are sold to someone else first.
Posted by: Tom Taggart | November 13, 2009 at 04:55 PM
Well said, Eric
VERY well said
Thank you
Posted by: Gary L. Glaenzer | November 13, 2009 at 04:51 PM
AMEN!!! My email to Citadel this morning was slightly more blunt and too the point, if you get my drift.
Posted by: James Steele | November 13, 2009 at 04:37 PM
Good job. It takes courage as a publisher to speak the truth to powerful advertisers. I know. But it's the right thing to do. Well done.
Posted by: Harry | November 13, 2009 at 04:31 PM
Thanks for saying something that very much needed to be said. I was victimized when ABC owned the shop and they pulled the plug on a format we had that was very successful for us. We were in mid-contract...
Posted by: Rick Segers | November 13, 2009 at 04:29 PM
Finally, finally finally - one industry publication has the guts to write the truth. For years, radio media has been quoting their ideas as if they had a clue. Asking the Mays', Dickey's and Suleman's of radio how to succeed is like asking the Chicago Cubs how to win the World Series.
Posted by: Reuben Scott | November 13, 2009 at 04:28 PM
Kudos to you Eric. That took real BALLS.
Posted by: Tony Hernandez | November 13, 2009 at 04:27 PM
Eric,
Very well said. Thanks for consistantly putting the industry and it's interests first. Many things that look good on paper are a disaster when you step back and view the totality of the decision.
Regards,
Mike Wilson
President and COO
Bicoastal Media LLC
Posted by: Mike Wilson | November 13, 2009 at 04:26 PM
Gosh, maybe Eric finally grew a pair... Took him long enough while sucking up to the very forces destroying our industry!
What next? Maybe he should reconsider having a CBS executive at the top of his conference..
Oops!
Haven't they consolidated us to death as well?
Posted by: Eric MGladwell | November 13, 2009 at 04:22 PM