Access Atlanta > Entertainment > Radio Talk > Archives > 2006 > November > 22
Wednesday, November 22, 2006
11/22: CCU’s problems nationwide
The Atlanta Journal-Constitution
Radio & Records, a trade publication, posted an analysis of Clear Channel’s woes nationwide that have led to cost cutting in many major markets, including Atlanta.
Thanks to John Young, a loyal blog reader, for pointing the story out to me.
Here are some key excerpts:
Once the industry’s most aggressive consolidator, CC quickly achieved the efficiencies that came with merged operations. But in the last two years, growth ground to a screeching halt, leaving CC and Wall Street seeking a boost for the stagnating radio market. Last year, in an effort to turn things around, the company spun off its live entertainment division and 10 percent of its outdoor company. Still the stock languished, leading to the private equity offer. Even as the company sought a buyer, it sent marching orders to its stations to hold the line on expenses. Over the last few weeks, that has resulted in layoffs — nearly all of which are in programming — at many of the company’s radio stations in the top 100 markets.
At a time when radio is facing a soft advertising market and mounting competition from new media, CC’s strategy is curious. The time people spend listening to radio has declined at the rate of 1.5 percent a year over the past decade, according to Arbitron. While CC likes to characterize itself to Wall Street as a content company, the content cuts don’t fit that bill.
Rich Russo, director of broadcast services for JL Media, said the moves were indicative of the soft radio market. “When things are bad, you eliminate a level,” he said, adding “I can’t get upset any more when [radio groups] fire programmers, because no one is programming anyway.”
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11/22: What becometh the GST ousted?
The Atlanta Journal-Constitution
It’s a not-so-happy Turkey week for the Kimmer, Tom Hughes and Denny Schaffer. Schaffer is the only one I’ve spoken to so far and he is under contract for quite awhile. He said he signed a three year contract 14 months ago so he was checking with his attorney to see if GST is obligated to pay him for the entire 22 months to not work. In any case, he’ll be paid for quite awhile one way or another. And here’s the take from Schaffer’s former haunt Toledo
I’m not sure what severance or contractual obligations the Kimmer or Hughes had. I’m going to try to reach both of them today.
Now the question is: where will they land? There are now enough unemployed radio personalities in town to populate two or three new radio stations. “Southside” Steve Rickman, Jennifer Reed, Wally (formerly of 99X), Jimmy Baron, Steve Barnes and Tim Rhodes are just a few of the others who are seeking jobs.
I spoke briefly Tuesday with Mike Moran, general manager at WGKA-AM (920), which currently airs all syndicated product during the weekdays. He said there were no immediate plans to add local personalities though the station has discussed it. It would be an ideal place for any of the three departed GSTers to go. Another place is business talk 1160/WCFO-AM, which is run by Jeff Davis, a former GSTer. I need to give him a call. WSB-AM is a bit bottlenecked right now but would folks enjoy the Kimmer after Sean Hannity instead of Michael Savage?
I don’t see 790/The Zone going for any of the three but 680/The Fan has run Bill O’Reilly in the past.
And here’s a link to the story that ran in the print edition on the firings.
