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Fred Jacobs is President of Jacobs Media, a media research and consulting firm. Jacobs Media clients have included CBS Radio, Premiere Radio Networks, Citadel, Greater Media, MTV Networks, Playboy, Amazon, Electronic Arts, NPR, Sylvan Learning Centers, and Taubman Malls. Learn more about the company here.

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August 2011

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« Too Political? | Main | It Don't Come Easy »

Comments

Bruce Barber

Fred,

Excellent points here.

FYI; As you know, I was a morning guy for over 20 years, and for the past five years I've been and "independent". One of the things I've been working on is a collection of "Tips for Living" called "The Real Life Survival Guide".

Well, I've just started creating minute long podcasts from the 200+ interviews I've conducted (my goal is to produce 2 new episodes per week), and I'm offering them, FOR FREE, to anyone willing to try "programming a new feature..."

You can check out my efforts here;

www.thereallifesurvivalguide.com

Cheers!

Bruce

Bob Bellin

Fred's right but this begs the real issue that is plaguing radio - too much debt.

The current financial woes of most radio companies make it nearly impossible for them to provide enough personnel to implement what he suggests. The cost of debt service has forced operators to cheapen the product, which is the main reason that listeners and advertisers are slowly weaning themselves from it.

A big sellout inspired fallout is probably what's needed to right the ship. Most radio stocks were all but worthless even before the market plunged and reorganized radio companies (at 5-7 times multiples probably) with new leadership can revitalize the industry. More of the same will hasten the erosion and further poison radio's well.

Sadly, Sirius faces a similar fate. They're now a highly leveraged penny stock facing massive cost pressures when their adoption rate is slowing precipitously.

Re capitalizing at drastically lower multiples is the only responsible thing operators can do. Their shareholders would be better served with a smaller interest in a company that had a chance to grow - 10% of something is better than 100% of nothing.

Bruce Barber

Oops, I meant "...AN "independent"...

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