Clear Channel job cuts a symptom of radio ad woes

Clear Channel job cuts a symptom of radio ad woes

THE ASSOCIATED PRESS

2004, file photo of Clear Channel Communications Inc. in San Antonio. Clear Channel has announced two rounds of job cuts this year, including layoffs at its Richmond-area stations

» 30 Comments | Post a Comment

Recent job cuts at Clear Channel Communications radio stations are a symptom of the economic pressures on the radio industry that also are driving the airwaves toward more generic programming, some broadcast industry experts say.

Clear Channel, the nation's largest radio station owner with about 1,200 stations, has announced two rounds of job cuts this year, including layoffs at its Richmond-area stations. The company yesterday reported a loss of $418 million for the first quarter, as revenue fell 23 percent to $1.2 billion from $1.6 billion reported for the first quarter of 2008.

Last month, the company also announced plans for new daytime programming at its radio stations. A company spokeswoman declined to comment further on the plans, though a release from the company indicated it would mean local stations would be encouraged to use more programs that are produced outside of local markets, such as "On Air with Ryan Seacrest."

"In short, it is going to mean less local programming and more stuff brought in from other markets," said Dave Hughes, a journalist in Washington who runs the broadcast industry news Web site dcrtv.org.

Managers of the six Richmond-area Clear Channel stations did not respond to repeated phone calls.

A move toward more syndicated and national programming over local shows may help broadcasting companies save costs and pull in additional revenue for popular shows, but they also are walking a fine line between helping their bottom line and alienating loyal listeners, said Buck Robinson, founder of Henrico County-based Robinson Radio, which develops direct-response advertising for radio.

"Radio is a relationship-driven medium," he said. "The loyalty of the audience to a host matters."

Clear Channel was acquired for $18 billion last year by CC Media Holdings Inc., which was formed by a private equity group led by Thomas H. Lee Partners and Bain Capital. The company reported a $4 billion loss in 2008 on revenue that declined 3 percent to $6.7 billion.

In Richmond, Clear Channel owns AM stations WRNL and WRVA, and FM stations WBTJ, WRVQ, WRXL and WTVR. The job cuts in April included three full-time and three part-time employees at WRVQ. Those cuts included Sid Kelly, part of the "Melissa & Sid" morning show on WRVQ, and three part-time on-air personalities for the station.

Yet the local cuts are just one example of what is happening industrywide, Hughes said.

"Clear Channel is the largest radio company in the country so they are laying off the most, it seems," he said. "They are the [company] that everyone is watching, but everyone is doing it."

Clear Channel and other broadcasters have been facing financial pressure in a severe advertising slump. The Radio Advertising Bureau reported that industry revenue was down 14 percent in the fourth quarter of 2008 and 9 percent for the year.

"We have gone through, in the last year or two, a kind of perfect storm of influences," said Michael Guld, a Richmond-based radio commentator, consultant and president of the Virginia Association of Broadcasters. Along with a drop in advertising in the economic downturn, changes in consumer habits and technology have been putting pressure on the industry.

"Radio audiences are more fragmented than they used to be, and there are other alternative sources of news/talk and music programming besides traditional radio," said David J. Urban, a professor of marketing and chairman of the Department of Marketing at Virginia Commonwealth University.

Listeners now have the option of subscription-based satellite radio, or downloading music or podcasts of news/talk shows to computers or MP3 players, he said.



Contact John Reid Blackwell at (804) 775-8123 or .

Staff writer Louis Llovio contributed to this report.


Richmond-area Clear Channel stations


WRNL 910 AMSports


WRVA 1140 AMNews/Talk


WBTJ 106.5 FMUrban


WRVQ 94.5 FMTop 40


WRXL 102.1 FMRock


WTVR 98.1 FMAdult contemporary


Advertisement

 
View More: radio,clear channel,business companies,broadcasting,advertising,
Not what you're looking for? Try our quick search:
 

Advertisement

Reader Reactions

Flag Comment Posted by blue67ccm on May 13, 2009 at 6:27 pm

As someone with first-hand knowledge and experience working in Richmond radio for many years, I can say that the headline would better read “Current Radio job cuts….“, rather than “Clear Channel job cuts….“.  Two reasons.  Almost all major radio companies are having to cut personnel due to the economic situation and general loss of radio ad revenue during this downturn.  Second, Clear Channel has employed (no pun intended) the tactic of laying off people year after year, even during good economic times when the local group was turning a profit, going all the way back to when they moved all their stations to the one building on Basie Road (letting go of people like Tim Farley, Lou Dean, etc. on Church Hill at WRVA), back in 2000.  That, too, was another era where the economy was not suffering.

There is, locally, a direct connection between the downfall of Richmond radio and the Telecommunications Act of 1996, which, instead of bringing “competition”, brought us to the quagmire we are in everywhere of few companies running 4 to 10 stations in a market with LITTLE local ownership and decision-making.  Clear Channel has been planning this model of “play one song playlist on all similarly-formatted stations nationwide” for a decade now.  Meanwhile, Cox should be ashamed of itself.  Theire stations play nothing more than the same songs over and over with no personalities, just people reading prepared statements on liner cards about “50 minutes of music per hour” and the “commercial-free drive at five”.  Mix 103 is its third attempt to play the same format under a “new” moniker.

I’m smart enough to know the days of the original Q Morning Zoo, the real personalities of XL102 (pre-Jeff and Jeff, like Dick and Dixie and Paul Shugrue), and the legends of WRVA will never return.  But radio does have a chance to redeem itself by taking its one biggest competitive advantage, BEING LOCAL, and using it, NOW.  Newspapers are withering, and though as an earlier commenter said correctly, network television is surviving (do you think CBS cares what local news content is on in Richmond?  Versus Denver?  Listen up Clear Channel…), local TV stations are slowly paring down their news departments across the country.  Many stations have canned sports departments, and the days of the two-anchor format may be numbered down the line (i.e.—why are we paying two people to read the news when one will do?)  NOW is the time for radio to RETURN to providing LOCAL programming with personalities you could actually MEET at an event or live broadcast (when is Elvis Duran going to be in Richmond, eh?) and connect with.  People you enjoy listening to, along with the music you like or the news/talk you need/want!  No need to make everything local (people want Rush, for example); be smart about your programming and listen to what the people want.  Simple as that.

One last thought.  As Clear Channel destroys the heritage Q94, once filled with personality and now down to one local figure, it does hold onto one station with at least the local flavor radio needs, Lite 98.  The music you can take or leave, but Bill Bevins, Shelly Perkins, Kat Simons and Adam Stubbs are the real reason why that station has been at/near the top of the ratings for years now.  If Clear Channel ever decides to make it Lite a John Tesh-driven jukebox, will the last Clear Channel employee please shut the lights out.  And don’t put it past them.  It’s all about the bean counters, who know nothing about radio.  Which is why the company is over $20 billion in debt and their credit rating is falling.

All the comments here about the sorry state of Richmond radio sadden me because I know what it once was and what it can be!  But, I must agree with the premise as well.

Flag Comment Posted by Reverend on May 13, 2009 at 10:13 am

What big corporations forget, not everything can be made “cookie-cutter”, and people need to realize there is such a thing as “regional culture”.

What plays in New York, or L.A., isn’t gonna do well in Miami, or New Orleans. Ya’ gotta know your audience’s taste!

Flag Comment Posted by C.V. Rupp on May 13, 2009 at 10:04 am

I promise you this, Cox is doing the exact same thing. They had Sludge and Abe and fired Abe and put on Bubba the Lovesponge. Then moved Sludge. I sure he will be gone soon.

Cox is just as guilty of destroying radio in Richmond as Clear Channel.

Flag Comment Posted by jh28 on May 13, 2009 at 9:46 am

What i heard on one of the Cox station is that Clearchannel is going to cut out local DJs and central program stations from their HQ.  So all their modern rock stations across the country would play the same song at the same time, cuts the amount of people needed.

Now I don’t know if that is true, but a Cox talk show was talking about it.

In the end, thank goodness for Sirius.  I know they are losing money like crazy, but they have commercial free music, and it covers every nook and cranny of music taste you can imagine.

Flag Comment Posted by robmo35 on May 13, 2009 at 8:28 am

It occurred to me this morning that there is a correlation between network television and radio. The big three television networks, NBC,ABC,and CBS, are still around and still very competitive in their markets even in the face of cable and satellite subscriptions, and new free networks have entered the market, Fox, WB, CW etc… There seems to be room for lots of people in free network television, yet clear channel seems to blame internet and satellite for some of it’s economic woes? Network television is surviving because it provides things that people want, and customizes these things for local markets, ie nightly local news. Maybe Clear Channel should look at network television as a model for success.

Flag Comment Posted by RVA2009 on May 12, 2009 at 10:26 pm

bholl, I agree with your comments 100%. 

Instead of innocent working folks losing their jobs, the pink slips should be handled to the executives of these major corporations as they really have no idea on what’s going on today.

That’s why I listen to NPR and independent local stations as they are truly in-tuned to what folks what to hear.

Flag Comment Posted by MeToo on May 12, 2009 at 3:54 pm

the new q94 morning show SUCKS!  Not that Melissa and Sid were all that fantastic, but this is Virginia, I don’t want to hear some syndicate from New York first thing in the morning, blech!  Looks like my iPod will be getting a lot more air time.

Flag Comment Posted by Reverend on May 12, 2009 at 3:43 pm

Tried the RIR, didn’t like it much. How much is a low band FCC license? Can anyone set up a station similiar to UoR? If so? That may be the answer.

Each segment of town has it’s own individual stations.

Flag Comment Posted by VCUalum on May 12, 2009 at 2:06 pm

WRIR, Richmond Independent Radio, 97.3> Check it out.

Flag Comment Posted by bholl on May 12, 2009 at 1:06 pm

A quick scan of all the comments reveals something interesting.  We all agree that Richmond radio is awful. Its great that we all agree on something. Lets see if we can agree on this:

Lets bust up these huge media and communications companies.  Richmond and its radio, not to mention telephone and cable companies are perfect examples of businesses that should be “local”. They should be buying their national feeds, but serving our neighborhoods.  You cannot do that from a tower in NYC or LA.

All of these media companies have gotten too big to provide the services they are trusted to provide.  We furnish them with our airwaves and our right of ways and they repay us with lousy content, lousy service, and giant salaries for a few executives.

Oh, has anyone noticed that if you don’t care to watch sports, reality tv, or political news, and don’t pony up a small fortune for HBO or Cinemax, you pay Comcast or Verizon $120.00 per month for NOTHING.
Bruce Springsteen had it right, except its 300 channels and nothing on.

Post a Comment(Requires free registration)

  • Please avoid offensive, vulgar, or hateful language.
  • Respect others.
  • Use the "Flag Comment" link when necessary.
  • See the Terms and Conditions for details.
Click here to post a comment.

Advertisement

Advertisement

Online Features
Blogs
DataCenter
Videos
Weekend
 

Advertisement