Wanna be a DJ?

[stubhead]

http://www.reclaimthemedia.org/corporate_power/consolidation/radio_aftere_clear_channel1525

The writer is looking at it from the investor's point of view, and saying "Tough!" But, someone will be buying up what are now over 60% of the radio stations in America, probably one-by-one. It's not just Clear Channel that's leveraged and nationalized themselves into Enrons -

I believe Cumulus and Citadel are goners as well.

Here's the juicy bits:

4. Multiples for radio stations – please sit down here – will be for the best price offered in some markets and no higher than 4x cash flow on average in the largest markets. Radio is a damaged business thanks to consolidation and it will be reflected in the painful process of selling off stations that were once overpriced for a lot less.

5. Many stations will be returned to the marketplace where eager buyers – those who have radio in their blood – will be ready to put together a group to operate. This is a good thing for the audience and not necessarily a good thing for the buyers. Turning radio around will be tough.

6. As in the past, any new buyer who picks up stations in the Clear Channel bankruptcy will have a hard time making it work if they do not buy the station with debt they can handle in a recession and in a world where the next generation will not be their audience – ever.

7. Thus, good radio people who have been waiting for this moment may be the unwitting victims of consolidation one more time – the inability to build a growth franchise on only two generations – X and Baby Boomers, both aging.

8. There is an unintended consequence from Clear Channel’s eventual demise and that is the detonation of terrestrial radio in the eyes of advertisers and agencies. The way back is to build local stations with a local presence – and the next successful radio owners will probably know how to do this.

I sure can't buy a station, but there will be consortiums of local businesses who can - and they'll be gasping for content providers. Find out which stations in your area are owned by Clear Channel, and think! - what would you like to hear on the radio... Point #6 above makes it seem as though Clear Channel will be selling the stations with their debt attached, and clearly* it'll be a better idea to let the market (for each station)  collapse completely first.

*(Ha ha. ha...) :help:

 

[GoDrex]

I worked in radio. I worked for CC for a few months. They were lying scumbags. I got out because I couldn't stand working for these corporate weenies. I feel bad for anyone that's going to be hurt by their demise.

 

[Return of Guitlouie]

I don't really know anyone who listens to the radio anymore.

 

[Mor Paul]

I don't really know anyone who listens to the radio anymore.

I do. Only one channel, though. In the car or at night. Also to wake up. I think I know pretty much every song. 100.7, since you can get it too.

 

[MUYFUE]

NPR!