Author Topic: Cumulus Media: Suicide of a Company?  (Read 685 times)

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Offline Rapunzel

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Cumulus Media: Suicide of a Company?
« on: May 14, 2013, 09:27:22 PM »

Offline Rapunzel

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Re: Cumulus Media: Suicide of a Company?
« Reply #1 on: May 14, 2013, 09:28:10 PM »
It's long but a worthy read.

Online jmyrlefuller

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Re: Cumulus Media: Suicide of a Company?
« Reply #2 on: May 14, 2013, 09:58:41 PM »
It is certainly an interesting perspective, but one that only passingly addresses the real issue with Lew Dickey and his ilk. The Dickey business model is not based on investment. Au contraire. It is instead based on the concept of a low budget; by hiring and employing talent that can work for far less, they do not have to generate nearly as much revenue as a station that gambles on big-money talent. They do not believe in the mantra that it takes money to make money. Thus they are more apt to survive if revenues fall, since they don't rely on huge amounts of cash in the first place.

Case in point. Cumulus showed up in Buffalo when they bought Citadel. Now, Citadel had a few stations in this market since the 1990s, and one of the things they invested in was the Buffalo Bills radio rights. Well, the Bills, for lack of a better word, have stunk the past decade. So, when Cumulus comes in, what's the first thing they dump? The Bills contract. Then, they turn around and start up a sports talk station a few months later (which replaced a standards outlet that was pretty popular, but of course standards stations don't appeal to that key demographic)-- thus within a few months of dumping the Bills, they start up a sports station without any actual sports. Similar story in Syracuse, where all but one of the local hosts was dumped on a station that was mostly local sports and also carried the Bills. Why? Well, the stations operate the CBS Sports Radio network. CBS produces the content, and Cumulus gets to distribute it for free. You see much of the same pattern with the examples mentioned above: high-profile hosts, wanting to keep their pay rate, getting the shaft by Cumulus and ending up replaced by lower-cost, satellite programming.

So, contrary to the idea that Cumulus is on a suicide mission, it does not appear at least financially to be the case. It may be ratings suicide, but if you're looking at dollars and cents, it is a solid fiscal plan. Now, it doesn't necessarily mean it's the best plan; I mean, Clear Channel has always aimed at investment at least at the national level (ironic for a station derided as Cheap Channel for its stinginess at the local levels). However, Clear Channel got itself into some trouble a few years back because of too much debt.

Offline DCPatriot

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Re: Cumulus Media: Suicide of a Company?
« Reply #3 on: May 14, 2013, 10:48:30 PM »
It's long but a worthy read.

If you were funneled say.....$1 BILLION from the phony stimulus...to purchase a radio empire with the sole intent on crashing right-wing talk radio....

....would it be worth it?
"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"Journalism is about covering the news.  With a pillow.  Until it stops moving."    - Iowahawk

Offline Rapunzel

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Re: Cumulus Media: Suicide of a Company?
« Reply #4 on: May 14, 2013, 10:50:41 PM »
If you were funneled say.....$1 BILLION from the phony stimulus...to purchase a radio empire with the sole intent on crashing right-wing talk radio....

....would it be worth it?

All Rush has to do is go over to XM... Hannity is already there and is where I tune in when there is something I want to hear from him


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