High finance is secret­ly get­ting rich off of Radio while ordi­nary investors (and the tax pay­ers) are stuck with the bill. Pri­vate-equi­ty firms load tons of debt onto radio while hand-pick­ing the man­age­ment and skat­ing with fees.  It is no won­der that com­mer­cial radio is dying.  Those in charge are not radio peo­ple.  The film CORPORATE FM shows a way out of this.

Cumulus Stock in the Dumps


Radio (like the Unit­ed States) is the most rel­e­vant and vibrant when it is of the peo­ple, by the peo­ple and for the peo­ple.   The out-of-town own­ers have no per­son­al stake to make it live again. Lin­coln might say…

For more  http:fmfilm.com

Radio, the experts say “call it media”.  Those experts are wrong and this is why it mat­ters.

Many well-mean­ing radio con­sul­tants are afraid that emerg­ing tech­nol­o­gy will destroy radio.  These con­sul­tants even swayed the for­mer head of NPR “Nation­al Pub­lic Media?”.  Ask any­one on the street what it is; they call it Radio.  Even at pledge-time the mul­ti­tude of vol­un­teers call it radio.  These con­sul­tants believe that to save radio, it must become more like the inter­net.  We already have an inter­net.  If it were the 1950’s would we be telling radio to call itself TV?   Radio sur­vives because it is…radio first.

Chang­ing from “Radio” to “Media” is wrong for 4 rea­sons.


1. It turns it’s back on 40 years of brand­ing (for NPR).   Who would tell Coke change its name from Coke?  There are plen­ty of new pop­u­lar ener­gy drinks and eso­teric teas are gain­ing mar­ket-share.  It could make sense if you went only by the num­bers.  And that is exact­ly why the con­sul­tants get it wrong about radio repeat­ed­ly.   Coke is Coke and Radio is Radio.   Con­tin­ue read­ing…

Michael Copps, Kevin McKinney, Jill McKeever NPCThe cen­tu­ry old Nation­al Press Club is a cou­ple blocks from the White House.  It refers to itself as “The Place Where News Hap­pens”.  After a crazy sub­way ride in rush hour DC, Jill and I emerged in the “Edward R Mur­row” room of the epi­cen­ter of estab­lish­ment-jour­nal­ism.   We were in DC to show the film at the DC Inde­pen­dent Film Fes­ti­val.  The press club was ask­ing about pos­si­ble new rules for yet more con­sol­i­da­tion.  I had some­thing to say to them.  Con­tin­ue read­ing…

Walt Bodine

Walt Bod­ine knew his audi­ence.

A good talk-show host will…

  • Show that they are per­son­al­ly inter­est­ed in what the lis­ten­er has to say (or many will not call in).
  • Make the guest feel com­fort­able.
  • Love their lis­ten­ers and com­mu­ni­ty.
  • Be com­fort­able with the con­ver­sa­tion going in direc­tions that they did not pre-plan.

Walt Bod­ine was one such indi­vid­ual.  He passed away today.  I had the plea­sure of shoot­ing his last live show for B-roll for the film.  This 18 sec­ond clip shows his per­son­al­i­ty.  He was a giant among talk-show hosts who learned his craft on the night shift many years ago.  See video below. Con­tin­ue read­ing…

What is Pri­vate Equi­ty?  How do they make their mon­ey?  The answer to this mir­rors the answer to “Why does com­mer­cial radio suck?”picture: Private Equity Guy

The way a firm makes prof­it can say much about how it behaves. For instance, Pri­vate Equi­ty makes mon­ey off of fees tak­en from investors and from main­te­nance fees from the com­pa­nies that they own. They can make sub­stan­tial com­mis­sions if they can sell the com­pa­nies they own for a prof­it.  This means that short-term prof­its that make the com­pa­ny appear attrac­tive to a buy­er are more impor­tant than cost­ly long-term busi­ness infra­struc­ture improve­ments that might not pay off for 10 years.  This lack of long-term moti­va­tion has hurt Clearchan­nel as they have stopped invest­ing in their employ­ees (and you the lis­ten­er) in favor of short-term prof­its by cut­ting as much staff as pos­si­ble.  Pri­vate Equi­ty also makes mon­ey by shift­ing debt onto oth­ers.  The debt is shift­ed onto the sta­tion.  This maneu­ver is called an LBO or “Lever­aged Buy­out”.  See video below.  Con­tin­ue read­ing…

Star newspaper guilty of abusing monopoly power

In 1955, the gov­ern­ment con­vict­ed the Kansas City Star (news­pa­per com­pa­ny) with monop­oly charges. The Star had abused their pow­er with the own­er­ship of two news­pa­pers, a TV sta­tion (WDAF TV) and a radio sta­tion (WDAF radio).  They forced adver­tis­ers to buy ads for all 4 prop­er­ties, and also pun­ished adver­tis­ers for uti­liz­ing oth­er media by plac­ing their ads in unfa­vor­able places and times. The Star was guilty of restraint of trade.  Because the abuse of monop­oly pow­er was so tempt­ing, the FCC ruled “cross-own­er­ship” of sev­er­al media forms with­in the same city ille­gal.  

Since that time, high finance has entered the ring.  The “Merg­ers and Acqui­si­tions” lob­by­ists are con­stant­ly urg­ing the FCC to allow for more merg­ers and more short-term prof­its via staff lay­offs. Con­tin­ue read­ing…

The pod­cast “Sound Track of the Week” (SOTW) has announced that they are start­ing “Radio Diver­si­ty Day” to take place on Decem­ber 5th 2012.  They say they were inspired by the movie Cor­po­rate FM.  The idea was born dur­ing an hour long inter­view that they did with Jill and me late one evening.

Sound Track of The Week Crew plus Corporate FM Crew

The Sound-Track of the Week crew and us.

On Radio Diver­si­ty Day, lis­ten­ers are encour­aged to call up their local radio sta­tions and elect­ed offi­cials and demand more diver­si­ty in pro­gram­ming.  Urge them to play more local music and hire more live local tal­ent to inter­act with and deliv­er to the com­mu­ni­ty authen­tic radio pro­gram­ming.  SOTW has cre­at­ed a web page for the event here.

We are pro­vid­ing these addi­tion­al ref­er­ences to help lis­ten­ers. Con­tin­ue read­ing…

 Levereged buy-out means more employees will have to be fired.They lump debt on the station but do not share in the risk.

I find myself explain­ing Pri­vate Equi­ty this way. Many ask “How is this even legal?”  The con­se­quences are hid­den from the finan­cial reporters (who often report the merg­ers as a good thing) because the fir­ings hap­pen over time as the debt matures and refi­nanc­ing and/or reselling become imma­nent. The more debt there is from the cor­po­rate buy­out, the more employ­ees that will have to be fired so their for­mer salaries can go toward pay­ing off that debt.  For more infor­ma­tion watch a short video expert  here.

Prometheus Radio project

Prometheus radio project has made this pos­si­ble.

A pos­si­ble new radio sta­tion called “Fayet­teville Com­mu­ni­ty Radio” held a screen­ing of Cor­po­rate FM to moti­vate sup­port­ers behind the ven­ture.  The sta­tion is pos­si­ble because new low pow­er FM fre­quen­cies (LPFM) were legal­ized by bill in con­gress in 2010.  “It fired them up” said orga­niz­er Joe New­man about the film. “It was a very good pre­sen­ta­tion for what we are fight­ing for. It inspired peo­ple to take that extra step”.  That evening sev­er­al audi­ence mem­bers, who had left com­mer­cial radio, vol­un­teered to help com­mu­ni­ty radio become a real­i­ty in Fayet­teville Arkansas. Con­tin­ue read­ing…

Con­sol­i­da­tion has dis­placed so many DJs from serv­ing their com­mu­ni­ties.  When SHORTY AND THE BOYZ worked at the Cumu­lus owned VIBE they were pro­hib­it­ed from play­ing local music or using speech that sound­ed too “urban” (a code word for black).  Now gone from Cumu­lus, they have begun their own ven­ture.  Their inter­net show does not get broad­cast over the entire city, but we can stream it to see that the light of tal­ent burns bright out­side the halls of cor­po­rate radio.  See the video they pro­duced.…Shortyandboys

Con­tin­ue read­ing…

Radio Suicide

Radio Sui­cide or Radio Mur­der?

Radio used to make mon­ey through adver­tis­ing. Radio sta­tions had a motive to engage the pub­lic in order to sell their rat­ings to the adver­tis­ers.  “We sold the adver­tis­er [an] audi­ence,” says vet­er­an broad­cast­er Dick Father­ley.  Here cap­i­tal­ism works because the sta­tion makes mon­ey by being rel­e­vant to the audi­ence.

Nowa­days radio, like many oth­er indus­tries, makes its mon­ey through high finance games­man­ship.  Mon­ey is made by buy­ing and sell­ing the com­pa­ny rather than what the com­pa­ny pro­duces.  In this mod­el it makes sense to cheap­en the prod­uct for short term finan­cial gains.  In oth­er words a sta­tion can fire an entire staff and then post the reduced over­head as if it were a prof­it.  This works for a short while till the lis­ten­er gets sick of auto­mat­ed radio.  It works per­pet­u­al­ly when they can do it to the entire spec­trum because the con­sol­ida­tor does not have to face their biggest fear: com­pe­ti­tion.  The los­er is the lis­ten­er, the com­mu­ni­ty and the radio sta­tion employ­ees.

Pri­vate Equi­ty firms are not afraid to Con­tin­ue read­ing…

No.  This is why it is impor­tant not to just hate com­mer­cial radio and hope for the best.  I got an email from a lis­ten­er who was hap­py that Cor­po­rate radio was dying.  He thought that we should “starve the beast”, imply­ing that if it went bank­rupt, the rats would jump off a sink­ing ship and some­one who cared about their com­mu­ni­ty would buy the sta­tion back.  I wish that were the case.  The way high finance man­ages radio sta­tions, allows them to keep them in a zom­bie state rather than killing them. Even if the sta­tion does go bank­rupt, the same firm that sucked all the life out of the com­pa­ny can man­age to keep the com­pa­ny after bank­rupt­cy.  This is called a “pre-pack­aged bank­rupt­cy”. In such an arrange­ment, they con­vince a judge that they are the best ones to man­age it, because they obvi­ous­ly know whats wrong now and they promise to pay a per­cent­age back to debtors.  The cred­i­tors may get 90% of the new com­pa­ny.  Who’s com­plain­ing?  The lis­ten­er would if they knew about it.

art by paulorock­er

Imag­ine you were a DJ at Citadel (a radio con­sol­ida­tor) where you watched all your friends get fired and the qual­i­ty of the pro­gram­ming drop thus dri­ving lis­ten­ers away.   The com­pa­ny is huge,  thanks to debt financ­ing and merg­ers spurred by a pri­vate equi­ty firm (Forstman Lit­tle and Com­pa­ny).  In 2009 when the com­pa­ny is head­ing for chap­ter 11 you may think, at long last the CEO Farid Sule­man is going to get his come­up­pance.  Banks keep radio for them­selves to trade

Unlike Face­book or web-based music shar­ing appli­ca­tions, local­ly owned radio reach­es thou­sands of peo­ple across many incomes and ages in a sin­gle area at the same time with a mes­sage unique to that area. That abil­i­ty is what once moved entire cities to unite around local bands, local char­i­ties, local busi­ness­es, and new ideas.  The inter­net may have some advan­tages, such as con­nect­ing indi­vid­u­als over long dis­tances, but it can­not cre­ate a vast local­ized uni­ty the way radio can. The local lim­i­ta­tions of a radio tow­er are actu­al­ly its great­est asset because the sta­tion trans­mits pri­mar­i­ly with­in a com­mu­ni­ty and is free to every­one inside that com­mu­ni­ty (young or old, rich or poor, edu­cat­ed or not).

The inter­net is a com­pan­ion tech­nol­o­gy not a com­pet­ing tech­nol­o­gy. Con­tin­ue read­ing…

Less stations worth listening to means less reasons to visitSome NPR and com­mu­ni­ty radio lis­ten­ers  are hap­py that com­mer­cial radio sucks. They rea­son that the bland cor­po­rate pro­gram­ming dri­ves lis­ten­ers to them. They couldn’t be more wrong. Crap­py com­mer­cial radio hurts pub­lic radio sta­tions and the whole medi­um of radio itself. When a shop­ping mall los­es all its best stores except one; there is less rea­son to vis­it. That dead shop­ping mall is now the FM dial.

Imag­ine a road trip where when as you trav­eled from town to town you could learn some­thing about each town just by tun­ing in as you drove through. Now imag­ine how many peo­ple used to find new sta­tions because of…curiosity.

It is nor­mal for the most loy­al lis­ten­ers to switch away from their favorite sta­tion when they hear a song that they don’t like and then switch back 3 min­utes lat­er. But when those lis­ten­ers only find crap to choose from on the oth­er sta­tions then it becomes nor­mal just to turn the damn thing off. Where’s that ipod?

Young col­lege stu­dents today have no rec­ol­lec­tion of local­ly owned com­mer­cial radio. It end­ed before they were teens. Every year more young adults go explor­ing their world for some­thing new. They try tun­ing-in to radio until they learn that there is noth­ing new there for them. These lis­ten­ers are not aban­don­ing NPR, they are aban­don­ing the entire medi­um alto­geth­er.

FM has become the city of aban­doned com­pe­ti­tion. NPR and com­mu­ni­ty radio may be a bright light in that waste­land of air­waves, but if there is no oth­er engag­ing option besides those; then I’m going to search a dif­fer­ent medi­um that gives me more choic­es. A tele­vi­sion with 1–2 chan­nels would be equal­ly worth­less. In order for radio to still be con­sid­ered an impor­tant medi­um, there must be valid com­pe­ti­tion that draws in a diverse audi­ence. Oth­er­wise the entire spec­trum may become obso­lete, and redis­trib­uted to oth­er wire­less devices. That would be a grave loss because no oth­er medi­um is as effec­tive at unit­ing con­cen­trat­ed pop­u­la­tions as radio.  It is the only infra­struc­ture that reach­es every­body.