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Radio station owner Citadel Broadcasting (CTDB) filed for U.S. bankruptcy protection in Manhattan, striking a deal to jettison roughly $1.4 billion in debt. In its Chapter 11 filing, Citadel listed assets of $1.4 billion and debt of $2.5 billion. The broadcasting company turned to bankruptcy in order to enact a pre-negotiated plan that will convert a $2.1 billion loan into a $62.5 million term loan. This plan has the support of 60% of CTDB's secured lenders. CTDB owns WABC in New York and WLS in Chicago, and the company will operate these stations as usual throughout the bankruptcy. The operation will be funded by $36 million in on-hand cash.
The problem facing terrestrial radio (as many call it) is dwindling advertising as a result of the weakened economy. But this trend really started long before the economic slowdown and will probably continue after the economy is back to hitting on all cylinders. With satellite radio and the advent of online radio stations (like Pandora), as well as the ever increasing popularity of portable music devices, watch for the pain to continue in the radio world.
I will admit that I am a former radio listener who has fallen in love with his iPod and satellite radio. I can determine what kind of music I listen to rather than have some lackey at a radio station compile a song list and then have the station proceed to shove Coldplay and Lady GaGa down my throat.
Online radio stations, too, provide more personalized option. I definitely prefer to listen to what I want to listen to. With Pandora, for example, I can go to the web site, type in one of my favorite artists, and the station will develop a playlist based upon the band I choose.
Unfortunately for radio, the model is quickly becoming outdated -- and it has yet to adapt. I'm not saying that radio is dead, but it sure needs to catch up to competitors before the final nail is placed in its coffin.
I will admit that I am a former radio listener who has fallen in love with his iPod and satellite radio. I can determine what kind of music I listen to rather than have some lackey at a radio station compile a song list and then have the station proceed to shove Coldplay and Lady GaGa down my throat.
Online radio stations, too, provide more personalized option. I definitely prefer to listen to what I want to listen to. With Pandora, for example, I can go to the web site, type in one of my favorite artists, and the station will develop a playlist based upon the band I choose.
Unfortunately for radio, the model is quickly becoming outdated -- and it has yet to adapt. I'm not saying that radio is dead, but it sure needs to catch up to competitors before the final nail is placed in its coffin.
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Reader Comments (Page 1 of 1)
12-22-2009 @ 5:40PM
skohl said...
True, radio is hurting. Perhaps the consolidation of stations by a handful of owners is the problem. Multi-station owners in a city remind of strip mall owners. You lnow, a tanning salon, a florist, a gift store and show store for tenants. Gone is the competition to find a niche format and exploit it. Instead it's a matter of looking around and deciding how many news/talks, or classic hits stations are in a market, and throw it against the wall. If, successful it sticks (like, flypaper), if it doesn't try something else is a year.
Serving the public is still the best road to success. Satellite radio only plays music, nothing for local consumption (i.e. local events, weather, news, etc.).