RBR.COM INTERVIEW WITH JEFF SMULYAN AND RICK'S RESPONSE

LINK TO VIDEO INTERVIEW (CUT & PASTE TO BROWSER) http://www.rbr.com/media-news/wall-street/canary_s_mineshaft_song_not_pretty.html

Canary’s mineshaft song not pretty
But the Q3 lead-off conference call from Emmis (discussing what for them are Q2 results) was not entirely devoid of optimism. Jeff Smulyan continues to insist that radio is suffering from a perception problem, and still can claim 260M very real listeners.

Overall, the company posted net revenue was $94.2 million, compared to $95.7 million a year earlier. Pro forma publishing and domestic radio net revenues dropped 6.6% and 8.4%. Operating income was flat at $17.1M, and station operating income came in at $26.4M, a mere $100K below the previous year’s results.

Smulyan noted that it was an extremely challenging economy, unlike anything anybody in any industry has seen ever. “Where it goes, nobody knows,” he observed. “Through all of this, radio listening has held up…I think it’s not lost on major advertisers that this is a business that reaches 260M people a week.”

Emmis execs noted that ad placement cancellations are up – automotive and motion picture accounts were cited as examples – but at this point they said it’s only slightly above the norm, but bears watching.
Rick Cummings said the scariest part of the situation is that radio is already fighting a recent history full of setbacks, even before the current situation developed.

Smulyan said, “The question is the fundamental viability of the sector.” He said people were writing off radio as dead before the Wall Street meltdown, but the fact remains that people still tune in – that wouldn’t happen if the content was as lackluster as some claim. He said the upside is that tough times may cause many key advertisers to rethink moves into other media and return to radio, which Smulyan believes is still capable of delivering excellent results.

RBR/TVBR observation: There is something to be said for tough times working in radio’s favor. Just as fast food restaurants benefit from consumers being priced out of the casual full-service dining market; and discount retailers benefit from troubles at mall boutiques; radio’s relatively inexpensive rates compared to other media, coupled with the fact that it is doing a better job of holding its audience than is the newspaper industry, could fuel somewhat of a renaissance if general economic indicators continue to trend down.

RICK’S RESPONSE
Comments (1 posted):
Rick Snyder on 13 October, 2008 08:15:49

Jim, great video interview with Jeff Smulyan. I was delighted to hear him say "...we've got to reinvent this business..." Jeff also said that broadcasters have to "focus on the business in your marketplace (LOCAL) and provide a solution to advertisers, not only on the air but, obviously on the internet!"

I've got an idea; why not let your listeners pay your client's advertising bill? It's now being done with a discount gift certificate program managed through stations' websites! Cash flow starts the day you launch your first sale and continues to grow as your online store stocks up with local merchant's gift certificates. This program won't replace your cash business but it's a great way to 1) supplement lost cash flow, 2) attract new advertisers with a cash free promotion, and 3) prove that radio gets results! It's local, provides solutions in a tough economy, and invents a new revenue stream for stations to build on, cash from the listeners.

I'm now a partner in a broadcast consulting company that creates a revenue stream through stations websites selling discounted gift certificates. Our system absolutely brings in dollars. We're consulting successful programs at stations from Maine to Arizona. We couldn't agree with Jeff Smulyan more when he says, "...we have to demonstrate that we move the cash register!" Ask any station selling discounted gift certificates if they're hearing those cash registers ring both at their stations and for their clients.

Rick Snyder
General Manager, Florida
The DollarSaver Program
561-635-0413
rickdollarsaver@bellsouth.net
www.dollarsaverprogram.com
www.dollarsaverprogram.blogspot.com

Jim Carnegie on 13 October, 2008 10:51:37

Rick Thanks for the comment.
Yep, all media, especially Radio has to reinvent themselves. RBR/TVBR has had to reinvent four times in the last 3 years.
What I have learned speaking with and sitting down with all broadcasters across the board is they seem to Fear this took called Internet. Getting started is the hardest part. It was for us too.
There are companies right now that call themselves Digital - but - that are no where near the internet digital spectrum. They are just perceived as digital because they put the word digital on their letterhead.
Generating additional revenue streams will only happen when Radio and TV learn to use the internet as an additional tool in conjunction with their station operations.

Jim Carnegie
Publisher & Editor/Broadcaster
RBR / TVBR / MBR
www.RBR.com