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Corporate FM Documentary

While not Alabama specific, there is a documentary on Amazon Prime that digs into how the FCC rules changes allowing the ownership of multiple stations in one market pretty much destroyed the community aspect of radio, not to mention thousands of workers in the industry losing their jobs. It's a really good watch for those of us that remember "The Good Old Days" of radio.

Do a search for "Corporate FM" for more info.
 
However, what's changed since the 70s is that there actually are community radio stations now. Stations owned by communities, not by companies. So if the goal is to promote community aspects of radio, there's no impediment for people to do that, as evidenced by people in Alabama who post on this board. They could not have done that 40 years ago, because the law didn't allow it, and the cost was prohibitive. Not the case any more. So if you long for the "good old days," simply go out and apply for a license.
 
I know more local operators in Alabama than I do corporate.
 
I did mention that the post wasn't Alabama specific. I think community radio is a great thing with a big problem. You can't make it living doing it. The documentary touches upon how many people lost their jobs and had to either move on or switch careers. Also, I don't think community radio would work in a large urban area. That's up to the big boys.

The "Good Old Days" I was referring to is being involved in the community and making a living doing it. There are several really good community oriented stations in the area where I live in North Alabama, but they are few and far between in major markets. Sadly, most of them voice track at least 12 hours of their broadcast day. What happens if there's a major emergency after business hours? Social Media has pretty much taken over how we live our lives. Instead of 20 thousand people experiencing the same song or event via radio, it's just live streamed. I just think it's sad that radio has pretty much become irrelevant because of corporate greed.

Please don't take this as a rant, it's just my observation. Speaking of community radio, there was a guy in my town recently that decided to start one. Problem is, he didn't do it the right way. http://www.insideradio.com/free/dud...cle_058891ac-975f-11e6-9a8a-4bb0c64fa85b.html
 
I did mention that the post wasn't Alabama specific. I think community radio is a great thing with a big problem. You can't make it living doing it.

Anyone who got into radio to make money got in for the wrong reason. Unless they want to do sales. The documentary is very idealistic, made by people with fond memories who are ignoring all the negatives back in the day. They have one point of view, and they're pounding it without presenting the other side. If someone loses their job today, they have lots of exciting options beyond commercial radio. Then there's always the option of moving someplace else. That was the reality for people in radio in the 60s and 70s. Very few people then had the luxury of staying in one place their whole career. Lots of people lost jobs in radio back in the day too.

As for corporate greed, what about Pandora, Amazon, and Apple? Aren't they big corporations? Aren't they greedy? Radio companies weren't any smaller 40 years ago. The companies just owned different things. Back then insurance companies and electronics manufacturers owned radio stations. They were not small companies. Radio is as relevant now as anything else. It was easier then because radio had no competition. Now it does. No reason to give up. What happens when there's a major emergency? You call the boss on the phone, and they bring people in to work. That's what they did during the hurricanes. You don't staff for emergencies. Even the government doesn't do that. Once again, that documentary has an agenda. For every issue it brings up, there's a response, but viewers don't get a chance to hear it. Believe what you want to believe, but I've been doing radio a long time, and my experience was very different from what you see in that documentary.
 
Once again, that documentary has an agenda. For every issue it brings up, there's a response, but viewers don't get a chance to hear it. Believe what you want to believe, but I've been doing radio a long time, and my experience was very different from what you see in that documentary.

I bought that documentary on DVD some years ago when it was first issued. I made a list of the non-sequitur "conclusions" and inaccurate causes and put a note on the producer's blog, resulting in polite but firm assertions that I did not know enough about what really happened to say what I did; in other words, denial.

A good example is the idea that consolidation took away DJs ability to "pick" the music they play. Of course, we know that tight playlist control goes back to the very beginnings of Top 40 in the early 50's and is more related to a drive for ratings than the number of stations a company might have owned. And the scenario was repeated in the early 70's, when most progressive or free-form rock FMs fell to tightly regimented playlists and presentations such as Lee Abrams' "Superstars" AOR format. Again, not about the owners.

The same "DJ picks the music" subjects leads to a conclusion that the big companies "automated" stations when, in fact, we'd been automating and taking syndicated programming since the time of Drake-Chennault's "Hit Parade" back in the late 60's...nearly three decades before consolidation. All of us, in big and small stations in big and small markets wanted to computerize and automate and our main limitation was technology, not ownership.

As you say, for every accusation there is an actual real reason but the documentary does not allow for either a contrarian or, in most cases, the real causes.
 
I see consolidation as good and bad.

On the bad end, it made smaller companies and mom and pop stations in rated markets have a tougher time. Before consolidation radio was small companies or small branches of diversified companies. I think it might be similar to the before and after Walmart story. Granted radio stations had no assurance or expectation to not have to compete against larger radio companies. Neither are bad. There was little if any corporate structure. One could reach the top person easier and bend their ear even if it was the radio division of a larger company.

On the good side, many advances in radio can be attributed to consolidation. FCC Rules became more flexible. More stations made money. Fringe formats could be supported by a cluster of stations. Stations could share resources. New ideas had the financial backing to be tried. One big complaint is consolidation means fewer format options and fewer chances taken but I have noticed the opposite. Nobody talks about Lone Star 92.5 in Dallas/Fort Worth trying a risky format (a blend of Classic Rock, Americana and Texana) and selling branding sponsorships limiting commercials to just one spot an hour. Each category of sponsor was limited to one (one beer advertiser, etc.) iHeart did that. It failed but it was tried and notes were taken. Last, while the big boys can go for good or bad, they tend to shoot for good because what is good for them is also good for radio in general. Corporate Radio offers support. There is the often told story of KLIF after McClendon. Simply put the company hadn't a clue about radio and made poor decisions such as allowing McClendon to compete directly in the market with KNUS 99, not paying much attention because the station was such a tiny stake in the company. Corporate Radio tends to be centered on radio and communication fields, not making aircraft or appliances or selling insurance as their mainstay.

I haven't seen the figures, but I have been told the number of jobs may have actually increased. More radio jobs now offer some level of benefits, something rare in mom and pop stations. I actually worked two companies when 'health insurance' was provided but actually the station had a deal with a general practice doctor to pay for office visits from the station's staff and families. If you went to the ER or had to go some other place for x-rays or tests, it was the employee that paid. It was better than nothing which is what most stations offered.
 
I haven't seen the figures, but I have been told the number of jobs may have actually increased.

They have, although not necessarily on air jobs. Entire new job descriptions now exist, such as social media specialist, information technology specialist, webmaster, brand manager, and several different types of marketing people.
 
There have been some really good and insightful replies in this thread and I appreciate it. Believe me, I didn't take the documentary verbatim. The DJ'S picking their own music was always a bone of contention among the jocks when I was on air. There are several reasons why that shouldn't happen including continuity and of course preventing "pay for play" if that is still around. Most stations I worked at had at least a "request hour" and of course the jocks would play their own picks with some requests sprinkled in.

I was in broadcasting for 20 years including Radio and TV. I even owned a "Community" LPTV station and managed in both small and large markets. I left the business around 20 years ago. Of course a lot of changes have occurred over the past 20 years, but I still try to remain informed.

However, I respectfully disagree about broadcast employment increasing after consolidation.

Let's take a look at a small market consolidation of 5 stations: Instead of 6-8 DJ'S per station, you now have maybe 2-3 for all five assuming they switched to syndication as most markets seem to do. Five station managers down to 1, sales force from 25 to 5, 5 traffic managers down to 1, etc.

They may add jobs at the corporate level, but in my mind, there is no way employment has increased due to consolidation. The math just doesn't make sense. There is no way a big corporation would purchase several stations and increase the employee head count. At least at the local level.



As far as the "new" marketing positions, most have to wear several hats. The last TV station I worked at, one person handled production, web master and promotion. It's very rare in this industry to have just one focused position at least at the local level. At the corporate level, one team of 5-10 could handle all of the marketing for many, many stations.

Take a look at the web site at the Raycom Owned stations, they are all identical. Same news feed from AP with a couple of local stories injected here and there.


At the end of the day, there just aren't "boots on the ground" at the local level. A person at the corporate level in New York making $150,000 per year isn't putting money back into the local economy in Podunk, AL.
 
At the end of the day, there just aren't "boots on the ground" at the local level. A person at the corporate level in New York making $150,000 per year isn't putting money back into the local economy in Podunk, AL.

The same could be said about WalMart, Macys, Home Depot, CVS, Walgreens, Pizza Hut, Hair Cuttery, McDonalds, Taco Bell, and all the other corporate stores that have destroyed the local retail advertising base in small towns across the country. If you look at the overall picture, and how everything has changed in the last 30 or so years, the problems in radio seem very small. If you think radio is having a tough time, take a look at the newspaper business. Local business fed local media, and there really is no local retail as we once knew it. And when you add Amazon, eBay, and all the internet retailers to the picture, you start to see where the problem really lies.

Yes, jobs dropped in the years after consolidation. That's what consolidation does. But that happened 20 years ago. Those companies are now realizing the advantage they have with a local presence, and the stations I work with are capitalizing on it.
 
Yes, jobs dropped in the years after consolidation. That's what consolidation does. But that happened 20 years ago. Those companies are now realizing the advantage they have with a local presence, and the stations I work with are capitalizing on it.

Glad to hear that things are turning around. As I mentioned, we have a good local radio presence here in my small town. In fact, I can see the local station from my front porch. But, they are only live 4 hours per day. The morning show is seriously local, but the rest of the day is Sat. I realize that it takes money to run a station, but I feel listeners turn away when the local feel isn't there.

As fate would have it, I was the victim of a "consolidation" in my recent career. Went from $135,000 per year to nothing. I said to hell with it and started a Food Truck. Happiest I've ever been!
 
Powerpig56 makes a great point: the small market stations where jobs vanished.

You are very correct but I think that might have had more to do initially with satellite delivered formats and then the computer.

I saw that as a bad thing since that is how many learned the ropes, honed skills and figured out their comfort zone in radio.

One fellow I knew had 3 full time and 2 part time jocks at his station, the only one in town. He decided one day to hook up to satellite and he let everyone go except for one part timer. I worked an AM/FM combo where the FM was live 24/7 and the AM purely automated. Now they have a morning show on both stations and are automated the rest of the day. Quite frankly most of those people went off to another career but some moved on to another station.

By the time I was doing sales after years of jocking, I actually knew why so many stations did this. They were constantly having to deal with the on air side. Too many quit without notice or would do something that was a concern to the owner whether ignoring the format, being drunk or stoned on the air, or the police always getting called out to the place where a jock lived. In short, the owners saw satellite cheaper and more consistent than being live. And it meant fewer headaches.

I'm not slamming jocks. I know my mind from back in those days. I was honing my skills, trying new things and I wasn't always on the same page as the owner who had a certain sound in mind for his station. He had to watch me and from time to time get me back on track. I was pretty much like all the other jocks.

I think a bunch of small station operators saw what was coming. I think they knew cable TV, new stations and other media options would eat away at their advertising base in the next few years meaning they had to find a way to run leaner. I'd say the stations that chose to go with satellite lost something by doing so. No more request line. No more local jocks. Fewer remotes and coverage at live events. However, stations generally fared well. The monthly nut had been lowered substantially.
 
I think a bunch of small station operators saw what was coming. I think they knew cable TV, new stations and other media options would eat away at their advertising base in the next few years meaning they had to find a way to run leaner.

I think you're right, and for the most part the small market stations aren't owned by big corporate owners. Because there's not a lot of money owning small market stations. That's another point the Corporate FM documentary ignores.
 
Powerpig56 makes a great point: the small market stations where jobs vanished.

You are very correct but I think that might have had more to do initially with satellite delivered formats and then the computer.

Another major factor in this "issue" was something that happened just a few years before consolidation, and, thus, is generally not recognized for its damaging effects on small and medium markets: Docket 80-90.

The company I was with around 1990 could not expand in or around its home market of San Juan. So we looked for properties in Florida, and among those we bought was an AM & FM combo in Lake City, FL. The trade are was Lake City and Live oak. There were 3 AMs, one a daytimer and one a Class V. There were two FMs, both good facilities.

We all made money. Our AM had four hours a day of local news, gossip and sports, including the births from the hospital, the obituaries and some agricultural news as well as high school sports. And we called all the games, and were at all the charity and fund raising events.

Docket 80-90 dropped three more FMs into Lake City and one into Live Oak. There was no increase in available ad dollars, which had been shrinking with the "WalMart Effect". The new stations would run 50 spots a week for $100 or less. Our billing fell in half over the first year of the new competition, as also happened with the Live Oak FM.

One of the FMs decided they would take our HS sports, and offered money for the "rights". The school board tried to stick it to us to the point that we would have lost money on the whole station if we paid. The other station took the games, but could not consistently get a live feed tot he studios as they were cash-short.

We had to cut much of our news and local content, and put both stations on the satellite. There was just not enough revenue to go around. The stations were sold for about a third of what we paid. Everyone else is on formats-from-far-away, and nobody makes money. All the stations have nobody in the office most of the time, as the few staffers are out trying to sell something.

This scenario was repeated in hundreds of markets all over the country.
 
The station I grew up with in Indiana depended on one thing for its audience in the 1970s and 1980s: geographic remoteness.

When I was in high school, I sometimes took a transistor radio. I found that I only reliably got four stations at school: the local AC station, a college station, a 50kW rock station from 30 miles away, and a station calling itself "Oldies 98". Many more stations were available in car radios, or with a good stereo system.

At least where I lived, the move to satellite formats was a direct result of two things:
1) The George Bush recession, during which the largest employer in town closed
2) New Docket 80/90 competition

Revenues fell precipitously as many people lost their jobs and stopped shopping at RadioShack and J.C. Penney and The Matador Barber Shop - and in many cases left town altogether. By 1992 or 1993, the local stations had joined up with SMN and Jones Radio for select dayparts. I think the last local DJ was let go in 1995, before any of the local owners sold out. Three stations, three satellite formats.

I'm sure the whole situation in the 90s was different if you were in a top 100, or even top 200 market. But I suspect much of Alabama's experience was far more like mine.
 
I know more local operators in Alabama than I do corporate.

But do those local operators own more stations than the corporate ownership? Bob's Local Radio LLC might own a few FMs and an AM each in Jackson and Troy, but iHeart owns 5+ stations in each major market. And so does Cumulus. And then there's Summit, and Bluewater, and someone else I'm probably forgetting (URBan? They are worth forgetting.)

I bet that at worst it's a wash between local small town radio and corporate as far as sheer numbers go statewide. And the biggest signals in the biggest cities with the most people under them are almost all corporate.

As for corporate greed, what about Pandora, Amazon, and Apple? Aren't they big corporations? Aren't they greedy?

I don't think any of those are a fair comparison to broadcast radio. Mainly because the pure plays are not exactly known for making money on streaming programming, and the Apples and Amazons of the world are merely offering music/audio as a complimentary service to keep people in their ecosystem. They are not necessarily money-makers. The handful of people who actually pay for Amazon Music Unlimited, for example, are probably a rounding error in the revenues of the greater Amazon company. Maybe that was the case with, say, Lincoln Financial in the 80's, I don't know. But if it was, it probably worked to the stations' advantage as far as programming and sales freedom.

Radio is as relevant now as anything else. It was easier then because radio had no competition. Now it does. No reason to give up. What happens when there's a major emergency? You call the boss on the phone, and they bring people in to work. That's what they did during the hurricanes. You don't staff for emergencies. Even the government doesn't do that.

Well yeah, actually the government does. FEMA doesn't magically grow in size when a hurricane threatens. Neither does the local county EMA. But the greater point is that if there is no one to "call in" in an emergency, how do you get the information out in the first place? Or if the emergency happens at 3 am when everyone's asleep, who is going to be there to answer the call from the EMA to get the word out to the listeners who might be up?

Sure, Cumulus can summon a few people in Mobile for hurricane coverage, out of all their stations they can probably wrangle 5 people to bed down for storm coverage. But in Podunk, the owner/morning host/janitor/lead sales guy can't do it all himself for 72 hours straight.

I remember the last major tornado outbreak I lived through in Birmingham, when all the radio stations rolled over and played dead. They either kept up regular programming or just fed TV weather audio over the air. Because TV on the radio always works so good. (AFAIK James Spann is the only weather guy there who goes through the trouble to describe maps and video information for radio listeners.)

Fringe formats could be supported by a cluster of stations. Stations could share resources. New ideas had the financial backing to be tried. One big complaint is consolidation means fewer format options and fewer chances taken but I have noticed the opposite. Nobody talks about Lone Star 92.5 in Dallas/Fort Worth trying a risky format (a blend of Classic Rock, Americana and Texana) and selling branding sponsorships limiting commercials to just one spot an hour. Each category of sponsor was limited to one (one beer advertiser, etc.) iHeart did that. It failed but it was tried and notes were taken.

As someone who isn't in this business of show and exists solely on the outside listening in, I can say that this has not been my experience at all across multiple markets in the deep south. The only format diversification has come through flanking, where a similar format is launched on a sister station to protect a heritage format. I have never once heard any kind of fringe format run by a corporate radio group prior to the AM/translator thing beyond that Lone Star experiment.

What I hear in each market is the same programming, with the same syndicated shows, in the same handful of formats: country, pop, classic rock, classic hits, urban, urban AC. Neither Birmingham nor Mobile, both with significant African American populations, got an FM gospel station until the 21st Century. Neither has had a long-lasting classic country format that I am aware of. Standards was relegated to Crawford's AM in Birmingham in the late 90's, and continues to exist in Mobile on an AM owned by a succession of small time operators. AAA exists through another local owner in Mobile, and only via and HD/translator combo in Birmingham that's leased from a corporate player. What has corporate radio brought to Birmingham today? Sports sports and more sports. Urban urban and more urban. Country versus country station with no clear winners long-term.

It hasn't been until the second translator invasion that we've started seeing a slight diversification in formats, like what's happened in Montgomery and Columbus, GA. And as far as I can tell, iHeart's translator exploits in Birmingham are the exception in this state rather than the rule.

The same could be said about WalMart, Macys, Home Depot, CVS, Walgreens, Pizza Hut, Hair Cuttery, McDonalds, Taco Bell, and all the other corporate stores that have destroyed the local retail advertising base in small towns across the country. If you look at the overall picture, and how everything has changed in the last 30 or so years, the problems in radio seem very small. If you think radio is having a tough time, take a look at the newspaper business. Local business fed local media, and there really is no local retail as we once knew it. And when you add Amazon, eBay, and all the internet retailers to the picture, you start to see where the problem really lies.

At least Walmart, Macys and the like employ dozens and dozens of locals with each store they open. That's more than can be said for most radio groups. There are probably more full time employees at any Walmart or Home Depot than at an entire radio cluster these days. Their checks are money put back into the local economy.

Consolidation and Docket 80-90 started the slide to oblivion; the internet is accelerating the speed. It's unfortunate that radio took the Walmart approach for so many years. Look at what Walmart is having to do now: they cut costs so much that eventually the shelves started to go bare, which angered shoppers and lowered employee morale. They cut so many full time staff and began relying on part time help, and got exposed signing up all their part timers for welfare programs to make up for what they don't pay per hour. Sales stagnated and then fell. It's been a massive effort to turn that company around. This seems to echo what I've heard from corporate radio. They expanded their portfolios, borrowed money endlessly, cut personnel to the bone. Now with the added pressures of 21st Century reality, they're struggling to escape the debt and the reality that radio is no longer relevant, a perception they did little to counter by being nothing more than jockless, information-free jukeboxes with commercials.

The saddest thing of all is that this corporate-led nosedive is going to take so many mom and pop owners with them as they crash and burn.
 
I have never once heard any kind of fringe format run by a corporate radio group prior to the AM/translator thing beyond that Lone Star experiment.

Going back 55 years, I generally used one AM and one FM to do experimental formats or variants. They were not intended to make money, but, rather, to lead to the development of formats that would make considerable money if we were lucky. If one of the experimental formats worked, I'd buy one station deeper into the market.

(My biggest cluster had 4 AM stations and 5 FMs... giving considerable liberty in the development of format variants),
 
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What's unknowable is what would have happened in individual markets without consolidation. Would Nationwide Insurance have hung on to WNCI instead of buying naming rights to an arena? How would these companies have handled competing with Facebook and Google for ad dollars? We like to think radio would have remained frozen in time, but it likely wouldn't have. The technology would still be there for remote voice-tracking, satellite delivery and everything else everyone complains about. We'd likely have more stations (particularly AM) off the air.
 
Well yeah, actually the government does. FEMA doesn't magically grow in size when a hurricane threatens.

Actually, they do. FEMA calls out for volunteers to help them handle emergencies. They did that when the tornado hit Northern Alabama a few years ago. The local folks weren't staffed to handle the size of the disaster. Same with the insurance companies who had to assess the damage. They don't pay thousands of people to just sit around waiting for rain.

But the greater point is that if there is no one to "call in" in an emergency, how do you get the information out in the first place? Or if the emergency happens at 3 am when everyone's asleep, who is going to be there to answer the call from the EMA to get the word out to the listeners who might be up?

There is supposed to be a system set up for that kind of thing. After 9/11, the government created the Department of Homeland Security. They were given direct responsibility for handling emergencies. It's not the job of radio stations to do that. The law is written in such a way that radio stations simply offer their facilities to the emergency officials, they have home phone numbers to call, and radio responds. You don't need to have someone sitting in the studio waiting for the phone to ring. Quite often, the problem is with the emergency officials who don't contact radio until after the disaster is over. Or they contact radio and tell them to evacuate. That's what happened in Texas and Louisiana.

At least Walmart, Macys and the like employ dozens and dozens of locals with each store they open. That's more than can be said for most radio groups.

But Walmart and the national chains don't buy advertising on the local radio stations the way the local stores once did. That's the problem. There is a lot less local money to support all the staffing the radio station once had back in the day. All advertising for WalMart, Home Depot, and the national chains come from their national agency. The agency buys numbers, and they don't buy the small station in Alabama. The buy iHeart and the big national radio chains because they deliver the national numbers they want to see.

As I said, the changes in radio reflect the changes in the local economy. If there's no money for advertising, there's no money for staff, local programming, or emergencies. The money has to come from somewhere.
 
As I said, the changes in radio reflect the changes in the local economy. If there's no money for advertising, there's no money for staff, local programming, or emergencies. The money has to come from somewhere.

The money is there as long as you remain local in your programming. What's one of the most listened to programs on local radio? High School Football. It's local and an easy sell. Most stations have a waiting list of advertisers waiting for a spot in the game.

Of course, you can't rely on that to support a station. In most small towns, there are plenty of Mom and Pop locally owned businesses. The local Chamber of Commerce is very active here and line up local businesses to sponsor their radio show. The Chamber in turn sends out email blasts encouraging members to support those sponsors and it works.

There are still quite a few locally owned restaurants in every market. People listen when the local jock live reads the daily special. It's not as effective when it's just a pre produced spot in the Bubba and Jim Bob Sat fed show. The local station I referred to earlier reads off lunch specials in the morning. Why? They aren't live during the lunch hour. Chances are that most people that hear the special of the day at 7:30am will have forgotten it by lunch time. If they hear it in the hour leading up to lunch, there's a good chance they'll pass up the Mac Burger for a Meat and Three.

It's been proven time and time again that live read spots are more effective. That's all there was in the early days of radio and TV.

Sadly, we've become a social media society. Don't get me wrong, it's a necessary evil, it's brought me quite a bit of business. I've had young people tell me that their only source of news is Facebook. A big reason for that is there is no other source of up to the minute, local information anywhere else in our area.

Some broadcasters have embraced the net for good reason. Ad Dollars. WAFF in Huntsville spends their whole newscast pushing their News and Weather apps. They also stress the fact that's it's "local". Most radio apps I've seen focus on music with some national entertainment feeds. No local feeds.

The little local newspaper here only publishes twice a week and the web site is behind a pay wall. Even if it wasn't, they only update their site the days the paper is published. Some stories are old news by that time.

I think by now you've grasped the theme of my posts. Local Radio as we know it has pretty much died and it's sad.
 
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