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iHeartMedia promotions spending...

M

Macker

I was listening to a popular station in the bay area and they have a promotion where they give away $1k every hour, 14 hours day. I was flipping through other stations and another iheartmedia station, a much much smaller one not even in the SF demo, in the valley, were giving away $12,000 a day. I know it's a huge parent company, but I don't see how the smaller stations can make any money if they're giving away so much money. It's not "sponsored" by a certain company, they just give away money. How can a radio station in a small market give away millions of dollars a year? I'm sure they do this in tons of markets. They apparently don't have money to pay for local talent but they can pay people to listen? I know that it's probably minor compared to iheart's larger-scale spending problems, but I'm sure it all adds up and makes lots of their stations not profitable. If the most profitable stations in the country are only making $20-40 million, the smaller ones must make hardly anything in advertising. And there aren't enough top billing stations in huge markets to make up for all of the smaller ones. Just doesn't really make sense. Giving away all that money every day isn't really going to increase listeners, it's just giving away all their money to random people that tune in. Seems like it would be better to spend that money on hiring sales people to increase advertising.
 
I believe this has been discussed before, and TTBOMK it's a national contest, not a local one. That means all stations together are giving this money away. The odds are very high. But if you happen to win, it's still free money.
 
Just seems strange for a company like iHeart - filing for bankruptcy - is handing $$ out like John D. Rockefeller.....!!!!???
Guess I'll never understand "high finance".....:rolleyes:
 
Oldie919 said:
Just seems strange for a company like iHeart - filing for bankruptcy - is handing $$ out like John D. Rockefeller.....!!!!???
Guess I'll never understand "high finance".....:rolleyes:
Click to expand...

The bankruptcy has to do with the excessive debt that was a result of the leveraged buyout; the stations themselves are viable and profitable as a group.

The people iHeart owes money to have the great hope that they will not take too much of a haircut as part of the bankruptcy settlements. The better the radio stations do, the greater the chance of getting paid more on the debts. So making sure that the stations don't lose ratings and, thus, revenue, is high on the list of priorities for the bankruptcy administrators.

So contests, promotions, concerts will be kept at the same level or maybe even increased.
 
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