Why is David beating Goliath?
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Thread: Why is David beating Goliath?

  1. #1

    Why is David beating Goliath?

    Maybe I'm being naive here, but...

    How is it that small operators like Morgan Murphy can afford to have live on air staff, be on the streets, have highly interactive websites & be known entities in their communities...and make money, but iHeart and Cumulus can't do any of this?

    Who can explain this?

    G
    Formerly...but always... "The Guru" (Still as old & crotchety as ever)

  2. #2
    Quote Originally Posted by upstate29651 View Post
    How is it that small operators like Morgan Murphy can afford to have live on air staff, be on the streets, have highly interactive websites & be known entities in their communities...and make money, but iHeart and Cumulus can't do any of this?
    Maybe you need to be specific. Because a lot of the iHeart and Cumulus stations have live airstaffs, do lots of local events, and even make money. The difference is they're saddled with a lot of debt. But in fact, they still do quite a bit, they each employ thousands of people, and pay them very well, contrary to the image.

    I never heard of Morgan Murphy, but I see they're a small company in Wisconsin. There are hundreds of other small companies like them. That's what makes radio a vibrant business, that you have some big companies and some small ones.

  3. #3
    - They don't go by Wall Street

    - They don't have a boatload of money spent in CEO and managing positions salaries

    - They aren't buried in debt

    - (Usually) they know the value that a local, engaged and engaging station has, if people want a 24/7 remote, automated feed they have Spotify, Sirius, Pandora, etc.

    - They understand that people can tell the difference between a truly live and a voice tracked station.

    I'm sure I'm missing MANY more differences!

  4. #4
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    Quote Originally Posted by broadcastguy View Post

    - They understand that people can tell the difference between a truly live and a voice tracked station.
    Actually, most people can't tell the difference. I automated my first station, a personality Hot AC, in 1977 and my second one, a personality Salsa CHR, in 1978. The stations were #1 and #3. The #2 station was a pop CHR, and it was also automated.

    All of us had full airstaffs, and each jock spent several hours voicetracking each day just before the show aired (except weekends). The rest of their time was spent doing promotions.

    We were on the street all the time. Nearly nobody knew the jocks were recorded. The few that did (because they had been to the stations to pick up prizes) thought it was very cool and "modern". There were no negatives; the FM managed to get up to a 42 share in a 30 station market.

    I'm sure I'm missing MANY more differences!
    The main one regarding your example is that the Morgan Murphy owner is 90% focused in a single market area, Spokane and surrounding small markets, and is locally owned and managed. They have no "corporate" salaries because the owners also do much of the day-to-day operations.

    While they may like being all live, in most cases that is not the most efficient use of personnel.
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