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To: Lonesome in Massachussets

Dan Kennedy’s a lib. If Obama were white where would he be?

27 posted on 04/17/2010 1:47:02 PM PDT by raccoonradio
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To: raccoonradio

Here are a couple interesting commentaries on Howie and the WRKO situation—sorry if they’re a bit inside radio (literally). Both are written by people who are in radio
and come from the comments at

Aaron Read writes:
Entercom’s biggest problem is that WRKO is that it’s directional pattern at night means for half the year, they’ve got zilcho signal over the lucrative Metrowest market during prime drive-time hours. So it’s too “small” a signal to really be competitive against FM signals.

But it’s still a 50,000 watt Class B signal that covers a huge number of people and puts a solid signal over most of the core Boston/Cambridge area.

So it kind of demands that a “major format” be put on WRKO, not a “niche format”.

The two major formats for large AM stations are still news/talk (mostly right-wing) and sports, two formats that WRKO can’t win with because WTKK 96.9FM and WBZ 98.5FM, respectively, have vastly superior FM signals with. Worse, WRKO can’t really do sports because it detracts from the meal ticket (WEEI 850AM).

So WRKO is kinda screwed, in part by Entercom’s own success with WEEI.

Worse still, Entercom could put WRKO on one of their other FM properties (WMKK 93.7 and WAAF 107.3/97.7) but neither of those signal pairings is equal to (much less “better”) than their chief competitors’ FM signals. And they’d be substituting a struggling product for a successful, profitable product in either case; WAAF does pretty well overall, and WMKK costs so little to operate that it rakes in the cash.

If WGBH hadn’t gone news/talk, then a strategic partnership with WBUR to make WRKO an outlet for alternative NPR news/talk programming almost might’ve worked. Emphasis on “might’ve”. But that option is effectively off the table now.

Honestly I think Entercom really only has two options: muddle along with WRKO as it is…and try to reduce costs to the point where lower revenues are still viable revenues. Or bite the bullet and switch to a niche format that lets them slash costs to the bone (a la “Mike” or a leased-time ethnic/foreign-language) and accept the huge drop in revenue because your costs have dropped equally.

Of course, neither is exactly a palatable solution.

I dunno. What the hell, put a Haitian/creole format on there. There’s tons of Haitian pirate radio stations, maybe they’ve figured something out?

Tony Schinella writes:
I don’t know if Entercom is thinking about getting rid of Howie. However, I have caught his program recently and nothing I heard him say seemed any different than the past. So, why is it a big deal now? I don’t know. Maybe they just were getting sick of it and decided to hit him where it hurts or where it matters to him, in his wallet.

For those of you who don’t know how radio works, here’s a quick, admittedly simplistic view. Most stations run about 12 to 14 minutes worth of ads an hour. They set the price based on what they can get and what they have to make for the quarter. They take the amount they need to make for the quarter and divide it by the number of spots in that same quarter, which gives them a rough idea of the rate they need to get. It gets a bit stickier when you have big “talent” like Howie because it throws the math off. But, the formula is still the same.

In order to understand just how much money Howie makes – or how much money they lose on Howie – follow this math. Let’s say WRKO has 12 spots an hour, just to make the math easy. That’s about 12,500 ad minutes. per year for Howie’s four hours. To break even on Howie, WRKO needs to sell every single ad during his program for at least $96 ($80 to pay for Howie, with 20 percent, a guesstimate, going to the sales people). That’s breaking even on just Howie, not counting any other expenses to run the station. But for the example to understand the money, let’s just use this formula.

There are other billable things, like live reads (“The Chump Line is sponsored by Lumber Liquidators …”), promotions, sponsorships, non-traditional revenue like the Web site, and other things, that bring in money to a radio station. But like ads in the print edition of the newspaper are the bulk of their money, so are spots for radio.

Anyone listening to Howie’s show knows that it’s not sold out. There are PSAs running throughout the hour. Endlessly. So, the spot price is much more than $96 I would bet. In addition, Howie has a network deal, since the show is syndicated on a bunch of New England stations. So, the spots that air on multiple stations make a lot more money. At the same time, I have heard rumors over the years that the network spots have been difficult to sell. If you’re in Boston, you don’t care about some tiny audience in Maine or Keene.

Back in the heyday, Howie was billing a pretty chunk of change. When I called to get an estimate for a potential freelance client back in 2004, it was $300. I seriously doubt that it is $300 now. But, it might be. I don’t know and I don’t know anyone who is buying spots on WRKO now so I couldn’t even guess.

But, in many of these cases, it is about the money … $1 million is a ton of cash. It might be money for Entercom. In fact, as they have seen with their horrifically amateur, unlistenable paid programming, quality doesn’t really matter. Whoever pays plays. As advertising has dried up for everyone, they could be looking at other options.

Here’s some other math to wonder about, especially when considering this situation. WRKO could easily get quality talk show programming that could potentially be more profitable for a lot less money. There are a lot of talk show hosts out there who can do it for them that won’t get $1 million. Here’s how that math would work.

Say, for example, that Entercom is selling all of Howie’s spots for $100 each. They figure, well, we’re selling all the spots, paying Howie, and making $50K a year in profit (again, ignoring the other costs at the station, just to make the math easy).

However, they could get another talk show host, say, Tony Schinella, who will do compelling air, build an audience beyond just those people who are knuckle-draggers, and he’ll do it for say $100K. Well, sure, Tony won’t be able to bill $100 a spot. But, could Tony bill $20 a spot? Probably, in the Boston market on a station like WRKO. And Tony would kill himself to make it work, let me tell you that right now …

So, WRKO hires Tony for $100K, sells out all his spots at $20 a piece, and makes more money with Tony – $150K in profit instead of $50K with Howie – returning more revenue to the station’s bottom line and to shareholders.

Now, I admit, this is a stretch of an example. I’m not going to replace Howie on WRKO and very few other people are either. But this is how they could be looking at it. Better to get a cheaper person and sell the rate for less money but make more money than to have an expensive person and play PSAs.

In many cases, WRKO isn’t going to lose a ton of listeners for most of their shows. Sure, they will lose Howie’s rabid following. But studies done by Scarborough Research show that talk radio listeners rarely switch the station unlike music listeners who hear an ad and then flip the station. They have talk on all day long, even liberals, in the background, in the car, and are not often swayed to switch by the actual hosts. Sure, they can go to WTKK. But some won’t switch. There will always be listeners on WRKO no matter who is on. Will they be the same as Howie’s numbers? No. But there will be numbers there.

On Howie calling Obama out for being an affirmative action success story, personally, I don’t have a problem with that. From all that I have seen, including an amazing Frontline documentary on Obama, this rings true. Throughout his career, Obama has used his race and oratory skills to dazzle guilty, white progressives into thinking he is one thing when, in fact, he is quite another, as shown by the way he governs. That is where the “messiah” stuff comes from. The list of his “accomplishments” before becoming a senator were weak and limited when compared to many other statesmen and women of our time. The fact that he was able to win the primary against Hillary still shocks me to this day. However, it does show that, yes, anyone can grow up and become the president, especially when given many helping hands along the way … Of course, the fact that anyone can grow up to be president is a good thing.

28 posted on 04/17/2010 6:43:35 PM PDT by raccoonradio
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