Disturbing Plans For Clear Channel in 2014

Looks as if Clear Channel is just warming up.

My sources close to the situation say there are secret plans to consolidate operations and layoff many more people in the next 18 months.

Here’s what we know.

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  1. The deepest cuts ever are planned – a look at Phase 2.
  2. Bad news for so-called “regional markets”.
  3. The fate of the one remaining programming or ops manager left in many markets.
  4. Why 2014 will be a bad year for the careers of Clear Channel employees holding this endangered job.
  5. Horrors!  Cutbacks in major markets previously considered unthinkable.

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The Next Generation Doesn’t Want To Drive

This is bad news for radio if you can get over the notion that Millennials do not like to listen to radio even when they do.

Think about it.

Cars are expensive ($30,000 on average).

And that’s without fuel.

And insurance.

And that’s for a generation (80 million strong and coming of age now) that has been screwed by corporate America – yes, companies like Clear Channel and Cumulus among many others.

Now, the payback.

Broadcasters don’t know jack about Millennials – nor do they appear to care.  To them, radio is a monopoly game of buying and selling, debt and refinancing debt.  It’s not about offering an innovative product.

For innovation, they look to Netflix (full disclosure:  I own Netflix and Google stock).

There are many misconceptions about Millennials most of which had better get straightened out fast.

Truth is, they are civic-minded.

They don’t see color or sexual preference.

They don’t much like bragging.  Instead they favor authenticity.

Oops, radio’s already in trouble.

Listen to a radio station and hear all the bragging.  Not cool.

They love outrageous personalities but they want them to have talent.

But it’s not all roses for Gen Y.

Millennials who use social media such as Facebook tend to be unhappier than those who do not.  It may be a Facebook thing – bragging about yourself as most do on Facebook affects their social community.  It’s a growing problem.

They don’t listen to songs all the way through – something I want to discuss some more because, well – radio programming is built under the assumption that listeners at least are going to stick around for a song they like and then tune out for commercials or tune away when they hear a song they don’t like.

It’s no longer true.

This is major and all radio can do is talk about music sweeps.

Heck, young listeners don’t stay around for even one song.

Ask a Millennial.  Better yet, observe them.

I’ve got some solutions for this one so we should kick them around together.

Back to not liking to drive cars.

There goes your vaunted digital dashboard.

Gen Y likes public transit – it’s cheap and they can text and search online at will.

These are only problems if they are not understood.

Otherwise, I consider them opportunities I intend to discuss in Philly at my next Media Solutions Conference.

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Revealed: Cumulus Eyes Another Radio Group

Cumulus is buying Dial Global.

And they’re trying to buy CBS Radio – even the happy talk trade press begrudgingly admits that.

Now a convenient third scenario emerges.

Who needs to be worried.

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  1. The real reason Cumulus is buying Dial Global and it’s not their 7,000 client stations.
  2. The radio group Cumulus has its eyes on an eventual takeover target – and I’m not just talking about CBS here.
  3. New information about their attempts to buy CBS Radio.
  4. What happens to Disney’s ABC Radio news deal with Cumulus that expires at the end of the year.
  5. The market that will soon be under Cumulus control and the estimated number of Cumulus markets where employees will see a new owner this year.

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Miley Cyrus At the VMAs

So she’s half-naked.

And she’s twerking with Robin Thicke.

And it’s the Video Music Awards so who cares.

The next generation sees Miley Cyrus, the VMAs and the music business with the clearest eyes.

No talent.

No excitement.

No clothes (or not much).

No problem.

Let Mika Brzezinski be outraged, she has a right.

But if you want to understand the Millennial audience – those 80 million listeners and viewers coming of age – this is a good opportunity.

MTV is a mere shadow of its former self when Bob Pittman supposedly invented it.  Gen X may have wanted its MTV but MTV ended up giving them reality shows and no music.

They made it on music and then switched to TV shows.

The VMAs are useless.

This isn’t me.

It’s Millennials many of whom wonder out loud why older generations cannot see the real fraud going on – a desperate 20-year-old coming unhinged while everyone is taking advantage of her.

That goes for Robin Thicke who blurred the lines during Miley’s VMA TV abortion.

And Mika’s outraged but in today’s world, it’s all about promotion not performance.

Bare butts – this time Lady Gaga instead of Prince.

It’s not the nudity or the outrageousness, it’s the vacuous performances.

Millennials want authenticity – they insist upon it if you are to be credible to them.

So what does radio do?

Play the same records over and over because they get ratings.

Yes, maybe phony PeePee M ratings but not audiences.

Taylor Swift?

Now she’s the real deal even though the cognoscenti are haters.

She speaks to teens and is a potent force to reckon with and yet many baby boomers and Gen X execs dis her.

The Mad Men era is over.

It’s good TV and lousy policy.

Touting how good you are or being outrageous just to get attention is over.  It will not work.

Be outrageous or scantily clothed, but say something – this is the demand of a new generation.

If you’re looking for a generation gap, look no further than what passes for radio, network TV and the advertising business in the new era of social media.

Some new rules:

  1. Always be authentic.  Show you’re not perfect and you gain in esteem.
  2. Mad Men brag, wise content creators go viral.  Nothing turns off a Millennial more than bragging about yourself.
  3. This generation is very open to alternative lifestyles, gender equality and even outrageous behavior but they rebel against blatant marketing and promotional efforts (i.e., Miley Cyrus at the VMAs).
  4. Of these choices pick b:  A) rip off the audience and create phony buzz using controversy and no talent then raise your rates or B) go real and get the audience to love you first because you are authentic then monetize it.

Let’s continue this conversation at my 2014 Media Solutions Conference in Philadelphia.

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Deadliest Clear Channel Cuts To Come

This secret plan by The Evil Empire is so potentially debilitating that the cuts being considered are ill-advised even for them.

Yet, there are secret plans to upend the total radio station in ways previously considered unthinkable.

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  1. The two heretofore virtually untouched job categories that are suddenly fair game for elimination at Clear Channel.
  2. The huge corporate savings that are expected from saved salaries and termination of benefits.
  3. The secret plans revealed for the first time while the happy talk trade press provides cover.
  4. Identifying the soon-to-be outsourced jobs. 
  5. What’s worse – as you’ll see – if they get away with this, guess what’s next?

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Alert: Dickey Ups His Bid For CBS Radio

I know, you think in the end Les Moonves won’t really sell CBS Radio.

I understand, but think again.

He now has two bidders running up the price and a fresh new offer from the Dickey Dynasty.

Game on.

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  1. Lew Dickey’s new, improved money package to acquire every CBS Radio station. 
  2. What CBS CEO Les Moonves wants now that he reportedly has a 2nd bidder interested in buying his radio division.
  3. Why Dickey actually has Moonves by the balls – this is scary sh#@!
  4. The deal Moonves is chasing.
  5. And for those who think the CBS sale isn’t going to happen!  The time and final price is right here. 

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Major Revelation: How Clear Channel Decides Who To Fire

A smoke and mirror act has been going on during the current 7% workforce reduction at Clear Channel.

Corporate is making it look like the decision on whom to fire is coming from local managers, but we’ve learned that the list was prepared and even dictated from on-high.

Useful information because, we’re sorry to say, Clear Channel is preparing for yet another large force reduction in the next three months.

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  1. The way the layoff list is now prepared and how the firings will be implemented.
  2. These 3 things will almost always get talent fired now and in the future at Clear Channel.
  3. The closest thing to job security for on-air people.
  4. A different and contradictory set of rules is emerging for how and when to fire sales managers – the astounding evidence.
  5. The answer to the question how deep can consolidators like Clear Channel and Cumulus go before the layoffs let up.  It will surprise you.

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Surprise 2nd Group Looking To Buy CBS Radio

This is so urgent Lew Dickey is learning about it while you are – right here, right now.

New details are emerging that there is a potential bidder seriously looking into buying CBS Radio so suddenly Cumulus now has no margin for error.

Are they running the price up or do they really want to buy CBS Radio?

Cumulus needs to bury its debt in a profitable company like CBS or Dickey’s in trouble.

Wait until you hear how advanced these talks are.

CBS employees:  Let us pray.

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  1. The first credible indication that a competitor has emerged to steal CBS Radio away from Cumulus.  No one will have this.
  2. These indications tell us the deal is on a fast track – here’s when it could be announced.
  3. There is a new price – sit down for this.
  4. How Lew Dickey himself may have inadvertently let the 2nd bidder into contention.
  5. The question everyone wants answered!  Is it a radio group or a media company looking to steal CBS Radio from Cumulus and is Cumulus still in the running?

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Total Nightmare: Listener Revolt

Amazing and dramatic audience changes are brewing.

But media executives are missing them and lots of revenue is at stake.

New attitudes toward radio, TV and even digital are emerging.

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  1. If you’re a radio station, be careful of how you use Facebook.  Don’t get caught in bed with Facebook if you want to become social with the next generation.  There is a cooler choice.
  2. Music programmers beware: younger listeners have radically changed the way they enjoy music.  Know this or you’ll turn them off.
  3. The one big thing radio thinks it is doing right on hit music stations that an increasing number of listeners say is all wrong.
  4. Even Pandora and Spotify are in trouble – here’s how.
  5. Most amazing!  The growth of cellphones is being threatened right now by this new Millennial option. 

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Cumulus Debt Crisis

Now we know why Cumulus must buy CBS Radio or perish.

The numbers don’t lie, it’s that bad.

After January 10th, its top ten markets go back on “red-alert” for revenue shortfalls of the company’s own making.

The repercussions are major.

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  1. How long Cumulus has before it either merges with a debt-free company or files for bankruptcy itself.
  2. Shocking news about Cumulus’ debt repayment in the first 6 months of this year.
  3. The one outside factor out of the control of the Dickeys that can bring the roof down almost immediately. 
  4. The big Cumulus advantage over Clear Channel, which has $20 billion in debt and the one crucial negative.
  5. The number everyone is searching for!  How bad is Cumulus debt and what does it mean to employees hanging on to their jobs.

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Shakeup: 2 Big Radio Groups Kissing & Selling

Sit down for this one.

We’ve got reliable information that two major radio groups are getting ready to kiss and sell.

Over 30 stations in play!

This has major implications for employees because one of the groups sniffing around this deal is a bunch of bad dudes hazardous to your career.

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  1. The big radio group on the verge of buying a lot of radio stations and the one exiting stage left.
  2. The surprising time frame.
  3. A major spinoff is in the offing – here is the first read on it.
  4. The prospect of shaking up other radio groups between now and the end of the year.
  5. And this surprise!  The reason you’ll see radio groups heading for the exits next.

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New Details Emerge in Potential CBS Radio, Cumulus Merger

A total nightmare scenario is developing in the potential sale of CBS Radio to Cumulus Media.

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  1. CBS Radio is beginning to change the way it operates in possible anticipation of a sale of assets.
  2. What CBS Radio used to do in a New York minute a few years ago that it will apparently not do today with a potential merger looming.
  3. The surprising way CBS Radio is going to stick it to, of all competitors,  Clear Channel. 
  4. Another clue: what CBS Radio is uncharacteristically holding back on lately.
  5. Dramatic evidence!  New details that CBS is up to something big.

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Hannity Fires Cumulus

Sean Hannity gave Cumulus CEO Lew Dickey a taste of his own medicine.

He fired Cumulus.

Rejected an offer to extend his contract.

And, according to sources, said the company treats its employees “like dirt, shit, sub-human”. 

Wow! 

Dickey may have finally met his match.

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  1. How Cumulus is sending apparent surrogates out to smear the reputation of their most popular and profitable talk show host.
  2. Clear Channel’s secret counter plan to wipe up the floor with Cumulus after they get negotiating rights back for Hannity.
  3. Disturbing new details about Rush Limbaugh.
  4. How this blowup affects stations carrying Rush Limbaugh who is tied to Clear Channel along with Hannity.
  5. You won’t believe who Cumulus wants to put on their talk stations instead of Sean Hannity.  You won’t believe it, but it’s true.
  6. Finally!  A popular radio personality who has Lew Dickey by the balls over this one issue – The Dickey’s Achilles Heel.

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Talk Radio’s Replacement

It’s not sports.

Not news/talk.

It’s worse than that.

While the top radio CEOs scramble to find the replacement for the very talk format they have killed off, it’s as plain as day for all to see.

See what talk radio will be like in the next few years.

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  1. The most important change that no one has ever tried – be years ahead, go ahead do this.  In fact, do this on non-talk stations – it’s that major.
  2. What will be bigger than a controversial topic in a few years.
  3. The surprising new standard for what’s too old to be on the air.
  4. The reason young people are willing to give Anthony Weiner a pass for his nude texts – talk radio doesn’t get it, but you must.
  5. How this one social media app is becoming more influential than Facebook or Twitter.

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Cumulus Finances Worse Than You Think

Masters and Johnson tell us that cunnilingus is the stimulation of the female genital organs using the tongue or lips. 

But Cumulingus is a desperate attempt to stimulate the image of an underperforming company using the tongue AND lips.

In fact, Cumulus is not performing well and, as you will see, is on shaky ground.

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  1. CEO Lew Dickey said first half revenue was up, but the Wall Street analyst we used to cut through the b.s. tells a far different story.
  2. One so-called code red Cumulus station remains on life support according to Dickey – true or false.
  3. How Cumulus compares to other similar radio groups on paper not in public relations.
  4. Threats to the future of Cumulus.
  5. But most urgently!  How do the real numbers impact further layoffs and future cost reductions.

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Clear Channel Bombshell Revealed

I’ve got a quote from CEO Bob Pittman that tells you everything you need to know about his plans for Clear Channel.

That’s the public part.

Privately, he and his former Time Warner team are working on a massive Clear Channel shakeup the likes of which has never been seen before.

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  1. How Clear Channel plans to make $20 billion in debt disappear – yes, there is a plan.
  2. The two-part dismantling of Clear Channel radio group.
  3. The coming move to further eliminate personnel.
  4. How Clear Channel will run its radio group like two separate companies.
  5. And the biggest question!  When.

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Huge Rolling Layoffs Hit Clear Channel

Massive nationwide rolling layoffs began Friday.

8 careers were ended in one major market alone – 6 fired on the spot, two "resigned" – one just got out of the hospital, returned to work one day and was fired by these heartless bastards the very next day.

Now more firings expected in other cities as Clear Channel CEO Bob Pittman becomes unhinged.

Layoffs are not over, they’re back bigger than ever at Clear Channel.

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  1. What made Pittman snap.
  2. The revised and projected layoff schedule from now until the end of the year.
  3. Why Pittman is apparently not stopping at 4 firings per market – the number he asked his board of directors to authorize.
  4. The firing pattern and the markets that are still off-limits from increased layoffs.
  5. And most importantly!  How Clear Channel is deciding who stays and who goes.

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Brutal Format Changes Coming To Cumulus

Cumulus top 10 markets are now back on code-red.

Low ratings, low revenue – they are firing sales managers in frustration.

More heads are going to roll soon – they’re running out of time.

And format changes are coming that will blow up major stations in an effort to cut costs otherwise

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  1. The last insult to the talk radio format.
  2. How their most vulnerable major market station is this far from being eviscerated due to bad decisions and poor management.
  3. How Cumulus plans on handling AM stations from now on.
  4. Their 2 “go-to” formats of the future.
  5. 3 Cumulus moves you can bet on in the coming months.

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What Went Wrong Between Randy & CBS Radio

CBS Radio was this close to buying Merlin’s Philly FM as the new FM home for KYW Newsradio.

Then something went very wrong.

Publicly it looks like CBS was outbid, but the real story that you’re about to read is down, dirty and should serve as a warning to good broadcasters trying to operate in a venture capital world.

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  1. What pissed Merlin’s Randy Michaels off so much that he played with CBS over the sale of his Philly FM for years and then surprised everyone by selling it to someone else for about the same offer price.
  2. The reason Michaels held out and then screwed CBS out of the station they badly needed.
  3. Why CBS said “no more” to what some would call extortion.
  4. The deal breaker after over a year of negotiating.
  5. How the potential looming merger of CBS Radio with Cumulus ended up being a factor.

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Jeff Bezos’ Washington Toast

Another fool thinks he can turn around a traditional media company in the digital age.

Jeff Bezos buys The Washington Post.

His qualifications:  he has the money in his personal account.

Warning:  now is the time to study the fools who think traditional media (radio, network television, newspapers, magazines) have a future in the digital space.

They don’t.  Sorry.

This is what you should bet on.

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  1. The reason traditional media cannot survive as a digital business and what can with a few strategic changes.
  2. The one question that must be answered before radio, TV or newspapers makes a move in the digital world.
  3. What would “He” have done?  I’m talking about Steve Jobs here.
  4. Why advertisers are the enemy.
  5. And the best advice you could ever get -- about building a media business with rapid revenue growth and the terminal mistakes to avoid.

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Lew Dickey’s Revenge

Lew Dickey is like Popeye.

That’s all he can stands, he can’t stands no more.

It’s no more Mister Nice Guy (did I actually say that?).

Dickeys demons may cause some horrific acts in the months ahead and meanwhile he’s hoping to keep it all under wraps.

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  1. How Lew will stick it to Rush Limbaugh even if a renewal contract gets done – and I’ll give you the over/under on that.
  2. I think he turns on some trusted people who can’t see it coming – here’s who.
  3. The shocking way he will double down on sports radio – no one sees this coming.
  4. The good news and bad.  Cumulus will lay off fewer people than Clear Channel next year.  The bad news, not that many fewer.  The total estimate for the next year.
  5. And this shocker -- The unthinkable partnership from hell Dickey is working on privately that will spell disaster for jobs.

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Clear Channel’s Disruptive 2014

The DEFCON team is being assembled right now.

Tom Casey has been replaced as CFO with the board member who recruited CEO Bob Pittman to Clear Channel.  One good favor begets another.

Blockbuster moves are being planned as early as six months from now. 

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  1. Clear Channel will start selling some selective stations offering this lousy deal to eager buyers waiting in the wings.
  2. The real reason Pittman is pumping up iHeartRadio – and it’s not to save money or even make money.
  3. Big trouble ahead for so-called “regional” markets.
  4. Over 1,000 estimated layoffs for 2014, but the way they are going to be done will scare the hell out of surviving employees.
  5. And the answer everyone is looking for!  What is this new Clear Channel on a diet going to look like?

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Cumulus Invents a New Way To Cut Costs

Cumulus CEO Lew Dickey is said to be paying a major program supplier hundreds of thousands of dollars for content in order to effectively kill off one more talk radio station.

At the same time he is refusing to pay Rush Limbaugh’s licensing fees to win a long-term renewal.

Why would Cumulus pay big money to cut costs – now we know.

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  1. Two weeks ago Cumulus blew up one of their talk stations – this is how they are likely to blow up others.
  2. The cheap replacement for news/talk at Cumulus is not a sports station – it’s twice as shocking.
  3. The real reason Cumulus is still negotiating with Clear Channel for Rush Limbaugh when they are headed in an entirely different direction. 
  4. What Cumulus has secretly started to already do to some of its talk stations ahead of this bold move.
  5. And the answer to that nagging question!  What could save so much that they would actually pay large sums of money for it?

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