What kind of a screwed-up industry is radio when the largest group fueled its growth by taking on killer debt and then using bankruptcy to reduce it?
All the while operating as a legal monopoly whose predatory practices have helped weaken the business.
But the one monopoly that has operated in a stealth fashion to redirect ad revenue to iHeart, parent of Katz, is ready to make a move that could have devastating effects on Entercom, Cumulus and smaller radio groups.
Radio’s only rep firm is going to get bigger, tougher and have more of a grip on national ad dollars.
The companies most vulnerable to Katz may not even be fully aware of their plans and the tough tactics that are going to be used on them.
Fortunately, national business is about 15% of most stations’ revenue, but unfortunately what Katz has in mind will likely creep into local dollars and the timing couldn’t be worse.
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