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What Comes Next?

A global pandemic followed by civil unrest followed by a bitterly contested presidential election has allowed news and news-talk stations to literally defy gravity throughout 2020 in terms of massive listenership.

Ryan Maguire

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This past week, as I lay on my couch recovering from COVID-19, I desperately needed a break from the stress of non-stop election coverage.

So, I decided to do something that I had been putting off for a while.  I pulled up Disney + and, likely, became the last person on Earth to finally watch Hamilton.

It was worth the wait.  Lin-Manuel Miranda’s epic on Alexander Hamilton was truly mesmerizing.

One of the songs really stuck with me.

At one point in the musical, after the Americans had won the Revolutionary War, the rather pompous King George III came on stage to lament the loss of the colonies with a catchy number entitled “What’s Next?”

That same question can now be applied to the news radio.

A global pandemic followed by civil unrest followed by a bitterly contested presidential election has allowed news and news-talk stations to literally defy gravity throughout 2020 in terms of massive listenership.  But the inevitable run of non-stop news cycle gold is coming to an end. The election is over, a COVID-19 vaccine is on the horizon, and cities are no longer burning.

At some point in 2021, life will start to resemble normalcy.

With that, the tide will go out for news media. I could literally sense every News Director and Producer across the country grappling with every ounce of strength to hold on to the 2020 Election Story…trying to drag it out if they could.

Even as it became clear that Joe Biden had won this damn thing, every network did what they could to drag out the suspense.  One more hour, one more day, one more news cycle.  Finally, there was just no more water that they could squeeze out of the proverbial sponge.

The bevy of non-stop stories covered up for a multitude of sins that the news media, (and radio, in particular) have committed over the years.  The audience is getting older, younger consumers are embracing more technologically savvy platforms and ad revenue is shifting away to new media further than traditional operators can keep up with it.

All is not lost.  As we head into 2021, here are three things that I sincerely want to see news-talk and news radio embrace with gusto.

OWN YOUR NEIGHBORHOOD…EXCLUSIVELY.

It’s the oldest rule in the book…and it still applies.  You can never go wrong talking about what’s going on in your own neighborhood.  But you must do more than that…. you must own it.  You need hosts, anchors and reporters that can get EXCLUSIVES.  They need to be able to get a story that no one else has.

I was always amazed by walking into newsrooms at places like KDKA in Pittsburgh, where Marty Griffin would drop bombshells that would get the entire city talking.  Or KIRO in Seattle where Dori Monson would walk into my office once a week with a big grin saying, “Wait till you hear what I got at 12:05!”

These are the types of people you need to find and get them in front of a microphone.  They have connections, they work them, and they are tireless and relentless to bring fresh, new material to the table that no one else has.

In the news world, having creative hosts who are entertaining with interesting perspectives isn’t good enough.  There are just too many choices for the consumer on too many different platforms.

What IS a rarity, are the people that can tell you something you didn’t know was going on in your own back yard.

GET FEARLESSLY YOUNGER

I remember speaking to a high-end national media figure who was in the middle of hiring a Senior Producer for a network morning show.  This program is well-established and has a large worldwide audience.“What are your biggest challenges?” I asked.

“Our audience is literally dying off,” she replied.  “We are just not reaching younger people.  Whomever we hire MUST be able to tell stories that reach 18-34-year-old listeners.  We just don’t have enough people that can do that.”

Hearing that was amazing yet validating at the same time.  I’ve always felt that news radio’s biggest challenge was the fact that listenership was aging out of the 25-54 demo and there just wasn’t enough incoming youth to replace them.

There are a lot of reasons for this.  One that isn’t talked about enough is that the stories I hear on news radio and news-talk stations just don’t appeal to younger listeners.  Service elements like traffic, weather and financial info are now owned by smartphone apps.  Most news stories are geared towards people on the older end of the demo.  While this serves an important purpose, 18-34-year-olds are virtually forgotten and that is creating a missed opportunity.

I recall a particular episode of “The Daily” from The New York Times. They had a detailed account of college students that were living on campus and sequestered due to the pandemic.  Needless to say, life was tough for them.  Many could not leave their dorms and the food they were being given as part of their meal programs was often inedible.   The genesis for this story?   A TikTok feed that several students had started and that had gained steam online.  That was a great example of a story that effects younger listeners and was started on a platform that they use massively.

These are the kinds of stories that will reach the people that you need to fund your future.  Seek those stories out and work them into your rotation.

EMBRACE TECHNOLOGY, NOT RATINGS

I honestly wonder, at times, when radio transmitters will just go from resting on giant towers to something that will only be on display in a museum.

As we see 5G rolled out nationwide as well as the installation of in-car Wi-Fi, over the air broadcasting suddenly seems so antiquated.

I’m 43 years old and have spent the better part of three decades in terrestrial radio.  Yet, I can’t remember the last time I used the AM or FM features in my car.  I plug my phone into a USB port and I’m either listening to Spotify, Radio.com, YouTube Music or SiriusXM.

Yet, when I talk to so many of my colleagues in the biz, they’re still trying to chase down terrestrial listeners.  They’re sill pouring through mountains of Neilsen data, hunting down meters, chasing panelists, and playing what is slowly becoming a zero-sum game.

I remember once talking to a radio executive about on-demand listening.

“We’re relying too much on digital,” he said.

“What do you mean?” I asked.

“We put all of our shows online, and it gives people no incentive to listen live.  It’s hurting our ratings,” he replied.

The first thing to pop into my mind when I heard this was….’WHO CARES?’   It shouldn’t matter where or how people consume your product as long as they are consuming it.  No matter where you reach them, you can engage them….and that should have value for ANY advertiser.

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Telling The Audience What You Think They Want to Hear Won’t Help You Grow

“Calling out each candidate’s positives and negatives isn’t picking one over the other, it’s opining on the news of the day.”

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Photo Credit: iStock

It’s OK to not always tell your audience what you think they want to hear. 

I have been writing that phrase down at the top of my notepad before I start my show for the last two weeks. Something tells me I will need it for at least another 12 months.

In the last week alone there have been two major topics that have divided News Talk audiences across the country: The debt-ceiling debate and the brewing Donald Trump vs. Ron DeSantis feud.

And as I’ve listened to talented hosts and perused the social media landscape, I’ve noticed a hesitancy that I usually would not expect. 

Granted, for the last two years it’s been relatively easy when talking about the national political scene: Joe Biden is a disaster. Whether it’s economic policy, border policy or foreign policy, most Americans don’t believe the guy is doing a good job. The News Talk audience, generally speaking, thinks he’s doing a terrible job.

That’s shooting fish in a barrel. But now comes the hard(er) work. 

Starting with the debt-ceiling drama, there was a big divide amongst Republicans in the House of Representatives. The bill passed with broad bipartisan support, however dozens of Republicans, many of the most conservative members of the House, voted against the bill, saying it did not do enough to cut spending

As a result, it seemed many hosts, who assume their audience blindly aligns with everything the most-conservative members of the House say, were hesitant to point out the obvious: Explain what better deal you were getting when you only had a small majority in the House, and no control over the Senate or the White House?

It was a question I never got a good answer to on my show.

Republicans already picked up a win getting Biden to the negotiating table after he spent months saying he wanted a clean debt-ceiling raise with no spending cuts attached. Speaker Kevin McCarthy won, got some concessions, and slowly began turning the tide towards hopefully Senate and White House victories in 2024, when then the real work can begin on getting spending under control. This was a victory.

And while no one with any levels of fiscal sanity believes our government’s spending isn’t wildly out of control, that is a separate conversation from whether or not this was a good or smart deal. 

Then, there’s the Trump vs. DeSantis feud. Some have staked their claim with one candidate over the other. Some are trying to toe the line and avoid all conflict. Neither approach makes sense to me.

The obvious approach seems to me to analyze the candidate’s based on what they do and say on a given day. There will be good and bad days for Trump. DeSantis will have his up and down moments. I can guarantee this because they’re flawed human beings like the rest of us.Like every election season, it will ebb and flow, and eventually someone will come out on top.

Calling out each candidate’s positives and negatives isn’t picking one over the other, it’s opining on the news of the day.

If you compare this to sports talk radio, a national host talking about the NFL Playoffs doesn’t have to have a preferred team, but he or she has to have something to say that’s interesting, compelling, honest, thought-provoking and entertaining.

If they don’t do this, they’ll become wallpaper in a world of too many media options. 

If you have the trust of your audience, you’re real, honest, engaging and thoughtful, you won’t lose your audience. You’ll keep them engaged and you’ll grow it.

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Why Did Newsmax Allow Rep. Matt Gaetz to Host An Unchallenged TV Program?

“A sitting politician hosting a show also doesn’t allow for a variety of opinion. It gives them the ability to deceive their audience, delude their constituents and impact lives in the name of lies.”

Jessie Karangu

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Photo Credit: Newsmax

Representing your constituents in Congress used to be a mark of honor. It was a position that came with pride and respect. At least that’s what I’ve heard from older relatives who lived in an America that was supposedly more united. Today, depending on the individual, the position doesn’t usually come with too much regard if any at all. Congress has an all-time low approval rating and many representatives go into the job plotting their next money-making move in the process. 

The cable news circuit has slowly but surely built a bench of potential hosts from current and former Congressmen. Former Congressman Jason Chaffetz is a Fox News commentator, Trey Gowdy is a host on Fox News, Joe Scarborough is MSNBC’s morning show anchor and most recently Rep. Matt Gaetz anchored his own hour for Newsmax. As much as some members of Congress roast young Gen Zers for their tenacity when it comes to TikTok, these men are just as eager for the wrong kind of attention and spotlight. 

A former Congressman on television can provide perspective that gives context to current issues the country faces. On Scarborough’s morning show, he often harkens back to past negotiations and talks he had with fellow lawmakers. At times, he even uses those connections to find out the inside scoop about something that’s happening in the moment. Current Congressmen who appear on shows as guests also get to talk directly to their constituents hopefully alongside a host that is willing to challenge them on the issues of the day and not simply allow them to lead the audience astray. 

For Newsmax to allow Rep. Gaetz to host a show though, is a disgrace to a medium of television that already like Congress doesn’t have much acclaim. With that being said, even for cable news, this is a major low and it should never happen on either side of the aisle. Politicians are elected to serve but are also forced to make tough decisions. These choices are answerable to the American people. When a Congressman is allowed to spew their thoughts uncensored, it takes attention away from the issues that really matter. 

A sitting politician hosting a show also doesn’t allow for a variety of opinion. It gives them the ability to deceive their audience, delude their constituents and impact lives in the name of lies. Unless Gaetz had a co-host that was a journalist questioning his takes, how does an unchallenged show truly serve the public – an oath he agreed to partake in when he took on his role as a Congressman. 

Gaetz’s appearance is also a waste of tax dollars. The people of Florida who elected him into office expect Gaetz to be working with fellow lawmakers to make their lives better. They expect him to be doing research or reading up on bills that can bring the change he’s promised to his voters. Instead, he used the resources of hard-working Floridians to moonlight into his next career and spew misinformation that can prove harmful to the public.

If we allow more serving Congressmen to host their own cable talk shows on such a widely distributed platform, will we reach a day when lawmakers exclusively negotiate bills on television? Will Congressmen be more worried about ratings than results? We’ve already seen what happens when a President reigns over a populous and only rules based on what he sees on television. We’ve also seen the political implications that come with such unjustly behavior. Cable news networks will suffer the moral consequences of their actions while politicians who dare to try this act again will eventually face the demise of their legacy in the voting booth. Be careful.

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Sales Productivity Protects You From Hedge Fund Uncertainty

“The good news is that most radio station clusters are still very profitable. The bad news, the debt makes many clusters unprofitable.”

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Almost 30 years ago, Radio station ownership limits were lifted, and Wall Street saw an opportunity. But the hedge funds didn’t understand the business and created mayhem in a still vital industry.

I worked in New York City for over 6 years. I had the opportunity to spend time around the brain trust of Wall Street. These Masters of the Universe saw the weakness of the radio industry and thought that they had all the answers. 

Well, they didn’t. 

I will give you some history from my perspective. My first 16 years were spent working for family run operations. Both of these companies were managed by third generation operators who put people and community first. These were highly successful operations with large staffs. 

I am not looking back with rose colored glasses. No organization is perfect or without unique challenges. But people were first in these broadcast companies. Both of my first employers had top consultants to give strong outside the organization feedback. Both companies had General Managers that catered to both the programming and sales departments. 

The Telecommunications Act of 1996 was the biggest overhaul of telecommunications law in 62 years. It was widely thought that this would bring radio into modern times. Consolidation has been a landmark of American Business, so, Wall Street’s Hedge Funds saw an opening.  Radio station owners sold for insane profits. Longtime owners were able to sell stations for multiples of up to 30 times meaning that if an owner had a station earning 1 million dollars, they could sell it for 30 million dollars. Quite a return (Most stations didn’t go that high but multiples of 18-25 were very common during this period).  

Wall Street looked at radio like the pickle industry. Except there was an issue. Radio did not have hundreds of workers in each location. You couldn’t move all operations to a central hub and save HUGE money, that would justify strong ROI. So, radio ended up with several large owners (by the way, I am not criticizing iHeart, Audacy, Cumulus and the other large owners). 

When larger companies developed, they went public selling stock to individual shareholders and institutional investors. The market states that companies show a certain amount of revenue growth per year. Let’s say that number is 10%. Radio is interesting, we are regulated by the Federal Communications Commission. You cannot just build new radio stations. So, companies were forced to merge or expand to meet revenue goals. Wall Street encouraged and even demanded it. 

Here was the problem – radio companies acquired an unsupportable amount of debt that could never be paid back. The Hedge Funds just moved cash around and demanded companies cut staff and consolidate management. It was a blood bath. Any of us who entered this business in the 90’s saw this. Great broadcasters, salespeople, managers were forced out because of unsustainable debt and micromanaging Hedge Funds.  

On the local level, new clusters were forced to protect the biggest biller in the group. This was not set to grow revenue; it was to protect the revenue and keep the spreadsheets looking right. I know of stations that were more successful brands in ratings in a cluster than the cash cow but if you were the Program Director who was consistently beating the cash cow, your job was in jeopardy.  This was a reverse hunger games caused by debt, fear and shortsightedness. 

So, here we are.

The good news is that most radio station clusters are still very profitable. 

The bad news, the debt makes many clusters unprofitable.

Even though a couple of the bigger companies have gone bankrupt, they’re not bankruptcy situations where assets were liquidated creating a market-based value of these properties. It was essentially a negotiation to lower the debt, and did not move these companies to become cash positive operations again. 

Why do the Hedge Funds not cut their losses and move on? Now that is a great question.  Hedge funds handle billions of dollars. They bundle bad deals with great deals and so their investors don’t seem to have a problem if they see enough of a profit at the end of the month, quarter or year. People remember the subprime mortgage crisis of 2008. Hedge Funds were bundling bad mortgages with good ones. Soon the bad overcame the market. Thus, a crash.  The homes never went away. The value of real estate fell dramatically in many places.

Are people still listening to us? 80% of Americans do. Not the 93% of a decade or so ago (Pew Research). This is much better than local TV where only 63% of Americans watch local TV News.

But what is the future?

It is entirely up to Hedge Fund involvement. Will Hedge Funds cut their losses and move on?  If that occurs, will local broadcasters rise again? 

What can YOU do?

It is all about the billing. If you are billing a lot more than you cost, the company will need you, and indispensability is what corporate leaders will see. Make yourself available for Sales. If you are the morning talent, be dressed well enough for a sales call. Make yourself available a few times each week to meet clients. Let salespeople know about the products and services that you use. Radio personalities are influencers. They have huge audiences that listen every day.  Don’t forget your advantage. We cannot control the Hedge Funds, corporate debt or a fast-changing marketplace. 

This was not an exhaustive history, but it illustrates our challenges. Radio programming departments are filled with creative people who just want to entertain. Be aware of our weaknesses and strengths. The Market Manager and sales manager are under huge pressure.  Be that person who understands their concerns.

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