The Right-Sizing of Radio 2008

The New Year has just begun and we’re already in turmoil. The year ahead of us promises to be one of great change. Quick predictions; Clear Channel, America’s largest radio broadcaster, will close on their deal and take the company private. Citadel, now the proud owners of the ABC Radio Network and O&O stations, will reconstruct their product stream to include new media and multiple platforms. Cumulus will continue to grow and buy other large-medium sized companies as they challenge the leaner, slimmer, Clear Channel. Infinity/CBS will likely be the most focused and progressive programming company of the major groups as they seem more interested that growing rating shares than saving money.

We grew considerably in 2007 on the heels of taking our business back into private ownership. McVay Media will continue to grow in the coming year, although even a consulting company like ours, will be focused more on operation and less on the expense of growth.  Radio operators will be focusing their time and energies on making the businesses they have profitable. I expect that we’ll increase our client roster during this coming year as the ROI (return on investment) should be high for a multi-platform diversified consulting firm as is McVay Media. That is to say that smart operators will utilize the services of companies like McVay Media in an effort to improve their product and manage their expenses and resources.

We promoted Daniel Anstandig to President of the newly launched McVay New Media, Rockie Thomas and Sean Lozensky joined him in that division as our associates. Jessica McVay also joined Daniel’s team and is working as their programming assistant. Bob Craig continues as our Webmaster. We have a relationship with an SMS-Texting company, an imaging company and a content provider that can increase the value and “stickiness” of a stations website.

Charlie Cook just returned to McVay Media as VP/Country, Jim McVay was promoted to Executive Vice President/Sales and Paul Durante formally accepted the position of Business Development for our consultancy. Former WBEB/Philadelphia PD Chris Conley joined as VP/AC & PPM Specialist.
We’re in the process of expanding our network and syndication consulting services. Heather Cohen, EVP/The Weiss Agency, is assisting us as we secure a network partnership and she’s guiding our syndication division. Our relationship with Eric Weiss, CEO of The Weiss Agency, is designed to extend the reach of McVay Media and to increase my profile personally and professionally. We plan to announce a new relationship with a marketing specialist early in 2008.

Our company continues to focus on radio & TV, but we’re also consulting in the music industry, film sound tracks and marketing, network programming, new media/ the Internet, coaching air talent, show prep services as well as building several non-traditional revenue streams. We consult an on-line cruise company, have experience with authors, book publishers and a magazine and we have a big toe in sports marketing.

While we’ve been scrambling to handle the extensive and in-depth needs of our extensive media clientele, we’ve also been acutely aware of the “Right Sizing” that’s taking place. The majority of which is on the product side. Many of the air talent we know are being asked to take pay cuts. Their shifts are being expanded and they’re doing more work for the same or less money. Voice tracking, the importation of virtual talent from other markets, and time shifting of talent has made it more difficult for an air-personality to demand their fair market value.

The primary reason that we’re expanding into the network business, not only as consultants but as owners, is because of my belief that radio will continue to trim their programming costs. The only way that some markets, and some companies, will be cable to satisfy their investors, will be to create (or purchase) network programming that delivers quality entertainment at a fraction of the cost. We’re developing shows that we believe will do that. We continue to consult quality shows, (The John Tesh Show, The Beacon, Marcy & Guido, et al) and our strategy is to make available to stations in all market sizes the best talent possible.
Couple the hard financial realities of right-sizing with the increasing pressure from Wall Street, and we will likely see even more cuts and cost savings in 2008. The intelligent broadcaster will look to save in areas other than the actual product. I’m sure that the following statement could freak-out many of our clients, but I’d invest in talent and/or research before marketing. Why? A great talent can create a word-of-mouth “buzz” that will go far beyond the steroids of traditional marketing. The combination of talent & stunting can be as enticing as a large cash giveaway.  A great talent, and fun & game promotions, can (and will) outlast a good marketing campaign.

The success of your station still comes down to one thing. How good is the product? The same way that Internet designers talk about the “stickiness” of a website, how sticky is your radio station? When it comes to “Right Sizing” for 2008, your decisions shouldn’t be made solely on the amount of money that an employee is being paid. The decision should be made on what’s best for your radio station tomorrow as well as today. We’re excited to be involved in helping broadcasters make those decisions. Let’s be conscientious and responsible. Oh, and let’s all make a huge profit.