Last night I got word Cumulus Media, a Knoxville based terrestrial radio conglomerate, fired half the staff in a “cost-cutting” measure. The losses ranged from ad executives, on-air talent, and more as yet to be determined across the spectrum of their stations.
This isn’t something anyone with an eye on the world of radio couldn’t have seen. A local business incubator/startup meeting saw a legendary radio personality glumly admit “terrestrial radio is on its death bed, and maybe it’s time I started looking for work elsewhere.” That’s a grim statement from someone in the trenches and firmly rooted in the radio business.
Cumulus isn’t to be blamed for the decision to cut costs. Fewer people are listening to talk radio, no matter the personality. With the prevalence of satellite radio and podcasts, people are less interested in what’s available over the airwaves locally. That means ad revenue once plentiful to the radio organizations is getting more and more scarce.
Yet decisions have to be made, especially in the areas of news and talk. Do you work with local talent interested in showing their chops to the world if given the chance? Or do you keep paying out the exorbitant fees and ad percentages to guys like Rush Limbaugh and Sean Hannity to keep your conservative cred? It’s a tough choice to make, as the local talent would have to make an immediate impact and show they could bring their chops to the table.
On the other hand, you have the big names like Rush and Sean who would attract listeners at the right times. The problem becomes that these are national shows, not local, and there’s going to be less listener interaction with Rush and Sean than the local talent. And part of the appeal for the local “call-in” shows is for the listener to have his or her few moments of glory for the day on the radio.
The Cumulus talent let go in the coming days will have some difficult choices to make. Do they go the terrestrial radio outlet and find another station at which to work? The sports guys might be able to land a gig at another station, since their job is to cover mankind’s successes. Someone with a talk show that has an esoteric bent might not fit in the alt rock or country station of choice.
Satellite radio is basically a no-go unless you’ve already got a national platform. The Breitbarts and wellRED types will get a show at the drop of a hat, because the game in town is getting the biggest and best talent at the biggest dog in the yard, SiriusXM. Even there, where the FCC allegedly has no restrictions, the satellite talent still has issues with the “social consequences” of what they say. Just ask Anthony Cumia.
I have a feeling the talent with Cumulus that left will go the podcasting route. It’s an easy barrier for entry, the cost for each would be minimal, and there’s no restrictions on topic, language, or subject matter unless the hosts place it. Monetization of the product would be simple, and those with a dedicated fan base could make a monthly donation or subscription type service work.
Dave Rubin’s done it. He left ORA and went completely fan-funded. It was a big step for him, but now he’s free to talk with whomever he wants about whatever he wants. There’s no reason the highly motivated talent without work now couldn’t do the same. And something tells me un-shackling from the FCC’s restrictions would produce some amazing content you wouldn’t hear from the talent otherwise.
The Internet, podcasting, and YouTube are some of the greatest areas to earn money as an artist, talent, or creator. Guys like Mike Cernovich and Victor Pride will show you how to do it if you just do a bit of research and put in a little bit of effort. Whether the new radio ronin will take their advice is another matter entirely. Sometimes it’s just easier for people to stay in a rut instead of forge a new path and try new outlets.
Cumulus will have some time for reflection in the wake of their cost-cutting. If, as I suspect, it was done to keep the bigger names on the air, was it really worth the measure when local talent would take the spot in a heartbeat and run with the ball in ways the front brass couldn’t expect? There’s no easy answer to this. No one ever said life in any business was easy.
In the meantime, I’ve taken the time to dip my toes into this new world. This is still a formative project, and something I’m really excited about, so stick with us. You can find my newest experiment on iTunes, Stitcher, or TuneIn.
Sit down with me for an hour. I hope you like what you hear.