Not my headline…
After yesterday’s update on Cumulus, this landed in my News folder:
“…iHeartMedia is teetering on collapse. It’s not a question of whether it collapses but when, and it’s likely to come sooner rather than later. It could be within months.”
How damaging is it that the two largest radio companies in America are basically bankrupt?
How difficult does that make it for smaller groups to compete for revenue in markets with either, or both, desperate operations?
Honestly, the best thing for Radio in America would be for both groups to be broken up, assets sold to groups and individuals who have some hope of operating them profitably.
Radio needs to publicize our versions of Southwest Airlines, which was making a profit when United, American, and Continental could not.
We need owners who understand that the revenue comes as a result of the product.
The product isn’t ads, the product is entertainment, companionship, discovery, and local community involvement.
I have no doubt that Bob Pittman knows great from mediocre, but his hands are tied. When his company owes more money than the entire radio industry produces in one year, it’s time to admit the obvious.
Break these giant losers up so those with capital, imagination, and a clean balance sheet can turn them into winners again.