Re: Layoffs at WCVB??

[Mark <bostonradio@yahoo.com>]

--- Chris Beckwith <beckwith@ime.net> wrote:
> It's one thing for Hearst-Argyle to make cuts in markets where they have little or no
> competition; it's quite another to do so in a major market where their #1
> overall news ranking is more vulnerable than ever.  Management *must* be
> assuming that other stations in Boston will feel free to cut staff now that
> "the leader" has done so.

They're cutting budgets at every station, not just Boston.

Hearst-Argyle's lower earnings came in line with their expectations.
The company's stock actually went up when they released their numbers
because they were in line with their projections for the 2nd qtr.
Their projections for 3rd and 4th qtrs are also not good based on
advertising slow-down taking place right. But that's not the entire story...

The Herald report on staffing reductions at 5 doesn't look at a bigger
picture. More importantly, the upcoming(early September) lift by
the federal courts of a number cross-ownership restrictions and caps
which is expected to kick off a new round of media consolidation
frenzy later this fall.(AT&T is not selling Broadband right now
because it knows it will get a much better deal from a much bigger group
than Comcast, for example, in a month or two). Hearst-Argyle brass
wants to look mean and lean on the balance sheet because it's
preparing itself for a possible takeover....Also, majority of the cutbacks
will be in the administrative, marketing and sales....


-Mark

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