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RE: this week in review....
>>Doesn't the group ownership cap set up another possible scenario?
(trimmed for space concerns)
By limiting the competition the
value of the primary station is protected and can charge the big $$$ for ad
revenue while being satisfied with the secondary ones paying their rent on
time. As long as the group doesn't exceed the cap, this works. The larger
station can charge confiscatory rates and the smaller ones can be thrown in
the initial caps that were in place when the consolidation frenzy began
were/and-or/are to reflect the current market share of the group's potential
at the time of the group's construction. the caps do not limit "revenue."
they were meant to prevent a single conglomerate's domination from the
outset. if a group can attain market domination, then all's fair in
what you wonder about is business suicide. if i were an owner, and
bought five stations, i'd go for the throat NOW. and, in keeping with your
"example," and as an employee of said example (Greater Media), there ain't
one of us in this building hoping that one station does well enough to carry
the load. we're all here to win, from the tippity-top to the bottom.
yes, in each group in this city (Boston), there are redundant formats.
for whatever reason, there are some formats not addressed (where, if i heard
that one-note-song correctly while reading between the lines, you have an
issue). and the reason for the redundancy is that research bears out the
stronger desires of the area's audience. if group A is doing an A/C format,
and doing well with it, then group B is going to want a piece of that
action, and will attempt to do it better/different.
there is no glory in losing. therefore, setting up a group ownership
situation in order to allow one property to shine while the others simply
suck is simply stoopid. i'm sure that there are corporate entities that do
pick up "dogs" along the way in hopes of using losses to off-set profits
when the bottom line is tallied and the three has been carried. but with
very few exceptions in today's radio market (Clear Channel, for one), there
are simply not enough pieces in the corporate pies to make the encouragement
of loss-leaders beneficial.
just my $.02, adjusted for inflation against the Euro.
- -Chuck (will not voluntarily tank my profession, even for money) Igo