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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host
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To: WeisbrichA who wrote (3311)2/11/1998 5:43:00 PM
From: Bill Shepherd  Read Replies (2) of 42834
 
Re: They will drop moneytalk only if the "arbs" show listeners falling off in BB's time...

Thanks for adding some background information to this debate. Who knew that we would learn all about the radio business on this thread? So the dissatisfied listeners are unwitting victims in this mess, huh. The more that listeners stop listening, as evidenced in the "arbs", the less revenue the station is able to generate?? The less revenue they generate forces the station to sell even more local ads, which in turn causes more listeners to leave??

If this is all accurate, then here's the problem as I see it:
The only fix is for the station to either: (1) get more listeners; (2) raise revenues; or (3) cut costs.
Since listeners are a function of the "appeal of the host or content," it seems we have little influence there, since we all like BB just fine. Likewise, we have little influence over the costs at the station. That leaves revenues. Revenues are a function of two things, right? The rate for a 30-second commercial, and the number of commercials you play in a given hour. And the rates are set by the number of listeners. Wow...this is a vicious circle. That only leaves adding more commercials in a given hour. Looks like we're stuck.

So here are my two possible solutions:
A) Lobbying Bob Brinker to reduce his content, thus allowing the stations more time to play commercials. This will allow KGO to make the profit it needs/wants. While annoying, I would prefer listening to more commercials than having the program content interrupted.
B) Find another station who either has lower costs or doesn't need/want to generate so much profit.

Is that the way radio business works??

Bill S
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