KXNO/iHeart Layoffs

Discussion in 'Off-Topic' started by cyowan, Jan 14, 2020.

  1. dexterhawk

    dexterhawk Well-Known Member

    Oct 17, 2013
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    That blows.
     
  2. cyclone618

    cyclone618 Member

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    Chris:
    I know this sucks but you and the others will all get through it and be better off in the end.
    Last October 1st I lost my job unexpectedly. That next Saturday while at the ISU/TCU game, I was notified that my brother was being admitted to hospice. I left the game and went to Omaha to be by his side. He died the next morning. It was the worst week of my life, but I knew the job issue was minor compared to other people’s issues.
    I know you’ll still be busy with CF, but be sure to take some time off (probably more than you think you should) to do the things you mentioned. I started a new position with an awesome company near the end of October and it has been great. I only had a few weeks off but could have used more.
    Many, many people have been in the same position, and everyone told me it would be for the better. I’m sure it will be for you and the rest of your KXNO team. Take care.
     
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  3. CycloneRulzzz

    CycloneRulzzz Well-Known Member

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    If they didn't have those I could see your side.
     
  4. Gunnerclone

    Gunnerclone Well-Known Member

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    Murph and Andy are more like politicians. They blow with the public winds.
     
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  5. c.y.c.l.o.n.e.s

    c.y.c.l.o.n.e.s Well-Known Member

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    If you read this link it explains their restructuring plan. Not sure I understand it all. As mentioned earlier in this thread, they cut around 1000 people.

    https://www.rbr.com/americas-top-radio-company-refocuses-on-common-needs/

    The thing that bugs me most is the statement by the CEO.

    "iHeart is the rare example of a major traditional media company that has made the successful transformation into a 21st century media company – one with unparalleled scale, reaching 91% of Americans each month with our broadcast assets alone, more than any other media company. We are now using our considerable investments in technology to modernize our operations and infrastructure, further setting us apart from traditional media companies; improving our services to our consumers and advertising partners; and enhancing the work environment for our employees.”

    I hate the way that CEOs blow smoke about their company no matter what the situation. I'm sure this statement was crafted by their marketing department. So let me get this straight... You screwed your creditors out of billions of dollars by declaring bankruptcy after making horrible financial decisions and then screwed over 1000 employees during reorganization but you are a rare example of a successful transformation into the 21st century? Got it.
     
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  6. ArgentCy

    ArgentCy Well-Known Member

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    #366 ArgentCy, Jan 15, 2020
    Last edited: Jan 15, 2020
    Radio has always been free. That model hasn't changed one bit. And I've seen some evidence that the numbers are flat to even up. So clearly something else has changed. Newspapers and radio are not the same even though some are lumping them together.
     
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  7. BWRhasnoAC

    BWRhasnoAC Well-Known Member
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    Sounds like a Mitt Romney job.
     
  8. farminclone

    farminclone Well-Known Member

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    Radio has always been free so nothing there is or has changed. OTA TV has always been and is still free so that hasn't changed either.

    I think in this case it comes down to losing power when you don't have local ownership and the decisions are made in a board room thousands of miles away, with nothing but profits in mind. IHeart thinks they can play nationally syndicated garbage all day and a lot of us will still listen, because we like listening to sports talk, and they can probably make more money under that model.
     
  9. Sigmapolis

    Sigmapolis Minister of Economy
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    Yep -- plenty of big companies bought into or formed up and got into local media and communications in the 1990s, coincidentally right before the Internet cut the legs out of their subscriber base, traffic, and advertising revenues. I think that is more poor timing than really the fundamental cause here of the rise of the Internet.

    Local newspapers and radio were actually a pretty steady and profitable industry prior to the deregulation of the 1990s that you point out and the dawn of the consumer Internet. Having a local monopoly like that can serve your bottom-line rather well if you manage it. So those big companies bought into that, thinking those profits would be a fixture, and the previous owners cashed out and headed to a beach in México, while nobody really appreciated what the Internet was about to do to their business model.

    Then revenues crashed... costs cut, further consolidation and mergers, etc., all the stuff you point out. I think the point that you are implying is that there had not been the series of consolidations or if the industry had not turned its back on the old fashioned "all the news that's fit to print" nobility and ethos, then they would have kept their subscriber and their ad base and none of this would have happened in the first place.

    Sorry. I am not buying it. The industry has done itself no favors during the downturn, but I would imagine most of those are out of desperation to stay afloat in an almost impossible situation. I doubt sticking to an old business model in the face of the utter collapse of their revenue base was going to work out for them. Everything you are talking about is a desperate rearranging of the deck chairs on a sinking ship when their revenue base collapsed, and the rise of Google is a perfect proxy of it.

    Consumers -- the ones who do not buy subscriptions or support advertisers because they want it free and now and ad-free online -- are the fundamental cause here. We do not get what big companies try to force us to have. We get what we want.
     
  10. farminclone

    farminclone Well-Known Member

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    Get out the binders!
     
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  11. Cy$

    Cy$ Well-Known Member

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    A blind squirrel finds a nut once in a while
     
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  12. Clonefan32

    Clonefan32 Well-Known Member

    Nov 19, 2008
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    I don't think it's a matter of "good move/bad move". To me the bigger issue is how we got here. It looks to me like, as with many other industries, the smaller business were gobbled up by these larger, multi-million (or billion) dollar organizations. The problem here is someone like Iheart racked up a monumental debt load while failing to account for the fact that they were taking part in a dying form of media.

    I think small radio companies could survive this kind of downturn. On a more micro level you can deal with a general downturn by investing in new relationships, finding good local talent, etc. With a larger corporation, they become a line-item as they try to keep their head above water.

    So I guess I have a hard time deciding between "good move/bad move" when this situation is completely and totally self inflicted. They got greedy, over leveraged themselves, and now are gutting things in an effort to stay viable.
     
  13. Urbandale2013

    Urbandale2013 Well-Known Member

    Jan 28, 2018
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    I don’t think it’s controversial to evaluate how to better make money. I think it is controversial to cut out most of your product and pretend like it will bring long term success. In the short term it probably makes sense to do this but in the long term it makes no sense. They destroyed their loyal following and made everyone mad.
     
  14. Urbandale2013

    Urbandale2013 Well-Known Member

    Jan 28, 2018
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    I think their point and the point I definitely agree with is the problem was the leveraged buyouts of media organizations. This combined with traditional media losing out on some of their ad revenue with the internet and readership to more niche entities killed the industries.

    Whether anything should be done about predatory investing is another discussion for another place but in the last 40 years a lot of investing has been about maximizing returns and not about running successful businesses. Companies like iHeart are not good corporate citizens because they exclusively care about profit rather than providing a good or service.
     
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  15. HFCS

    HFCS Well-Known Member

    Aug 13, 2010
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    I've yet to hear a national sports talk radio show that doesn't induce vomiting. It's like a dumber version of The View for men.
     
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  16. HFCS

    HFCS Well-Known Member

    Aug 13, 2010
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    Sat radio and podcast are the future. KXNO is fooling themselves if they think moron national shows locally broadcast will compete better.
     
  17. Sigmapolis

    Sigmapolis Minister of Economy
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    I do see the point, but I do not see it as particularly relevant when their subscriber and advertising revenue bases crashed so hard. Bad and shortsighted decisions about content and talent could hurt on the margin, sure, but I doubt even the stupidest and most cocaine-fueled, money-grubbing MBA could cause an industry to lose 75% of its funds from its primary source of revenues if they set out to try. The Internet did that.

    Again -- deck chairs on the Titanic.

    Plenty of traditionally local or mom-and-pop industries went through waves of corporate acquisition and buy-ins from hedge funds and the like starting in the 1990s through present. Did any of the others have a revenue drop like that? Can you point to one? Local journalism is unique in this phenomenon, and it comes from the shift in consumer preferences because of the options and competition created by the Internet.

    I did not realize their was a difference. Successful business make money, no?

    iHeart sucks, obviously, but I will leave you with a Steve Jobs quote --

    "I have my own theory about why the decline happens at companies like IBM or Microsoft. The company does a great job, innovates and becomes a monopoly or close to it in some field, and then the quality of the product becomes less important. The product starts valuing the great salesmen, because they're the ones who can move the needle on revenues, not the product engineers and designers. So the salespeople end up running the company."

    Companies that act in the way you describe are ones on the way out. Ones that love their products and their customers are going to be sticking around.
     
  18. Clonefan32

    Clonefan32 Well-Known Member

    Nov 19, 2008
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    I've always enjoyed the Deadspin article that took a deep dive into how ESPN created their own news cycle surrounding the Anthony Davis trade:

    https://deadspin.com/espn-has-created-another-phony-news-cycle-out-of-its-ow-1831343140

    Heads up-- a little foul language used in the article.

    It's so indicative of how these national programs work. Generating their own "takes" only to report on their "takes". Just horrible product.
     
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  19. c.y.c.l.o.n.e.s

    c.y.c.l.o.n.e.s Well-Known Member

    Feb 21, 2007
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    They destroyed the loyal following of one radio station. I'm sure they are banking on the fact that we are soon going to forget about this and aren't going to permanently boycott all of these stations in Iowa. If you boycott KXNO but then just listen to The Bus then they haven't really lost anything.

    Iowa[edit]
    Ames

    • KCYZ - 105.1 - Hot AC
    • KASI - 1430 - News/Talk
    Cedar Rapids

    • KKSY-FM – 96.5 – New country
    • KKRQ – 100.7 – Classic rock
    • KMJM – 1360 – Classic country
    • KXIC – 800 – News/Talk
    • KOSY-FM – 95.7 – Top 40
    • WMT – 600 – News/Talk
    Davenport

    • KUUL - 101.3 - Top 40
    • KCQQ - 106.5 - Classic rock
    • KMXG - 96.1 - Adult contemporary
    • WFXN - 1230 - Sports
    • WLLR-FM - 103.7 - Country
    • WOC - 1420 - News/Talk
    Des Moines

    • KXNO - 1460 - Sports
    • WHO - 1040 - News/Talk
    • KDRB - 100.3 - Adult hits
    • KKDM-FM - 107.5 - Top 40
    • KDXA-FM - 106.3 - Alternative
    Sioux City

    • KGLI - 95.5 - Adult Contemporary
    • KSEZ - 97.9 - Rock
    • KSFT-FM - 107.1 - Top 40
    • KMNS - 620 - Sports
    • KWSL - 1470 - Spanish Adult Hits
     
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  20. KnappShack

    KnappShack Well-Known Member

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    I would respect your point if you had Wifi or SiriusXM in your car.

    I haven't listened to a radio station over the air in forever. Streaming and satellite models are disrupting and trying to find a hold.

    Are the radio demographics in the sweet spot? Are the teens and 20 year olds clicking on the radio or Spotify/Pandora/XM/YouTube?
     

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