Clear Channel Localism Smoke Screen

Back in February I predicted that Clear Channel would nationalize some of their programming. Earlier this month they issued a press release touting a new commitment to localism with both local and national efforts. At the same time they announced that they would be making more national and regional shows available to more markets at the local Market Manager's discretion.

I contend that many of these Market Managers will have no choice but to take this newly available syndication because there will be higher expectations for profit from Lee and Bain. The only way to achieve these expectations will be to cut expenses and employees will again be the centerpiece of the cuts. (They'll drop Arbitron too, but that's for another blog submission. The only reason they don't have their own survey company, is there would be no street cred for a company who was out selling their own numbers. They'll watch Nielsen roll out and cut a deal with them, or some other company. I read today that CC pays $60M a year to Arbitron for their 100+ markets. Cutting even 10% of the expense is a decent dent.)

Cutting employees will make the stations less local. I don't think it's a coincidence the two announcements were made at the same time. I think anyone with a little common sense can see what's really happening here.

*UPDATE 12PM Pacific*

Inside Radio just published the following:

"NEWS ALERT: Clear Channel Cuts 3%.In a new round of layoffs, the company dismisses 590 employees. While an earlier round of cutbacks in January focused on salespeople, today's downsizing hits operations including engineers, traffic, accounting and programming departments."

"Less Local" doesn't mean "More Local".

Radio's Performance Tax

I just attended the 2009 NAB convention in Las Vegas. Job one for radio is to oppose the Performance Tax proposed by Representative Conyer and Senator Leahy. This bill, if adopted, would tax every station playing music, a minimum of $5000 per year if the station's revenue is less than $1.25M. This is a potentially devastating blow to small market radio operators already reeling from the recession in the economy.

I urge you to visit the NAB's website http://www.noperformancetax.org/ and find out what you can do to oppose the record label-led performace fee on radio.

Write your congressperson or senator and oppose this bill, and support the Resolution to Support Local Radio introduced by Representatives Green and Conoway and Senators Lincoln and Barrasso.

Please get involved.