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As Radio Looks To Its Future, Wall Street Downgrades It
Infinity Radio splitting from the Viacom mothership to reclaim its heritage "CBS Radio" name. Clear Channel trying to take leadership for fewer commercials with "Less Is More" (but still more than it should be to ease listener demands). Arbitron trying to move radio to the ratings future by moving away from analog to digital PPM diary keeping. Howard Stern moves to Sirius while XM gets an "Apprentice" episode with Donald Trump; both stocks are up. A major cooperative alliance of the largest radio groups is formed to help "push" HD Radio to the market.
The massive consolidation and cash/real estate run up is done, some selloffs still could happen (Disney's ABC Radio division). Listenership is still has huge reach (estimated at between 200 million and 230 million people across the US for terrestrial "free" radio). And radio remains one of media's best free cash flow industries (who doesn't like 40%+ margins?). But Wall Street (the heroin radio has become addicted to) is now asking "What's Next?" (What, 40% isn't good enough return for you?) It doesn't like what it sees and is starting to downgrade radio stocks, siting a lack of apparent growth potential in a tough, "soft" advertising market for all medias without the word "Internet" in it.
In my opinion, the only way radio is going to let its black eye heal is to stop playing to Wall Street's needs and start playing to Main Street's needs. When was the last time you heard newspapers -- another "old media" cash flow darling literally "printing" money -- playing up to Wall Street?
Read what's on some of Wall Street's analysts mind these days...
full MediaPost.com story
posted by Unknown @ Thursday, December 15, 2005,
1 Comments:
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At 9:55 AM,
said...
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HD Radio is a scam:
http://hdradiofarce.blogspot.com/
