The suits were in full effect this morning. It's hot and humid in town- less Indian Summer than a Summer that never bothered to end- and it's too damn hot for me. I brought a jacket, but I left it in the hotel room. Everyone else is in full Banker Regalia, which is because they're masochists, and also because they were here for the annual broadcast financing session, officially called "Broadcast Financing 2005: Radio on the Rebound." (Question: What is this "rebound" of which you speak?) A few people took off their suit jackets, but most left them on; they're interested in investing in radio, so you can't expect them to want to be comfortable.
These aren't really "my people." "My people" are the talent, the programmers, the people who work in radio because there's nothing else we can really do. Those folks generally skip this thing. I have to be here to cover it for All Access, but when I started coming in '86 or '87, I was on the corporate side, so I was a suit. It was only later that I realized I belonged with the misfits, because most of these guys are salesmen at heart, and I'm not. The morning crew today- the investors, the station owners, the GMs- these guys don't know me. I sat in the back of the room, taking notes, filing items for the site, being as inconspicuous as someone in a white shirt surrounded by guys in dark suits can be.
At heart, the people at the financial session seemed less like radio people than like people who intend someday to get rich, whatever the means. Radio's just a means to an end. It's like a Carleton Sheets graduate-level course, a room full of Men's Wearhouse suits wanting to be Armani. And a lot of these guys seem like guys who think they made a really grave error investing in radio.
One of the panelists, a banker, saud "I've been in radio business for a number of years." No, sir, you haven't been "in the radio business." You're a banker. You invest in radio. You've never run a station, never programmed a station, never been on the air or driven the van or answered the request line. That's "in radio." Crunching the numbers, that's not "in radio."
Or maybe it is, now. And that's a huge problem. The investors, the corporate guys, the lawyers think they're "in radio," but they're not, and one way you can tell is by the panel this morning. Not one of the financial guys spoke word one about what goes on the air, about HOW the stations make their money. It was all about inventory reduction and EBITDA and free cash flow. Programming and marketing and talent? Nothing. Public service? God forbid. They look at a station with a heavy local news commitment and community involvement and they see a station that could improve its cash flow this quarter by outsourcing news to a traffic service or just dropping it altogether. Why spend money on local news and talent? If you would ask that question- and everyone in that room would- you are not a radio guy.
Look, I understand it. I respect that these guys are looking at the radio business as a business. I get it. But if you want to understand what the problem in radio is, you need to understand that treating radio as a widget maker for the last decade has not been a good thing for radio.
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