[BC] We've seen this before

[Douglas Pritchett]

I haven't posted to the l ist in some time since I'm on a Gmail
account and did not want to clog the system with multiple posts. If
you get 17 copies of this, please accept my apologies.

It appears that broadcasting is following closely in the footsteps of
daily newspapers. The demands of Wall St for unrealistic profit
margins are driving corporate managers to take an easy and short term
solution.
My own personal experience with my former employer, Knight-Ridder, is
a perfect example. In my seven years there, the standard practice was
to cut, cut, cut, to achieve a dictated margin, rather then invest in
making the product more appealing to readers and advertisers by
exploring new ways to offer content to the audience. Audiotex services
and the Internet were never viewed as ways of augmenting revenue, let
alone a path to future profits. Those areas were only seen as
"strategic" moves to block competitors and to be able to say to
forward-thinking advertisers: "Internet? Yeah, we got one of those
website things".

In the end, Knight Ridder ended up on the block because one large
institutional investor demanded that since the margins had fallen
below Wall Street's benchmark of 30%, the company had to be
liquidated. McClatchey bought the majority of KR's papers, (and is
faring no better with Wall St.). My paper was purchased by some outfit
in West Virginia.

It's only a matter of time for radio and TV.
Say, how's that Clear Channel deal going........?

On Wed, Apr 2, 2008 at 1:43 PM, Dana  Puopolo <dpuopolo at usa.net> wrote:

 >  Clearly, this is a total bean counter move-and completely short 
term thinking
 >  on the part of CBS.

-- 
Douglas B. Pritchett
radiofool at gmail.com