ENOUGH! The Selling Culture Has Failed Radio
By Walter Sabo
Consultant, Sabo Media
A.K.A. Walter Sterling
Radio Host, Sterling On Sunday
Talk Media Network
The creeping culture of sales-determines-all has brought the industry to this moment of despair. The selling culture has failed the medium. It is time to, once again, segregate the sales and programming departments. Take the budgets away from the program directors and inspire them to create exciting UNPREDICTABLE programming.
Earnings calls for most radio companies were held this week. Not pretty. Declarations of the demise of radio are constant, emotional, and desperate. Bleak conditions in the radio industry have occurred before. A review of past crises and how they were overcome is constructive, urgent, and essential.
For example, in 1952, network TV was launched and showed signs of success. NBC, ABC, and CBS moved their money from radio to TV. Longform radio shows were cancelled leaving stations across the country with a problem. At the time, most radio stations were small shops, usually family-owned, therefore the need to add hours of local programming was a financial challenge. The solution was presented by a programmer.
Todd Storz’ family owned stations in Omaha, Kansas City, Minneapolis, New Orleans, St Louis and Oklahoma City. He was young and obsessed with radio. His stations were losing money and the future, without network show blocks, was uncertain. Todd ate at a diner daily and noticed that even after it closed, the waitresses put their own money in the jukebox to hear the same songs they had heard all day. Hit after hit. Todd created a list of the top 40 songs, built a production sound and put it on his Omaha station. The station was #1 overnight. His top 40 format was aired on his owned stations with the same results.
Ruth Meyer was the program director of WMCA, New York where she established the GOOD GUYS dynasty. Before WMCA Ruth was the PD of Storz’s station in Kansas City. I asked her who did what at Storz and she said, “It was all Todd.” Todd was a programmer who never spent a day in sales. Storz’s programming idea changed and, yes, saved the industry.
When Todd died at 38 years of age his father – a businessman – took over the company. After Todd’s death, the stations died too. Why? Storz station manager Deane Johnson explained, “Todd’s death [and the control of the radio stations falling to Todd’s father] brought about a shift from a ‘programming company’ to a ‘money company.’”
Radio’s next challenge was FM. It is a popular myth that the shift from AM listening to FM was driven by the higher quality of the FM signal. FM’s signal had been available since 1948. No one listened.
You don’t go to iMAX to watch the huge, superior white screen. You go to watch a movie on the huge superior white screen. When the FCC mandated an end to AM/FM simulcasts, the general managers had no idea what to do and isn’t it time for golf?
Obsessed, very young radio fanboy programmers such as Michael Harrison and Allen Shaw joined with frustrated senior programmers like B. Mitchel Reed, Scott Muni, Murray the K and Tom Donahue to EXPERIMENT with new programming techniques. They imagined and implemented progressive rock, free-form, album rock. THEN the crowds came to FM to hear exciting UNPREDICTABLE programming.
In 1966, Tom O’Neil, the founder/chairman of RKO General owned many money-losing, major market stations. The solution? Better sellers? Better sales training? A sales master course? No. The answer was Bill Drake. O’Neil hired Bill Drake and allowed him to create exciting UNPREDICABLE programming. Drake’s programming saved many RKO stations and was copied by hundreds of stations across the country. Drake’s programming saved them, too.
ALL of radio’s challenges today can be solved with programming invented by programmers free to program. Enough with “it’s not in the budget.” Enough with “it will bring in money.” Enough with “it’s good for sales.” Enough with talent having to generate half their salary in billing to be retained. Enough!
Unleash today’s program directors to follow their instincts, their facts and no more having to check with corporate. Why? Because checking with corporate hasn’t worked. Checking with corporate stops the flow of ideas, it freezes them in time. Radio is live, in the moment. When radio programming is frozen in time it MUST fail. Give up corporate engagement. Let programmers surprise you.
To quote a mentor, ABC Radio Network’s VP Dick McCauley (a sales guy), “A great salesperson is one who has a great product.” He said it a lot.
Walter Sabo was the youngest executive vice president in the history of NBC. He was the programming consultant to RKO General longer than Bill Drake. According to a Sirius corporate EVP, “Sirius exists because of what Walter Sabo did.” He hosts a Talk Media Network radio show as Walter M. Sterling, “Sterling on Sunday.” Find out more here: www.waltersterlingshow.com Contact him at walter@sabomedia.com or 646.678.1110
2023. Consequently, it dismissed the accounting firm BDO USA, LLP and hired Ernst & Young LLP to serve as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2023 effective as of July 12, 2023. In the filing, Urban One says, “Given the change of the Company’s independent registered public accounting firm and the work required for E&Y to re-familiarize itself with the Company, the Company’s continued assessment of its internal controls, the Company is not able to finalize the financial statements and related information for inclusion in its quarterly report on Form 10-Q for the quarter ended June 30, 2023. The company is working to complete quarter reports for the first two quarter of 2023.
astronauts to newscasters to ultramarathoners prioritize sleep to perform and live at their best. The podcast incorporated key brand messaging throughout, complemented with ad placements across the iHeartPodcasts network. The study concludes that Mattress Firm’s investments on iHeartPodcasts lead to a 45% lift in incremental sales and achieved a 4X incremental return on ad spend. iHeartMedia chief data officer Brian Kaminsky states, “Over 100 million Americans listen to podcasts a month with 80 million Americans listening weekly, which is clear evidence this ‘emerging medium’ has now become a permanent, new part of all of our media consumption – giving brands access to new and engaging audiences. By partnering with Affinity to measure the impact of Mattress Firm’s digital audio advertising, particularly on their bottom line, we were able to demonstrate the power of the brand’s partnership with iHeart to drive sales and strong ROI. We also gained insights to optimize campaign performance that we are already applying.”
10:00 pm to 1:00 am slot. Additionally, the station adds new weekend shows including Compass Media Networks’ “The Erick Erickson Show” (Saturdays, 1:00 pm to 4:00 pm), FOX News Radio’s “FOX Across America” with Jimmy Failla (Saturdays, 6:00 pm to 8:00 pm), and Todd Herman (Sundays, 7:00 pm to 9:00 pm). Audacy Gainesville-Ocala SVP and market manager Peter Rothfuss states, “These strategic changes mark the most significant additions to the station’s talk show roster in years, reinforcing its position as North Central Florida’s premier news and opinion-leading station. The fresh lineup showcases the most influential voices in the region and is designed to propel ‘The Sky’ towards unprecedented growth, especially as the station approaches the highly anticipated election season.”
Keyshawn Johnson, Jay Williams and Max Kellerman. Their program was cancelled last month. The Post also reports that Chris Carlin and Joe Fortenbaugh will host the 12:00 noon to 3:00 pm program and Harry Douglas and Freddie Coleman are the new 3:00 pm to 7:00 pm co-hosts. Amber Wilson and Ian Fitzsimmons will host the 7:00 pm to 10:00 pm show. 
The third of four rounds of ratings data from Nielsen Audio’s July PPM survey has been released for 12 markets including Portland, Charlotte, San Antonio, Sacramento, Pittsburgh, Salt Lake City, Las Vegas, Orlando, Cincinnati, Cleveland, Kansas City, and Columbus. Nielsen’s July 2023 sweep covered June 22 – July 19. Today, TALKERS magazine managing editor Mike Kinosian presents his Ratings Takeaways from this group of markets. In San Antonio, iHeartMedia news/talk WOAI falls two-tenths to post a 2.6 share (weekly, 6+ AHQ share) and falls to the #15 rank, while Alpha Media’s crosstown news/talk KTSA adds one-tenth for a 2.5 share finish that lifts it to the #16 rank. In Salt Lake City, iHeartMedia news/talk KNRS-AM/FM loses a full share to wrap the survey with a 4.6 share and regresses to the #4 rank, while Bonneville’s crosstown news/talk KSL-AM/FM tacks on two-tenths for a 4.3 share finish that lifts it to the #6 rank. In Orlando, iHeartMedia talk WTKS-FM loses six-tenths to finish with a 4.0 share but remains ranked #10, while Cox Media Group’s crosstown news/talk WDBO remains flat with a 3.9 share and the #11 rank. 
million reported in Q2 of 2022, primarily due to a $16.8 million increase in non-cash impairment charges to the company’s FCC licenses and investments, partially offset by an increase in other income, net due to a $5.2 million gain on the sale of one of the company’s investments and an increase in the effective tax rate for the current period. Townsquare CEO Bill Wilson says, “I am pleased to share that Townsquare’s digital growth engine continued to drive results in the second quarter, demonstrating its strength and resiliency, as we delivered second quarter net revenue and Adjusted EBITDA that met our previously issued guidance… With its differentiated and sophisticated products and solutions, our Digital Advertising segment was once again our largest driver of growth, increasing second quarter net revenue by 11% year-over-year… The strong cash generation characteristics of our assets allowed us to produce $31 million of cash flow from operations in the first six months of 2023, an increase of $8 million as compared to the prior year. We could not be more pleased to share that given our strong cash position, we were able to repurchase nearly 9% of our total shares outstanding, repurchase and retire approximately $13 million of our Unsecured Senior Notes at a discount, and pay a high-yielding dividend to our shareholders during the first six months of the year. We also ended the quarter with a strong cash balance of $50 million and net leverage of 4.36x, retaining financial flexibility moving forward.”
Broadcast revenue decreased 5.3% to $49.7 million from $52.5 million; Station Operating Income decreased 43.5% to $6.2 million from $10.9 million; Same Station net broadcast revenue decreased 5.8% to $49.4 million from $52.4 million; and Same Station operating income decreased 37.7% to $6.8 million from $10.9 million. Digital Media revenue increased 0.5% to $10.9 million from $10.8 million, and Publishing revenue decreased 3.5% to $5.2 million from $5.4 million. Salem reports that as of June 30, 2023, the company was not in compliance with its fixed charge coverage ratio. On August 7, 2023 it signed a forbearance whereby the bank agreed not to exercise remedies on the default during the month of August. Additionally, the notional amount of the revolver was reduced from $30 million to $25 million with a minimum availability of $1 million. The interest rate associated with the revolver increased by two percentage points effective July 1, 2023 through the date of the forbearance amendment.
is a great opportunity to help lead one of the best newsrooms in the area. I look forward to coaching and training future newsroom leaders and collaborating with our veteran journalists. I am excited to work with this new management team to deliver great local coverage of Washington, DC, and the surrounding communities.” McFarland comes to WTOP from NBC Boston, Telemundo Boston and New England Cable News where he was assistant news director. Nguyen recently served as a multimedia reporter in local markets in Kansas (WIBW-TV) and Illinois (WQAD-TV) as well as having worked at CNN, Radio Free Asia, NHK World and CCTV America in both reporter and assignment editor roles. WTOP director of news and programming Julie Ziegler comments, “I am so excited to have the force of Monique, Giang and Bill behind our daily newsroom operations. Having their combined talents on both the broadcast and digital sides is exactly what we need to meet our daily mission of delivering the most compelling content to our listeners and readers across all platforms.”
37-year career in journalism, during which he broke barriers and uplifted young sports writers. Parker says, “There’s nothing better than being honored by your own people, your peers, so this is very special to me. I want to thank my family, my friends, all the people who have supported me throughout the years, all my mentees – they fuel me, they inspire me every day. How I got here is that plenty of people helped me along the way, and that’s what it’s all about.” Premiere Networks president Julie Talbott says, “We couldn’t be more proud of Rob. He truly deserves this recognition for his trailblazing career in sports journalism, and for his continuing efforts to elevate and mentor the next generation.”
voice acting services for cash or barter, directed by Benztown producers in collaboration with station program directors and producers, and totally customized to their needs… The actors call in to radio stations, asking questions, playing along with comedy bits, sharing local information, talking up contests and promotions, and more – all according to the specific needs of each station.” Benztown president Dave “Chachi” Denes says, “We live in a digitally overloaded world, and human interaction and connectivity have become increasingly crucial. Role Callers serves as an invaluable tool, effectively sparking live listener engagement on some of the nation’s most prominent morning shows.”
July 2023 PPM Data – Information for the July 2023 sweep has been released for Washington, Boston, Miami, Seattle, Detroit, Phoenix, Minneapolis, San Diego, Tampa, Denver, Baltimore, and St. Louis.
iHeartMedia’s financial by segment, broadcast radio revenue was $429 million, a decline of 7.2% over Q2 of 2022. Network radio was $122 million (down 4.2%), digital revenue (excluding podcast) was $164 million (down 1.6%), and podcasting revenue was $96.7 million (up 12.9%). iHeartMedia chairman and CEO Bob Pittman says, “We are pleased to report that our second quarter 2023 results reflected Adjusted EBITDA slightly above the midpoint of the guidance range, and more than double the Adjusted EBITDA we generated in the first quarter, and our consolidated revenue were above the guidance range. The continued positive performance of our Digital Audio Group, led by our Podcasting business, and the significantly improved relative performance of our Multiplatform Group during this soft advertising period, are encouraging metrics for us, and we’re seeing indications of improving macroeconomic trends which we expect to have a positive impact for us in the second half of the year, with most of that impact in Q4.”
compared to net income of $3.8 million for the second quarter last year – a decline of 12.3% – although it should be noted that Saga is the only radio company thus far to report net income – as opposed to a net loss – during the second quarter. Saga Communications stock pays dividends and during Q2 of 2023 it paid a quarterly dividend of $0.25 per share on June 16, 2023. The aggregate amount of the quarterly dividend was approximately $1.5 million. To date Saga has paid over $109 million in dividends to shareholders since the first special dividend was paid in 2012. Saga’s balance sheet reflects $34.4 million in cash and short-term investments as of June 30, 2023. The company carries no long-term debt.
come to terms on a renewal to remain with “The Ticket.” The sticking point was their desire to explore digital initiatives outside of their work with Cumulus. They have since launched a podcast via Patreon that Cumulus says violates their six-month non-compete. The company also alleges the two have violated the non-solicitation and non-disparagement clauses of their contract. It alleges the duo have “commandeered” company-owned social media accounts, threatened to release “conversations Defendants illicitly recorded” with company executives. Cumulus is seeking “emergency injunctive relief” plus attorneys’ fees and costs.
hosts of the 12:00 noon to 3:00 pm program, effective Monday (8/14). They have been the interim hosts since February. Additionally, Jake Skorheim has assumed hosting duties for the evening program “KIRO Nights.” Skorheim was the producer for the Dori Monson show from 2009 through 2016. Bonneville Seattle director of news and talk 
programming Bryan Buckalew says, “I’m thrilled about these new shows, and I hope our audience will be too. Listeners can expect dynamic conversations based on the top news stories of the day, keeping our community informed and entertained. Jack and Spike have good chemistry and a keen sense of humor. They do a great job of blending informative discussions with lighthearted banter. In an era marked by divisiveness, Jack and Spike emphasize common ground over polarizing debates. Their show demonstrates the power of dissecting complex issues rather than simply magnifying superficial differences.” Buckalew adds, “I couldn’t be more excited to have Jake back in the building. He is thoughtful, creative, and has a great sense of humor. I look forward to listening as Jake develops his distinct voice and builds an audience across a diverse range of digital platforms.”
television’s most-watched network across both primetime and total day viewership and was #2 in the 25-54 demo with total day behind ESPN. FNC’s “The Five” has been number one in viewership for seven consecutive quarters securing 2,591,000 total viewers and 254,000 in the A25-54 demo.