Sabo Sez: Promoting Doom
By Walter Sabo
a.k.a. Walter M Sterling
Host, Sterling Every Damn Night
WPHT, Philadelphia
Sterling On Sunday, Syndicated, TMN
During my tenure at NBC, once a month the division heads would meet at the behest of the CEO to report on their progress and trends in their sector. As the executive vice president of the FM division, I took a seat in that formidable group and tried to keep my remarks as brief as possible. What could I possibly say that would be more damn important than the words of the president of NBC News or the NBC Television network? In addition to NBC’s CEO, the CEO of owner RCA would often join the fun.
Cable TV was flourishing, and CNN had just launched. I was at least 15 years younger than everyone in that meeting and had a different perspective on cable. Therefore, I was shocked by this exchange:
The CEO asked the president of NBC News what he thought of CNN. The President of NEWS said these exact words:
“It might do well for breaking news but otherwise it will not take the place of our news.”
Next on the staff meeting agenda was a discussion of HBO. Should NBC run spots for HBO? Again, the group did not think HBO would be much of a factor on the entertainment menu. They agreed to run the spots promoting HBO. Yes, I objected but lost.
In its first three decades, CNN was a serious factor for news, ratings, and revenue. CNN brilliantly made partnership deals with local TV stations to exchange stories and carriage. Independent TV stations could tap CNN feeds for breaking news coverage. Those deals, requiring no cable, established CNN at viewer level in every city.
HBO last year won more Emmys than NBC, CBS, ABC and FOX combined. In fact only one Emmy went to a traditional network last year: “Abbott Elementary,” ABC.
Radio’s inherent advantage over all other mass media is its distribution system. Elegant and free, it just works! A decision was made about 10 years ago by many radio companies to use radio’s power, clout, and credibility to promote podcasts. Podcasts… hard to find, hard to hear, and requiring expensive equipment that suffers from buffering now. The hidden reason for the podcast push is that Wall Street doesn’t love legacy media. They like new things even if the new thing is deeply flawed. When needing money or liquidation, legacy media companies proudly point to their listening STREAMS.
Commercial broadcasters have proven to be not so great at podcasting. Of course not. It’s a different medium: On-demand audio that can be paused and reviewed. Radio DJs and talk hosts were never trained or attracted to audio creation that is blind to time of day and repeated. It’s different. Why promote it? It’s like NBC promoting HBO.
The good news? Wall Street is realizing the proven appeal of legacy media: The George Soros Funds invested in Audacy. Apollo Advisors, the first-in money for Sirius, now owns Cox Broadcasting. Time to stop throwing our time spent listening and creative energy at podcasts that price their audience lower than legacy media. Bad business.
The wise way to benefit from the podcast revenue opportunity is to buy what works. Acquire existing, successful podcasts and aggregators.
Walter Sabo has been a C Suite action partner for companies such as SiriusXM, Hearst, Press Broadcasting, Gannett, RKO General and many other leading media outlets. His company HITVIEWS, in 2007, was the first to identify and monetize video influencers.. His nightly show “Walter Sterling Every Damn Night” is heard on WPHT, Philadelphia. His syndicated show, “Sterling On Sunday,” from Talk Media Network, airs 10:00 pm-1:00 am ET, and is now in its 10th year of success. He can be reached by email at sabowalter@gmail.com
Wall Street investors do not put up money for traditional radio and television stations.