Sabo Sez: Consolidation Has Been Radio’s Savior
By Walter Sabo
Consultant, Sabo Media
A.K.A. Walter Sterling
Radio Host, Sterling On Sunday
Talk Media Network
HALF of all radio stations in the United States lose money – at least they did back in 1991. The NAB used to put out an annual report revealing how many radio stations were profitable. Usually half the stations in America lost money. Since consolidation, the NAB stopped putting out that report. It is reasonable to believe that far, far fewer stations lose money today. Shared costs, real estate, technical economies due to digital equipment versus analog all indicate that there must be fewer money-losing properties.
The business of radio is very strong and appealing to investors. Apollo Advisers was the first money-in Sirius. The Apollo fund recently bought Cox radio. Marc Rowan, Apollo’s CEO is the smartest guy in any room. Rowan doesn’t invest in hunches; he buys businesses that grow return on investment.
In 1970, 7% of all ad dollars went to radio. Today, 7% of all ad dollars go to radio. In 1970, Procter & Gamble spent almost zero dollars in radio. Thanks to consolidation and the vision of Randy Michaels, radio has shifted from a “frequency” ad buy to a “reach” buy. Reach commands higher rates and more sophisticated advertisers. The RAB’s Erica Farber and Sound Mind’s Kraig Kitchin focused on winning P&G dollars. Today, Procter & Gamble is a top-five radio advertiser.
Are you sick and tired of “experts” saying that radio is slow to digital? Radio is not slow, radio was first-in. Mark Cuban put thousands of stations on Broadcast.com in the 1990s. Today radio leads the list of most downloaded podcasts. NPR has been the leader in podcasting since Alex Bennett started the industry. Under Bob Pittman and Jarl Mohn, iHeart and NPR dominate downloads.
Why the pessimism and anxiety in the hallways? It started with the management of consolidation. There are major consulting firms to help employees go through mergers. Consolidating an industry and its workforce is both an art and science. No radio company sought or engaged experienced expertise to manage consolidation. Instead, when a quarter’s revenue was missed, people were fired. Your friends in the next office were suddenly out of work. Layoffs should have happened all at once, based on a strategic plan. There is no plan. Firings are executed on random dates, with no notice; a horrible practice that continues. That’s why you’re miserable. No plan.
Radio stations in Canada, Europe, Australia and the UK are having excellent years. Canadian Music Week conventions, Commercial Broadcasters of Australia and European conferences are bursting with optimism and good news about radio. Why? Consider this possibility: Most radio companies outside the US are owned and managed by executives with a programming background. To do their jobs, programmers must be optimistic about the future. A salesperson’s job requires them to spend their days listening to media buyers’ objections to advertising on radio – negotiators! It sucks.
Consumers like or love radio. The reason SiriusXM Satellite Radio has 34 million listeners PAYING for radio is that listeners want MORE stations. Much, perhaps most, “music discovery” comes from radio listening. 53% of Americans will listen to radio today. In 1970, 53% of Americans listened to radio daily.
Walter Sabo was the youngest executive vice president in the history of NBC. The youngest VP in the history of ABC. He was a consultant to RKO General longer than Bill Drake. Walter was the in-house consultant to Sirius for eight years. He has never written a resume. Contact him at walter@sabomedia.com. or mobile 646-678-1110. Hear Walter Sterling at www.waltersterlingshow.com.
format phases including a full color magazine and eventually a daily online operation geared to providing news, advice and opinions to professionals involved in programming, managing, marketing and operating an array of related platforms in what has come to be known as talk media. This includes most popular forms of spoken-word AM and FM radio, plus online programming, podcasting, cable television and satellite broadcasting. During this period, TALKERS has produced and presented 26 national conventions in New York and another three in Los Angeles. Add to that more than 35 regional, national and international forums about the field and countless radio rows including several at the White House in conjunction with both the Bill Clinton and George W. Bush administrations. TALKERS remains and will continue to be a non-partisan proponent of the First Amendment with a great love and passion for talk media’s roots in the century old medium of radio.
and operations. She is a native Nebraskan who is passionate about local media and the Omaha community. Byars understands our commitment to excellence, and we are thrilled to have her join our talented team in Omaha.” Byars has served in leadership positions with Lee Enterprises, Berkshire Hathaway Media, and the Omaha World-Herald. She comments, “Radio has such a positive impact on so many of our listener’s lives, the local businesses we serve, and the community partnerships we form. Joining the team at the radio stations that I grew up listening to is such an honor to me and I am excited to build upon the stations’ legacies.”
media franchise – has hosted and produced more than 1,000 TV shows, 800 radio shows, and traveled all 50 states during the course of his media career. Lipford says he’s shifting the business model of his media company, which will now focus on streaming and licensing the brand’s extensive library of home improvement content. Lipford will continue to host his weekly two-hour “Today’s Homeowner” Radio show, and “Tips for Today’s Homeowner” radio features through the end of 2023, with the final show and features airing the week of December 25.
delighted to have him as a guest in this setting and at this time.” In a fast-paced session sponsored by Collette guided travel tour specialists, Ruddy and Harrison engaged in a candid conversation about positioning, programming and navigating the infrastructure of modern media including print, digital and radio as well as cable news/talk television. 
Last week I had the privilege of moderating a panel at the TALKERS conference. Confession: I listen to speech patterns and tones more than words.
at Hofstra University will be posted, beginning today with the panel discussion “Programming News/Talk Radio in the Digital Era – Part 1.” The session, sponsored by Premiere Networks, is introduced by Larry O’ Connor, morning host at WMAL, Washington, DC and moderated by Mike McVay (pictured at right), CEO of McVay Media Consulting. Panelists (pictured below from left to right) include Joe Thomas, program director/host, WCHV, Charlottesville, VA; Eric Stanger, SVP operations, Sean Hannity Show/Premiere Networks; Brett Winterble, host, WBT, Charlotte; Kevin DeLany, VP news & talk programming, Westwood One; and Tom Cuddy, program director, WOR, New York. (Note: Matt Meany, program director, WABC, New York who was originally scheduled to appear on this panel switched to the “Programming News/Talk Radio in the Digital Era – Part 2” session which will be posted tomorrow.) 
Starnes comments, “When I bought KWAM I promised our listeners that we were going to bring fair and balanced journalism back to the radio. I’m incredibly proud of our dedicated and hard-working team of broadcasters at KWAM.” 
There are media and there are media. There are platforms and there are platforms. Not all cultural artifacts are equal in terms of their utilitarian versus cultural value. Damn the tone-deaf corporate bean counters who are ripping the heart out of the spirit that gives humanity its life force! Marketplace obsolescence should not solely be determined by profit and loss. With all due respect to the idea of public service, what about the concept of loyalty? Shame on the automobile industry! Not only is it turning its back on the needs of millions of people, it is in the process of betraying one of its historic partners in not only commerce – but romance and glory. In other words, the automobile industry owes the radio industry a huge debt. The relationship between cars and radios goes a century deep and has been nothing less than a two-way street. Yes, auto industry, don’t be so hasty to save a few bucks by rushing AM (and then FM) radio out the door. You might just find in the long run that “radio” outlasts the private “car” as a fixture of human activity.
in London, Springer got a law degree from Northwestern University, served on the Cincinnati City Council before exiting in a prostitution scandal, returned to the Council a year later and eventually served as mayor of Cincinnati. He ran unsuccessfully for governor of Ohio as a Democrat. He moved into television news and won regional Emmy Awards before debuting his own soon-to-be-a-hit TV show that began as an issues-oriented program. Springer was part of the Air America liberal talk radio experiment during the early 2000s in which he hosted the 9:00 am to 12:00 noon ET show. In 2005, TALKERS magazine managing editor Mike Kinosian (who then was special features editor for Inside Radio) interviewed Springer. 
syndicated radio health-based talk show continues to gain affiliates, was recently appointed the role of “ringside physician” for Impact Wrestling which doubles as a serious medical position as well as an entertainment position. Doctor Asa tells TALKERS, “The NFL, just like combat sports, includes years of high-impact play, raising concerns for long-term wellness. Concussions, joint injuries, cardiovascular health, obesity, and neurological complications are the norm as the average career for 
an NFL player is very short.” Doctor Asa will be speaking and educating as the leading health and wellness voice for NFL Franchises and Alumni with strategies for optimal health, performance, and longevity. He continues, “The NFL is a worldwide sports giant with some of the greatest athletes. The players are the ones we need to make sure are in the best position to enter the sport well and exit with their greatest win, their health. NFL Alumni Health has a passion to educate the players for better current play health and longevity choices which creates a better post-play outcome. Many former NFL Alumni Players are losing quality of life and facing serious health challenges. NFL Alumni Health is on a mission to create a better way. I’m here to be the voice, the storyteller, and catalyst to inspire the NFL and its Alumni, and influence others to reach their potential and becoming the best version of themselves.” Dr. Asa Andrew will be speaking on “The Big Picture” panel at TALKERS 2023, June 2 at Hofstra University.
The decision to change WABC from music to talk back in 1982 was not made by corporate, it was made by its then-program director, Jay Clark. Corporate was hoping he would approve the change, “they” lobbied for it, but the call was the ultimate responsibility of the program director. The business plan for WABC as a talk station predicted it to be profitable in year 10. (That’s because KABC, Los Angeles took 10 years to turn a profit.) As it turned out, WABC turned a profit in year 11.
The whining is non-stop. Many in radio mourn the advent of consolidation, corporate dictates, staff cuts. They miss the way the industry was – before.
Welcome to the NAB edition of Pending Business.
“They have the time and tools to listen, they like spoken word contest,” and Edison Research president Larry Rosin reminds us, they’re big-money consumers.
planners). Suchman writes that this argument “is among the ultimate tussles between media planners and publishers. While some may lean more heavily toward video, we at Audacy respectfully disagree.” He makes a five-point argument in audio’s favor saying it wins in reach, time spent using, is more immersive, activates all senses, and drives recall. 
close out Women’s History Month, it is important to remember the legacy of Gracie Allen, the inspiration behind these esteemed awards. This year’s recipients exemplify Gracie Allen’s spirit through their exceptional talent, innovation, and vision. Their steadfast dedication to their craft and their tenacious resolve to break boundaries serve as a compelling testament to the essential role women play in molding the cultural landscape. We eagerly anticipate celebrating their outstanding accomplishments.” Winners in the radio category (national and local) in commercial news or talk formats include: Jai Kershner, “Good Day Show,” Outstanding News Anchor; Mandy Connell, iHeartMedia, Host Non‐Morning Drive; Christina Musson, KMJ AM/FM Fresno, Co‐host (Talk/Personality) Small/Medium Market; Marcy Williams, WSB-AM/WSBB-FM, Atlanta, Outstanding News Reporter; “Talking Golf with Ann Liguori,” WFAN, New York, Talk Show ‐ Sports; and “The Gee and Ursula Show,” KIRO-FM, Seattle, Talk Show ‐ Talk. 
Oh, excuse me, hold on. Here it is! The hourly report from quasi research companies or real research companies like Nielsen declaring that radio is just fine, thank you! Massive surveys (choose one) reveal that radio works! Radio appeals to younger demos! Radio moves product! Radio has more listeners in AM drive than the “Tonight Show” has viewers! A landslide of data proves that after 100 years of success, radio is a viable medium.
and The New York Post who also served as Nassau County executive from 2018-2021. She’s filled in on the station’s “Cats & Cosby” show. Ernie Anastos recently began producing his twice-daily feature “Positively Ernie with Ernie Anastos” for the station. For this new show he partners with Patricia Stark – a certified personal & executive coach who heads Patricia Stark Communications. Red Apple Media Group CEO John Catsimatidis says, “At 77 WABC, we’re doing radio the way it’s supposed to be…. live, local, and BIG. We got rid of all the brokered weekend programs and we’re replacing them with big-name hosts like Ernie and Laura. I know we’re doing radio the right way because we’re winning!”