iHeartRadio Creates Terror Among Media Personalities Everywhere
For years we have been warned that technology was going to take away jobs on a massive scale. To date, that apocalyptic warning has come up short. Technology has certainly changed jobs, but the most advanced countries in the world are also the greatest job creators. The United States, for example, is one of the leaders in technology and essentially has full employment. However, today was a cold that many in the radio industry has feared. One of the leading companies in the radio space — iHeartRadio — has announced a major change. They are one of the first to make changes on such a scale, but they certainly won’t be the last.
In a statement it announced “As it enters the new decade, iHeartMedia today announced a new organizational structure for its Markets Group as it modernizes the company to take advantage of the significant investments it has made in technology and artificial intelligence (AI) and its unique scale and leadership position in the audio marketplace. The new structure will enable the company to maximize the performance of each of its markets – and the company overall — with its unique scale and multiple platforms; leadership in audio; and its expertise in consumers, monetization and data, and enhance iHeartMedia’s position as the number one audio company in America, continue its successful transformation as a technology- and data-powered 21st century media company, and accelerate the development of new platforms and services.”
For decades companies had strict limits on the number of stations they could own. Since 1996, though, it is essentially unlimited. That created an earthquake then. Five separately owned stations had multiple talent doing different things. With the consolidation of media, 6 stations under one umbrella could have one person do traffic and weather on all the platforms. That is nothing compare to changes driven by technology.
The statement continues, “the company has made significant technology investments to change everything from how it sells advertising to how it utilizes data and builds new businesses like its digital platform, podcast platform and robust data platform – all of which have given it an undisputed leadership position in the audio world. Additionally, the company’s technological advancements increase its ability to support its employees and its customers through world class systems and innovation.” Such an announcement is like music to the ears of business owners, but a nightmare for those that work for them.”
“iHeart is the rare example of a major traditional media company that has made the successful transformation into a 21st century media company – one with unparalleled scale, reaching 91% of Americans each month with our broadcast assets alone, more than any other media company,” said Bob Pittman, Chairman and CEO of iHeartMedia. “We are now using our considerable investments in technology to modernize our operations and infrastructure, further setting us apart from traditional media companies; improving our services to our consumers and advertising partners; and enhancing the work environment for our employees.” In many respects that is a very brave face. The transition to modernity has been very rocky. In January of 2019 Variety provided headlines of “iHeartMedia Bankruptcy Plan Approved, CEO Bob Pittman’s Contract Renewed.” The article goes on to say “Under the terms of the reorganization, the company’s debt load is reduced from $16.1 billion to $5.75 billion.” Financial analysts have yet to give it a clean bill of health, although the stock has certainly benefited from the bankruptcy, seeing a steady increase since the company’s pre-bankruptcy low.
The radio industry publication Talkers has posted what some are calling a requiem for radio hosts. The headline says it all: “iHeartMedia Begins Massive Layoff of Air Talent.” It goes on to cite much of the information in the aforementioned press release. The list of those expected to be let go or have been removed includes many considered among the “who’s who” in the iHeart universe, “some of those in the spoken-word formats who’ve exited the company include: Kerry Belkin, producer, WFXJ, Jacksonville; Leland Conway, host, WHAS, Louisville and WLPA, Lexington; Big Jim Donovan, host, WSYR, Syracuse; Andrew Downs, program director, KXNO, Des Moines; Jim Fisher, host, WOC, Quad Cities; Seth Harp, programmer and host, WFXJ, Jacksonville; Carl Harris, creative services director, Tampa Bay cluster; Travis Justice and Heather Burnside, hosts, and Sean Roberts, producer, Pete Kaliner, host, WWNC, Asheville, NC; Dave Levora, morning host, WOC, Quad Cities; Mike Lucas, host, WTSO, Madison; Ross Peterson and Chris Williams, hosts, KXNO, Des Moines; Jake Query and Derek Schultz, hosts, WNDE, Indianapolis; Chip Ramsey, weekend producer, WERC, Birmingham; John Ramsey and Mike Rutherford, hosts, WKRD, Louisville,” according to Talkers.
