Clear Channel revenue plummets in first quarter

As Congress considers new royalties for US radio stations to pay labels for promoting their music it seems somewhat ironic that the largest broadcaster in the US appears to be in serious financial trouble.

Less than a year after being purchased by a private equity firm, Clear Channel Communications is working to restructure their debt, hoping to avoid bankruptcy.

Despite claims to the contrary by recording industry lobbyists, radio stations aren't making huge profits at the expense of the labels. In fact Clear Channel lost $428 million in the first quarter of this year.

The loss was primarily due to lower ad revenues. Revenue for the quarter dropped 23% from the same period in 2008.

Written by: Rich Fiscus @ 19 May 2009 10:56

Advertisement - News comments available below the ad

16 comments

ZippyDSM

wait wait wait I thought they filled bankruptcy already?

19.5.2009 16:22 #1

Blackjax

Zippy I think the point of this article is that when it comes to the record industry you "can't argue with dumb"

and boy are these idiots dumb!

20.5.2009 00:23 #2

ZippyDSM

Originally posted by Blackjax: Zippy I think the point of this article is that when it comes to the record industry you "can't argue with dumb"

and boy are these idiots dumb!No wait I was thinking charter cable......god if it starts with the same letter.....

20.5.2009 00:28 #3

Blackjax

You are correct it was charter who tanked.

Basically the industry is cutting off its nose to spite its face, grasping at straws, take your pick of cliche. They can't face the fact that their biz model is out of date and missed the boat on digital media. What they are about to find out is if they get what they want they kill off OTA radio broadcasts hence ending their FREE advertising of their "products". I refuse to pay for satellite radio even though I think its pretty cool. I have refused to buy their drivel, sorry music, for some time now. And now with the global economic meltdown they are finding what "little" money they are making is starting to dry up....

Basically they don't have a clue and it seems they never will.

21.5.2009 00:09 #4

ZippyDSM

Originally posted by Blackjax: You are correct it was charter who tanked.

Basically the industry is cutting off its nose to spite its face, grasping at straws, take your pick of cliche. They can't face the fact that their biz model is out of date and missed the boat on digital media. What they are about to find out is if they get what they want they kill off OTA radio broadcasts hence ending their FREE advertising of their "products". I refuse to pay for satellite radio even though I think its pretty cool. I have refused to buy their drivel, sorry music, for some time now. And now with the global economic meltdown they are finding what "little" money they are making is starting to dry up....

Basically they don't have a clue and it seems they never will.Not to mention they think that what they are doing with radio is "working" they buy them all up, close down local branches as much as they can without turning off the broadcast tower then standardize them all with bland safe predictable crap and then use it all as a means to advertise their chosen set of artists.

Its no wonder radio is dieing and TV is following it slowly....

Sat radio is pretty neat even more so when some of the stations are try and not like the back sides of a suit, still what I'd like to see is I get 10 choices of stations for 9.99 a month over the receiving hardware, you can get all their basic stations on your PC and if I could hook up my MP3 collection or any streamed station of my choice and then stream it to my receiving device, sat radio would truly be perfect.

There's not much innovation in media they have it all locked up as so they can can get first dibs at profit but its biting them on the back..hell they've even lost half a leg so far though their silly scheming...

Our "retired" hippie on 102.3 FM Chattanooga hes one of the main talk show hosts, he has said even radio people don't know radio anymore.

I love 102.3 its really one of the last bastions of local based multi host(as in left/right) talk radio.

21.5.2009 00:20 #5

KillerBug

I hope clear channel goes under. They bought up all the stations around here and turned them into bland, pointless trash. The "Hard rock" station plays nothing but power ballads, rap, and metalica while the "classic rock" station plays mostly '80s hair metal. I removed my car's antenna about two years ago because I did not like how it looked, and I had not used it for 2 years before that.

21.5.2009 01:31 #6

ZippyDSM

Originally posted by KillerBug: I hope clear channel goes under. They bought up all the stations around here and turned them into bland, pointless trash. The "Hard rock" station plays nothing but power ballads, rap, and metalica while the "classic rock" station plays mostly '80s hair metal. I removed my car's antenna about two years ago because I did not like how it looked, and I had not used it for 2 years before that.Pretty much the whole industry has been shaping things for the past 200 years but never as hard as in the last 50.

The media industry has forgotten its place in society, as a nation wide group you use your money to buy time on locally owned and operated stations be it cable, tv or radio by doing it like that save more money that you could gain letting the local stuff remain indapendant.

When you own it all you have to pay for everything twice.

21.5.2009 01:39 #7

fritz43

Since Clear Channel has basically *ruined* FM radio in the US, their bankruptcy would be absolutely delicious! We can only hope.

And,of course, the record industry as we know it, along with the RIAA and similar odious organizations are beyond doomed.

21.5.2009 09:43 #8

ZippyDSM

Originally posted by fritz43: Since Clear Channel has basically *ruined* FM radio in the US, their bankruptcy would be absolutely delicious! We can only hope.

And,of course, the record industry as we know it, along with the RIAA and similar odious organizations are beyond doomed.If they don't go under I wounder when the new fairness doctrine silliness ends they will try and limit how many stations a single entity or partnership can own....

21.5.2009 12:38 #9

Blackjax

Well the problem is if CC goes under so do a lot of local stations. Only a few will remain. My comment about ending their free advertising was based on what hey did back before I was born. They didn't like the fact stations were playing their music for free UNTIL they found out that it turned them a tidy profit by higher sales numbers. I wonder why they forgot that lesson from 50+ years ago? Answer greed. Zippy I like your idea about streaming from your pc to your sat unit problem is greed is stoping that innovation

As far as the fairness doctrine that BS won't go away, why, because of who is in power at the moment. It's too bad that those who are in power don't listen to those who put them there. Unfortunately most people don't educate themselves before they vote.

If you stick your head in the sand long enough when you pull it out you won't recognize where your at!

22.5.2009 00:26 #10

ZippyDSM

Blackjax
Don't forget the satellite companies are hurting and this would be a great meaty filled gimmick for them, even if its just 15$ a month by itself it will clear way for them to make more deals with each other to drive industry.

Hell I been trying to find a wireless audio solution for a 500 square foot area I picked up a mp3 player I don;t think that will cover what I want to do I have a 140$ sennheiser hdr 140 head set its not bad but it caps out at 30-50 feet all the drops and stuff drive me crazy so I am going to break down and buy a 200$ FM transmitter that way I wont have to worry abotu my MP3 player or DS breaking.

I don;t see the fairness doctrine as a liberal speach issue or even a free speech issue, its about attaining complete control over broadcasted media via local government controlled tribunals.

PCisim is the new fascism like Neo conservatism was 20 years ago.

22.5.2009 00:40 #11

hermes_vb

It's the new world order...and I love it. Newspapers, radio stations, and TV are going down. Too much crap on the airwaves and on print if you ask me. For a couple of years now I've been really into podcasts, blogs and internet radio. Yes I know there are a lot clowns out there, but you can always find your niche.

22.5.2009 01:49 #12

ZippyDSM

Originally posted by hermes_vb: It's the new world order...and I love it. Newspapers, radio stations, and TV are going down. Too much crap on the airwaves and on print if you ask me. For a couple of years now I've been really into podcasts, blogs and internet radio. Yes I know there are a lot clowns out there, but you can always find your niche.FYI The new world order are the ones trying to censor/control everything.....

22.5.2009 01:55 #13

hermes_vb

I was being sarcastic...

23.5.2009 00:46 #14

Blackjax

Those in power fear the masses having any knowledge of what they are up to, If the masses truly knew the repercussions would scary.

I'm not a conspiracy theorist but there are a lot of things now a days that make you go hmmmmm.

23.5.2009 00:59 #15

IguanaC64

Houston FM radio was already somewhat bleh before Clear Channel moved in. They muscled out the competition that had better programming (IMO) then streamlined/blandified the channels. We had a great hard rock channel called ZROCK (which had a few affiliates across the US). The "New Alternative" Clear Channel station here absorbed enough of the programming lineup of ZRock to put them out of business then dumbed down the programming to more mainstream stuff after ZRock was gone. Then they got rid of a rock radio station that had been here 30+ years (that honestly really did need to be retooled) and split their lineup between the classic rock station and the "New Alternative" station I mentioned before. The replaced it with a hip and happening latino rap station (since demographics say that's what more people want!). They apparently did the same thing in Dallas.

This is going to sound racist and cynical, but I believe that Clear Channel was retooling FM radio so that they could serve the demographic that they identified with the least money (Mexican rap) on "free" radio...and move the more affluent (white) radio listeners on to pay (satellite) radio. Clear Channel had a big financial stake in XM Radio which reinforced my belief. It's why, if I felt I was forced to pay for satellite radio I would have gone with Sirius...but even that doesn't matter anymore.

They can do this because they own nearly every radio station in every market.

I won't cry for them.

26.5.2009 11:37 #16

AfterDawn: News