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US Media News: Clear Channel Plans To Cut Radio Ad Time

  • 19-07-2004 4:31pm
    #1
    Moderators, Society & Culture Moderators Posts: 10,247 Mod ✭✭✭✭


    http://news.yahoo.com/news?tmpl=story&u=/ap/20040719/ap_en_ot/clear_channel_ads
    The nation's largest radio station chain announced Monday that it will reduce the number of air minutes devoted to commercials.

    In a statement, San Antonio-based Clear Channel Communications said it intends the measure "to improve the value of radio to listeners and advertisers."

    Clear Channel said limits on the length of commercials per spot break will be reduced. The chain also will reduce and limit the amount of promotional breaks on all of its radio stations.

    While this may seem like a good move, the fact that it's Clear Channel just makes me wary of the reasoning behind it. Is it really for the listeners benefit? They certainly dont like to lose money for no good reason, so here's my theory.

    In an area where Clear Channel owns, say 50% of the air waves this cut back will entice people to listen (more music/hour). If the competition want to compete they will also need to cut back ad's, and given that most of that competition doesnt have the deep pockets of CC, they might not be able to run at such an income loss (I am refering to the few channels not run by CC). A floundering radio station is ripe for a take over, and if the FCC has its way, CC will be able to do that legally (see here, thankfully its hit a snag for now).

    flogen


Comments

  • Closed Accounts Posts: 7,221 ✭✭✭BrianD


    I don't know how well it will actually work. RTE 2FM has limited airtime and you rarely hear more than two commercials in a row yet you don't hear people talking about it. The independent stations often have outrageous advertising minutes per hour but they are still perceived as the "more music" stations.

    In a free market reducing supply will also push up advertising rates so it should benefit everyone.


  • Moderators, Society & Culture Moderators Posts: 10,247 Mod ✭✭✭✭flogen


    BrianD wrote:
    I don't know how well it will actually work. RTE 2FM has limited airtime and you rarely hear more than two commercials in a row yet you don't hear people talking about it. The independent stations often have outrageous advertising minutes per hour but they are still perceived as the "more music" stations.

    In a free market reducing supply will also push up advertising rates so it should benefit everyone.

    anyone who listens to the independent channels for any length of time will know just how little music is on them... stupid office radio.

    Anyway, while cutting demand would raise prices, a giant like clear channel has the capability to keep its prices the same, but cut ad time without being heavily effected. Smaller outlets who dont have the porfolio of Clear Channel wouldnt be able to. this is much like what RTE TV did to TV3 when it started, and kept trying to do for some time. It may also be the reasoning behind 2fm's ad cuts.
    Dont get me wrong, I'd love to have ad-free radio, or even minimal advertising, but for the sake of media independence, diversity and difference, I would be (and am) happy to put up with the current ad output. Sadly the same doesnt apply for most of the musical output of said stations, and all the ad's in the world isnt encouraging diversity here.

    (/me thinks of QOTSA.... KLON Clone Radio, Dublins Infinite repeat... we play the songs that sound more like everyone else, than anyone else...:D)

    flogen


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