by Frank MacekEvery morning when I wake up, I spend some time reading through all the industry trades and on-line media blogs to find out the state of our business. It's the same thing you are doing by stopping by our blog each day.
Here is a summary of today's headlines from CBS stations...
- 2 CORRESPONDENTS AMONG THOSE OUT AT WCBS
- WBBM CHICAGO CUTS AT LEAST 17 STAFFERS
- REPORTING VETS AMONG 14 LAID OFF AT KPIX
- 30 EMPLOYEES GET THE AX AT WBZ BOSTON
- AT LEAST 6 GONE FROM KCNC DENVER
- 2 REPORTERS AMONG CUTS AT KOVR SACRAMENTO
Is the sky falling on our little broadcasting heads? Some say yes. I say - not so fast.
It's really no secret that times are tough for everyone. When the economy falters, so to does the lifeline of broadcasters - advertising revenue. The Cleveland market is no exception - and may actually be in worse shape than other markets across the country - thanks to the economic downtrend. Our region always gets hit the hardest when times gets tough because of the continuous erosion of our staple - manufacturing.
Plus, there is another facet to this issue... the internet and in particular companies like Google.
Advertisers are tightening their budgets for spending on ads, which is leading to lower revenues across multiple platforms - newspaper, tv and radio.
But the real threat is coming from companies like Google, who are sucking dry billions, yes BILLIONS of advertising dollars from local companies who are able to advertise for virtually nothing. It's true that one web ad gets few clicks...but millions and millions of clicks of an ad across their entire website adds up to big bucks - something local broadcasters can't compete with.
We aren't picking on Google, because they have every right to be in the business like we are. But, it highlights challenges we, as broadcasters, are facing.
This is forcing broadcasting companies like CBS (or our parent company, Gannett) to turn lean and mean - and that means reducing staff in some cases or not replacing those who leave. New technology will replace inefficient positions. At WKYC, we are incorporating new systems, like graphics, that allow us to do a lot more with less. No longer does one person have one job. It simply can't happen anymore.
Everyone is being asked to do more. We can fight it all we want -but the truth is, those who don't adapt will find themselves left behind. Of course it's not fair - it's the new reality.
When I see groups of students come to the WKYC Digital Broadcast Center for a tour or as part of their college learning assignments, I can't help but think these next generation kids have a very tough road ahead.
With a recession or at least a major slowdown happening, times are going to continue to be tough for broadcasters. We are not out of the woods. Job cuts are going to continue to happen - and maybe at a record pace for the foreseeable feature. It's a gloomy picture right now across the industry.
Time will tell if we, as a business, can save our listing ships or if we'll head to the bottom of the sea depending on how fast and smartly we re-invent ourselves. I feel we are all up to the challenge of it - and broadcasters will not die... We'll just evolve to the next stage in whatever form that it takes.
Your comments are always welcome, feel free to email me: fmacek@wkyc.com
