New England Media Changes - Globe, Cumulus, Sports Radio and Projo

GoLocalProv News Team and Kate Nagle

New England Media Changes - Globe, Cumulus, Sports Radio and Projo

The world of media is in constant change -- it is either pure chaos or the time for great opportunity. Many of the biggest media companies are currently in the midst of disruptive change.

As GoLocal reported earlier this month, many of the leading media companies who have holdings in New England are getting beat up on Wall Street. No stock has lost more value than the mega-radio group Cumulus that has major holdings in the market.

Is Cumulus Headed Towards Bankruptcy?

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Media expert Jerry Del Colliano sees bleak times ahead for Cumulus - the parent company for WPRO-AM, FM, HOT 106, 790 Talk and Lite Rock 105  (WORCESTER WXLO, The Pike + WORC FM). 

Del Colliano, the publisher of Inside Music Media, says the most likely outcome for Cumulus is eventually bankruptcy. "You don’t hire a podiatrist to do brain surgery and you don’t hire a magazine CEO known for bankruptcy to turn around a radio group," said Del Colliano. "Mary Berner is tough, experienced in cost-cutting and can see this through to the dissolution of the company.”

He also says that the future of talk radio is dim. “Talk is general is dying because it is aging out.  Even without Cumulus, talk would be sunsetting.  I do not see talk as a revenue producer for a company that badly needs increased revenue.  On the other hand, music doesn’t work on AM stations so talk may be a placeholder,” said Del Colliano.

Moreover, he does not see the stations being sold as an option. “The (value of radio stations) market is depressed, multiples are low.  Bankruptcy will relieve them of their debt and allow the company to package itself for either a merger or sale," he said.

For much of Cumulus' holdings -- these stations include Providence and Worcester stations -- it would be the second bankruptcy in five years. These stations were owned by Citadel Broadcasting (later acquired by Cumulus) and Citadel went in and came out of bankruptcy in 2009/2010.

 

Boston Globe Cuts 50 from the Newsroom

In a series of layoffs and buy-outs, the Boston Globe has trimmed 50 plus reporters and editors. A dozen cuts hit Boston.com a few weeks ago, then 17 Globe Staffers took buyouts, and an estimated twenty or more were laid off last week in the newsroom. A memo from the Globe’s Union — Boston Newspaper Guild —  to its members said, “As you know, twenty of our valued friends and colleagues lost their jobs in layoffs at the Globe this week. It’s always hard to see our newsroom lose good people; it’s much more difficult when the decision to leave is not their own,” according to Boston Magazine.  

 

WEEI Gets Spanked (Again) by the Sports Hub 

In the big battle for Boston radio, The Sports Hub won the most recent ranking battle between The Sports Hub and WEEI. Data provided by Nielsen via radio online unveil that a June loss by The Sports Hub may have been an outlier. 

Ratings for September show The Sports Hub as the #3 station in the market for age 12+ with a 6.0 rating versus WEEI’s 5.4. Both stations benefitted from nearly non-stop coverage.

Toucher and Rich beat Dennis and Callahan in the morning drive and The Sports Hub won the mid-day as Zolak and Bertrand crushed the ever changing mid-day show on WEEI by nearly 3 to 1.

The Sports Hub finished the trifecta by winning the afternoon drive with Felger and Massaroti beat “Dale and Holley” by more than 2 to 1.

Boston is the 10th largest radio market in the United States with approximately 4.2 million listeners. Providence is the #44 sized market with just under 1.4 million and Worcester is #117 market in the US with 441,000 listeners.

 

Third Projo Executive Editor in Two Years

Executive Editors at the Providence Journal historically served at the helm of the news function for decades, but the Projo has just hired its third Executive Editor in the past two years.

Last, week the Projo’s parent company, GateHouse Media, announced that David Butler, who currently serves as Executive Vice President and Editor-in-Chief of a group of 75 daily newspapers, including the San Jose Mercury News, is the new Providence Journal Executive Editor and Senior Vice President of News & Audience Development. 

“It's no secret that newsrooms across the country are challenged to keep up with the fast-paced world of social media and evolving reader platforms. However, a state-wide newspaper and website, like the Journal can continue to play a critical role in providing Rhode Island residents useful information and thought-provoking journalism,” said Janet Hasson, President and Publisher of The Providence Journal. “I am confident Dave will provide outstanding leadership to the Journal newsroom as it navigates the changing en


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