I've mentioned before the two sided problem facing radio: SHORT and LONG term. By Short term, I mean operating at maximum profitability. By Long term I mean growing the value of your asset.
For Velocity, solving the short term problem has always been easy. We're good at it. We're one of the best. We've been operating radio stations optimally for the last 12 years. Renda Broadcasting was a great classroom for running efficient efficient radio stations. A solid and consistent outperformer. Velocity has had that covered since we opened our doors for business.
The harder part was finding solutions to the LONG TERM problem Radio faces. To help in that process, we compiled a Board of Advisors which I announced last week. I wanted to find 5 people who know Radio, worked in Radio, understood Radio, but were Masters in their own fields: Finance, Merging Media, Marketing. Fields that were exerting pressures onto Radio. I wanted to find a bunch of outsiders who understand the pressures that radio is facing so I could dissect those pressures. I wanted to find Wernher von Braun. I wanted to find Darius Kasparaitis. I wanted to find Frank Abagnale. I wanted to find people that know about the pressures on Radio and can deliver a unique and different perspective. I want to 'get in my enemy's head'! And through discussions and strategy sessions with this crew over the last few months, the gravity of our situation has become clear.
Our problem is systemic. Our problem is obsolescence. And trying to solving these problems with OPERATIONAL solutions (sell more, push interactive, cut expenses) is like trying to solve a hardware problem with software. Then numbers are scary. History is scary. And the SOLUTIONS require guts and risk, something we're short on in our weakened state.
But Hope Springs Eternal, doesn't it?
I want you to keep an eye on something this week. This week begins earnings results for several groups, and this week, you’re going to see some ugly numbers. Like every industry, these are not fun times to be reporting earnings. Here's what I want you to keep an eye on: As the Earnings reports come out, will companies acknowledge the necessity for major changes? Will things be bad enough to motivate CEOs.
The first public company that DOES acknowledge this will be held in high esteem by our industry.
-TR
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