Many Radio and TV stations are in a financial crisis now with support from all areas including from some States being pulled back.
I have offered a summary of what I have been hearing from many in the system as to how we might work together to turn this around. But I would also like to offer some thoughts today that are more mine about the core of the cash flow issues.
My advice is to avoid cutting into bone - I know of one station where the CFO is also the camera operator - how much leaner can you get without not being able to open the doors! Instead, uUse the network effect to cut costs while increasing capability.
"Support" - Being mainly small, most stations pay the penalty of all small organizations. They have to spend too much on the "support" side of what they do - this includes all their fund raising and engineering. But while they spend too much proportionally for all this support, they don't often spend enough to have outstanding support.
But if each state was to set up a "utility" in common to serve all the stations in the state - or an even larger one to serve stations in a region - the individual stations would get more for less. They could afford to get more expertise for less allocated cost.
I know there is hesitation here. Who wants to give up control? But having a fund raising operation that is weak or an engineering shop that is over stretched right now is to fail for sure.
This is not a pipe dream. Years ago, the Canadian Banks, who hate each other, put their back offices into such utilities. They work well and truly serve their joint owners.
Can a few good men and women get together and try this?
