For the Business Snobs

Black Snob regular Andrea, The Unapologetic Snob, passed along this item about recent troubles at Radio One. I remember being mildly interested several years back when I read about Radio One’s founder Cathy Hughes in the now defunct Emerge Magazine. But what started out full of hope and promise turned into a radio version of BET. And not even in a good way. BET could use some competition. Maybe they would “diversify” their offerings, but that never came to pass. Now Radio One is in economic trouble.

Washington Post has the story on their Washbiz Blog:

Radio One said it lost $18.3 million in the first quarter, compared with a profit of $744,000 in the first three months of 2007, hurt by a slump in national advertising.

Chief executive Alfred C. Liggins III, left, sought to explain stock sales by him and his mother, Radio One founder Cathy Hughes and explain that a planned stock buyback will happen. The chief financial officer, Peter D. Thompson, defended the compensation packages for Liggins and Hughes.

Columnist Steven Pearlstein isn’t buying it. He writes that Radio One’s is “the story of a management team and a tightknit board of directors who have overreached in their strategy, underperformed in executing it and sometimes put their own interests ahead of those of their public shareholders.”

5 thoughts on “For the Business Snobs

  1. Kathy Hughes is the Debra Lee of radio. She’s a total hypocrite. She acts as though she hates negative stereotypes but blasts Hate Hop on most of her radio stations.Ultimately she will probably sell Radio One to Clear Channel and stay on board as the resident Black shill ala Debra.Monie

  2. I think it’s karma.I think they, one, reduce the intellectual level of our people to not even be able to sustain their product anymore while as well thought the “okee-doke” was not going to end. It’s like they made people allergic to quality and they made it hard for educators to teach. We were fighting disc jockeys who had more influence than us. They shaped a generation’s mindset. Their ability to overrule and dictate culture removed all safeguards on protection of what we were. So now, they have lost advertisers. It’s the same with record companies. It’s just karma. Advertisers have no use for them anymore. You can dumb down everything for kids but our kids in some ways will not spend the same as their counterparts. Even “other” kids are too dumb to waste money on anymore. They don’t respect ads. So you have advertisers not making their money back. It’s a weird case of anarchy through a apathetic stream of consciousness.What happens when you make your listeners so dumb and useless they are not a target group anymore for advertisers. If they can’t afford to buy because each year they enter the workforce unprepared, then the advertisers has to find a group that will respond and be able to have the viability to pay for the lifestyle the advertisers want to sell. Without the proper type of elite advertisers your status ratings diminish.I don’t think them buying social networks will make them any return revenue. Our young people are not the brightest and are not loyal for advertisers. Radio One pushed diminished values (ideals of allegiance with all their baiting of gossip and beefs and picking on people) and they filtered ideas out of the mouths of the most inept disc jockeys commenting and designing the culture our people ate up.

  3. Wow, Andrea broke it down. I always wondered about this point myself as I get older:What happens when you make your listeners so dumb and useless they are not a target group anymore for advertisers. If they can’t afford to buy because each year they enter the workforce unprepared, then the advertisers has to find a group that will respond and be able to have the viability to pay for the lifestyle the advertisers want to sellUnemployment is definitely an issue in our community, especially among young people. I assumed hip hop radio was able to survive b/c they had a suburban white audience. Why all of a sudden are urban radio stations all over the country getting the shaft.I wouldn’t put Cathy Hughes in the same category as Debra Lee, she has been a trailblazer and role model for black businesswomen and TV One is a positive network

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