You might find this opinion a bit of a stretch. Boston Herald writer Rick Shaffer says CBS is selling its radio stations because the model of AM radio is broken and the Internet is taking over. He also calls CBS’ announcement a surprise, which we all know was no surprise at all. Shaffer asks, “Why is terrestrial radio headed south?” He answers, “The reasons are many but basically boil down to one factor, the same one that’s disrupting so many industries, including the new business — the Internet.
And Shaffer has a philosophy on what will happen to stations like WBZ-AM in Boston. “How dim is the future for terrestrial radio? Pretty dim. In the near future, AM radio stations like WBZ Radio will likely be relegated to niche-casting — foreign language programming, specialty shows like finance and infomercials. Indeed, in the next year or two, many new cars will not include AM stations on their radios. As for FM stations — including CBS’s 98.5 The Sports Hub — they will stay with sports talk and live sports broadcasting, except for those programming music, which will slowly disappear.”
Read the entire Shaffer piece HERE
Absolutely radio is facing new challenges, but Panama Jack you and others are being negative. If you don’t like it, get out of radio. Nothing beats AM radio dependability. …For example in a big storm good luck with Internet service, while you can always turn on the radio.
Why is it a stretch when Moonves exact comments including this paragraph you at Radio Ink chose not to include (see below). Perhaps Rick Shaffer gets his info from outlets that choose to tell the whole truth!
“Radio is a shrinking business, with advertising revenue falling and the company writing down the value of its station licenses last year. CBS’s local broadcasting division, which includes radio and TV outlets, reported sales of $2.6 billion in 2015, the lowest since 2009. CBS and Showtime are the company’s two premium brands, Moonves said.”