10-18-2013
On a recent episode of your ABC reality series, "Shark Tank," you were presented with an opportunity from syndicated radio host, R-Dub. A 10 percent stake in his network radio show, ?Sunday Night Slow Jams?, for an investment of just $75,000.
R-Dub?s show is heard on almost 70 stations around the country and has been on the air for over a decade. Every weekend he talks to people in love, people that are hurt or sad, people that have a great celebration to share, or people just looking to unwind, and he plays for them a song that connects them more deeply to their moment. Mark, you and I have never had the pleasure to meet, and as a young entrepreneur who has owned my own businesses since I graduated from high school, you are someone I have always admired for the unique and innovative investments you make, but your response to this offer was one that, in the absence of anyone else in my industry being vocal, I simply couldn?t let go unchallenged. I urge you to read on and reconsider your opinion about the true potential of this form of media that I, and passionate people all over this country, give their lives to each and every day.
Following R-Dub?s offer, you said, ?syndicated radio is a horrible business.? Fellow Shark, Kevin O?Leary, added
that, ?the radio market as an investment sucks.? With respect, I couldn?t disagree more. I believe your opinion is based on a flawed model. See, when I got into radio as a 17-year-old kid, it was because of how the medium connected to MY life. I woke up, and put the radio on. I got to work, and put the radio on. When I worked in the yard, or in my car, or lay on the beach, I put the radio on. And during each moment when that radio was on, it was scoring my life and adding a deeper, emotional layer that affects me even to this day. There?s not one person reading this, that hasn?t felt the same way. When a song comes on, whether through the radio, or new media like mobile or digital, it takes them back to a place and time as if they were right in it again. Sometimes it?s happy, sometimes it?s sad. It reminds them of a family member no longer with them, dancing at a party when they were kids. It takes them back to that moment on the beach with their first love. It sends a rush of emotion over them and takes them to the day they drove their baby home from the hospital. See, THAT is the power of radio and to me, being able to grow that experience is the best investment a man could ever make.
I don?t blame you completely for your opinion about radio. So many in our industry have simply lost their way. Somewhere along the way that personal touch, that unafraid approach to programming gave way to stockholders and corporations worried more about what?s safe and tested, and less about how they can truly create a better, more intimate connection to the lives of those listening. Rather than create a way to drive people TO the radio, they build every mobile and digital tool to drive people AWAY from it. ?If you don?t want to listen on the radio, it?s okay?just listen here, or here, or here.? What they forget is, circling all of our heads right now, are airwaves that we are fortunate enough to have access to. Airwaves that only WE can use to get to your ears right now. To connect to you and score your life?s soundtrack.
See Mark, I believe there is an incredible value to what we have here and what we can do if young, innovative thinkers are allowed to take chances and have the support of others who are simply bold enough to think differently with them. For the last five years, I?ve been quietly building my syndicated radio network on the principals that we CAN be great again. We believe that radio just needs better, interactive, personalized content that connects more directly to those we reach. It?s not about how many we reach, it?s about deeply we connect with them. I strongly believe a ?smaller? show in smaller markets, or with fewer stations that personally connect and interact with their audience, has greater value than some bulky show that by sheer mathematic manipulation, has more ?audience.? Somehow, that?s the measurement lately. Just own big stations, keep your expenses low, and the basic math will make the boardroom happy. Don?t worry about the listener??they?ll always be there.? What they?re forgetting is that their content is falling on deaf ears. And the younger those ears get, the more drastic the problem becomes.
Kids, parents, grandparents?they all need a soundtrack. They all WANT a soundtrack. They want to be entertained. They want to be spoken TO. They want to join in. They want to feel personally connected to their content. I believe that with some very different ideas and a very different way of thinking about our industry, they can be. And for you and Kevin O?Leary, I believe radio can indeed be something that you?d be proud to be part of.
So, call me. Better yet, come see me, and the people that give their lives to radio every day. Give us 10 minutes to talk to you about why radio IS and always will be a great investment, if we just get back to the basics.
As for R-Dub?I?ll use my closing lines to say, "Way to go, my friend." The people listening to you every week need that connection. They want that feeling that you give them when you listen to them and play a song to score their life. So keep it up.
Sincerely,
CEO
Sun Broadcast Group, Inc.
Reach Jay directly jbailey@sunbgi.com or leave your comments below.
(10/18/2013 2:44:22 PM)
Don't forget that Mark sold broadcast.net (formerly audionet) for $5.7 billion to Yahoo. The company streamed radio groups local radio stations on air signals. This paragraph I clipped from a release from Yahoo about the acquisition "The company will broadcast programming from 420 radio stations and networks, 56 TV stations and cable networks, and game broadcasts and other programming for more than 450 college and professional sports teams." Mark knows radios value
(10/18/2013 2:19:23 PM)
The problem with his pitch to the sharks is that he came in the room and taked about how great his show is. That was good but he never told them what the return could possibly be on their investment.
These guys want numbers.
(10/18/2013 2:12:10 PM)
Your argument is weak. You say that radio is great based on the connection it can have with listeners. You use no numbers to back up your claim. These guys are looking at potential return on investment. The money requested could be invested in another venture and possibly have a much higher rate of return.
The sharks suggestion that he should bring in a person to promote the show and share profits was a good one.
Andy,
I'd love to chat with you. I understand what you're saying and I think you missed the premise of the piece. You're right...that's how network radio is positioned today. It's flawed but radio and yes even network radio have great value. We just need to change the model. Email directly or call my office anytime.
Mark Cuban never said "radio sucks", Mark said that Syndicated Radio is a horrible business (just as you stated).
I ran the radio division of AudioNet/broadcast.com for Mark, and what he is referring to is the terrible inefficiencies of going to the network model.
Have a spot that goes for $1k in NY, now sell that spot as part of a network, figure the super low CPM's from being network, take out agency and rep commission, if your lucky, you get $50. That is what Mark is talking about.
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