89X

89X

I woke up today to the news that 89X, Detroit’s alternative rock radio station, owned by a Canadian company, has axed its American operations.

That means that a dear friend of mine is now out of a job.

I remember when he was still in school learning about audio engineering and the inner workings of radio. My band was one of his guinea pigs as he honed his recording chops. He was concerned with taking care of us, and making sure to do things right. As always happens when doing anything creative, there were some technical issues which slowed the session, so we weren’t able to finish the recording. But what did get recorded, he mixed and sent to me a few weeks later.

He sees his job through to the end, no matter what.

While at college he hosted his own radio show, and interned at 89X, reporting to program director Jay Hudson. Together they ran a weekly program which showcased independent artists and put a spotlight on the local music community. They held events and shows around the metro Detroit/Windsor area, and chose artists to perform with large touring acts.  (Hudson resigned in July 2016 after 10 years of working at the station.)

A year or so later, my friend and I were hanging out in my studio. He had nearly completed his internship, and was concerned that the station wouldn’t be able to hire him. He felt the pressure, worked even harder, and turned out to be hired and become a regular on-air for years to come.

And yesterday, he was laid off, along with around a dozen others affiliated with the American side of 89X.

The layoffs were part of a larger restructuring at Bell Media, the corporation who owns 89X and three other stations. According to Bell Media news director Matthew Garrow, “The restructuring is a response to the challenges we and other Canadian media companies are facing on multiple fronts: changing broadcast technologies and growing international competition, a tough advertising market, and ongoing regulatory pressure.”

That is all business-speak for “radio isn’t as profitable as it used to be.”

But that’s because nothing is what it used to be. Everything is changing. Before we know it we’ll be able to use our devices to request the car of our choice on demand, and it will show up with no driver inside. Commuting to work? Get a small hatchback. Going out for a fancy date? Get a Mercedes.

Abundance rules.

It’s already happened in music. It used to be that radio was the only way to hear music, unless you bought the record. Now, with cloud-based streaming services and customized playlists, not only do you not need to own any music, you can create your own personalized radio station! Why would you listen to terrestrial radio, waiting for them to play the song you want to hear, when you can reach into your pocket, pull out your device, and hear it right now??

And most people tell me that terrestrial radio sucks, that they play the same songs over and over and over, that the music is homogenized and pasteurized for the masses, that there’s no there there.

But that’s because terrestrial radio is run by large corporations.

The DJs used to rule when they had autonomy over their shows, were able to spin the tunes they wanted, not just the company-approved playlist. They would scrounge record stores and listen at home for songs that resonated with them, with the current culture, not just what was blowing up the charts. The great DJs took risks, they helped push music forward, they captivated their audience.

That’s what made Howard Stern so popular, he takes risks, says what others are too scared to say. And he knows the world is much cruder than it used to be, which is why he knew that satellite radio was the future, a place where he could be his authentic self without fear of the controlling corporation bringing down the hammer. (When Jay Hudson resigned from 89X, he took a job at Sirius XM.)

Corporations don’t like free-thinkers or risk-takers.

And Bell Media, rather than taking a risk and truly shaking up the format and pivoting into the Now, decided on the impossible task of figuring out how to continue doing what they’ve been doing, because it’s what they know. They looked at their profit margins, and they cut the first thing companies always cut when their profit margins are low — payroll.

Payroll is generally the biggest expense of any company, and the first line item to receive cuts when the company wants to tighten its belt. That’s the reason the car you’re going to call won’t have a driver: it will cost less. (The trucking industry is going to experience a revolution soon, as will many other industries due to automation and robotics. If a human can be replaced, they will be replaced. Humans cost too much.)

My heart breaks for my friend. He sacrificed to get where he is, he said no to a lot of things that other people would not in order to become successful in his industry. From day one, he put in the hours and the sweat equity to do his best for the station. He learned from his mistakes and his mentors, and applied his knowledge on a daily basis. And now the station says they’re moving in a different direction, without him.

But I’m not really surprised — I’ve seen this before.

My dad worked for a radio station in Detroit — W4 Country — for 13 years, ultimately becoming the station’s creative director. He was laid off in July 1995 by the parent corporation which owned the station. W4 Country was part of a 19 radio stations group owned by Shamrock Broadcasting, a division of Shamrock Holdings, which was founded in 1978 as an investment company by Roy E. Disney (yes, that Disney).

Shamrock Holdings bought a bunch of television and radio stations in the 1980s and early 1990s, and sold Shamrock Broadcasting to Chancellor Broadcasting in August 1995, right after the layoffs at W4. Chancellor Broadcasting restructured and became known as AMFM Inc. in 1999. In 2000, AMFM Inc. merged with Clear Channel Communications. After the merger, Clear Channel owned 830 radio stations, 19 television stations, and over 425,000 outdoor displays in 32 countries. In 2005, Clear Channel Communications split into three separate companies; Clear Channel Communications for radio, Clear Channel Outdoor for out-of-home advertising, and Live Nation for live events. Clear Channel has since become iHeart Media, and 89xRadio.com redirects to iheartradio.ca.

So when I saw the news this morning that Bell Media decided to lay off my friend and his co-workers as part of “restructuring”, I shook my head in disgust, but I wasn’t shocked. When it comes to corporations, it’s only a matter of time before the rug gets pulled out from under you. They are always buying and selling and merging and splitting, and they only care about profit, not people.

I believe my friend isn’t going to have a problem finding work. He’s talented, and emotionally intelligent. If anything, I’m happy for him. At least for now, he’s no longer under the yoke of a corporation.

He’s free.

 

John Kay
blog@therealjohnkay.com

Twitter – @therealjohnkay
Instagram – @therealjohnkay
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