iHeartRadio parent warns it may not survive another year

[Freese]

http://www.marketwatch.com/story/ihe...4-21-121035436

iHeartMedia Inc., the biggest operator of radio stations in the U.S. and headed by Bob Pittman of MTV fame, plans to include language in its next quarterly report warning investors that it may not survive another year.

The company IHRT, -23.64% , which owns iHeartRadio and billboard advertising company Clear Channel Outdoor Holdings CCO, -0.85% said it continues to expect cash flow to be negative and is uncertain as to whether it will be able to refinance or extend the maturities of some of its borrowings, according to a regulatory filing.

The company has almost $350 million of debt coming due this year, part of a massive $20 billion debt load it took on as part of a $24 billion leveraged buyout of then Clear Channel Communications Inc. by private-equity firms Bain Capital and Thomas H. Lee Partners in 2008. It has another $8.3 billion of debt coming due in 2019.


“Management anticipates that our financial statements to be issued for the three months ended March 31, 2017, will include disclosure indicating there will be substantial doubt as to our ability to continue as a going concern for a period of 12 months following the date the first quarter 2017 financial statements are issued,” the company said in its filing with the Securities and Exchange Commission.


iHeart’s most active bonds, the 9.00% notes that mature in March of 2021, traded down 2 points to 75 cents on the dollar on Friday, according to MarketAxess. Its 6.875% notes due in June of 2018 were trading at 69 cents on the dollar.

As of 2:35 p.m., the last five played songs on the local rock station where I live were these tracks according to the station's website. Note that this station frequently airs self-promoting ads in which they proclaim that they are the "premier source" for new rock:

1. Rush - Tom Sawyer
2. Motley Crue - Smoking in the Boys Room
3. Aerosmith - Walk This Way
4. The Chemicals between Us - Bush
5. Papa Roach - Help

So, in a span of about 20 minutes of air time, there was only one "new" (2016) song played. Based on this admittedly small sample size, it's easy to see why millennial audiences are moving away from radio to streaming services. I have a hard time imagining that twentysomethings and even non-millennials are clamoring to hear "Tom Sawyer" for the hundredth time (although, to be fair, that song does have an iconic drum solo that will never go out of style).

I've completely abandoned terrestrial radio and I use Spotify to discover new artists and enjoy old favorites. I've found that I enjoy listening to overplayed rock bands like Metallica now that I don't have to hear "Enter Sandman" 20 times per day.

[jackofwind]

http://www.marketwatch.com/story/ihe...4-21-121035436



As of 2:35 p.m., the last five played songs on the local rock station where I live were these tracks according to the station's website. Note that this station frequently airs self-promoting ads in which they proclaim that they are the "premier source" for new rock:

1. Rush - Tom Sawyer
2. Motley Crue - Smoking in the Boys Room
3. Aerosmith - Walk This Way
4. The Chemicals between Us - Bush
5. Papa Roach - Help

So, in a span of about 20 minutes of air time, there was only one "new" (2016) song played. Based on this admittedly small sample size, it's easy to see why millennial audiences are moving away from radio to streaming services. I have a hard time imagining that twentysomethings and even non-millennials are clamoring to hear "Tom Sawyer" for the hundredth time (although, to be fair, that song does have an iconic drum solo that will never go out of style).

I've completely abandoned terrestrial radio and I use Spotify to discover new artists and enjoy old favorites. I've found that I enjoy listening to overplayed rock bands like Metallica now that I don't have to hear "Enter Sandman" 20 times per day.

Sounds like you just had shit radio stations near you, because honestly I haven't heard Tom Sawyer (outside of the classic rock station) on the radio in years. Enter Sandman even less so, which is good because that entire album is an embarrassment to the one-two punch of Kill 'em All and Ride the Lightning.

[SupBrah]

Can't say i'm sad. Clear channel just one day took the most popular rock station in Atlanta and turned it into a crappy top 40 pop station because they wanted to compete with the other top 40 stations... There's like 4 top 4 stations though, and all of them had strong establishment.

Rock lovers were pissed and eventually went to another station that plays rock, and the pop/top 40 fans had no reason to switch to the new station because they had tons of other and better choices.

That move basically crushed Clear Channel in Atlanta, and they've been unable to recover since.

[Mister Cheese]

Yeah I'm not sure why FM radio is still relevant. They don't seem to be doing anything to try. They just play commercials and overplay the same songs over and over again. When Disturbed's Sound of Silence cover came out my local radio station must have played it five times a day for weeks. Not a bad song but for fuck's sake there's other new rock artists out there that could use some exposure.

[s_bushido]

Are you sure you weren't listening to a classic rock station?

Last time I listened to a channel that advertised i heart radio crap it was one of those that played the same 5 Bieber/Gomez/Chainsmokers/etc songs over and over again. I consider them having financial trouble to be payback for that torture.

[Freese]

Sounds like you just had shit radio stations near you, because honestly I haven't heard Tom Sawyer (outside of the classic rock station) on the radio in years. Enter Sandman even less so, which is good because that entire album is an embarrassment to the one-two punch of Kill 'em All and Ride the Lightning.

I live in a mid-size Texas town, so your comment is accurate. We do have one other rock station in town from a rival company, but they mostly play the same songs. I'd imagine in a bigger city there's probably more variety.

[Glorious Leader]

Radio has been dead as a medium for.music.for.fucking years now. Video killed it but the internet killed that. Agreed spotify is the best. The withered and decayed carcas of radio was maintained very briefly by conservative talk radio. I suspect thats out the window soon as well.

[Freese]

Are you sure you weren't listening to a classic rock station?

Last time I listened to a channel that advertised i heart radio crap it was one of those that played the same 5 Bieber/Gomez/Chainsmokers/etc songs over and over again. I consider them having financial trouble to be payback for that torture.

Yes, very sure. So-called "modern" rock stations at least where I have lived (Arkansas and Texas) tread a thin line between "classic" and "new."

[Reg]

The only iHeartRadio station I listen to is z100 in the mornings. I've listened to Elvis Duran for probably 20 years now. But I only listen to the morning show, not throughout the day.

[Krigaren]

A large reason for radio's demise is all of the ads. Why should I listen to terrestrial radio when I can listen to SiriusXM or Spotify and hear just about anything I want, when I want it, with no ads?

And yeah, not having "Mandatory Metallica!" days is certainly nice, as is being able to listen to rock stations without hearing ads for divorce lawyers, or "C'mon down to Joe's Patriarchy Bar for Wet T-Shirt contests, and mostly naked women! Come for the booze, stay for the boobs!"

No thanks.

[zenkai]

http://www.marketwatch.com/story/ihe...4-21-121035436



As of 2:35 p.m., the last five played songs on the local rock station where I live were these tracks according to the station's website. Note that this station frequently airs self-promoting ads in which they proclaim that they are the "premier source" for new rock:

1. Rush - Tom Sawyer
2. Motley Crue - Smoking in the Boys Room
3. Aerosmith - Walk This Way
4. The Chemicals between Us - Bush
5. Papa Roach - Help

So, in a span of about 20 minutes of air time, there was only one "new" (2016) song played. Based on this admittedly small sample size, it's easy to see why millennial audiences are moving away from radio to streaming services. I have a hard time imagining that twentysomethings and even non-millennials are clamoring to hear "Tom Sawyer" for the hundredth time (although, to be fair, that song does have an iconic drum solo that will never go out of style).

I've completely abandoned terrestrial radio and I use Spotify to discover new artists and enjoy old favorites. I've found that I enjoy listening to overplayed rock bands like Metallica now that I don't have to hear "Enter Sandman" 20 times per day.

I use Iheartraideo to listen the comedy channel that's about it. You are correct that we get tired of the same songs over and over again. Luckily there is a radio station near me that plays a really good mix of 80-today but most of the time I am listening to an audiobook or my own music when I drive.

[Krigaren]

Radio has been dead as a medium for.music.for.fucking years now. Video killed it but the internet killed that. Agreed spotify is the best. The withered and decayed carcas of radio was maintained very briefly by conservative talk radio. I suspect thats out the window soon as well.

Makes me wonder if the advertiser fallout from Limbaugh is finally starting to contribute to some of Clear Channel's overall loss in revenue?

[Freese]

Yeah I'm not sure why FM radio is still relevant. They don't seem to be doing anything to try. They just play commercials and overplay the same songs over and over again. When Disturbed's Sound of Silence cover came out my local radio station must have played it five times a day for weeks. Not a bad song but for fuck's sake there's other new rock artists out there that could use some exposure.

I experienced the same thing when Disturbed's cover was released. Too, I imagine that the corporate radio executives get huge boners every time Metallica releases a new song because they will then play that song every hour.

[PC2]

Yeah because it's a music organization. Nearly every song is free on YouTube now and MP3 files are tiny.

[Symphonic]

Every time a red hot chili peppers song comes on I switch the station, only to hear another overplayed song on the next station. I don't know why I don't just keep using my ipod plugged into my car... Only thing worth listening to are the talk radios if you have good personalities nearby.

- - - Updated - - -

Yeah because it's a music organization. Nearly every song is free on YouTube now and MP3 files are tiny.

but the audio quality on mp3s downloaded from youtube videos is pretty poor. Not quite the same. Nevertheless, still better than the same songs over and over.

[Forgettable]

The only time I listen to radio is the once in a blue moon time that I forget my phone at home or the battery is dead. All my music is downloaded on my phone so I play it directly via bluetooth speakers/headphones.

I have 5 presets for FM radio in my car, and when all 5 of them started consistently playing commercials on my way to work in the morning, I decided that enough was enough.

[Dug]

I've basically stopped using radio all together except for NPR and local news. I'll occasionally tune into the music stations for a chance at tickets but other then that Spotify Premium all the way. One song and almost 5 minutes of commercials can get bent

[Gib Lover]

All the huge talk shows left terrestrial long ago, there are great online repositories of music whether it's full albums or streamed "radio stations" like Armin Van Buuren's A State of Trace so this doesn't really surprise me.
My lone coworker that uses iHeart will be devastated.

Also from what I understand, Clear Channel has been ran by morons for over a decade. I remember Opie from O&A complaining about them non-stop in like 2005

[Deleted]

VHS, BetaMax, typewriters, cassette players are also gone.

Nothing to see here. Another outdated tech that couldn't cope with times is disappearing. Better more modern alternatives have replaced it.

[PACOX]

You know radio is bad when many rather (or just use a free one) music app than the radio built into your dash. IF I ever listen to radio its NPR and a specific local talk station. Even when I'm in the mood for talk radio, Spotify or TuneIn are all I need. Pandora has the best 'radio' IMO. Spotify best on demand/podcast. TuneIn for stuff Spotify doesn't carry and some live stations.