Coronavirus: US Christian radio stations in crisis

The coronavirus pandemic has thrown the largest Christian group of radio stations in the United States into crisis.

The Christian radio group’s business plan was to charge pastors for time on their transmissions to broadcast their sermons
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The Salem Media Group had a business model that protected them from the highs and lows of the advertising market. In 2019 they made US$79 million by selling pastors time on their transmissions to deliver their sermons. However, they certainly did not forgo both local and national commercials that brought in $68 million. Nevertheless, the Covid-19 pandemic caused their shares to plummet to 80 cents (they were at US$8 in 2018 and US$30 in 2004). Moody’s, an American credit rating agency, has classified investments in the company as high risk.

The report published by Cristianity Today provides more details on the financial crisis in Salem
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The Salem Media Group has a network of 3,100 radio stations (100 of which they own) with a guaranteed 298 million listeners per week. The board of directors have announced a dividend block, a reduction of 10% in managers’ salaries and they are now considering personnel cuts (a total of over 1,400 employees). In this article the magazine Christianity Today outlines the situation in-depth.

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