The economic crisis caused by the pandemic is having an impact on broadcasters’ turnover, which according to the InfoAdex study on advertising investment in Spain in 2020 will drop by 22.9% for all stations. This is a total of 111.5 million euros that will be lost and which will impact mainly on the large commercial networks such as Cadena Ser and Cope (which have lost 25.4 and 24.4% respectively). Broadcasters consider intervening again in the contracts of the big stars (including Pepa Bueno and Carlos Herrera), cutting them for the second consecutive year and probably until the end of 2021. And the situation shows no sign of improving, as the January 2021 InfoAdex figures put the decline at 26.7%.
More details on the smaller radio stations in the article by the independent newspaper El Español.
Even in full crisis the radio stations are busy on all fronts with increasing information slots, adapting programme schedules to the changing needs of the listeners and … even fund raising. Here are some examples:
The national radio networks, Radio Italia (Cologno Monzese), the public TV and radio broadcasters Raiuno, RaiPlay (a streaming platform) and Rai Radio2 joined forces on a project called ‘Music that Unites’. The event included brief information interludes and previously unpublished live sets where the performers recorded from their own homes creating non-stop music to share. Funds raised came to more than € 7.5 million to be donated to the National Civil Protection Organisation (a government body that deals with the management of emergencies).
Discoradio in Milan (broadcaster covering Lombardy and Piedmont) and the Buzzi Foundation, that manages a research centre and children’s hospital, are raising funds to increase the number of beds in the intensive care unit.
Radio NumberOne (Bergamo) has taken part in #SostieniAMOBergamo and given their support to the Fondazione Della Comunità Bergamasca.
Radio Barbagia in Nuoro, Sardinia, has donated thousands of face masks to the city hospital with the help of their listeners.
Three Roman radio stations in the RDS group (Dimensione Suono Roma, Dimensione Suono Soft and Ram Power) have supported the capital’s hospital, Policlinico Gemelli, to create the Columbus Covid-2 Hospital by transforming an existing building into a hospital with 80 beds and another 59 beds in the intensive care unit.
The slowdown or lockdown of businesses has led to a decrease in advertising on radio and television. The national broadcasters are increasing their programmes, but those not receiving state funding are suffering. Networks are cutting fixed costs and broadcasters are closing their less important frequencies. And if a transmitter breaks down … the risk is it’s not going to be fixed.
The BBC flexes its muscles
‘We need to pull together to get through this. That’s why the BBC will be using all of its resources – channels, stations and output – to help keep the nation informed, educated and entertained’ declared, Tony Hall, Director-General of the BBC. The many measures the BBCis implementing, include their commitment not to discontinue any of their most listened to programmes on Radio One, to bring listeners up-to-date information on the Coronavirus through 5 Live, and the launching of Make a Difference, that will see every local radio station joining up with volunteer groups to help, co-ordinate and support the elderly by informing them of what help is available in their area. Their full package of measures can be found here.
Those depending on advertising are suffering
The closure of businesses has led to a collapse in commercials and a rise in unpaid invoices. These are the complaints of some of the Italian radio producers we interviewed. Some, after terminating their agreements with freelance staff and asking for government aid for their employees, are only playing music on air. However, the electricity bills for their transmitters have to be paid. In order to cut the bills, a group of broadcasters in Puglia, Italy, unable to lower radiated power (in Italy the authorisation process takes considerable time), have remediated by turning off their smaller sites. Tower operators are also having a bad time (they get paid rent for providing antenna space on their towers). Some have already received requests by some radio networks for hefty discounts on the rent. At the same time, given that the power of the transmitters are in excess, it would only need the authorities to allow radio stations to halve it. It would be a reform at zero cost and nobody would be disadvantaged.
In a breakdown, spare parts at risk
The lockdown of businesses has also hit transmitter manufacturers like Elenos, the internationally renowned company located near Ferrara. Leonardo Busi, the Chief Executive Officer, stated in an interview on Radio Globo (Lazio, Italy) that they have had to stop production due to no longer receiving the components that are indispensable for assembling the structures. The supplies are down to the bone and a radio or TV station with a breakdown could have to stop their service.