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