Below is a memorandum I sent to many of the Hollywood mega millionaires when we did our first research of a liberal talk radio network in 2002. We did this research because our venture capital firm has vast capability of business due diligence. We were rejected by all of them primarily because Democrats in the radio business and favorites of the Hollywood elites did not believe we would succeed. One of these entrepreneurs is Norm Pattiz and he founded Westwood One which is a content provider for Infinity Radio, a division of Viacom. Pattiz put the nix on our plan in his conversations with Bill Clinton and others. I hope he has changed his mind.
MEMORANDUM
From: Sheldon Drobny
Date: June 1, 2002
Re: Independent Broadcast News
I have done a preliminary study of the broadcast market including radio and television including cable TV. I have also reviewed the history of the success of right wing talk radio and the evolution of its success and domination of talk radio throughout the major markets. In that analysis I also reviewed the television market for news and talk shows, especially cable TV, to get a further understanding of that market so as to develop an efficient and cost effective strategy to enter this market.
The first conclusion that became obvious is that there is no way to effectively enter the TV talk and news market. The cost would be prohibitive and the three major cable news channels, CNN, Fox, and MSNBC dominate that market. Fox has won the war of the right wing and has captured that market while CNN has drifted somewhat left and right and has managed to infuriate both sides. MSNBC was successful for a while in appealing to the right wing while Clinton was the President, but its ratings have suffered since and accordingly they are moving to the left a bit as noted by their hiring Phil Donahue. MSNBC has identified an audience of progressives to try to increase their ratings.
The one interesting anomaly I observed was that the most successful right wing talk radio hosts do not necessarily do well on news and talk TV. As a matter of fact, it is radio where one can get away with the most absurd, radical, and intellectually dishonest programming. The power of visual media exposes the appearance and body language and the dishonesty of these people. As dissatisfied as I am with television news, at least the visual aspects are somewhat self correcting to expose the real demagogues. Given the aforementioned analysis, it is clear that news and talk radio is the best approach to getting out a more independent and progressive message. In doing that, it would be advisable to use the same approach as was used by Rush Limbaugh when he started his radio show in Sacramento and gained popularity leading ultimately to syndication and the copycats that now dominate right wing talk radio. In addition, as previously mentioned, radio allows more leeway for progressive talk hosts to get angry and “rattle peoples’ cages.”
There are already some very good progressive talk show hosts, but their success has been limited because they are usually blended into the same stations that present right wing hosts at prime times. It is very difficult to get a progressive message out in talk radio when the stations controlling this sector are presenting progressive shows on weekends and evening hours. Just as CNN and MSNBC are suffering from a somewhat schizophrenic approach about their message, a talk radio station generally must make a decision as to which viewpoint they will profile; the left or the right. To my knowledge, there are no news or talk radio stations that have a progressive leaning or profile progressive hosts.Now is the time to strike. There are several radio stations that are not talk or news oriented that are either having ratings problems or are considering changing their format. It appears that the only alternative today for progressives to listen to independent news is to listen to NPR. However, NPR has its limitations in that its programming is not exclusively news and has much content that is not particularly appealing to a mass audience. They also have limitations as to their content because they are a charitable organization. NPR is far more independent than the other stations, but it cannot get the progressive message out to the mainstream public.
Progressives can appeal just as well to main stream Americans, but the message must be simpler and more direct.Ninety percent of the country is not sophisticated about the political world so they tend to listen to the simplest message that satisfies their personal frustrations. In the movie Network News, the crazy news show host initiated the slogan: “I’m mad as hell and am not going to take it anymore.” We are on the right side of the issues, but our arguments are too complex and seem to be vague in terms of immediate personal benefit to the average listener. That message can be given by getting to new stations that are changing their direction and presenting a plan for them that will appeal to their corporate owners. Corporations do not intrinsically have a political philosophy. As a matter of fact, their only interest is making more money. As Hubble said in the movie The Way We Were, “....when it is convenient for a Fascist producer to make a movie with a Communist director, they’ll do it......” The bottom line is all that counts in corporate America. It is our job to convince them that it is in their interest.
CONCLUSION
It is my opinion that the best way to penetrate the talk radio market is through existing radio stations that will change to talk and news radio. These stations must profile progressive talk show hosts, and also should present the other side with weekend and late evening right wing alternatives just for balance. We work with the experts in syndication and get some good candidates for entertaining high profile progressive hosts. We can even buy a radio station in a smaller market for a reasonable price to test market the concept. Even if the concept fails, the station will still have good residual value and can be sold without a significant loss. I believe that this is the most cost effective approach to the project that minimizes our capital outlay which in any event would be fully tax deductible in contrast to non-deductible donations to political causes. I believe that with this sensible approach, we can in the long run change the attitudes of the main stream listening public.
I have included below a piece by Mother Jones describing Norman Pattiz. They have included him in The Mother Jones 400 at: http://www.motherjones.com/news/special_reports/mojo_400/index.html. This is a list of the most influential political donors in the country.
home / The Mother Jones 400 / Norman Pattiz (with Mary) profile
March 5, 2001
Founder and chairman of radio giant Westwood One, Norman Pattiz knows the value of grabbing people’s attention – whether it’s radio listeners or politicians. Pattiz gave more than $300,000 to Democratic committees during the last election cycle and backed Hillary Clinton’s bid for the Senate. The message was heard, loud and clear. Last May, President Clinton nominated Pattiz to the Broadcasting Board of Governors, which oversees the Voice of America and other government broadcasts. The board is chaired by Marc B. Nathanson (No. 54, $484,000) of cable giant Charter Communications. In addition, Pattiz was among 400 guests invited to sleep at the White House or Camp David.Pattiz has a long history of using politics to leverage his financial interests. In 1987 he appeared before a Senate subcommittee to oppose a measure that would have eased restrictions on the number of radio stations a company could own in a single market. According to the Capitol Hill newspaper Roll Call, Pattiz supported the restrictions because they limited the growth of his competitors.But Pattiz did more than testify. He later admitted to charges that he had skirted campaign finance limits by illegally offering to reimburse Westwood One employees who contributed to Senator Joseph Biden’s presidential bid. Biden’s campaign was chaired by Senator Daniel Inouye, who also sat on the subcommittee holding hearings on the radio restrictions. “I don’t give a shit about Biden,” a company executive recalled Pattiz telling him at the time. “It’s Inouye I’m interested in.” Pattiz denied attempting to influence Inouye, but Westwood One paid a $75,000 fine for violating election laws.As Westwood One grew,
Pattiz apparently changed his tune on ownership limits. Like most in broadcasting, he supported the Telecommunications Act of 1996, which eliminated ownership restrictions. The move put more radio stations in fewer hands, making it easier for Westwood One to dominate radio programming. The company is now the nation’s largest radio network, delivering news, weather, sports, talk, and traffic reports to 7,500 stations. Its news programs include CBS News Radio, Fox News Radio, CBS Market Watch, CNN Radio, and the NBC Radio Network.“When you’ve got more radio stations owned by successful companies with more financial resources, they can provide more listening options,” Pattiz told his ellow broadcasters at a Las Vegas convention in 1998. The following year the company bought Metro Networks, a radio programmer founded by David I. Saperstein (No. 42, $514,000).
n Brett Coker
It is also interesting that Westwood One syndicates the Bill O’Reilly radio show and has syndicated other right wing talk shows in the past. The following was abstracted from the Westwood One web site:
Radio Factor with Bill O'Reilly
Host of the most watched primetime cable news program in America, Bill O'Reilly brings headliners, newsmakers and news breakers into his "No Spin Zone" to discuss the topics important to listeners. The Radio Factor with Bill O’Reilly features interaction with listeners nationwide and great interviews from the foremost interviewer in the country. Bill O’Reilly’s passionate opinions on the real issues that are on the minds and lips of Americans, and interviews with the country’s top newsmakers, have made him a station sensation! Join over 390 stations, in 100 of the top 100 markets, that have entered the No Spin Zone.
Had Pattiz supported the concept in 2002, Air America Radio could have been on the air much earlier. He still has considerable influence with Infinity Radio and could suggest that they pick up the Air America Radio programming on some of their owned and operated radio stations. The ratings for Air America Radio have been quite impressive and would be perfect for some of Infinity’s underperforming stations. You can check all the stations they have at: http://www.cbsradio.com/stations/index.php. And you can contact Infinity Radio about this at:
CBS RADIO
1515 Broadway
New York, NY 10036
212-846-3939