Jim Cramer’s done it again. This time around, it’s a frantic, wild-eyed rave against radio companies and radio stocks. In a borderline hysterical rant, Cramer pillories broadcast radio as being the worst of investments.
And the numbers don’t lie. As he points out, radio’s Wall Street performance has been horrendous. But that’s also because the stock pickers just don’t understand radio’s value in a digital world. Yes, radio’s financial effectiveness is being challenged, along with the medium’s ability to compete against new technology. But radio is still a great advertising vehicle that puts butts in seats and bodies in stores. That’s why radio continues to perform well in medium and smaller markets, where such arcane "metrics" like store traffic and bricks & mortar purchasing means so much.
But the real underlying reason for Cramer’s tirade is his defense of the satellite radio merger. And in that regard, he speaks with a forked tongue. In the last three years, XM’s stock price has lost about 60% of its value, compared to a nearly 50% dump by Sirius. And when you look at the way these companies have flushed millions of dollars into lavish talent contracts and content, along with questionable advertising and marketing campaigns, it’s no secret why they need a government approved merger to survive. Cramer, however, doesn’t address these “minor” fiscal issues and extravagances.
And this same guy, who lambastes every aspect of the radio business, goes on "Today" and nearly bursts into tears during a discussion of Eliot Spitzer’s inane actions. It’s one helluva roller coaster performance. This guy needs to chill.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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