Speculation is again mounting that there is some sort of bidding war going on between the Australian Radio Network (ARN) and Southern Cross Austereo (SCA) over ARN’s Kyle and Jackie O. News publications are suggesting that a $200 million radio deal, and annual base salaries each of $10 million, are on the table.
With ARN’s half year radio revenue down and their June aftermarket raid of a 14.8% interest in SCA, a part of me can’t help but wonder if ARN is putting these stories out themselves to say to SCA, if you want them, this is how much they’ll cost.
SCA’s full year results also indicated that they can’t really afford to put all their eggs in one basket.
I’m aware that many of you reading are ex-commercial radio people. Perhaps you’ve left the industry altogether, maybe some of you dip your toe back in casually or pull regular shifts on community radio or a podcast.
How many of you left the radio industry because you weren’t earning a living wage?
I have.
I was working as a breakfast announcer / commercial production manager (a job I loved) and pregnant with my second child. I’d broken a lease to take a bigger and better radio role and was paying two lots of rent plus a mortgage on a house in Brisbane we were trying to hang onto by renting out ourselves.
One day I bought a load of grocery essentials, and my card was declined because of insufficient funds.
We ended up having to move back to our Brisbane house and both working full time, me in a non-radio management role, just to get on top of our finances again.
I saw on LinkedIn that Tracee Hutchison, the recently appointed Manager of community station BayFM in Byron Bay is leaving the role after her three month probation period because she couldn’t secure long term affordable housing. This is so disheartening for all concerned and anyone seeking regional radio work to get a foot in the door. You’ve got to be able to afford the home the door is attached to.
The BBC recently released a list of their highest broadcasting earners. Like the US who pay big money to sporting commentators, Gary Lineker and Alan Shearer are first and third with Radio 2 breakfast host Zoe Ball second, earning just under £1 million annually, or the equivalent of AUD$2 million. Lineker took a £10K pay cut in 2020 to answer criticism from female staff about pay parity. Ball herself took a £380,000 pay cut during the pandemic both to save her breakfast role and because she felt it inappropriate to get a pay rise during a time when people were struggling. Her salary hasn’t increased since.
Imagine that.
Ross Stevenson, one half of the 3AW breakfast show with cohost Russel Howcroft apparently earns between $1 and 1.2 million dollars a year. This is despite the duo more than doubling the listening figures of their nearest breakfast competitors in Melbourne in the latest GfK survey results.
While I respect Kyle and Jackie O’s experience and own rating success in Sydney, I just can’t justify why anyone would be prepared to pay them ten times what Stevenson gets, each, for the next decade. It’s a huge risk.
The flow on effects to other networks stations, talent and potential succession plans, would all forcibly be made cheaper.
For me though, it sends the most godawful message to that talented kid straight out of TAFE, who gets their first job at a station in regional NSW, works on air and off, and still doesn’t earn enough to cover the rent, utilities, petrol and groceries.
Why would you stay in that industry?
... look at the comparison in any bush town/city ... the commercial announcer is getting less than $55k while their ABC competitor is on nearly $90k ... and the penalties/super/conditions are better at Aunty ...
To Kyle and Jackie O, good luck for negotiating such a large contract.
It is definitely a risk to sustain a large renumeration for 10 years.
Due to the confidential nature of their contracts, we don't know terms of the contract such as if the audience falls.
The other risk factors are new entrants to the breakfast radio time slot usurping Kyle and Jackie O's audience as well as the other offers of radio programming including streaming services.
Recent stories about the extraordinary contract have staff at the ARN station concerns for their jobs which may pay for the contract.
Economically, for the pair to command a large contract means that ARN is generating revenue in advertising greater than the pair's earnings.
Furthermore, the breakfast program should lead the rest of the day's audience numbers. The effect of a ratings leader should benefit the rest of the station beyond the earnings of the pair.
Given the size of the Sydney market, it is possible to make money of such a large magnitude.
It would not be possible to command a huge contract in smaller rural or non-metropilitan markets.
This is illustrated whete the author mentions a former JJJ/ABC presenter having to leave her position at a small station because she could not afford the rent in Byron Bay.
Being able to pay for accommodation is not unique to those in radio. I could only imagine how other people such in the service industries including teachers, emergency workers, catering and cleaners can survive in a city given the cost of living in a city.
A friend recently visited London and expressed his concern of how expensive it is for food.
Is it right to assume that the raw TAFE graduate working in rural radio will remain in the rural regions?
Many great talents started in rural radio including John Laws.
Even Kyle started as a promitions driver in 1992 at rural station 4TO.
https://en.m.wikipedia.org/wiki/Kyle_Sandilands
However, the raw TAFE graduate seems to be fortunate to land a position in radio given that many stations are networked except for the regulatory requirement to have a local rural presence.
But starting in radio does not mean starting at a rural station. Many of the personalities at 2GB including Michael McLaren started as a producer.
Summary, good luck to Kyle and Jackie O for negotiating a contract. But that is possible only possible in a large metropolitan market and fulfilling a market need.
Radio is not the only industry when it comes to living expenses.
Thank you
Anthony, Strathfield South in the land of the Wangal and Darug Peoples of the Eora Nation