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Chinese Translation NewsChinese Radio Profits From Monopoly While Citadel Broadcasting Files for Bankruptcy Citadel Broadcasting Corporation, one of the nations largest radio broadcasters, has filed for bankruptcy protection. However, Chinese radio stations in Los Angeles, mostly owned by Multicultural Broadcasting Corporation, remain extremely profitable. Yes, being a monopoly helps. By Samuel Chong Los Angeles. One of the businesses that are recession proof is law firms that specialize in bankruptcy proceedings. Today, the Citadel Broadcasting Corporation, one of the nation’s largest radio broadcasters, filed for bankruptcy in New York. The company, which owns 224 stations across the United States, has faced debt problems recently, like its main competitor, Clear Channel Communications, which sold $2.5 billion in bonds last week to pay down some of its debt. In contrast, Chinese radio stations in Los Angeles have enjoyed profits more than ever. This has perplexed many business insiders unfamiliar with the ethnic Chinese communities in Los Angeles. Chinese consumers still mostly rely on traditional media as their main source of information. They read Chinese newspapers, they watch Chinese TV, and they listen to Chinese radios. That is to say, many of them still do not rely, or do not trust, information provided by the internet. This has created a unique scenario in which Chinese radio stations survive much better compared to their mainstream counterparts. The monopoly position of Multicultural Broadcasting Corporation, the owner of most Chinese radio stations in Los Angeles, also helps. The company owns more than 95% of the market share for Chinese radio stations. The radio ads run 24 hours a day, 7 days a week. Many Chinese businesses complain about its monopoly position as well as the stations' high ad rates. "The advertisement rates of the Chinese radio stations in Los Angeles are higher than TV ad rates. This is highly unusual." Says Jenny Park, an owner of a translation school in Los Angeles. "It is a monopoly. The owner Arthur Liu is extremely smart. As a monopoly, the last thing you want people to know is to know about it". Says a business analyst who does not wish to be named. However, Multicultural Broadcasting Corporation is not without problems of its own. Although its radio stations in Los Angeles and New York remain highly profitable, the company itself has suffered financial defaults in November 2008 and the company has headed into a trust under the care and feeding of Lee W. Shubert for the purposes of selling off assets and paying off their creditors. This is largely due to the over expansion of the company's businesses into different areas, not a result of the profitability of its radio stations in Los Angeles. "Its radio programs in Los Angeles are extremely favored by Chinese speaking residents in Los Angeles. They are the gooses that lay golden eggs for the company." Says a former Multicultural Broadcasting employee who does not wish to be named. Any comments to this article? Please write to us. This article can also be found at http://www.certifiedchinesetranslation.com/09/1219-Citadel-Bankruptcy-Chinese-Radio-Profits.html |
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