Dickey Book: Rough Future Ahead

Lew Dickey

Former Cumulus Chief Executive Lew Dickey has penned a 238-page book (Kindle edition $399!) about the media business, with some gnarly words for those in terrestrial radio broadcasting.

According to The New York Post, Dickey’s new book, “The New Modern Media,” from publisher Tourbillon International, a unit of Dickey-owned Modern Luxury Media, points out just how tough it is for ad-supported media businesses to make a shift into subscriptions.

“Radio broadcasters will be unlikely to benefit from subscription revenue for their core service, leaving them highly exposed to the ad markets,” he writes.

Cumulus acquired a stake in subscription music outfit Rdio as a hedge against the vagaries of the ad business. Then Rdio was acquired out of bankruptcy by Web radio player Pandora, and service was discontinued.

On Friday, the nation’s No. 1 radio station owner, iHeartMedia, announced it is getting into the subscription music business.

“Broadcast has a narrow path to participating in subscription revenue with its core business,” observed Dickey.