MSNBC, McDonalds, Big Boy and Fools Gold

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MSNBC, McDonalds, Big Boy and Fools Gold

It is more prof­itable for me to have a team that is in con­tention for most of the sea­son, but fin­ishes about fourth…A team like that will draw well enough dur­ing the first part of the sea­son to show a profit for the year and you don’t have to give the play­ers raises when they don’t win.

Con­nie Mack Owner/​Manager Philadel­phia A’s 19011953

Shel­don: Can’t we just go to Big Boy? They only have one burger. The Big Boy.

Penny: The Bar­be­cue Burger is like the Big Boy.

Shel­don: Excuse me. In a world that already includes the Big Boy, why would I set­tle for some­thing like a Big Boy?

The Big Bang The­ory The Ham­burger Pos­tu­late 2007

There is a bit of a fuss about this story at Politico con­cern­ing MSNBC’s rev­enues and view­er­ship.

MSNBC suf­fered harder loses in 2013 — in terms of both view­er­ship and rev­enue — than either of its com­peti­tors at Fox News and CNN, accord­ing to Nielsen data fea­tured in a new Pew Research report. Prime­time view­er­ship declined by a stag­ger­ing 24 per­cent (nearly twice the loss sus­tained by CNN and four-​times that sus­tained by Fox News). Day­time view­er­ship fell by 15 per­cent, even as it rose at both of the other networks.

On the rev­enue side, MSNBC was pro­jected to decline by 2 per­cent, while both CNN and Fox News were pro­jected to expe­ri­ence growth of 2 per­cent and 5 per­cent, respec­tively. MSNBC was expected to bring in $475 mil­lion in rev­enue: less than half what CNN will make and roughly one-​quarter of what Fox News will make.

The graphs and charts make the case seem even more dire for MSNBC and there are a lot of folks on my side of the aisle not­ing with glee how the left’s favorite news net­work is no pea­cock com­pared to even CNN let alone the soar­ing and majes­tic Fox.

But peo­ple are for­get­ting a few things it’s not a ques­tion of rel­a­tive audi­ence it’s a ques­tion of actual profit.

Think of it as McDon­alds vs Big Boy.

McDon­alds had a gross of 28.11 Bil­lion last year from 14,000 restau­rants. They are a world­wide pow­er­house that last year had accord­ing to google finance a net profit mar­gin of over 19%. As of this writ­ing the stock is sell­ing for more than $95 a share.

Frisch’s Big Boy has 120 loca­tions. Their stock price as of this moment is just over $23 a share, their net profit mar­gin in 2013 was 3.42% and their sales were just over $213mill in the fis­cal year end­ing may 2013

Any com­par­i­son of the rel­a­tive strength of Frisch’s Big Boy & McDon­alds is laugh­able. In fact you could com­bine the num­bers from Bob’s Big Boy out west with Frisch’s and their entire cus­tomer base would be con­sid­ered a niche mar­ket vs the golden arches.

But that’s not how the real world works. In the real word Big Boy, with sales over $200 mil­lion is and remains a pow­er­house with a reach that many other small restau­rants can only dream of.

Fur­ther­more as long as the bills and employ­ees are being paid and the share­hold­ers are mak­ing a profit Big Boy will con­tinue to remain a sig­nif­i­cant com­pany that’s going away any­time soon.

It’s the same thing with MSNBC vs Fox. This isn’t Tina Brown and the Daily Beast where as Stacy McCain once put it

pro­jected prof­itabil­ity at the Daily Beast to some­where between (a) three years and (b) when hell freezes over.

MSNBC is a major com­pany that makes a profit with­out the need for a George Soros or any other lib­eral angel to pay the bills.

As far as Com­cast is con­cerned as long as MSNBC’s niche mar­ket (com­pared to Fox) pro­duces a profit and pro­vides a plat­form to pro­mote Com­cast prod­ucts where the par­ent com­pany can effec­tively pay itself for adver­tis­ing, it is some­thing that will con­tinue for the fore­see­able future. Stacy Again:

Estab­lish­ment Media still mat­ters, and will con­tinue to mat­ter for the fore­see­able future. MSNBC made a bet dur­ing the Bush years that there was a mar­ket for a cable net­work that was the antithe­sis of Fox News, and that bet helped MSNBC vault past CNN into sec­ond place among cable net­works, but the momen­tum — which took MSNBC from about 350,000 prime­time view­ers in 2006 to about 750,000 in 2012 — couldn’t be sustained.

Con­ser­v­a­tives who watch Fox News to get pro-​GOP happy talk are much more numer­ous than peo­ple who tune into MSNBC to get anti-​GOP angry talk, but that is cold com­fort to Repub­li­cans when the Demo­c­rat in the White House was able to get re-​elected in large mea­sure because MSNBC actu­ally reflects the pri­vate opin­ions of the peo­ple who pro­duce mass-​market news at the major networks.

MSNBC is a legit tar­get as it almost uni­formly pushes the left’s agenda so it’s tri­als and tribu­la­tions are worth a smile, but the goal isn’t to beat MSNBC it’s to beat lib­er­als in elec­tions to advance a con­ser­v­a­tive agenda and any­thing we do to counter MSNBC has to be in that con­text, any­thing else is fools gold.

Eyes on the prize peo­ple, eyes on the prize.

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My own exam­ple makes the point even bet­ter. I can gloat about MSNBC’s trou­ble and their declin­ing rev­enues but at this point in time I can only dream of draw­ing their traffic.

Fur­ther­more their bills are going to be paid this week while for me it’s Thurs­day and we are still over $800 shy of the mort­gage with only five days to get it.

Until I have the power of an MSNBC I will need you to get me there. Please con­sider help­ing by hit­ting DaTip­Jar below.

If 61 of you hit Sub­scribe at $20 a month sub­scribers this site will be able to cover its bills for a full year and things will be a lot more like Alito and Kagan around here than Kennedy & Roberts reliable..


It is more profitable for me to have a team that is in contention for most of the season, but finishes about fourth…A team like that will draw well enough during the first part of the season to show a profit for the year and you don’t have to give the players raises when they don’t win.

Connie Mack Owner/Manager Philadelphia A’s 1901-1953

Sheldon: Can’t we just go to Big Boy? They only have one burger. The Big Boy.

Penny: The Barbecue Burger is like the Big Boy.

Sheldon: Excuse me. In a world that already includes the Big Boy, why would I settle for something like a Big Boy?

The Big Bang Theory The Hamburger Postulate 2007

There is a bit of a fuss about this story at Politico concerning MSNBC’s revenues and viewership.

MSNBC suffered harder loses in 2013 — in terms of both viewership and revenue — than either of its competitors at Fox News and CNN, according to Nielsen data featured in a new Pew Research report. Primetime viewership declined by a staggering 24 percent (nearly twice the loss sustained by CNN and four-times that sustained by Fox News). Daytime viewership fell by 15 percent, even as it rose at both of the other networks.

On the revenue side, MSNBC was projected to decline by 2 percent, while both CNN and Fox News were projected to experience growth of 2 percent and 5 percent, respectively. MSNBC was expected to bring in $475 million in revenue: less than half what CNN will make and roughly one-quarter of what Fox News will make.

The graphs and charts make the case seem even more dire for MSNBC and there are a lot of folks on my side of the aisle noting with glee how the left’s favorite news network is no peacock compared to even CNN let alone the soaring and majestic Fox.

But people are forgetting a few things it’s not a question of relative audience it’s a question of actual profit.

Think of it as McDonalds vs Big Boy.

McDonalds had a gross of 28.11 Billion last year from 14,000 restaurants.  They are a worldwide powerhouse that last year had according to google finance  a net profit margin of over 19%.  As of this writing the stock is selling for more than $95 a share.

Frisch’s Big Boy has 120 locations.  Their stock price as of this moment is just over $23 a share, their net profit margin in 2013 was 3.42% and their sales were just over $213mill in the fiscal year ending may 2013

Any comparison of the relative strength of Frisch’s Big Boy & McDonalds is laughable.  In fact you could combine the numbers from Bob’s Big Boy out west with Frisch’s and their entire customer base would be considered a niche market vs the golden arches.

But that’s not how the real world works.  In the real word Big Boy, with sales over $200 million is and remains a powerhouse with a reach that many other small restaurants can only dream of.

Furthermore as long as the bills and employees are being paid and the shareholders are making a profit Big Boy will continue to remain a significant company that’s going away anytime soon.

It’s the same thing with MSNBC vs Fox.  This isn’t Tina Brown and the Daily Beast where  as Stacy McCain once put it

projected profitability at the Daily Beast to somewhere between (a) three years and (b) when hell freezes over.

MSNBC is a major company that makes a profit without the need for a George Soros or any other liberal angel to pay the bills.

As far as Comcast is concerned as long as MSNBC’s niche market (compared to Fox) produces a profit and provides a platform to promote Comcast products where the parent company can effectively pay itself for advertising, it is something that will continue for the foreseeable future.  Stacy Again:

Establishment Media still matters, and will continue to matter for the foreseeable future. MSNBC made a bet during the Bush years that there was a market for a cable network that was the antithesis of Fox News, and that bet helped MSNBC vault past CNN into second place among cable networks, but the momentum — which took MSNBC from about 350,000 primetime viewers in 2006 to about 750,000 in 2012 — couldn’t be sustained.

Conservatives who watch Fox News to get pro-GOP happy talk are much more numerous than people who tune into MSNBC to get anti-GOP angry talk, but that is cold comfort to Republicans when the Democrat in the White House was able to get re-elected in large measure because MSNBC actually reflects the private opinions of the people who produce mass-market news at the major networks.

MSNBC is a legit target as it almost uniformly pushes the left’s agenda so it’s trials and tribulations are worth a smile, but the goal isn’t to beat MSNBC it’s to beat liberals in elections to advance a conservative agenda and anything we do to counter MSNBC has to be in that context, anything else is fools gold.

Eyes on the prize people, eyes on the prize.

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Olimometer 2.52

My own example makes the point even better. I can gloat about MSNBC’s trouble and their declining revenues but at this point in time I can only dream of drawing their traffic.

Furthermore their bills are going to be paid this week while for me it’s Thursday and we are still over $800 shy of the mortgage with only five days to get it.

Until I have the power of an MSNBC I will need you to get me there. Please consider helping by hitting DaTipJar below.

 

If 61 of you hit Subscribe at $20 a month subscribers this site will be able to cover its bills for a full year and things will be a lot more like Alito and Kagan around here than Kennedy & Roberts reliable..