The Gaylor Glitch is a great lesson for marketers and executives alike. The company says WSM-AM lost $1.5 million last year, but does not include the revenues of the Grand Ole Opry in the mix. So it’s probably a break-even at best. Now, mind you, this is a company that’s spending millions each year on naming rights to a city arena and has just announced major underwriting of a bottom-tier bowl game. In other words, they burn dubious millions each year on building their Gaylord brand. Yet the Opry, the only brand that really generates revenues for them (as in Grand Ole ____ and Opry____) is now threatened because of accounting procedures that overlook the value of the promotion its AM station pumps out each night, especially each Saturday night. Value that far exceeds that related to the Music City Bowl and Gaylord Entertainment Center combined.
The $1.5 million “lost” is nothing compared to the cost of the negative perceptions the company is generating within the community and the music industry. Stay tuned for some interesting (and expensive) lessons the company will learn as it does the two-step on this issue.