Buyout debt forces ongoing cost-cutting that permanently degrades programming quality

Evidence

Despite being the country’s largest terrestrial radio network, with a growing digital presence, iHeartMedia hasn’t turned a profit since 2007 because interest paid on its debt eats up a quarter of its yearly revenues, having been saddled with $20 billion of debt by its PE owners as part of the buyout. In 2018, iHeartMedia filed for bankruptcy to restructure its debt. Further job cuts and even more dreary, homogeneous programming have resulted from meeting its debt obligations. — Andrew deWaard, Derivative Media, 195

Categorization

• XREF: Direct evidence for the reader’s core question — debt service obligations as a mechanism with concrete programming consequences (job cuts, homogeneity).