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Thursday, January 11, 2007
1/11: Thoughts on Clear Channel
The Atlanta Journal-Constitution
Clear Channel has taken a lot of heat for overhauling virtually all its radio stations in recent weeks but let’s try to parse out the logic of their move from a business standpoint. In virtually all cases, Clear Channel is seeking a younger, possibly more advertiser-friendly audience with a (hopefully) long-term payoff.
We’ll start with Project 9-6-1. 105.3/The Buzz was doing surprisingly well, stealing audience from 99X with a more male-oriented alternative rock approach. So Clear Channel rewarded program director Chris Williams by moving most of the Buzz jocks and music over to the stronger signal at 96.1. But they wanted a slightly broader feel so they dumped the Buzz name in favor of something new while also dropping the 96rock moniker, which the Powers That Be deemed old and musty. And with the Regular Guys gone, the station is now mostly music until Chris finds a morning show. The new target audience is far younger than that of 96rock. And with the Braves and Regular Guys gone from the signal, costs are way down at 96.1. The question: where will revenues go?
El Patron at 105.3 is a way for Clear Channel to tie down the Hispanic audience for at least the next couple of years since they also air Viva 105.7. El Patron, regional Mexican, and Viva, Spanish contemporary, provide two of the most popular Hispanic formats. While there may be some cannibalization in sales in the short term, Clear Channel expects this will be a major growth area over the next five years. Given the growth in the Atlanta Hispanic population, it’s merely a question of execution and how quickly Clear Channel can build revenue.
The Bull is another major gamble. By going country, Clear Channel is facing off against two entrenched stalwarts, Kicks 101.5 and Eagle 106.7, both owned by ABC. For the past decade, Cox and Clear Channel have had opportunities to add a third country station but were scared off by the strength of ABC’s franchises. But ABC is about to be sold to Citadel and it’s likely Clear Channel smelled potential weakness. The Bull is targeting a younger, hopefully more lucrative audience than Lite 94.9, though it may skew a smidge older than Kicks. The biggest question mark is the Braves. Will the team’s presence hurt the Bull? It certainly didn’t do much for 96rock the past two years. Country audiences tend to be pretty loyal so it may take time for the Bull to grow a sizable audience, if ever. We’ll have to see what sort of morning show they hire and how their personality evolves.
WGST-AM has basically thrown in the towel in terms of competing head to head with WSB-AM. It’s been losing the ratings game for years and by running all syndicated product during weekdays instead of local hosts like the Kimmer, Clear Channel has effectively decided to cut its losses by minimizing costs while hoping ratings and revenues stay about the same. That’s a big if.
Finally, moving Lite to 96.7 is a partial salve to fans of the soft rock format since the signal only covers a portion of the metro Atlanta area mostly south of I-20. It’s basically being run as a jukebox at little cost. For better or worse, the station has gone deeper and broader musically than when Lite was on 94.9. Clear Channel knows signal will never create much in the way of revenues.
