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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.
Comments
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By Al
January 11, 2007 11:11 AM | Link to this
Clear Channel does not have a clue as to the woes of the Atlanta cluster. One of their big problems is bringing people from Tampa to fix it, including the likes of Chuck Deskins, Tim Dukes and a host of other idiots who do not understand the Atlanta market.
Look at the success of Pittsburgh, Cleveland, Cincinnati, Louisville and other smaller markets where Clear Channel has high rated stations.
Clear Channel has basically thrown in the towel at the entire Atlanta cluster. Until Deskins and Bloomquist are literally thrown out of the Building of Death and competent management brought in, only then can CC attempt to be a player in Atlanta. Sadly, there is no chance of that happening.
By Math Professor
January 11, 2007 11:27 AM | Link to this
Today’s Lesson: Why Chuck and Randall STILL Remain Employed in Atlanta
Chuck Deskins = 44
Randall Bloomquist = 25
Chuck Deskins + Randall Bloomquist = ?
You folks do the addition.
………..
( Yes, that number is correct. )
Class Dismissed.
By bud
January 11, 2007 11:44 AM | Link to this
This endless quest for youth is going overboard in the Atlanta radio market. Seems to me there are tons of stuff to sell to the 40+ year old listeners that the young people can’t afford yet (High end cars, Home Repair/Remodel, etc.) or don’t need yet (Zocor, Lipitor, etc.) We need a break from NPR and WSB and want to hear some tunes! If you could get Merck or Ciba-Geigy to underwrite a bunch of ads you’d have no problem funding a profitable radio station. Come on Clear Channel, throw us a bone instead of throwing us under a truck! (Dang, where’d my cane go?)
Bud
By Dr. Death
January 11, 2007 12:26 PM | Link to this
Rodney spent a lot of time composing his sophomoric explanation of CC’s Atlanta “strategy,” but he misses the big picture: What CC did is the equivalent of treating a hangnail by chopping off your leg.
Can’t wait to see how badly The Buzz (oops, Project 9-6-1) tanks in the next book.
By XM AND SIRIUS
January 11, 2007 12:29 PM | Link to this
I keep telling you people the answer is XM Radio and Sirius.
I always enjoyed the WGST morning news with Tom Hughes.
I can’t stand WSB, WSB, WSB,WSB. Thats all they say.WSBWSBWSBWSBWSBWSBWSBWSBWSBWSBWSBWSBWSB
By Turn (It) Around
January 11, 2007 12:35 PM | Link to this
Why does Rodney continue to pander to the folks at CC? Is he a voice for the radio media in Atlanta or for the thousands of fans who buy the newspaper he writes for and have been kicked to the curb by CC?
I would like to know!
By Will B.
January 11, 2007 12:46 PM | Link to this
Sometimes when I hear Dave Ramsey in afternoon, I want to veer-off into oncoming traffic.
By rocker
January 11, 2007 1:05 PM | Link to this
Clear Channel has you on the payroll now, eh Rodney? Screw’em. Being a native Atlantan and a 96Rock listener since day one, it was pretty sad to see them run it in the ground and then kill it. I agree that the station needed some tweaking and upgrading, and I’m not even totally opposed to their new music format — But why the he*& did they have to kill it off entirely and end a 32 year Atlanta tradition? Shows a total lack of respect for the listeners (yes, I know….it’s all about profit). I won’t be taking part in their “Project” , and I bet that station has yet another format within two years when it bites the dust. It’s XM, “DAVE”, “The River”, and my own music collection for me now. And like a previous post brought up, why do they think advertisers only want to cater to youth? It’s us slightly more “seasoned” 40+ year old folks that have the money to spend on their products. I reckon they would rather cater to advertisors that sell pimple cream and condoms, rather than high end items. Go figure.
By Norma
January 11, 2007 1:28 PM | Link to this
Clear Channel is a no no to talk about Rodney. Too many people have been hurt by the actions. Firing “The Regular Guys” was one of their many mistakes. I mean their MANY Mistakes too! Lots of other good people lost their jobs.
By Barnes
January 11, 2007 1:58 PM | Link to this
I wish Clear Channel would hire me. The listeners in Atlanta love me.
By Kevin
January 11, 2007 2:26 PM | Link to this
Clear Channel forced me to buy Sirius after they killed off the Regular Guys. Thanks CC! I used to think I would never be the guy who paid for radio, but lets face it, the variety is better in music, the comedy is great, the sports coverage includes play by play, and HOWARD are not even in the same league as the paltry little Clear Channel. It is great to hear the programming on Sirius, which is the anti to the Clear Channel conglomerate, spin the same crappy songs until they are dead and fire anyone with talent because you can save a buck and simulcast crap from other markets for Sirius people who are doing great radio the way great radio used to be done. Of course I never thought I would need a cell phone either.
By Rodney Ho
January 11, 2007 3:40 PM | Link to this
I wasn’t trying to defend Clear Channel. I was trying to rationalize their moves from a purely economic standpoint. There’s no way to defend dumping Lite a week before Christmas and it’s difficult to defend them paying as much as they did for the Braves. I can’t believe the Regular Guys are gone. I’m saddened the likes of Steve Goss, Randy & Spiff and Tom Hughes are gone. And I’m still mystified why they got rid of Jerry Del Core as market manager a few months ago. I thought the moves he made in 2005 were helping CCU in 2006.
By mystique
January 11, 2007 3:42 PM | Link to this
CC lost me a long time ago when they took away the Max. It wasn’t a perfect station, but it played a variety of music that just isn’t offered anywhere else. I too never thought I would be paying for radio, but here I am thanks to CC and the like. It is a shame that while at work I have to listen through the internet to a Tampa based radio station just to get some good music (an 80’s station..something Atlanta needs!)
By Susan
January 12, 2007 9:10 AM | Link to this
OK, so what happened to Yogi on 105.7? Is this part of the drive for more youthful audience? Too bad, I thought he gave a balanced perspective to the issues.
By DOA
January 12, 2007 4:15 PM | Link to this
Rodney get a clue. How can you say the Bull is targeted a younger audience when you have a quote in an article YOU wrote tat says the target is women 25-54! Which is it? RODNEY’S ANSWER: Chuck Deskins, Hunnicutt’s boss, had told me back in late December that the station would be 35-54 female. Clay said a few days ago that it was going to be more 25-54 female, the same target as Kicks. But the song mix skews slightly older on the Bull compared to Kicks. Sorry I didn’t clarify that.
By McDonoughDawg
January 15, 2007 5:37 PM | Link to this
CC took two good stations 96Rock and the Buzz and made one bad one. My 14 year old son and his friends listened to both. Now they don’t listen at all. They enjoyed the classic rock when they wanted it, and really liked the Buzz. Now they say it’s just not cool anymore.
How stupid can CC be?
What about taking a chance on 94.9 and actually playing some harder country rock and country alternative? Like XM 12, or outlaw country on Sirius.
By dan
January 24, 2007 2:58 PM | Link to this
Since the infamous “barn cleaning” at WGST in Nov., I haven’t seen anything regarding “The Kimmer”. Can anyone respond to this and email me at my office as to Kim’s “where abouts” or what he is doing. He sometimes went “overboard” on the air but I do miss hearing him.