http://www.bizjournals.com/cincinnati/stories/2006/10/30/daily28.html?from_rss=1
Cumulus and Entercom swap local radio stations
Cincinnati Business Courier - 1:35 PM EST Wednesdayby Robert Riggsbee
It is official. Entercom Communications has taken control of the four former Cincinnati CBS Radio stations including WUBE, WKRQ, WAQZ and WGRR via a lease management agreement. However, that station cluster did not remain the same for long.
In a highly anticipated move, Entercom just swapped the newly acquired WGRR "Classic Hits" 103.5-FM for Cumulus Media Partners' WYGY "Star" 94.9-FM. The deal has been in an "on-again, off-again" mode over the past 30 days, due in part to revenue and billing-related issues that needed clarification before the two broadcasters could move to final contract. All issues have been resolved and the deal is done.
WGRR, a "classic hits" format, will remain unchanged by Cumulus. All key on-air personalities will be given the day off by Cumulus, but for the most part, the lineup will remain in place as follows: Chris O'Brien and Janeen Coyle in morning-drive, "Rockin" Ron Schumacher in mid-day and Jim LaBarbara "The Music Professor" in afternoon-drive. Former WMOJ program director Keith Mitchell was named as the new WGRR program director.
Cumulus had given serious consideration to changing WGRR's format to the "Jack" format, but after a perceptual study, Cumulus decided to keep the classic hits format intact. WGRR has been, and continues to be a consistent ratings and revenue performer, and the decision to not fix a station which isn't broken was concluded.
WGRR is the closest format to Cumulus' former WMOJ "Mojo Jammin' Oldies" 94.9-FM. The acquisition of WGRR will compliment WARM 98 well from both a psychographic and demographic standpoint in the key adults 25-54 demo. The two stations will be strategically packaged together in order to bring in cost efficiencies against the 25-54 adults and female skewing demographics when competing with other stations that are each vying for a piece of the same advertising dollar.
WYGY "Star" 94.9-FM will have more dramatic changes. Entercom will move the country format to 97.3-FM, formerly WAQZ "Everything Alternative." WYGY will also move to the 97.3-FM frequency, but the station's new moniker will be "The Wolf...Today's New Country." The format will have an edge to it and will project an "in-your-face" attitude. It is best described as the "Top 40" format of country radio.
"The Wolf" will target the adult 18-34 demographic and play flanker to sister station WUBE 105.1-FM, the dominant country ratings leader, which targets the 25-54 demographic, skewing female. This strategy creates a monopoly for Entercom in the Cincinnati country radio marketplace, and insures both audience and format protection with little fear of future competition. WYGY's on-air lineup will include: Ken and Kitty in morning-drive, Cathy O'Conner in mid-day and Jessie Tack in afternoon-drive. WYGY's "Star" 94.9-FM will remain intact for another few days. "The Wolf" on 97.3-FM will likely debut sometime this weekend, or on Monday.
WUBE 105.1-FM will not make any noticeable changes. This swap will once again bring both WUBE and WYGY together under one roof, as was the case prior to 2000. During that time the two stations, owned by ARS, were sold as a "forced combo," meaning that advertisers bought WUBE and were provided a "bonus" same-spot schedule on WYGY "Young Country" as added-value.
WAQZ "Everything Alternative" 97.3-FM has been dismantled. The entire on-air staff was fired late Monday afternoon. The cuts included: on-air personalities Jimmy "The Weasel," Sally Vollner, "Notorious," "Razor" and Jamie Boyle. The only employee to survive the cut is Program Director Julie Evans.
Entercom has not yet announced its new format plans for 94.9-FM. However, it is likely that it will try to replicate the success of its heritage rock station WAAF 97.7-FM and 107.3-FM in Boston. Entercom considers WAAF one of its great success stories. Recently Entercom invested $30 million in acquiring WIFE 107.3-FM, in order to simulcast WAAF on two signals in Boston so it could better penetrate the Boston demographic.
The anticipated 94.9-FM "Active Rock" format will be positioned as an aggressive "Everything that Rocks" product which would compete head to head with heritage Cincinnati rocker WEBN 102.7-FM. The "Active Rock" playlist includes everything from groups and artists like Audioslave, Damone, Hinder and Papa Roach to Jet, Red Hot Chili Peppers, Metallica and Sound Garden. Entercom sees significant opportunities in the local rock landscape, and will likely look to exploit and capitalize on the potential rock audience gains. Entercom's announcement of its 94.9-FM format change is likely to take place by Nov. 9.
Generally speaking, when radio station swaps occur, each station's management has the option of hiring anyone who directly works for the station which is acquired, but in a unique move, both Entercom and Cumulus have agreed to each retain their current salespeople and sales managers, and will not afford one another the opportunity of hiring anyone from their respective sales or sales management team.
A note of interest, this swap agreement precludes both Atlanta-based Cumulus (NASDAQ: CMLS), and Bala Cynwyd, Pa.-based Entercom (NYSE: ETM) from competing against one another in the future with any similar formats including country, talk, classic hits or oldies programming. Also, per the agreement, neither broadcaster may engage in formats that specifically and intentionally target African-American listeners. This agreement stems from the recent Radio One Intellectual Property purchase of Cumulus' WMOJ "Mojo Jammin' Oldies" which is now broadcast on 100.3-FM.
