Re: Disney and ESPN not part of deal... if there is one.
> > >> This is just my opinion. I don't think ABC Radio
> really
> > >> wants to sell their O&O radio station. Comments?
> >
> > I couldn't agree more. I think Disney is trying to
> inflate
> > their stock price with sale rumors.
> >
> While stations like KGO, WLS and WABC are top billers and,
> particularly in the case of KGO, market leaders; it's the
> KIID's (Sac) and KMKY's (Oak/SF) of the world that drag down
> the company's performance to some degree.
KMKY is not part of the ABC Radio operating group, and is not subject to this potential sale, nor are the ESPN stations.
>
> Disney owns enough underperforming stations to dump all of
> those as a package. The Disney folks are smart enough to
> know where the money is -- and it's not in owning a bunch of
> Radio Disney stations that you really can't do a whole lot
> with other than pour money in.
Radio Disney is brand promotion. It is not necessarily a profit center, although they try to cover most of the expenses with revenue. Radio Disney is a clever use of radio as a marketing vehicle for the Disney brand, not a total ad medium.
> Licensing the brand and
> getting money from affiliates and advertisers for ESPN Radio
> and Radio Disney is the best way to get cash back.
> Translation: dump 'em!
This is the area of radio they will not dump, as it contributes to two of the biggest moneymakers of Disne and is part of their core business.
>
> They're also smart enough to know that KGO, WLS, WABC and a
> couple of others will continue to be "cash cows" as long as
> they are programmed well, marketed strategically, and
> maintain or grow their market share (which will happen if
> the first two things take place). Translation: keep 'em!
They are not part of the core business, and they are part of a low growth sector.