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ABC Radio

> I don't have an opinion of whether or not Disney is serious about selling their O&O radio stations. I've heard they're a major "cash-cow," so it seems counter-intuitive to sell. Maybe they're just testing the waters. I know that after this past decade, I should be used to radio stations changing owners and consolidating all the time - but the idea of somebody other than ABC owning KGO just seems wrong somehow.


This is just my opinion. I don't think ABC Radio really
> wants to sell their O&O radio station. Comments?
>
 
>> 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.
 
> >> 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.

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. 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!

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!

Disney can market the vast ABC Radio Network brands for a nice profit, and cut the cost of operating a few dozen bad sticks. A smaller ABC Radio division is better than none at all.

That's just my opinion, I could be wrong!
 
> Disney can market the vast ABC Radio Network brands for a
> nice profit, and cut the cost of operating a few dozen bad
> sticks. A smaller ABC Radio division is better than none at
> all.

That is what I think will eventually happen to the big radio behemoths like Clear Channel. While they have viewed taking over the entire universe, I think they are slowly learning that smaller may be eventually better. They have been divesting themselves of their other media businesses lately...I can't help but wonder if down the road they too will dump the underperforming stations and keep the biggies.
 
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.
 
Re: Disney and ESPN not part of deal... if there is one.

> 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.

I understand that, but if no one's listening, how can anyone justify throwing cash at it? I've only seen one RD station ever get a 0.2 in 12+ shares. They can't market anything if the station serves as a Witness Protection Program.
 
Re: Disney and ESPN not part of deal... if there is one.

> I understand that, but if no one's listening, how can anyone
> justify throwing cash at it? I've only seen one RD station
> ever get a 0.2 in 12+ shares. They can't market anything if
> the station serves as a Witness Protection Program.

I've never seen research or ratings connected to Radio Disney, but I'd imagine that in 12+ Radio Disney would look bad. Of ALL radio listeners 12-Death, I'm guessing their only listeners might be 12-15 AT MOST! Of course, with generational listening, some of those listening would be parents. Most Radio Disney listeners, in my opinion, are probably younger than 12, therefore we wouldn't see numbers.

My fiancee, for example, works at an elementary school (primarily working with K-3) and when the kids are doing projects, and they're asked if they want to have music on, they ALWAYS ask for Radio Disney to be turned on. The brand marketing and awareness MUST be there with Radio Disney... It's a great marketing outlet.
 
Re: Disney and ESPN not part of deal... if there is one.

> > 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.
>
> I understand that, but if no one's listening, how can anyone
> justify throwing cash at it? I've only seen one RD station
> ever get a 0.2 in 12+ shares. They can't market anything if
> the station serves as a Witness Protection Program.
>
They are marketing thier own brand to pre-teens. They do not have to show up in ratings, as the target is roughly 5 to 11.
 
> > Disney can market the vast ABC Radio Network brands for a
> > nice profit, and cut the cost of operating a few dozen bad
>
> > sticks. A smaller ABC Radio division is better than none
> at
> > all.
>
> That is what I think will eventually happen to the big radio
> behemoths like Clear Channel. While they have viewed taking
> over the entire universe, I think they are slowly learning
> that smaller may be eventually better. They have been
> divesting themselves of their other media businesses
> lately...I can't help but wonder if down the road they too
> will dump the underperforming stations and keep the biggies.
>
Today's Records & Radio has a article saying that bidding is up to 2 billion and Entercom is in the lead. I think this is hype and ABC won't sell. I hope so for KGO'S sake. I don't care about KSFO. They can sell that & put old tapes of Gene Scott for all I care. They ruined a great station IMHO!
 
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