It's been a curious game of cat and mouse between CC and Arbitron over PPM. CC agreed to encode in Houston yes, but only after Arbitron agreed not to release the PPM data unless it received the MRC Accreditation. Something Arbitron failed to receive in Houston.
It's my understanding that the PPM data will be released whether MRC gives its blessing or not in Philly. As a result, CC has thus far refused to encode. But I think there may be at least one other thing that has CC seriously concerned about PPM in Philly. The Urban market.
Philadelphia represents an interesting test market because you essentially have three urban stations owned by Radio One going after the BIG heritage WDAS owned by Clear Channel. Each of the Radio One stations targets a distinct demographic, namely, young, adult and seniors. More specifically you've got your hip-hop with WPHI, U A/C with WRNB and Gospel with WPPZ, all targeting the Black listening audience, all going after some of WDAS' monster AQH.
It stands to reason that WDAS is in a very precarious position, especially where cume is concerned. Yes, PPM has shown that radio tends to have a higher cume than the diary typically reports. It is also true that Urban formatted stations are typically driven primarily by huge TSL. A disproportionately SMALLER gain in WDAS' cume (compared to the LARGER jump in cume some most of the general market stations are likely to see) combined with a generous sharing of TSL with each of the three Radio One upstart Urban competitors could have an exponentially harmful effect on WDAS. Think about it, WDAS is already so BIG there is not much new audience for them to attract. While they may not LOSE much cume, they are almost guranteed to lose TSL through increased sharing with the three radio one properties. It's the TSL loss that is going to kill WDAS IMHO.
I don't think any previous market test conducted by Arbitron can shed any reliable light on how this book is likely to unfold. The urban situation here is totally unique and deserves much closer scrutiny. I stand by my prediction that WDAS will get hurt and get HURT BAD. Thus PPM represents an enormous financial threat to CC in Philly. Not only due to potential lost revenue from WDAS advertising but increased cost if they were to actually purchase the data.
I think this is primarily what has CC concerned. And this is why I don't think they will be encoding in Philly anytime soon. Radio One has everything to gain and CC has everything to lose.
Just my two cents. It'll be interesting to see how it all plays out.
It's my understanding that the PPM data will be released whether MRC gives its blessing or not in Philly. As a result, CC has thus far refused to encode. But I think there may be at least one other thing that has CC seriously concerned about PPM in Philly. The Urban market.
Philadelphia represents an interesting test market because you essentially have three urban stations owned by Radio One going after the BIG heritage WDAS owned by Clear Channel. Each of the Radio One stations targets a distinct demographic, namely, young, adult and seniors. More specifically you've got your hip-hop with WPHI, U A/C with WRNB and Gospel with WPPZ, all targeting the Black listening audience, all going after some of WDAS' monster AQH.
It stands to reason that WDAS is in a very precarious position, especially where cume is concerned. Yes, PPM has shown that radio tends to have a higher cume than the diary typically reports. It is also true that Urban formatted stations are typically driven primarily by huge TSL. A disproportionately SMALLER gain in WDAS' cume (compared to the LARGER jump in cume some most of the general market stations are likely to see) combined with a generous sharing of TSL with each of the three Radio One upstart Urban competitors could have an exponentially harmful effect on WDAS. Think about it, WDAS is already so BIG there is not much new audience for them to attract. While they may not LOSE much cume, they are almost guranteed to lose TSL through increased sharing with the three radio one properties. It's the TSL loss that is going to kill WDAS IMHO.
I don't think any previous market test conducted by Arbitron can shed any reliable light on how this book is likely to unfold. The urban situation here is totally unique and deserves much closer scrutiny. I stand by my prediction that WDAS will get hurt and get HURT BAD. Thus PPM represents an enormous financial threat to CC in Philly. Not only due to potential lost revenue from WDAS advertising but increased cost if they were to actually purchase the data.
I think this is primarily what has CC concerned. And this is why I don't think they will be encoding in Philly anytime soon. Radio One has everything to gain and CC has everything to lose.
Just my two cents. It'll be interesting to see how it all plays out.