Entercom buys WBEB

[Kent]

As The Big A points out, Shelly does a lot more than just country. Granted, she has a country background as I believe she was at WCTO for several years before she moved south to work for WXTU. However, she took over the entire FM side of the CBS cluster after Anne Gress was cut.

Entercom keeping its director of music programming would make sense as it's only divesting one station. While a change of some sort seems likely at 96.5, I wouldn’t read too much into Shelly keeping her job. You generally want to keep people who know what they’re doing, and, although I know her by reputation only, I understand she does.

 

[MarkW]

For Beasley's sake, I sure hope they were smart enough to negotiate a format non-compete clause.

 

[Radiolover971]

For Beasley's sake, I sure hope they were smart enough to negotiate a format non-compete clause.

Why is that?

 

[AbrahamJSimpson]

Yes, she knows country programming. But people know more than one thing. Happens all the time. It's about the overall skill set, the understanding of the audience.

That's not to say they wouldn't (now or in the future, setting aside any hypothetical contractual language) take a shot at a country station, but she could have gone over to Beasley and they still could have done the same thing.

 

[TheBigA]

That's not to say they wouldn't (now or in the future, setting aside any hypothetical contractual language) take a shot at a country station, but she could have gone over to Beasley and they still could have done the same thing.

Had she stayed with Beasley, it might have been strange since Beasley already has a VP of programming.

 

[MarkW]

Why is that?

Should be self explanatory. If 96.5 flips to Country, especially if it is led by the same individual who knows all of WXTU's "secrets" so to speak, WXTU's ratings and revenue will both immediately be placed at risk, and there's a decent chance the station a few years from now could be worth a lot less than the $38 million that Beasley paid for it. This would be especially true if a country upstart at 96.5 were to poach some of WXTU's air talent and sales people.

 

[davideduardo]

Why is that?

If you pay a premium price for a station based on its format and billing, you do not want the company you bought it from to convert another of its stations to a direct competitor. So you say, "yeah, I will pay that high price if you promise not to directly compete for a certain number of years..."

 

[TheBigA]

If you pay a premium price for a station based on its format and billing, you do not want the company you bought it from to convert another of its stations to a direct competitor. So you say, "yeah, I will pay that high price if you promise not to directly compete for a certain number of years..."

By the same token, Beasley traded their Philly cluster to CBS a few years ago as part of a multi-market exchange, virtually exited the market. Then surprise, surprise, one day Beasley buys Greater Media, and returns to Philly as a competitor. I always thought that was a bit strange.

 

[chrocket87]

If Entercom were to flip 96.5 to country, Beasley shouldn’t waste a second flipping WBOS to AC to attack Magic. I can’t imagine this deal going down, or the one in Boston, without some sort of non-compete.

 

[JBraddock]

By the same token, Beasley traded their Philly cluster to CBS a few years ago as part of a multi-market exchange, virtually exited the market. Then surprise, surprise, one day Beasley buys Greater Media, and returns to Philly as a competitor. I always thought that was a bit strange.

I tend to think there was some forward planning involved in that scenario.

 

[ixnay]

It's funny that you mention the jingle. I've thought about this a lot. (And thinking about it any more than just a little is probably too much.) I imagine they'll just take the "ten-sixteeeeeeee" out of the jingle. The "bum-bum-bum" will sound awfully newsy, after all. "K-Y-double-you, Newsradio [bum-Bum-BUMMMMM]..."

But many will miss it, just as I miss the "News Radio 780" part of WBBM's jingle. Call it progress, AbrahamJ.

ixnay

 

[DrAkbar]

By the same token, Beasley traded their Philly cluster to CBS a few years ago as part of a multi-market exchange, virtually exited the market. Then surprise, surprise, one day Beasley buys Greater Media, and returns to Philly as a competitor. I always thought that was a bit strange.

Wall Street likes Beasley and how they've digested recent acquisitions/swaps. Same can't be said for Entercom, and digesting CBS hasn't gone as smoothly as they had hoped. On the day of the announcement, both companies saw an increase in their share price. Call it a win-win for both companies.

 

[cyber]

How long will it take Entercom to gut WBEB?

 

[AbrahamJSimpson]

How long will it take Entercom to gut WBEB?

A rediculous premise.

 

[AdamfromPhilly]

How long will it take Entercom to gut WBEB?

only changes will be the look of their website and possibly combining their sales staff. It's a crown jewel, no need to make wholesale changes.

 

[atthestars]

only changes will be the look of their website and possibly combining their sales staff. It's a crown jewel, no need to make wholesale changes.

I could possibly see down the line some cuts to promotions staffs for redundancies as the WBEB employees merge with the Entercom employees. But outside of that, Entercom would be absolutely foolish to tinker with WBEB much at all.

 

[Miguelito]

A rediculous premise.

Gutting is a crazy idea. But I don't think folks are so terribly off-base to worry about what are certain to be changes down the road. We're talking about putting the last independent major market station and in the arms of one of the big, gross conglomerates (i.e., architects of the industry's woes). Initially, Entercom will think 'Oh wow, we can not mess with this! Look what we got! It's B101! [It seems that's what they call it--LOL.]'

But after a while, someone there will start wondering why things are being done so differently at 101.1 in Philadelphia compared to their other major market AC's. 'How can we apply our existing [watered-down cookie-cutter] strategies there?'

Over time, it was the independent marketing and research strategies that built 101.1 into the powerhouse they are. And over time, it's the lack of independent marketing and research strategies that could potentially turn them into just another Adult Contemporary station.

 

[TheBigA]

We're talking about putting the last independent major market station and in the arms of one of the big, gross conglomerates (i.e., architects of the industry's woes).

I wouldn't characterize Entercom that way.

 

[AbrahamJSimpson]

I don’t broadly characterize owners as “architects of the indistry’s woes.” To the extent there are challenges, as there are in every business, many of those challenges result, or are heavily influenced by, a multitude of factors. Changing technology and consumer tastes/needs are right up there.

There are always going to be companies, also across industries, that over leverage, and some that are bad actors. But that said, the business couldn’t continue to operate as it did years ago (also true across many industries). That’s just the nature of time marching on.

 

[Miguelito]

Don't want to dwell on it personally (everyone else can of course agree/disagree, etc) but I pretty much consider all of the (consolidating, downsizing, voicetracking, heart-crushing) biggies to be yuuuuge parts of the problem. The point of business is to make money but these conglomerates have shown time and again that they are willing to suck the very life right out of the radio if it means saving even one more dollar. Bottom line is important, yes, but I think these folks have been very shortsighted with a "take the money now and who cares what happens in the future" mentality. In this regard, I don't think Entercom is any better than Beasley or Beasley is any better than iHeart, etc. etc. I'm old enough to remember when the industry (was about making money but also) had a soul and wanted to actually serve their communities. And have fun! They used to have fun! It's just how I feel from watching things unfold over the last few decades.