(BALA CYNWYD, PENN.) -- Entercom Communications Corp. the radio station operator, today announced a novel program in which some of its stations would compete with themselves.
"It may cost us some revenue, but it's really not fair of us to use two stations in the same ADI to broadcast the same programming," said Entercom President and CEO Davey Arena.
Entercom executives are known to regularly consult with Internet bloggers as they plan each and every strategic move the company makes.
"We continue to receive very, very, very wicked excellent advice from a Boston board," Arena said. "We have a sports station simulcast. Obviously we need to end the simulcast, reign in our coverage area, and put different sports programming on one of those frequencies."
Under the plan, station WEEI in Boston, which operates on both AM and FM frequencies will change the AM broadcast to a different sports format. An ESPN radio format is considered a likely change, although it has repeatedly failed to garner a following in the market in the past.
Industry analysts noted that the result could be a loss of listeners to the Entercom stations since its FM signal is licensed to a community in the northern suburbs of Boston, while its AM station has a "directional" signal and cannot be heard after sunset in some communities in the ratings area.
"We make radio decisions based on radio and the expert opinion of would-be board ops who are kind enough to give us a constant stream of advice," Arena said. "We have been reminded that we have two sports signals and we need to use them, and use them we shall."
The company, which operates more than 100 stations in 23 markets, is expected to take a charge against earnings to reflect anticipated revenue losses resulting from the new policy.
Entercom reported after tax net income of $68 million for the year ended Dec. 31 and has stated that without the guidance of bloggers, it would have had to sell many of its properties, auction off the furnishings in Arena's office and carry colon-cleanser infomercials on all of its stations.