How did Radio One find themselves in this situation(a analysis)

[Radiogeek500]

There has been a lotta talk about how could it have come to this, a company forced to liquidate it's biggest assest for pennies on the dollar.

Well, I think some insight would be good on just how it came to this.

Let's travel back to 1999. A merger between two companies, Clear Channel and AMFM communications was announced, but these companies had clusters that put them over the 8 station limit in many markets(5FM, 3AM) In Los Angeles, one full stick had to go, CC chose KKBT BUT decided to shift it to 100.3 for the new buyer. Radio One agreed to it and purchased KKBT for 300-400 million dollars. That was the first mistake IMO, should have fought to keep it on 92.3. But moving along, RO then proceeded to dismiss several staffers one by one and decided to bring in Steve Harvey and a couple of Washington DC jocks(remeber Adimu?) and the no color lines branding also dissapered.(another mistake as even David Edaurdo points out) Even then, the Beat did find some intitial success in it's first 4 years even with more changes(the Regaee show and Kevin Slow Jamming James being dropped.) but there was turmoil, Harvey would have on air spouts about how he had to fight with management, many assumed he was really talking about founder Cathy Hughes whom was reported to frequently visit KKBT and harass staffers and Harvey would also rant about how he didn't care if anyone other then African Americans didn't listen, which again, was not a great idea to do, considering over 40% of KKBT's listenership was Latino/Hispanic.

In 2004, a new competitor KDAY 93.5 Signed on, and began flanking KKBT's numbers. By this point Harvey's relationship with Radio One was strained and as a result RO did not renew his contract. Another big mistake, as RO elected to hire Fox Sports West/former NBA star John Salley for morning drive. However, the single most fortelling event of RO's future unfolded as SBS flipped it's spanish AC KXOL to Latin Urban as Latino 96.3. KXOL took over a third of KKBT's Hispanic base and ratings dropped to a 1.8. RO should have purchased KDAY to try and get KKBT back into the 2s, but instead elected to flip KKBT to Urban AC and add Tom Joyner to morning drive. Prehaps THE single biggest mistake in LA Radio history, Joyner had been on this market prior on the old KACE 103.9/98.3(David is very familar with that one ;D) and did not get over a 1 share. Ratings for KKBT tumbled to that very 1 share territory and Alfred Liggins had egg on his face. He called in his new hire, President Barry Mayo whom had overseen WRKS in NYC and Barry Mayo consulted him on dropping KKBT altogether to a new branding, KRBV(V100) a image he said he used in Dallas with successful results. Liggins agreed and in January 2007, V100 was born. The ratings did rebound slightly, however many felt there was just too much old skool R&B product on the radio. Liggins friend Jeff Smulyan meanwhile had flipped country KZLA to Rhythmic AC as KMVN and even though that tanked, I myself wondered if the additional presence of KMVN hurt matters further for Liggins. V100 over the next year limped at a 1.3-1.4 and with growing financial difficulties RO had no choice but to sell.

I hope I have explained it as best as I possibly can. I myself am not happy to see this happen, and will always cherish the Beat. But it's a lesson to those of you that operate a station in LA(yes even Stevie Wonder and Roy Laughlin take heed.)

The last part is commentary

Radio One hopefully has taught the remaining Urban players a lesson. Always respect your listenership. Ok, so you are the black station, but if you do have a sizable Hispanic base, don't blow them off. Respect your air talent, they too make a station. Do various promotions in the community(yes KJLH, I suggest you go to Santa Ana and do a promotion to get all the Latnos aware of KJLH.) And don't forget about the music too.

 

[ercjncpr]

I live 20 miles south of Santa Ana. I went to Santa Ana College for one year in 2006-07 (yes any age can go back to school) ;D!
Keep in mind mostly what I saw in the daytime was the 18-34 crowd....

KPWR tried to do a promo there with the van etc. one day from about 10 am to 2pm. They got about 20 students to even approach their van. This was in the daytime, probably around 1000 students in and around campus at that time. Vast majority ignored them. What I heard coming out of car radios on the city streets and on campus was either 96.3 (or CD's playing the same type music) or "ranchera". I did not hear KJLH. I saw about 10 African-American students on campus at any one time, the rest were Hispanic and Vietnamese. I heard either Spanish or Vietnamese spoken all around me. In my classes, the teacher's roll call included lots of Sanchez, Rodriguez, Garcia or Nguyen. Not too much else.

 

[gcreedle239]

My guess is that Stevie Wonder isn't on the hook for hundreds of millions of debt with KJLH. That allows him to operate the station as a broadcaster, not as a financial tool. I doubt he needs to "heed" the lessons of the Radio One disaster.

 

[LA_Guy]

Radio One has blown lots of stations up!

Look at what they did in Philadelphia. They took a successful Alternative station and put urban on it. Instantly, it's ratings dropped by 80%! They've never come back.

It was #2 or 3. I don't think it's in the top 10 now.

Of course, Clear Channel jumped in to fill the Alternative void.

Then they bought a Class A drop in there and put adult urban on it. It hardly even shows-and its stick is in downtown.

I swear that Radio One is arrogant enough to believe that just because they're black owned that EVERY black listener out there will come running to their stations. It just isn't so! Black people are every bit as discriminating as anyone else! Crap is crap whether it's black owned, white owned or eskimo owned!

As Forrest Gump says: "Stupid is as stupid does". In the case of Radio One that would read: "Incompetance is as incompetance does"

All they can do even slightly well is urban, and in markets where it's done better they don't do that great either.

They are a one trick (format) pony....

 

[LA_Guy]

My guess is that Stevie Wonder isn't on the hook for hundreds of millions of debt with KJLH. That allows him to operate the station as a broadcaster, not as a financial tool. I doubt he needs to "heed" the lessons of the Radio One disaster.

Stevie paid 2 million dollars for KJLH about 20 years ago. I would find it impossible that he didn't own it by now. In fact, he might well have paid cash for it then.

In any event, his debt is zero.

 

[4UH8SIMBKAGN]

Radio One did not destroy KKBT, AM FM did. Steve Smith, Harold Austin and Michael Martin are those to be credited with ruining "The Beat". By the time Radio One took it over, it was in serious need of repairs and needed to replace much of its staff that wasn't already bailing because the staff was told they were not guaranteed jobs with the new owner.

Radio One purchased a package of stations from Clear Channel. $300-$400 million has never been officially (publicly) broken out as the cost for KKBT. The other stations in the group have not been given their true inflated price so those figures are really a"myth" that has been written too many times as the "truth" and the real price is closer to what KFSG went for to SBS.

Radio One had no choice in getting 92.3. It was decided prior to the sale of the spin-offs which frequency would be sold.

"No Color Lines" was getting old and needed to be retired for a new century. The station needed to move on from being what Keith Naftaly envisioned it as (an early 90's KMEL clone). Harold Austin (who started as an intern under Naftaly) was incapable of programming KKBT (or any radio station for that matter) and couldn't move the station forward. That was one of the reasons Michael Martin was brought in as a programming consultant. Of course, bringing Martin into any sliding situation is a bad decision since he's a clueless programmer (and continues to be so today). Remember, Dr. Dre and Ed Lover and The Baka Boyz were on this station at that time and it had become a real mess.

KDAY is a joke and has gone through numerous formatic tweaks & shifts (more than Radio One's 100.3 as V or The Beat) with little success. Lets not forget it was able to score double what it currently is with the same stick as a Spanish station.

Movin is even a bigger joke. It certainly isn't a competitor to V100.
Everytime I tune into Movin, it's a different station. Now they're doing "Crusin' Oldies" on Sunday nights. Are they "The Mix That Makes You Move" or "The Mix That Makes You Feel Good"? I heard both mentioned today. Just pathetic. The faster Emmis unloads this turkey, the better. Thankfully it is up for sale but Radio One's sale to Bonneville just gave it a nice haircut in sale price. Just a little less the loser investors at Emmis get once this company goes belly-up.

KJLH is the "hood" station with a lack of major market professionalism (all you have to do is listen to the processing and spots to know that) and will always be treated by the advertising agencies as such. It won't ever be much more than it is today. I'm sure most of the former KJLHers such as Cliff will end up returning to their old roots. Who else can they keep running back to but Stevie after they've blindsided and abandoned him for jobs with real radio broadcasting companies and later lost their gigs?

KKBT had three great periods of time. First under Liz Kiley, Frank Miniaci and Jimmy de Castro, all white, who put on a station that was to appeal primarily to a black audience, brought in a white (in reality a redneck, racist) morning host, John London, who was great and won over the black listener with a very successful morning show. The Beat even topped KIIS at various times 18-34 and 25-54 and challenged 12+ (and broke Power 106's "Dance Now" knees). The Beat won big with a sales staff that was also primarily white and that opened the door to many advertisers who had never before advertised on a (mass-appeal) black targeted station before. Then after Liz was moved out to pasture - along with John Monds who did a poor job programming The Beat - (Stradford had already made his record connections - all he ever wanted - and split), Keith Naftaly led the station in a KMEL direction and did so quite well building upon what was already in place. After he left, the station went only down hill until after Radio One brought in Steve Harvey. When Havey left, though, with no real morning show successor, that was the expected end for The Beat.

 

[ercjncpr]

Re: Radio One has blown lots of stations up!

They are a one trick (format) pony....

That is probably just it....the management of RO does not even know how to do any other type of programming. They exist to place one and only one format on their stations and are arrogant enough to think that it will work everytime.

 

[SuperRadioFan]

KDAY is a joke and has gone through numerous formatic tweaks & shifts
Movin is even a bigger joke. It certainly isn't a competitor to V100.
KJLH is the "hood" station with a lack of major market professionalism (all you have to do is listen to the processing and spots to know that) and will always be treated by the advertising agencies as such.

Hey Glenn !!! How ya been, dude? 8)

 

[Rockin Rob]

Being in an R1 market, I can attest to the sentiments that their big issue is intentionally programming to a specific demographic. In Philly, DAS-FM does so well because, while it is aimed at an older African American audience, it does pulll enough numbers from a mass appeal standpoint. At first, bringing Gospel to FM seemed like it was going to pull some numbers (and it had knocked off heritage gospel, WDAS-AM, forcing CC to flip them to Latino and ditching the longtime calls), but that too has tanked. When will Hughes and Leggitt realise that, in order to increase ratings and revenue, you need to program to a more mass appeal audience while still superserving your core audience? Sure, whites will tune in.... EMBRACE THEM!!!

 

[wprt949]

Being in an R1 market, I can attest to the sentiments that their big issue is intentionally programming to a specific demographic. In Philly, DAS-FM does so well because, while it is aimed at an older African American audience, it does pulll enough numbers from a mass appeal standpoint. At first, bringing Gospel to FM seemed like it was going to pull some numbers (and it had knocked off heritage gospel, WDAS-AM, forcing CC to flip them to Latino and ditching the longtime calls), but that too has tanked. When will Hughes and Leggitt realise that, in order to increase ratings and revenue, you need to program to a more mass appeal audience while still superserving your core audience? Sure, whites will tune in.... EMBRACE THEM!!!

Yeah but WDAS-AMS gospel format was aimed at older people while praise goes yonger

 

[bababui]

KKBT had three great periods of time. First under Liz Kiley, Frank Miniaci and Jimmy de Castro, all white, who put on a station that was to appeal primarily to a black audience, brought in a white (in reality a redneck, racist) morning host, John London, who was great and won over the black listener with a very successful morning show.

I am shocked that this contradictory, defamatory and bizarre post passed unchallenged. The OP provides no evidence to support his unusual claims. I would hope that the posting standards on this board would be higher and dubious posts would be quickly challenged.

 

[4UH8SIMBKAGN]

KKBT had three great periods of time. First under Liz Kiley, Frank Miniaci and Jimmy de Castro, all white, who put on a station that was to appeal primarily to a black audience, brought in a white (in reality a redneck, racist) morning host, John London, who was great and won over the black listener with a very successful morning show.

I am shocked that this contradictory, defamatory and bizarre post passed unchallenged. The OP provides no evidence to support his unusual claims. I would hope that the posting standards on this board would be higher and dubious posts would be quickly challenged.

Really? Now let's see what you know.

First question, what would John London do after he got off work at KKBT?

We'll now see what you know about KKBT and London.

BTW, John London was great. Sorry to know he's out of work.

 

[malibudude]

This is the "Frank Miniaci" you make mention of. I do believe I know who this is too. I really don't post or read this crap much but, in googling my name, the inevitable mention of my name on this board comes up pontificating what "The Beat" was or "is not."

White, black, latino, who cares. I was taught to be a radio "purist." I think I did a great job with the station and format. We did bring Power to its knees (a then Jeff Wyatt was drinking at Dalts when we showed up for a little celebration. Gracious as he is always and to this day, one of my best friends). We made KIIS refocus, and I feel very good about bringing a full signal Urban station to a much needed marketplace. Hell, before the BEAT signed on, you couldn't go down to Tower Records and even find much of the Urban music that was being very missed in the marketplace.

The other Urban stations were handicapped with a bad signal. Not their fault at all. We were blessed at KKBT.

Anyway, "us white folks" did a good job because we didn't care to make it a melting pot version of "The People's station KMEL/SF." San Francisco is way too unique to support the same programming in Los Angeles.

And after deCastro basically told me to go back to Dallas and help the company with Y95, I had no choice but to leave. I wanted to stay back and help program The Beat (John Monds took the opening when I left). I was told to kick ass in Dallas and turn around that dying station and I would be made VP/Programming for the company. Well, Dallas was a fiasco and I choose not to stay in radio but later went to trade publication Hitmakers and then Radio & Records. Good choices as far as I am concerned. There were just too many cooks in the company.

It's obvious that Naftally ended up in the position I wanted (and was promised) and they chose to bring down the KMEL sound. Bad choice.

Back on being the "purist" to the format. Another "white guy" Alan Sneed and Mary Catherine Sneed were also Architects of the format. You may know MC Sneeds name from the very company you mention in this thread.

The marketplace has changed. It's great reminiscing about the "good ol days" but give it up.

And no racist crap.

I was treated with more respect and had the best time of my life in radio when I worked for KKBT, the beat. The African American community embraced me and I gave them the love they deserved. Now that I miss. I was just looking at a pic the other day of a 3 on 3 competition with Monds, Cliff Winston, and myself along with the boys from Full Force. I was "the great white hope" hahaha. My brothas were just that. White, black, whatever. The origin of the BEAT was on the money. You can't be all things to all people. I don't care what your market makeup is. Latinos don't listen to R&B looking for hispanic music. They listen because they love R&B. You don't TELL the people that you have no color lines. You "be" no color lines. Talk is cheap.

Let the music and the people do the talking and the audience will respond.

Sorry I got off track but I was feeling a little nostalgic.

peace

Frank Miniaci

Radio One did not destroy KKBT, AM FM did. Steve Smith, Harold Austin and Michael Martin are those to be credited with ruining "The Beat". By the time Radio One took it over, it was in serious need of repairs and needed to replace much of its staff that wasn't already bailing because the staff was told they were not guaranteed jobs with the new owner.

Radio One purchased a package of stations from Clear Channel. $300-$400 million has never been officially (publicly) broken out as the cost for KKBT. The other stations in the group have not been given their true inflated price so those figures are really a"myth" that has been written too many times as the "truth" and the real price is closer to what KFSG went for to SBS.

Radio One had no choice in getting 92.3. It was decided prior to the sale of the spin-offs which frequency would be sold.

"No Color Lines" was getting old and needed to be retired for a new century. The station needed to move on from being what Keith Naftaly envisioned it as (an early 90's KMEL clone). Harold Austin (who started as an intern under Naftaly) was incapable of programming KKBT (or any radio station for that matter) and couldn't move the station forward. That was one of the reasons Michael Martin was brought in as a programming consultant. Of course, bringing Martin into any sliding situation is a bad decision since he's a clueless programmer (and continues to be so today). Remember, Dr. Dre and Ed Lover and The Baka Boyz were on this station at that time and it had become a real mess.

KDAY is a joke and has gone through numerous formatic tweaks & shifts (more than Radio One's 100.3 as V or The Beat) with little success. Lets not forget it was able to score double what it currently is with the same stick as a Spanish station.

Movin is even a bigger joke. It certainly isn't a competitor to V100.
Everytime I tune into Movin, it's a different station. Now they're doing "Crusin' Oldies" on Sunday nights. Are they "The Mix That Makes You Move" or "The Mix That Makes You Feel Good"? I heard both mentioned today. Just pathetic. The faster Emmis unloads this turkey, the better. Thankfully it is up for sale but Radio One's sale to Bonneville just gave it a nice haircut in sale price. Just a little less the loser investors at Emmis get once this company goes belly-up.

KJLH is the "hood" station with a lack of major market professionalism (all you have to do is listen to the processing and spots to know that) and will always be treated by the advertising agencies as such. It won't ever be much more than it is today. I'm sure most of the former KJLHers such as Cliff will end up returning to their old roots. Who else can they keep running back to but Stevie after they've blindsided and abandoned him for jobs with real radio broadcasting companies and later lost their gigs?

KKBT had three great periods of time. First under Liz Kiley, Frank Miniaci and Jimmy de Castro, all white, who put on a station that was to appeal primarily to a black audience, brought in a white (in reality a redneck, racist) morning host, John London, who was great and won over the black listener with a very successful morning show. The Beat even topped KIIS at various times 18-34 and 25-54 and challenged 12+ (and broke Power 106's "Dance Now" knees). The Beat won big with a sales staff that was also primarily white and that opened the door to many advertisers who had never before advertised on a (mass-appeal) black targeted station before. Then after Liz was moved out to pasture - along with John Monds who did a poor job programming The Beat - (Stradford had already made his record connections - all he ever wanted - and split), Keith Naftaly led the station in a KMEL direction and did so quite well building upon what was already in place. After he left, the station went only down hill until after Radio One brought in Steve Harvey. When Havey left, though, with no real morning show successor, that was the expected end for The Beat.

 

[Chris_Rose]

Actually its much simpler than all of that. You see... it comes down to this... Alfred Liggins is not that bright. I have had conversations with the guy! He has a huge ego, and very little talent to back it up. He's in his position for one reason and one reason only... his momma.

The guy just paid something like $38 million for a social networking site called www.blackplanet.com and www.migente.com. They claim to have 20 million subscribers... one of whom is me. I haven't logged on since I signed up over four years ago.

Besides which... they own Reach Media's www.BlackAmericaWeb.com. Why not focus on growing this fine site into a successful social networking site? Why spend almost $40m on a has-been site? Cause he's not that bright... that's why.

Don't take my word for it... the proof is in the pudding... ROIA closed at .93 cents a share on Friday. A company that was valued at over $20 per share a few years ago is now a worthless penny stock. It will be delisted before the end of the summer. You can count on it. All thanks to the poor leadership and total lack of vision of one person... Alfred Liggins.

 

[Chris_Rose]

Again... don't take my word for it: http://www.washingtonpost.com/wp-dyn/content/article/2008/05/08/AR2008050803294.html

"As for Liggins, given the company's dismal financial performance, it's hard to imagine what other companies would be furiously bidding for his services. Nor is it likely that, as the son of the founder and the company's largest shareholder, he would be tempted to go anywhere else."

 

[RicoGregg]

Just imagine if Liggins had worked for Enron. The possibilities boggle the mind.