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The Track

Obviously this is about economics.

Payroll is the highest single expense of any operation. This "Classic Hits" format is capable of delivering ratings similar to what's been previously programmed, at least for a little while. Accomplish that with signicantly less payroll (how many salaries were just blown out the door today?), and Entercom views this as a 'win'.

Curiousity will entertain the buying community. Even if the ratings don't go up, their sellers are no longer competing directly against B105 formatically. They may be able to splinter off ad dollars that have been going exclusively to B105. TPI was definitely losing the "Lite" battle; with a format that isn't duplicating B105 as much programming-wise, they may get some budget back.

Again, at the very least Entercom gets closer to OI budgets by significantly managing expenses. They already have nearly $80 mil invested just in the purchase of these three stations; the bleeding stops somewhere.
 
Yea, but having been through several format changes, it is not that easy in this market to sell a market change until "you get a book or two under you". So it definately will not seperate them from the competition thatquickly. I still think these "soft" format changes, or the ones that make subtle changes to their music/presentation are a waste...look at 97.1's variations, 99.5's "shifts" - AC is AC is AC and I think they are still going to split the dollars in the AC/CHR market as always. So it may not be a quick economic return...

> Obviously this is about economics.
>
> Payroll is the highest single expense of any operation.
> This "Classic Hits" format is capable of delivering ratings
> similar to what's been previously programmed, at least for a
> little while. Accomplish that with signicantly less payroll
> (how many salaries were just blown out the door today?), and
> Entercom views this as a 'win'.
>
> Curiousity will entertain the buying community. Even if the
> ratings don't go up, their sellers are no longer competing
> directly against B105 formatically. They may be able to
> splinter off ad dollars that have been going exclusively to
> B105. TPI was definitely losing the "Lite" battle; with a
> format that isn't duplicating B105 as much programming-wise,
> they may get some budget back.
>
> Again, at the very least Entercom gets closer to OI budgets
> by significantly managing expenses. They already have
> nearly $80 mil invested just in the purchase of these three
> stations; the bleeding stops somewhere.
>
 
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