Hey everybody... I wanted to post my thoughts on the KESN/Cumulus deal and get some feedback. I am in the industry but as a fan of the Ticket and radio in general I have been trying to wrap my brain around this one.
From my humble perspective this breaks down as a great deal from ESPN, a good deal for Cumulus and a fair to poor deal for the Ticket as an individual station. Here is why:
1. Cumulus and other major radio co's trade stations like horses. I get it, that is their job to keep a strong portfolio of stations in local markets and nationwide.
2. ESPN is saving a bunch of money in a market they have not been able to win and getting paid for it.
3. The Ticket their Mngmnt and Sales team is now being ordered to run their station AND KESN on orders of their owner Cumulus.
So basically Cumulus is going to use their talent at KTCK to build a winner at KESN (hopefully) and is willing to pay KESN 1.2 mil a year for the privilege. In 5 years when this LMA is up ESPN can choose not to renew and thank the Ticket for building a stronger competitor. As far as Cumulus, they will make money quarter after quarter with the stronger marketing benefits (selling on the #1 and #2/ESPN Rangers and Mavs affiliate and who knows if they will even own KTCK at the end of this deal the way the buy/sell stations.
I don't know which I feel sorry for most the guys at KESN or the guys at KTCK. I guess at least the guys at the Ticket still have a job. Do I sound close in my analysis?
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Another aspect that I have not seen mentioned so far is how this plays into the CC, Cume, et al, big corp cluster non-competition scenarios they so dearly love to foist upon the listening audience. Less competition produces a product of less quality.
Less competition = less expense = less effort = less quality.
The sports talk format in DFW has now reached the industry's corporate standard.
It brings to mind, from days gone by, when the nightclub TANGO was open down on LOWEST Greenville Ave and the guy that did the OXY 10 spots ("all over your face") voiced the commercials and in his LOWest voice would asked: "How LOW can you go?"
What was three competitors for this share is now only two: BIG DOG vs little dog. The short stick with which little dog has to fight just got A LOT shorter! An earlier comment did mention that The Fan's battle cry was to overtake ESPN and get to Number 2. Well, they made it. For all intents and purposes, ESPN Radio is now gone as a separate entity. The Fan is now Number 2... and has no chance of ever getting close enough to compete with the ticket/ESPN beast.
All's well and right in DFW corporate radioland tonight...
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