Shockwaves were felt across the radio industry last week. Audacy and Good Karma Brands teaming up on a business deal that helped ESPN New York and signaled the death of WCBS 880 wasn’t a move that anyone expected. Credit to all involved at both companies on keeping that one safeguarded.
The headlines last week rightfully focused on WCBS 880’s forthcoming departure from the airwaves. I’m a New Yorker so I understand the emotions shared on social media over the loss of the all-news brand. Seeing Steve Scott, Michael Wallace, Wayne Cabot and many others post farewells on social media was sad. WCBS was not only an iconic brand in the big apple, it was the 10th highest billing station in the industry in 2023 according to BIA. To put the brand out to pasture means two things – A) it must’ve been very expensive to run, and B) the Good Karma Brands deal had to be lucrative.
But this week I want to take a closer look at what it means for ESPN New York and Good Karma Brands.
First, the talk about focusing on the app and people shifting to consuming digitally sounded good, but when push came to shove, they recognized a strong signal is needed in New York City to command dollars and ears. This now gives their sellers and talent a better chance of being successful.
I’m not suggesting they’re abandoning their app strategy and focus. But being heard on the radio is still vital to business in 2024, especially in the nation’s largest market. The 1050AM signal was never going to solve their problem, and apps may be a larger part of our future but in New York City where roadways are jam packed with drivers listening to radio, being available on the dashboard on a strong signal matters.
One can make the argument that ESPN New York is still taking a step back going from FM to AM. With issues lingering about AM’s future, this doesn’t solve the company’s long-term problem for distribution. However, it does buy them time. It also puts them in a stronger place today than they were yesterday. They can continue renting rather than buying, which makes sense if they weren’t excited about paying a hefty sum to own the 98.7 FM signal, and knew the 1050 stick wasn’t the answer. They may be in a better spot but they’ll still have to rebrand, market, and restore advertising and audience confidence, while leaving open the option to reevaluate down the line.
What will be interesting to monitor is what they do next with the 880 and 1050 signals. As of now, the company is promoting airing the ESPN Radio network on 1050. Does that open the door for 880 to feature more local shows? GKB may very well operate both, and given the ESPN Radio relationship I’m sure featuring the network in the big apple is important to business. However, if Good Karma Brands is going to pay a renters fee to Audacy to broadcast on 880AM, a sale or rental of 1050AM can’t be ruled out in the future.
Recouping some capital for a stick they didn’t trust enough to serve their brand’s needs makes business sense. Whether or not GKB can entice a buyer to purchase an AM signal in New York City is another story.
I’m also intrigued to see what becomes of the 98.7 signal. Jeff Smulyan is expected to operate a music format short-term while continuing to explore a sale. I thought Red Apple Media would make a bigger move to position WABC for an FM future but so far, no go.
The New York Rangers, New York Knicks, and ESPN New York’s clients all win in this deal. They already accepted that they’d no longer be on the FM band and were preparing for weaker distribution. Now, they remain on a powerful signal, and no longer have to deal with the noise created from ‘I can’t hear you in the car.’
If there’s a loser it’s the New York Jets. The franchise leaked the news of Good Karma moving away from 98.7 and quickly rushed to Q104.3. Their games may remain on the FM band, but rock stations can’t involve franchises in content the way sports brands can. Buzz around the team in New York City will continue coming from WFAN and ESPN New York 880. Maybe that’s enough for the Jets but I think they’ll wish they had more of a connection to their flagship station M-F, especially during a season that could be good with Aaron Rodgers back.
One matter I am still surprised by is Good Karma Brands’ decision to not utilize Nielsen in its top 3 major markets. New York, Los Angeles and Chicago are the three largest cities with the greatest access to ad dollars. I get not spending for data in Cleveland, Milwaukee, West Palm Beach, and Madison, but in the big three? Nielsen’s audience measurement has many warts but it is still the currency used by agencies and large advertisers. Craig Karmazin and his executive team wouldn’t make that move unless they felt it was positive for their business. How major market advertisers react over the next year or two though will be interesting to follow.
From the Audacy side, this one has many more layers to explore.
WCBS generated just under 30 million dollars in 2023. WFAN did just over 30 million. WINS did not finish in the top 10. To kill a top-10 revenue station, you’d have to assume that the majority of those dollars will shift to 92.3/1010 WINS. You’d also have to be getting a heck of a financial deal from a radio competitor. They’re not making this move unless it reduces payroll, and adds revenue.
Where eyebrows get raised is when you consider that Audacy owns WFAN and just helped their competitor improve their position in the market. If nothing had changed from what was previously reported about Good Karma’s plans for ESPN New York, how might that have helped WFAN’s business? Selling that internally as a positive to WFAN staff isn’t fun but if anyone can, it’s Chris Oliviero.
Other questions I have are how does the company view the long-term viability of the AM band? What is their internal viewpoint of the long-term upside of WINS vs. WCBS? What did they see that convinced them that helping a competitor in the sports space in New York wouldn’t have an effect on their own sports business? And, how did bankruptcy and the company’s executive situation influence what transpired?
It’s worth noting that on Friday, Audacy asked for a forbearance agreement under the company’s Debtor-in-Possession facility. The Commissioners of the FCC are also expected to review and vote in the near future on billionaire George Soros’ Soros Fund Management becoming the company’s majority shareholder.
There’s still more to come, but for now, ESPN New York has a better solution today than it did yesterday. Audacy reduced payroll and improved its bottom line, while continuing to own all-news and the top sports brand in town. And 98.7 and 1050 still have owners but could be spun off and reap rewards in the future for those who sell.
There’s a famous saying in New York ‘the city never sleeps‘. When it comes to the the world of radio maybe it should be revised ‘always keep your antenna up‘!
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Want To Go To Spain and the BNM Summit?
Thanks to our friends at Collette, attendees to the BNM Summit have a chance to win a trip for two to Spain! The winner will be announced at the BNM Summit After-Party on Wednesday night September 4th.
Jim Edwards, VP at Collette, is setting up one on one meetings and group lunches to get to know folks better and share how Collette can help boost revenue through travel. Everyone who meets with Jim either now (via Zoom or Phone Call) or at the BNM Summit, gets entered to win. There are limited slots available, so reach out to Jim to set up a time: jedwards@collette.com or 800-222-5679.
- Congratulations to WBEN program director Lisa Polizzi, Jeff McKay of Westwood One, Jim DeLorenzo of JHD Enterprises, Michael Demarest of Salem Media Group, and Daniel McDonald of the NAB. They are our five winners of last week’s BNM Summit ticket giveaway, which we promoted through newsletters and social media. I’m planning to run one final contest this week to give away a few more tickets. Stay tuned.
- Additionally, congrats to Brandyn Fragosa, and Vanessa Segura. They have received free tickets to the show as part of our College Contest for DMV students. I’d still like to include a few more local students in the Jack Morton Auditorium to learn about the business and meet industry decision makers. If you can help spread the word, it’s appreciated.
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The Dan Orlovsky-ESPN Saga
I’m a fan of Dan Orlovsky’s work on ESPN. When the opportunity to do a feature on him came up, I was excited to have Derek Futterman do the story. Derek wrote a great piece, one that Dave and I were proud to publish, and were grateful to Dan for promoting it to his fans. Never did we expect a social media storm over it.
What Dan said on X on Saturday night was true. The question and answer were not focused on his ‘protect your daughters’ tweet. It was a broader issue about social media responsibility and talent reflecting a brand at all times. I know some in media circles chose to spin it differently, and I can’t control what others do with our content, but we stand by what we printed, and whether you like Dan’s response or not, he’s being sincere. I feel bad that he’s had to deal with nonsense over something others manufactured.
The only issue I had was with a response from PR to Derek over the weekend. First, if someone doesn’t like our content or approach, I’m at Jason@BarrettMedia.com. My writers are adults. They can handle some heat, but the buck ultimately stops here. Derek does his homework, and treats those he interviews with respect. He’s factual, represents people properly, and maintains good relationships. But he also knows what’s expected as a writer for us. If PR can help us, excellent. We’d prefer that. But if they’re not going to help or make it harder to gain access to key people, then we’ll pursue another path.
I try to have good relationships with PR teams but they don’t control our content, run our business, pay our people, or advertise with us. We’re not just going to talk to those you approve about the things you’re OK with. Access and an opportunity to examine relevant issues with accomplished professionals that matter to our coverage is important too. We are fair, prepared, connected, and invested. Our body of work the past nine years reflects that. If further conversation is necessary, reach out. Otherwise, onward and upward we go.
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Trending Upward
We’re a month into our rebrand, new look, and the addition of music radio coverage, and last week we recorded our best week of traffic since mid-May. THANK YOU! We’re creating 25-30 pieces of content per day, which can be hard to keep track of as a reader. It’s why I recommend signing up for our newsletters, and clicking the tabs up top to see what’s new in each section.
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News, Notes & Reactions
- Here’s a stat that will blow your mind. Mike Felger and Tony Massarotti have not lost a single ratings book in Boston since the spring of 2012. That’s 47 consecutive ratings periods. Just as impressive, Felger shared on-air last week that he tracks each monthly and quarterly in a notebook. Mazz said he does the same in an Excel doc. Great performers care about their performance, and monitor it. I hope talent across America are paying attention. Theese guys are elite for a reason.
- The Democratic National Convention takes place this week in Chicago, and just as we did for the RNC, Barrett Media will be providing daily recaps of media convention coverage. Garrett Searight will have you covered all week.
- Danny Parkins signed off at 670 The Score and his final act was raising over a half million dollars for cancer research. Truly awesome. I’m looking forward to watching Danny thrive on the national stage at FS1. All eyes now turn to 670 to see who steps in alongside Matt Spiegel.
- Opinions on talent are always subjective but from where I sit, Robert Griffin III was entertaining, interesting, and unique. I’m not sure ESPN improved by subtracting him from the roster.
- Brandon Tierney and Sal Licata deserve credit. They’ve built a passionate, informative, and entertaining show on WFAN. Last week’s explosion from Licata over the Hawk Tua girl throwing out the first pitch at the Mets game, and Tierney egging him on was the stuff that just keeps people listening, laughing, and enjoying conversations. Well done, fellas.
- Make sure to read Garrett Searight‘s feature on podcasting experts reacting to last week’s Hollywood Reporter story on the challenges associated with podcasting. Some great input was shared by John Goforth, Rob Walch, Steven Goldstein, and John Wordock.
- Erick Erickson is a smart man. The syndicated news/talk show host announced plans this week to take ‘The Gathering’ to local markets in 2025. Want to get local affiliates excited about a national show on their airwaves? Bring the show to them, connect with local fans, and attract local newsmakers and advertisers.
- A year ago this week Shannon Sharpe joined The Volume. He also signed on with ESPN’s First Take as a contributor. Leaving a high profile full-time TV job often takes time to rebuild from. Sharpe though has become a greater force post-FS1 then he was sitting opposite Skip Bayless. Whether you love his style or not, you’ve got to respect and appreciate his hustle, and ability to survey the landscape, pivot, and raise his profile and level of success.
- Chinese tech company Kunlun Tech has launched what it says is the the world’s first AI-powered music streaming platform. Kunlun reportedly has an active user base of 400 million. The company’s new Melodio service features personalized, AI-generated music streams tailored to different moods and scenarios. How long until something like this hits the US?
- 900 CHML in Hamilton, Ontario went dark this week. The station shut down without warning after 97 years of broadcasting. A note was then posted on social media stating that financial losses the past few years required signing off. I hate seeing that.
- It was sad to learn of Greg Kihn‘s passing. The former artist turned morning man at 98.5 KFOX in San Francisco was often in a cubicle right outside my office when I programmed 95.7 The Game. We had a few conversations during our time in the same building, and I always enjoyed his upbeat demeanor. My condolences to his friends and family.
Jason Barrett is the President and Founder of Barrett Media since the company was created in September 2015. Prior to its arrival, JB served as a sports radio programmer, launching brands such as 95.7 The Game in San Francisco, and 101 ESPN in St. Louis. He also spent time programming SportsTalk 950 in Philadelphia, 590 The Fan KFNS in St. Louis, and ESPN 1340/1390 in Poughkeepsie, NY. Jason also worked on-air and behind the scenes in local radio at 101.5 WPDH, WTBQ 1110AM, and WPYX 106.5. He also spent two years on the national stage, producing radio shows for ESPN Radio in Bristol, CT. Among them included the Dan Patrick Show, and GameNight.
You can find JB on Twitter @SportsRadioPD. He’s also reachable by email at Jason@BarrettMedia.com.
