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Chancellor /Evergreen JULY 11, 1997 I N S I D E RESEARCH THEME ISSUE Sinclair To Buy Heritage? R &R's semi annual look at research Price tag could be as high as $675 million methodology and results offers these perspectives: BY HEATHER VAN SL(X7rEN tage media operations and keep R&R WASHINGTON BUREAU AC: Automated callout its in -store and direct-mail mar- Alternative: Perceptual interpretation Heritage Media's radio and keting businesses. CHR: Combing the diaries television stations are for sale. Heritage President/CEO Paul Country: Mining more from PI s That much, at least, is obvious. Fiddick told R &R that as of last NAC /Smooth Jazz: Vocals: How much The question now is, will the new Friday "there was no signed deal" is "not an is too much? owner be Sinclair Communica- He noted that Heritage but said it's Rock: Strengthening your image tions? Most indicators are point- active participant," of sad that people think a Urban: Frank Cody on format's ing precisely that way, and the "kind failure to categorically deny strengths rumored price is as high as $675 the 24 radio and six something is a confirmation:' Pages 39, 50, 59, 69, 76, 82, 88 million for TV stations. Still, Sinclair confirmed last The deal with Sinclair, if it hap- week it had recently submitted a OUT OF TIME pens, is contingent upon News $500 million bid for radio and TV Consultant John Lund gives us a five -point Corp.'s closing of its $1.3 billion stations. And sources hint that the plan that will help you manage your most buy of Heritage, expected late this actual bid was much, much high- precious commodity -time. Chancellor/Evergreen month. When that deal was an- er. At R &R's Tuesday deadline, Page 14 nounced in March, News Corp. said it would spin off the Heri- HERITAGE/See Page 11 COMING NEXT WEEK! Enjoying 1997 Adult Contemporary: Duncan's says merged As Viacom buy closes, Restructures San The Perfectillix group will rank second in revenues, after CBS Susquehanna The acquisition by Evergreen Media and Chancellor Broad- Francisco, Dallas Management casting of Viacom's stations was finalized right on schedule last week (7/2) at the start of business: for $1.075 billion plus Salvadore, Halyburton become Market Mgrs. a by Duncan's Amer- working capital. That news followed report as new KSAN and KTCT debut in the Bay Area ican Radio, which showed Evergreen/Chancellor as the sec- ond- largest radio group in terms of revenue. Susque- KOFY -AM) hanna Radio later this DUNCAN'S/See Page 24 Corp. has re- month. set the man- Rank Rank Group # of Stations Pro Forma Rev. (in millions) Dwight 1/97 6/97 1/97 6/97 1/97 6/97 agement tier at Walker, who its San Fran- manages Adult 1 1 Westinghouse/CBS 76 75 $1000.2 $1018.0 cisco and Dal- Alternative si- R &R's first -ever AC special makes contact 3/8 2 Chancellor/Evergreen 87 95 (C) $267.8 $793.4 las stations fol- m u l c a s t with the biggest names to grace the format. (E) $382.9 lowing recent KFFG -FM & It's a comprehensive, 50 -page snapshot of 2 3 Jacor 112 131 $415.2 $502.0 acquisitions in KFOG -FM/ yesterday, today, and tomorrow. 5 4 Clear Channel 102 163 $291.9 $391.9 those markets SF, rises toVP/ by the compa- GM of those 4 5 ARS 96 91 $379.3 $381.4 Salvadore Halyburton IN THE NEWS ny. As a result, stations as well 6 6 Disney /ABC Inc. 21 26 $278.1 $296.5 Tony Salvadore has been named as KSAN -FM. KSAN is slated 10 7 Capstar 104 229 $135.1 $290.1 Market Manager for its Bay Area to officially unveil a "Classic Craig Kailman boosted to EVP /Office 75 71 $275.9 properties. He also retains his po- Rock 'N Roll" format at 107.7 Of Chairman for Atlantic Records 7 8 SFX $275.7 sition as VP /GM for all -Sports MHz today (7/11), following five 9 9 Cox 39 44 $205.1 $217.9 John Cook appointed OM at SFX/ KNBR -AM/SF and will add VP/ days of construction noise and 13 10 Emmis 11 14 $119.1 $139.8 Houston, PD for KKPN GM duties at KTCT-AM (The musical snippets from songs by Page 3 Source: Duncan's American Radio Ticket) when Susquehanna be- such artists as Billy Joel, Three Chart continues on Page 24 gins an LMA with that station (previously Regional Mexican SUSQUEHANNA/See Page 24 THIS #1 WEEK CHR/POP Big Screen Has Little Bucks For Radio HANSON Mmm Bop (Mercury) Finally, A Buyer Comes To The The motion -picture industry poured $1.7 billion dollars inb media CHR/RHYTHMIC advertising last year ... with just 1.6% of those funds going to radio. PUFF DADDY... I'll Be Missing You (Bad Boy/Arista) That dismal number flies in the face of research that shows heavy Defense Of Consolidation! moviegoers are also heavy radio listen- URBAN than TV or news- he biggest howls of protest consolidation: ers - more so PUFF DADDY... I'll Be Missing You (Bad Boy /Arista) rr papers, which get the lion's against radio consolidation I am Sr. VP/Associate Media URBAN AC share of movie ad dollars. have come from the buying com- Director of the spot broadcast BADU Next Lifetime (Kedar/Universal) RESEARCH/See Page 24 ERYKAH munity. Higher rates, higher buying group at Hill Holliday, a COUNTRY CPPs, and forced combos are but full- service agency in Boston. a few of the reasons planners and GEORGE STRAIT Carrying Your Love With Me (MCA) I believe that multiple owner- buyers want more federal vigi- ship in radio is one of the best NAC/SMOOTH JAIL lance on radio mergers and ac- things to happen to the business, BONEY JAMES Nothin' But Love (Warner Bros.) quisitions. 4)DENDEJ®D®®®1712t for several reasons. And while most of the buying HOT AC community still opposes consol- 1. Five years ago, most radio AMONG AVID FANS :t. COLVIN Sunny Came Home (Columbia) MOVIE SHAWN idation (check out the interview stations were losing money. AC with the ad agency exec. on page They were paying incredible 45% are heavy radio listeners MICHAEL BOLTON Go The Distance (Columbia) 16), no one has thus far managed overhead for talent, research, to find an instance of a station equipment, etc. Duopolies al- 39% are heavy television viewers ACTIVE ROCK raising rates or CPPs by brute lowed for economies of scale, COLLECTIVE SOUL Listen (Atlantic) readers force alone. And now, here's a through consolidation. That 37% are heavy newspaper means stations could put more ROCK voice in the buying community are heavy cable viewers money back into programming, 32% WALLFLOWERS The Difference (lnterscope) that comes to the defense of ra- dio industry consolidation. It was promotion, research, and all t o ALTERNATIVE addressed to the online /fax news- things that help my clients have C THIRD EYE BLIND Semi -Charmed Lite (Elektra/EEG) a better environment to advertise letter RADIO -MEDIA in re- '(Those who usually see a movie within 2 weeks of opening) sponse to a reader's request for in. Mergers and consolidations ADULT ALTERNATIVE Source: Simmons Spring '97, 18+ adults and WALLFLOWERS The Difference (Interscope) information about rates CONSOLIDATION /See Page 16 NEWSSTAND PRICE $6.50 Up -To- The -Minute Spring '97 Arbitron Results: www.rronline.com sou Featuring Diana King "I Say A Little Prayer" MY BEST FRIEND'S 7p)eSS.14,2_57- Soundtrack also includes Ani DiFranco, Jann Arden, Tony Bennett, Amanda Marshall, Mary Chapin-Carpenter, Nicky Holland, Sophie Zelmani and classics from The Exciters, Jackie DeShannon and Jimmy Soul. Sales Breakouts! Virgin Megastore - LA #4 Tower - Long Island #4 Wherehouse #5 The Wall #11 Circuit City #29 Tower - San Francisco #4 Tower Sunset #5 Fret Never 420 Target #30 HMV - 72nd & Broadway #4 Virgin Megastore - NYC #5 Strawberries #20 Musicland #32 (up 44%!!) SONY MUSIC SOUNDTRAX Transworld #8 National Record Marl #22 and growing! WORK Saundtrzck Executive Producers: Glen B-uarran and Eonnie Greenberg -WOW" sa tr den., Lcuy Entert.r.c. LncJ Ie.q Snny In!, e L Jup,le[ R &R ISSUE NUMBER 1205 PA GE THREE Kaltman Upped To JULY 11, 1997 Rock 'N' Charity Atlantic Exec. VP Atlantic Records has elevated Sr. VP and Big Beat Records founder Radio Business 4 Street Talk 26 Craig Kaltman Business Briefs 4 Sound Decisions 34 to Exec. VP /Of- Transactions 6 Nashville 60 fice OfThe Chair- Management 14 man. In his new Sales 16 Marketing & Promotion 18 post, Kallman - Opportunities 101 who discusses his Show Prep 21 Marketplace 104 new role exten- 'line Scene 21. sively in next National Video Charts 22 week's Sound De- cisions column - & CHARTS now will official- FORMATS ly oversee the dai- Kallman Hot AC Chart 73 ly operations of News/Talk 32 Pop /Alternative 36 NAC /Smooth Jazz 76 Atlantic's A&R department. Last weekend was the celebration of the T.J. Martell Foundation's 15th CHR 39 NAC /Smooth Jazz Tracks Chart 78 "Since joining the Atlantic fami- anniversary. Among those joining the jubilee were (I-r) WRAT/Monmouth- CHR Callout America 37 NAC /Smooth Jazz Albums Chart 80 ly six years ago, Craig has played Ocean & WDHA/Morristown, NJ Dir. /Rock Programming Lenny Bloch, /Pop Chart 40 Rock 82 an increasingly important role in KNCN Corpus Christi, TX PD Kelli Cluque, KRXQ/Sacramento Station CHR /Rhythmic Chart 47 Active Rock Chart 83 charting our creative course," Atlan- Manager and Martell Foundation "From The Heart" Award recipient Cur- CHR tiss Johnson, KRXQ APD Pat Martin, The Promotion Dept.'s Kenny Ry- Hip -Hop Chart 48 Rock Chart 86 tic Group co- Chairman Val Azzoli back, KRXQ MD Kylee Brooks, and "free agent" David Fleishman.
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