JANUARY 29, 1999 I N S I D E 500 Jobs Lost In Initial Phase Of Universal Restructuring BY STEVE WONSIEWICZ Anderle, Sr. VP /Creative Servic- management c marketing sales R &R MUSIC EDITOR es Jeri Heiden, Sr. VP/Publicity Baron, Sr. VP/Marketing WRTS /Erie, PA Promotion Dir. Matt The reality of consolidation in Diana & Artist Development Morty Sharer has been in the radio business for the record industry hit home last the ini- Wiggins, Sr. VP/Urban Promo- a grand total of one month. While the week, as Seagram began an- tion Dave Rosas and Sr. VP/Pro- circumstances of his getting his job are tial phase of its previously of the motion Peter Napoliello. Key interesting (you can read about it in the nounced restructuring Universal Music Group. Over A &M personnel who remain are story), he now has to put up or shut up. a two -day period, Universal fur- New York -based VP /Publicity To help him get a running start, MMS loughed some 500 employees, Steve Karas; Los Angeles -based Editor Jeff Axelrod paired Matt up with with the biggest cuts occurring at VP/Publicity Laura Swanson; Sr. WKTU /NY Dir. /Marketing Don Macleod for A &M Records (about 170 of VP /Sales & Distribution Richie mentoring. Jeff some one -on -one 200 employees were let go) and Gallo, who will assume a cata- eavesdropped on the conversation, and Geffen Records (110), as the log post at Universal Music & you can read the first part of a two -part Chancellor Goes On The Block company folds the two legendary Video Distribution; and Sr. VP/ article this week. Also: Management Angeles -based A &R John McClain. Clear Channel's the clear favorite in the labels into Los expert Dick Kazan with tips on how to Interscope Records. Another 200 Geffen: Chairman/CEO Ed hang on to your job during consolidation, bidding, but sources say Disney's in the hunt were fired in New York. Some Rosenblatt, President Bill Ben- how one station snagged a major 250 acts also are expected to be nett, Head/Promotion Bob Cata- insurance account, and our regular BY JEREMY SHWEDER ing the Jacor merger), mostly in released from their recording nia, Head /A &R David Simone, R &R WASHINGTON BUREAU website feature, Finger- Clickin' Good! markets outside the top 10. contracts over the next several Head /Sales Jason Whittington Pages 10 -14 Chancellor Media dropped Most analysts figured that an months. and Head /Marketing Robert the bomb that rocked the radio Infinity -Chancellor combo Among the senior executives Smith. Peter Baron segues to In- world last week, as the multime- would cause too many head- terscope as Head/Video Promo- MARKETING THEME ISSUE exiting were: dia company's largest financial aches with the Department of A &M: President/CEO Al radio marketing Our semiannual review of backer, Hicks, Muse, Tate & Justice's antitrust police to be Cafaro, Sr. VP /A &R David UNIVERSAL/See Page 19 is spread throughout this issue. Check Furst, announced that the in- plausible. But other potential out these topics: dustry's revenue bidders could be was up for networks ABC Is TV marketing worth it? Page 22 leader sale. "In my mind, Clear and NBC, which Building the Y2K But once the Channel remains the may be eyeing marketing director Page 40 dust settled from front- runner. If I were a Chancellor's TV Jan. 20 an- Chancellor shareholder, properties. Or, as L.A.'s community feels the nouncement, the I'd be rooting for some Chancellor every 'Beat' Page 52 pressing question someone else to come in executives hint- Creating "Passion Marketing" Page 62 was; Who would here and make the deal a ed, the company be the buyer? little bit more of a could look for a A former radio promotion Industry be- competitive process." buyer outside the director crosses to TV Page 73 hemoths Clear -simlyst Jams Minch media world. Stealth marketing, the Channel Commu- "Anything is possible," Chan- difference between a two nications and In- cellor CEO Jeff Marcus said last share and a five Page 79 finity Broadcasting emerged first as potential buyers. The strength week about the sale, and most Marketing agreements, of Chancellor's holdings in the Chancellor executives are sticking fan passion Page 86 top markets - the two -year -old to the company line. Still, some all within the industry have speculat- ... And He Read The Issue Religiously Hot Zips and the workplace Page 92 company owns clusters in of the nation's top 11 markets, in- ed that a deal has been hammered With the pope on his way to St. Louis, CHR KSLZ created mass Proper prizes for cluding five stations in New out for which the financial terms hysteria by finding a John Paul II look -alike to be "Z Pope" and parad- loyal listeners Page 103 York, five in Los Angeles and are not final, and that the public ing him around town. Of course, when he dropped by the station, the seven in Chicago - makes it announcement of the sale is an first thing he wanted to do was read the industry's bible. Looking on compatible with Clear Channel, attempt to drive up the price. are KSLZ PD Jeff Kapugi (I) and MD Rich Stevens. which owns 454 stations (pend- 27 THIS # WEEK CHANCELLOR/See Page CHR/POP DOLLS (Warner Bros.) Woods To Manage GOO GOO Slide Sony/Nashville Ups Radio Enacts `Vision' Plan CHR/RHYTHMIC Lameier To Sr. VP/ Groups look ahead to the `year of operation' Chancellor/Phoenix BRANDY Have You Ever? (Atlantic) BY AL PETERSON Country Promotion BY MATT SPANGLER executives have a view as to R &R NEWS/TALK EDITOR URBAN R &R WASHINGTON BUREAU what they want the new bank R. KELLY When A Woman's Fed Up (Jive) BY LON HELTON Chancellor Media has named R EDITOR to look like and the potentials &R COUNTRY If February '96, when the former Nationwide Commun- URBAN AC Act was under which they want it to Epic/Nashville Sr. VP/Nation- Telecommunications ications VP/ DEBORAH COX Nobody's Supposed To Be Here (Arista) passed, marked the beginning operate. As soon as you set al Promotion Jack Lameier has Radio Clancy this that out, you make sure all been elevated of blending for radio, then Market COUNTRY your decisions are aimed at Woods to the newly year might go down in histo- for JO DEE MESSINA Stand Beside Me (Curb) achieving that vision" Manager created Sr. ry as the year the consolida- its eight -sta- frenzy tapered off and the Chancellor Media Presi- AC VP/Country tion tion cluster in I'm Your Angel (Jive) Operation began. dent /CEO Jeff Marcus R. KELLY & CELINE DION Promotion Age of Phoenix. In the another agrees: "If you're going to post for Sony Looking across to newly created HOT AC a culture in an organi- Music/Nash- industry also in a furious con- create SARAH McLACHLAN Angel (Warner Sunset/Reprise) zation, you have to create a position, ville. He will solidation cycle, there's often Woods will adjust- mission statement." Chancel- NAC/SMOOTH JAII oversee all of a two- to three -year oversee man- ment period for merging fi- lor, he says, is all about sell- WALTER BEASLEY I Feel You (Shanachie) the promotion of the ing the multiplatform behe- agement Woods teams for the nancial institutions, says Jim company's ROCK who in moth of 465 radio stations, labels' Co- Marpe, specializes News/Talk KFYI -AM, Country BLACK CROWES Kickin' My Heart.. (American/Columbia) Lameier 36,000 billboards and 13 TV lumbia, Epic, banking mergers and acquisi- KISO -AM, Nostalgia KOY- tions for Andersen Consulting. stations that it is assembling. ACTIVE ROCK Lucky Dog and Monument im- AM, CHR /Rhythmic KKFR- He points out that in order "We're learning pretty well EVERLAST What Its Like (Tommy Boy) prints; will be instrumental in the FM, Country KMLE -FM. Old- to ease the transition from a how to sell the cluster; now development of new artists; and ies KOOL -FM, NAC /Smooth ALTERNATIVE to a corporate culture, we have to learn how to sell will work directly with the VPs/ local Jazz KYOT-FM, and Alternative EVERLAST What Its Like (Tommy Boy) quick- the platform." Promotion at Sony's four Nash- "the best consolidators KZON -FM. ly create a vision. The senior VISION/See Page 16 ADULT ALTERNATIVE ville labels. WOODS/See Page 27 NEW RADICALS You Get What You Give (MCA) LAMEIER/See Page 27 DC! NEWSSTAND PRICE $6.50 Next week: The R&R Talk Radio Seminar '99 in Washington, www.americanradiohistory.com The first single from the upcom- e Elton John and Tim Rice's AIDA, the follow -up to th ti n u m The Lion King. e classic love story of all time, retold by the greatest musical superstars of our time. Featuring Boyz 11 Hen, Dru Hill, Heather Headley, Janet Jackson, Elton John, Lenny Kravitz, Lulu, Kelly Price, LeAnn Rimes, Sherie Scott, Spice Girls, Sting, James Taylor, Tina Turner and Shania Twain. Album Executive Producer: Phil Ramone Produced by Peter Collins for Jill Music, Ltd. and Wilbur Rimes. Recorded and mixed by John Holbrook Management for Elton John: Colin Bell & Frank Presland / Elton John Mgmt Ltd. Management for LeAnn Rimes: Wilbur C. Rimes & Lyle Walker / LeAnn Rimes Entertainment, Inc. t srzio Thcatrical Productions Ltd. www.americanradiohistory.com R &R ISSUE NUMBER 1284 PAGE THREE JANUARY 29, 1999 Swerling Spins To Hunnicutt Named PD At WGAR/Cleveland NEWS & FEATURES Warner Bros. As Clay Hunnicutt has together, and he's a really been named PD of good fit for WGAR:' Radio Business 4 Sound Decisions 34 VP/Pop Promotion Jacor's Country WGAR/ WUSY was the first sta- Briefs 4 Grammy Contest 38 Cleveland, effective Feb.