Source Washington Post
Maybe Radio One’s spending habits are starting to catch up with them, as they reported an $11.7 million second-quarter loss. The company stated losses were due to a weaker radio advertising market, and their expanded Internet efforts. Average radio ad prices were down 5 percent as budget-conscious companies have tightened up and shifted spending to the Web. Radio One officials said they expect the market to continue to soften and have been concentrating on the company’s web presence.
During the earnings call, CEO Alfred C. Liggins III focused on Radio One’s online growth strategy which involves their original black targeted content websites, as well as the acquisition of Community Connect for $38 million all under the heading Interactive One.
“Online is the fastest-growing ad category right now,” said Liggins. “I believe it will be a growth driver into the future. It’s also part of our diversification strategy because ultimately I believe our future is in being a black media and content company, and not just a radio company.”
During the conference call Liggins was asked whether or not he would consider selling off the content that is not focused on African-Americans. To which he responded:
Category: Strategy, web 2.0 | Tags: black planent, community connect, InteractiveOne, radio one, RadioOne
“We’re exploring what options there are . . . to match up the Latino sites with a network of other Latino sites…We’re a black media company at the end of the day,” he said. “Everything we have that’s not black-targeted is up for discussion.”