Radio One Reports Loss, May Sell Non-Black Sites
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:
“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.”
Sounds like MiGente.com, AsianAvenue.com and GLEE.com maybe on the chopping block.
Category: Strategy, web 2.0 | Tags: black planent, community connect, InteractiveOne, radio one, RadioOne
I was on the call and was disappointed when I heard him say that. There’s potential with the other sites, they just need to find the right people to manager them. I purchased shares earlier this year and it took a major hit yesterday. I’m going to stick with them because I bought in at a low price. I hope TV One will do well in the next year.
what a dangerous road to go down when all signs point to the increase of online advertising and mobile advertising. Radio One is silly to even consider ditching a Latino site when the Latino marketing is what every advertiser is after thess days. And sorry you can’t just be a “black company” any more these days. That limits your earning potential…everyone has to realize that the true money is overseas. Radio One is not equipped to go get it.
Not one to say i told you so but I TOLD THEM SO. Instead of being a great radio company they have said over and over and over they need to be a media company to compete haHAHA pleasssee if they cant capitalize on their own initial industry how the heck are they going to come online and capitalize and i know the management/owners at Community Connects so i guess there will be a serious disconnect if they do decide to sell off the other properties – CC worked well because they were able to offer advertisers all 3 communities -AA, Asian, Latino that is the new majority sooner than 2050 so you had/have a one stop shop. But ssssssh hopefully Al wont read this and he will continue down the same road towards self destruction.