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Citadel and Clear Channel: Impact on Tucson
Radio's New Sound
Media giants' entrance changes local stations' 
playing field, rules
Reprinted from
The Arizona Daily Star
Thursday August 9, 2001
By Tiffany Kjos
The Arizona Daily Star
It's happening around the nation and it's happening in Tucson: Media giants are gobbling up radio stations, intensifying competition for listeners and advertising dollars.

When Jim Slone sold his five stations to Citadel Communications in December, it was the last family-owned block in Tucson.

Since then, the radio landscape has been altered by format shifts, a new frequency, and a changing of the guard at two popular morning shows.

"That's what happens when the competition gets to this level," said Tony Ford, general manager of KXCI (91.3-FM), a community radio station. "This is exactly the pattern in every other market when large groups buy stations."

Most recently, Clear Channel Communications, which owns or operates more than 1,400 radio stations, 19 TV stations and 700,000 outdoor advertising displays, bought KOHT (98.3-FM) and KTZR (1450-AM) and signed a joint sales agreement with KXEW (1600-AM). That gives Clear Channel, which owns the outdoor advertising firm Eller Media Co., six stations here.

"If I were going to be dictator of the United States, I would want to own Clear Channel or be on the board of directors," said Michal Beverly, a Pollock Advertising media buyer.

The other big radio companies in Tucson, Journal Broadcast Group and Arizona Lotus Corp., own four stations each.

Todd Lawley, general manager of KRQQ (93.7-FM) and KOHT (98.3-FM) and director of sales for Clear Channel stations in Tucson, said radio has been changing since six years ago when the FCC relaxed the laws regarding how many stations a company could own in a market. In Tucson, the cap is seven.

But Jamie Slone, general manager of Citadel Communications in Tucson, attributes the shifting here to Clear Channel.

"Much of what we've done is react to moves made by the competition," Slone said. "The reality is, Clear Channel is not only doing stuff here but all across America that is causing all kinds of broadcasters, including ourselves, to make strategic moves to defend ourselves."

Lawley said Clear Channel isn't planning any more changes now, but he also acknowledges that it is unusual to make plans public.

"It's like a chess game. You don't want to kind of tip off what you're doing," he said.

Just ask Jim Cooley, general manager of Arizona Lotus Corp.

This spring Cooley announced the company would introduce a new country music station on a new frequency, at 101.9-FM. But before the station went on the air, Clear Channel replaced its oldies station at 92.9-FM with a country station, KOYT, and moved the oldies station to 97.1. Then Citadel replaced its smooth jazz station, KOAZ (97.5-FM), with a country station.

Citadel owns KIIM (99.5-FM), which has long reigned as the No. 1 station in Tucson. Citadel's KCUB (1290-AM) was the fourth country station here until it changed to sports talk late last month.

People familiar with the industry say the market can't support three country stations, so one will have to go.

"Prior to this year there was really little duplication of formats because there were so few stations," said Cooley, who predicts that someone will bring back the cool jazz format Citadel abandoned when it turned 97.5-FM into a country station.

Beverly, the media buyer, said the response to that format change has been negative.

"I don't think they really realized how many people listened," she said. "It was even on in the post office when I went in."

Media buyers - who are paid to help their clients get the biggest bang out of their advertising buck - find it difficult to keep up with all the changes.

"Buying radio in the Tucson market is like an Abbot and Costello bit: 'Who's on first?' " said Carol Mikel, a media buyer at Moret Advertising.

Lawley, of Clear Channel, said the Tucson radio market has simply grown up.

"For the size of this market it was very under-radioed, which means there weren't a whole lot of radio stations here. There was basically one of every format," he said. "Now it's a $40 million market, which makes it a pretty significant market as far as revenue goes across the country."

Katrina Noble, media director at Michael Bolchalk Marketing and Public Relations, said there are advantages and disadvantages to dealing with companies that own multiple stations. On the upside, they can put together advertising packages for her clients. On the downside, "it's all mandated by corporate decisions," she said.

"Sometimes you don't have the freedom that you had with a smaller-owned group. Sometimes they're not as flexible. There's a lot more structure and they're more interested in the bottom line."

KXCI's Ford said the homogenization of radio is inevitable. More and more stations are turning to syndicated shows, he said, and soon Tucson radio will sound like Phoenix radio.

"And that is a wasteland. It is an empty void."
 

For More Information Contact:
Katrina Noble

520-745-822
katrina@adwiz.com

 
 
info@adwiz.com
 
Michael Bolchalk Marketing
Advertising Public Relations
326 South Wilmot Road, Suite C-200
Tucson, Arizona 85711
Tel: 520-745-8221 • Fax: 520-745-5540
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