Entravision’s Replacement Format May Aid Clear Channel
By DARRELL SATZMAN
Staff Reporter
Fans of alternative rock received an unexpected gift on Christmas Day when Entravision Communications Corp. abruptly switched off its pop dance format on KDLD-FM and KDLE-FM in favor of a lineup featuring bands like Pearl Jam, The Offspring, the Cure and the Beastie Boys.
The two stations, based in Santa Monica and Newport Beach and which share the 103.1 frequency, were running commercial-free last week with occasional breaks to promote their new identity “Indie 103.”
But Entravision, which has yet to announce the format flip, isn’t acting out of a love for rock ‘n’ roll.
The Santa Monica company, which owns 58 radio stations and 42 television stations, most with Spanish-language programming, has struggled with the new pop dance format that was supposed to attract bilingual Hispanics.
To pull off the switch to an edgier rock lineup, Entravision has brought in broadcasting giant Clear Channel Communications Inc. to sell advertising. Terms were not disclosed, though one source with knowledge of the deal said Clear Channel would pay Entravision a flat fee for all the ad time on both stations, which it would then resell. The companies would split evenly any revenues after sales exceeded the fee amount.
Entravision will retain ownership of the stations, and under Federal Communication Commission rules it is responsible for programming.
A spokeswoman for Entravision confirmed the deal, but otherwise declined comment, saying that company officials were unavailable.
Clear Channel Los Angeles Market President Roy Laughlin said his sales team would begin selling ads to run on the two stations on Jan. 5.
“It’s an opportunity for us to sell more time,” said Laughlin. “We’re excited about offering this new product to our advertisers.”
Motivating factors
Last January, Entravision introduced the pop dance format on KDLD and KDLE after shifting its “Super Estrella” Spanish-language pop format to three L.A. market stations it acquired from Big City Radio Inc. in a $137.8 million cash and stock deal in December 2002.
Entravision said that the change was a bid to capture some of the many bilingual Hispanics in Los Angeles who tune to English-language radio.
But lower-frequency KDLD and KDLE are based in Westside communities where the concentration of Hispanics is lighter than in other areas of the market, which includes all of Los Angeles and Orange counties. The stations’ limited reach means it can be difficult to pick up the signal in the San Fernando Valley and eastern portions of the market.
KDLD and KDLE, which carry the same programming, earned a combined 0.9 rating in the most recent Arbitron Inc. rating period, making them 34th out of 45 local stations to register in the survey.
Because Entravision’s other local radio stations air in Spanish, the company was left to sell the 103.1 broadcast as a standalone property.
While Laughlin said Clear Channel’s interest in the deal was based solely on a desire to earn more revenue in Los Angeles, other factors may be at play.
With seven stations in the market, including the highly rated trio of KFI-AM (640), KIIS-FM (102.7) and KOST-FM (103.5), Clear Channel is unable to acquire any more local signals until the FCC relaxed ownership rules.
Don Barrett, who runs the Internet site LARadio.com, speculated that Clear Channel was eager to see increased competition with Infinity Broadcasting Corp.’s KROQ-FM (106.7), one of the market’s most popular stations and the closest in terms of its programming to Indie 103.
Clear Channel does extremely well attracting women listeners in Los Angeles but has been less successful with the young men that alternative rock formats tend to attract. “If you take a half point or a full point from KROQ, maybe it can help you get KIIS back on top,” said Barrett.
KROQ officials did not return phone calls.
Laughlin denied that the erosion of KROQ’s listenership was an objective.
“People have been saying that and everyone is entitled to their opinion,” he said. “But we’re just excited about selling more time.”
Entravision Communications Corp.
Business: Owns 58 radio stations,
42 television stations, and 11,400 billboards
Headquarters: Santa Monica
CEO: Walter Ulloa
Local Assets: Radio stations KSSE-FM (97.5), KLYY-FM (107.1), KDLD-FM and KDLE-FM (103.1)
