Katz re-opening Eastman Radio
RBR/TVBR sources on the playing field with Katz Radio Group confirm that Eastman Radio Reps will be back in business with Tucker Flood running the show. Reason: To accommodate what some big clients see as problems at Christal Radio, which is part of the Clear Channel/Katz Media empire. The group owners - - including Saga, Cox Radio, Citadel, Fisher and Nassau - - want more personalized service, control and attention.
This move has not been officially announced, but it seems to be a first step in attempting to placate these major client groups, who would really prefer that Clear Channel spun-off the independent radio rep firms to the clients, making them truly independent and leaving only Clear Channel Radio Sales at Katz as an in-house rep firm for the giant radio group.
The rep client groups had been pressing the idea of a spin-off last year, when Katz Radio Group was rattled by a mass staff defection to Interep, although it ended just a few days later with everyone returning to KRG. At that time (11/20/04 RBR #228), Clear Channel President and COO (now CEO) Mark Mays told RBR/TVBR Publisher Jim Carnegie that he wasn't inclined to sell the independent radio rep firms.
"That has always been talked about for years and years and I think, ya know, if it ever becomes a long term plan that creates an opportunity for other companies to have ownership positions in the rep firm, we would look favorably on that....we're not opposed to that ....we're very focused ...I think, though, on what's best for the industry and how we all get radio's share of the dollar - - and that's what we always need to focus on is what's the best structure of doing that. Obviously that's what we're focused on because if the industry grows faster then we're gonna grow faster, so that's really what is really the best thing for the industry," Mays said last year.
Pressed on the issue, he insisted, "We are not selling anything - - period. And if some time in the future we sit down with the group heads discuss ways that are better for us to sell, to sell the whole industry, then we will address that at that time," Mays concluded in that November 2003 conversation.
So, what happens at Christal as Tucker Flood moves over to head the reborn Eastman?
We hear that Christine Travaglini, VP/General Sales Manager, Christal Radio will take over for Flood.
None of this has yet been confirmed or announced by Katz Media Group. All KRG spokesperson Anne Kenney will say is, "Katz is considering a third radio rep firm at this time, but nothing has been determined."
RBR observation:
Now the brouhaha. We have found out about this and told you, our readers, about it in yesterday's afternoon Media Mix - - apparently before KRG honcho Stu Olds had contacted all the groups involved. Next, we learned from sources that the Eastman reopening will happen, but what is slowing down the second part of the process is an internal fight over people - - just what managers and sales people will go to Eastman. After all, the clients have demands on these people at Cristal who are performing for them and bringing in the dollars every day. Remember, back in the great rep walkout of 2003, it was the frontline people who walked over to Interep from Katz in the first place that got the radio industry's attention, not the top managers - - because the people working in the trenches are the day to day producers for the rep firms' clients.
Are you reading this from a forwarded email?
