CC Radio to become a major Hispanic radio player

A source alluded this was coming yesterday (9/15 RBR Daily Epaper #180):

Clear Channel Radio has now announced an expanded commitment to Spanish-language programming with an aggressive, multi-market initiative aimed at converting stations across a full range of market sizes to Hispanic formats. Under the plan, some 20 to 25 stations will be converted in the next 12 to 18 months alone. Leading the initiative will be long-time Spanish-language radio vet Alfredo Alonso, who was named to the newly created position of SVP/Hispanic Radio.

"The Hispanic radio audience remains largely underserved, especially outside the largest markets," said John Hogan, CC Radio CEO. "We have a unique opportunity to participate in this rapidly growing, important sector and are committed to creating the highest-quality offering in the market. Alfredo helped create Spanish-language radio more than 15 years ago and his expertise will ensure we deliver the highest-quality programming for this audience."

"It's a momentous day for the Spanish radio industry," said Alonso. "While the strides made in serving the Hispanic radio market have been significant to date, this represents an evolution in Spanish-language radio. My focus will be on identifying opportunities to bring Spanish language radio formats to all-sized markets, with unique radio stations that are as diverse as the Hispanic market itself."

Under the plan, CC Radio will significantly expand choice and availability, complementing existing Spanish-language programming in markets that currently offer Hispanic radio while introducing unique programming to markets that do not.

The first station to be launched - WWVA-FM 105.3/WVWA 105.1-FM, VIVA in Atlanta - will focus on Spanish contemporary music. With this initiative, CC Radio will explore a wide array of Hispanic formats, including Regional Mexican, Tropical and Contemporary and others. CC Radio currently carries Spanish-language programming on 18 stations across the U.S.

RBR observation:
Look out SBS, Univision and Interep, which carries a Hispanic network. The largest broadcaster can no longer place on the back burner what is the most significant population and demographic shift in the history of the US. The Hispanic market demands attention and Clear Channel is now paying it. Spanish-language FMs are indeed the next wave in radio programming in smaller large markets, medium markets and eventually small markets across the country (not just the SouthWest). The population is in nearly every market now to deserve it.

If you do the math on how network radio gets sold vs. spot radio, if you normally pitch a network and you've got deficiencies in certain markets, there's nothing you can do about it. Hopefully your network still gets bought or you have to negotiate a price or whatever. Using this scenario with CC O&Os, they can go and pitch their Premiere Spanish Network or whatever they want to call it, and any deficiencies they've got, they can in turn use their O&Os to make up the deficiencies and set any kind of pricing they want to - - because they own the stations. You might have a station in Washington DC that's a News/Talk or AC and maybe they get $800 or $900 for a :60 spot. Well if they're on a network - - whether it's Premiere, ABC, Westwood, AURN or whatever - - you could have anywhere from a 20 to 40 dollar network rate for your network inventory in that market. For the Hispanic, CC/Premiere, for their O&Os where they've got deficiencies, they can now use those O&Os bigger than ever so that when the network buy comes down and the network buyer says, "I want to buy your network, but I've got these 20-30 markets I really need some local promotion in," they can now simply say, "Fine, our affiliates in other markets will be able to execute for you now. So you can still buy the network and we have the O&Os to fulfill that need."

Since they will soon have the flexibility to do that, the SBSs or Univisions will not have that same opportunity unless SBS wants to get into the wired network business. Interep, through its Hispanic network, has already been doing some network business for SBS. Perhaps that relationship will now become much stronger.