CBS Radio/Infinity Broadcasting | Principles & Practices

CBS Radio – Courtesy of SportsMediaJournal.com

by Elgin Panetto

The media conglomerate known today as CBS Corporation Inc. was created in 1927, when a talent agent named Arthur Judson started his own radio network in order to showcase his own roster. He named his newly created network United Independent Broadcasters, but after a crippling amount of debt was accrued sold it to a man named William Paley for $400,000. [1] Columbia Broadcasting System, or CBS, has gone on to become one of the largest media companies in the world, with ventures in TV, Film, and Radio. In 2006 Viacom Inc., under the leadership of Sumner Redstone, decided to break up its entities to discontinue the age of media conglomerates and improve stock performance. During the split previously named Infinity Broadcasting, with their 179 stations at the time, was renamed CBS Radio and became a part of CBS Corporation under the leadership of Les Moonves. [2]

Company Overview:

CBS Radio currently holds 127 major market radio stations in 28 major markets throughout the United States of America. CBS Radio station formats run the full gamut including news, sports, talk, rock, country, Top 40, classic hits and urban. [3]

CBS Radio’s radio personalities attract almost 70 million weekly listeners. One of CBS Radio’s greatest strengths is their attention to on-air talent, in an age of radio where more automation usually means more dollars. In a recent interview with CBS Radio CEO Dan Mason, he explains the importance CBS Radio puts on the personalities who speak between playing music. “I don’t think the temptation is there to extract talk to add more commercials, the temptation is there to extract talk and thinking that was the clear pathway to get ratings. I believe that there is a fine line, a balance, that can’t be tilted to one side or another…” The rest of that interview with Mark Ramsey can be seen below:

CBS Radios Dan Mason on Radio’s Brands and its Digital Future from Mark Ramsey on Vimeo.

As stated before, CBS Radio stations can be found in 28 different major markets. In many of those markets CBS Radio finds itself with the #1 total rating. The list below, provided in the CBS Corporation 3^rd quarter 2012 Investor Newsletter, shows CBS Radio’s strong performance regarding revenue in some of the largest markets in the country.

CBS Radio Revenue Ranking in Top 10 Markets
New York No. 1
Los Angeles No. 2
Chicago No. 1
San Francisco No. 1
Dallas No. 3
Houston No. 2
Philadelphia No. 1
Atlanta No. 2
Washington, D.C. No. 3
Boston No. 1
[4]

In each of those markets, CBS Radio’s high arching influence over both music and talk format stations can be easily seen. Below are just some of CBS Radio’s most influential channels across the United States.

WCBS-F in NYC
WCBS in NYC
WINS in NYC
KRTH in LA
KROQ-F in LA
KCBS in SF
KYW in Philly

[5]

Executives

CBS Radio has been led by President and CEO Dan Mason for a total of 12 years. Mason started his position at the helm of CBS Radio in 1995 and continued until 2002. After a brief hiatus he returned as CEO in April of 2007. Mason has championed CBS Radio’s industry leading foray into the digital realm. As a keystone speaker at the 2011 RAIN (Radio and Internet Newsletter) Summit Dan Mason talked heavily about CBS Radio’s entrance into digital media, pointing out CBS Radio’s involvement streaming through Radio.com and Last.FM. He also noted that the profits are not coming yet, but success through digital streaming services will come in the long term. [6] Due to his outstanding leadership of CBS Radio, Dan Mason was awarded the National Radio Award in 2012 by the National Association of Broadcasters. [7]

Dan Mason – Courtesy of CBSRadio.com

Finances

CBS Radio’s performance, as a subsidiary company of CBS Corporation Inc., attributes to the stock performance of CBS Corporation Inc.. At the close of the New York Stock Exchange on December 5, 2012 CBS Corporation Inc. was trading at $35.43 a share. [8]

CBS Radio Stock – Courtesy of marketwatch.com

With $5.33 Billion of reported gross income in 2011, CBS Radio saw an increase of $.82 Billion over their reported gross income the previous year. After a steep drop from 2007 to 2009, CBS Radio has steadily increased gross income to the point of surpassing their 2007 mark. [8]

Recent Events

There have been many news-worthy moves by CBS Radio recently, whether it be format changes, new stations, acquisitions, or partnerships.

WODS 103.3 Format Change

At the end of the summer, WODS-FM in Boston changed formats. The switch moved the station from playing hits from the 60s-80s to yet another contemporary hits radio station, or CHR format. CBS Radio Market Manager in Boston Mark Hannon stated, “When looking at the habits of Boston radio listeners, it is clear the music most favored by the biggest group of people is contemporary hit music.” [9] The most recent ratings made available by stationratings.com have WODS-FM as the 12th most popular radio station in the Boston market. [5]

CBS Radio News receives Murrow Award

This past October the RTDNA (Radio Television Digital News Association) awarded CBS Radio News its fourth consecutive Edward R. Murrow Award. CBS Radio News was given the award due to excellence in broadcast and online journalism. At the awards CBS Radio News correspondent Cami McCormick, who was injured while reporting in Afghanistan, accepted the award for all of CBS Radio news. [10]

Edward R. Murrow Award – Courtesy of HuffingtonPost.com

CBS Radio steps up Hurricane Sandy relief efforts

In the aftermath of Hurricane Sandy, and the immense damage done to the east coast, CBS Radio used its vast resources and connections in the Music Industry to organize celebrity endorsements for donations to the American Red Cross. Some of music’s biggest stars such as Usher, Katy Perry, Carrie Underwood, Keith Urban, and Kenny Chesney recorded messages imploring audiences for donations. Usher’s public service announcement can be heard HERE. [11]

CBS re-ups contract with the Chicago Bears

For 13 years WBBM Newsradio in Chicago has been the exclusive provider of Chicago Bears live play-by-play announcement. The Chicago Bears have granted CBS Radio an extension of the companies exclusive rights to do the football team’s radio broadcast. The Bears have one of the largest fan bases in the entire sport, a size reflected by the astounding five CBS Radio stations that will simulcast each and every Bears game. [12]

Chicago Bears – Courtesy of RadioInk.com

CBS Radio buys 101.9 WRXP in New York

In early November CBS Radio announced the purchase of 101.9FM in New York, NY from Merlin Media for the sum of $75 Million Dollars. CBS Radio purchased the station in order to begin simulcasting WFAN on the higher definition 101.9FM. WFAN became the first ever all-sports talk station in 1987, and has pioneered the now insanely popular and lucrative 24/7 sports radio news cycle. WFAN houses many of sports radio’s biggest stars, including Boomer & Carton, Mike Francesa, and Joe Benigno. It also is the sole broadcaster of the Super Bowl champion New York Giants, New York Mets, Brooklyn Nets, and New Jersey Devils. This move by CBS Radio signals a response to ESPN NY’s recent decision to simulcast on 98.7FM. [13]

WFAN Logo – Courtesy of newyork.cbslocal.com

CBS Radio announces launch of CBS Sports Radio Network

Perhaps the biggest news in the radio industry in the past few months has been CBS Radio’s announcement of CBS Sports Radio. In their press release the company called the newly created station, “the largest major market sports radio network in the nation.” The network will launch on January 2, 2013 in at least eight stations full time. At the time of the announcement the station was reported to be carried part time in 14 more stations, and through a distribution deal with Cumulus Media Networks an additional 47 Cumulus stations. [14] Since then it’s been announced that the station will be on around 100 stations, with a reach of about 10 million households. While its estimated that ESPN Radio will continue to dominate with 350 full time stations in 30 million households, Dan Mason stated, “ESPN affiliates are in small markets. Maybe you find that adds up to a lot of audience.” [15]