Singleton radio network ready for crack at Melbourne
JOHN SINGLETON'S Macquarie Radio Network will finally detail its plan next week to crack the Melbourne radio market. It comes as radio industry sources say the former adman is looking to bolster the company before selling it.
Macquarie Radio's expansion comes at a frantic time for radio: Lachlan Murdoch is taking a hands-on role in his $110 million investment in Nova and the Vega parent, DMG, and all the major operators have new chief executives and format changes under way.
JOHN SINGLETON'S Macquarie Radio Network will finally detail its plan next week to crack the Melbourne radio market. It comes as radio industry sources say the former adman is looking to bolster the company before selling it.Macquarie Radio's expansion comes at a frantic time for radio: Lachlan Murdoch is taking a hands-on role in his $110 million investment in Nova and the Vega parent, DMG, and all the major operators have new chief executives and format changes under way.The executive chairman of Macquarie Radio, Russell Tate, confirmed details would be revealed next week about its plans for a Melbourne talk station in partnership with Pacific Star Network.Pacific Star owns AM stations SEN and 3MP. At least two on-air personalities would be named, but Mr Tate would not confirm their identities.There has been speculation for a month that the former 2UE announcer Steve Price would be part of Macquarie Radio's cast in Melbourne.The chief executive at Fairfax Radio, Graham Mott, said yesterday that Price had asked for an early release from his contract this week, but Fairfax Radio had declined. His contract ends on February 28.A radio industry source said of Mr Singleton: "He's has been trying to sell 2GB and the Macquarie Network for four years." The source said the latest unsuccessful attempt was in the middle of last year."That's just bullshit," Mr Tate said. "If Singo's been any place trying to sell Macquarie I don't know about it."It's not part of any planning I know of, but our competitors are very wise people, so they would know many of these things."The industry is shaping up for some intense competition: there are new chiefs at Austereo (2Day and Triple M networks) and Australian Radio Network (Mix and Classic Hits FM) aiming to revamp their stations and increase revenues.Australian Radio Network's new Irish import, Ciaran Davis, previously commercial director at the European radio network Communicorp, said the health of the Australian radio industry was striking compared to Europe, where in some countries radio network revenue was down 40 per cent. The British market was down 25 per cent, he said.Australian radio fared relatively well through last year's economic upheaval: the $520 million industry contracted about 3 per cent.Mr Davis said the March quarter for Australian Radio Network would remain tight but he forecast revenue growth of 2.5 per cent for the rest of the year."Australia is just at the other end of the scale to the radio business in Europe," he said."We've made a lot of changes to [Australian Radio Network] and it's just a question of tweaking that and bringing a little more innovation into how we deliver product to our listeners."There won't be anything dramatic. I think the first quarter will be a bit tight, but we'll see a bit of growth in the mid to back end of the year - about 2.5 per cent."Fairfax Radio's Mr Mott concurred. "We haven't really determined [revenue growth] yet but I think 2.5 per cent would be the minimal increase we're looking at," he said.
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