
4-5-2015
What is a radio company looking for, specifically a Hispanic radio company, in 2015 to attract today's more cautious investors? Leading the panel "Investment Strategy: Hispanic Media, Wall Street & Main Street" at the Hispanic Radio Conference in Dallas Thursday was managing partner at Sugarloaf Rock Capital Drew Marcus. The first question Marcus asked the panel dealt with capital, capital markets, and what kind of capital is available to Hispanic markets.
Blackstar Chairman/President/CEO John Oxendine highlighted tech and Hispanic buying power. "I've only dealt with small and medium operators," he said. "In the last five to 10 years we've seen a lot of consolidation. There is a certain magic that Spanish broadcasters have. We have a population, and, like the black population, it is very large." Oxendine continued, "Latinos have buying power in the $1 trillion range. That's pretty encouraging. What does that mean in regard to going into business? For us to be successful, we are going to have to get involved with the new tech, everything streamed, everything mobile, and create partnerships with folks that do that."
President and CEO of YouPlus Media Jeff Hinson noted, "The pace of change is increasing. The life cycle of companies is really shortening. Almost all conversations are more on centering strategy on digital. Broadcast and Spanish radio views the broadcast tower as a component of the value to bring advertisers and communities in on."
Hinson continued, "If you think about radio down two and a half, if you're going to buy, you have to buy the right multiple. Unless your able to redefine your model, that's where the business growth is."
The FCC came into focus from more than one of the panelists, stressing the importance of minority ownership and the FCC's role in encouraging that growth. Access Communications CEO Chesley Maddox-Dorsey said, "Diversity in media is still an FCC goal. Minority voices are important, and the best way to do that is to increase minority ownership. But access to capital is still a problem. We as Hispanic broadcasters don't have the same access to capital as everyone else does. I'm a big believer of increasing Hispanic ownership in broadcasting. The stations that have grown the best are the ones that have targeted the Latino population. We've got the talent, the product, now we need the capital."
Hinson said that syndication, distribution, and new media are extremely important in the Hispanic media market. He noted, "Concentrate on distribution, and look at new media to get your product across as many platforms. Focus on the talent, and bring the best talent to stations, with local relevance [being] extremely important. Your sales department needs to understand the local market too. Entravision is syndicating. We have to value our product. We have to make sure we value them, and value them properly. The most important thing to do is collect good people to operate as efficiently as possible."
John Oxendine went on to say, "Looking at the population trends and business models going forward, [the] Spanish population has more going for it than anything else. If you look in the environment we live in today, it's about convenience, mobile, apps for young people. We need companies so young people can put together apps. We need relationships with telecoms, and we need to gain more experience in streaming."
Oxendine told Hispanic Radio Conference attendees, "I'm trying to make you aware that you are the future. We need to associate with people who are doing things, to become successful."
Chesley Maddox-Dorsey agreed: "Partnerships are key. With partnerships you need less capital. Partnership is leverage. We want to be in the game. You guys have the talent and knowledge resources, but other people have the money. You're not going to do a $100 million dollar deal on your own, that's why partnerships are so important."
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Heather Cohen is executive vice president of the Weiss Agency, a broadcast talent agency that represents and develops the careers of many of the industry's most successful local and syndicated personalities. Cohen joined the Weiss Agency from GreenStone Media, where she was VP of programming. She arrived at GreenStone from New York's legendary WOR, where she was APD and responsible for the station's local and national on-air content, programs, and production. She also served as executive producer for WOR's award-winning Joan Hamburg Show.
Oswaldo Diaz is the versatile host of one of the most successful shows on Spanish-language radio, Erazno y la Chokolata. His first job was at La Ley 100.3 in Los Angeles; there his talent for impersonation was discovered and he was put on air, hosting his own show with those impersonations as well as his own original characters. A year and a half later, he joined Entravision morning show La Burbuja. When the company relocated its headquarters to Los Angeles in 2004, Diaz was promoted to his own show on KLYY-FM in L.A. Since then, he has grown the show and its personalities into a top-rated radio show on 11 of Entravision?s radio stations around the country.
Born in Bogota, Colombia, Alex Sensation immigrated to the United States at a young age. Influenced by his brother, who was also a DJ, he began collecting music and at age 16 was already a disc jockey at various nightclubs. While he was working at the world-renowned Copacabana, Sensation was approached by Tony Luna, PD for Caliente 105.9 FM, who heard Alex spinning and offered him a position as a DJ on the weekends. Sensation remained with that station for about a year and a half. He was then offered a job as the main mixer of a segment called La Mega Mezcla del Mediod?a for La Mega 97.9 FM. And six years later, he remains the station's most popular and successful DJ. Sensation enjoys mixing different genres, but his roots as a mixer are linked with tropical music.


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during those times. Even as the market grew at the beginning of 2000 until now, the marketplace is still underserved, it is still undervalued. There?s a lot that we still need to do to get to be at the same level as general-market stations and what they are getting for their audience. The change in the landscape started when Heftel bought the stations in Los Angeles at the same time Tichenor Media was starting to make their move in Texas and the Midwest. Shortly after I started working with Entravision, we bought those 17 stations and Z-Spanish Media. Most marketplaces, if you look at the number of stations going after the English preferred listeners compared to the Spanish preferred in the marketplace, the Spanish preferred is still underserved.


panel of Raul Alarcon, Jr., Chairman/President/CEO, Spanish Broadcasting System; Jeffery Liberman, President/Radio Division, Entravision Communications; Jay Meyers, President/CEO, Adelante Media Group; Sanjay Sanghoee, Chairman, Davidson Media Group; and Jose Valle, President, Univision Radio.
Raul Alarcon, Jr., Chairman/President/CEO, Spanish Broadcasting System: Alarcon joined the company in 1983 and has been CEO since 1994, adding duties as chairman in 1999. He is responsible for SBS's long-range strategic planning and operational matters and is instrumental in the acquisition and related financing of all SBS stations.
Jay Meyers, CEO, Adelante Media Group: Meyers, who has been with Adelante since its inception, is a broadcast veteran with experience in all facets of the business, from corporate management to management of individual stations and clusters. Meyers is also president and CEO of Broadcast Management & Technology, which specializes in working with financial institutions and broadcast-industry owners.
, Chairman, Davidson Media Group: Sanghoee, owner of Davidson Media Group's parent company, SS Broadcast Holdings, is an investment professional specializing in media. He worked previously for a global alternative investment firm and before that was an investment banker at two leading banks in New York City. He has considerable experience in the media, communications, and entertainment sectors.
Jose Valle, President, Univision Radio: Univision Radio is the leading Spanish-language radio broadcaster in the U.S., with 69 stations in 16 of the top U.S. Hispanic markets and five stations in Puerto Rico. Valle, a veteran broadcast executive, most recently served as VP/GM of Univision Radio Los Angeles.
