MediaBay to Launch RadioClassics Subsidiary
Trudi Rosenblum -- 1/22/01
MediaBay plans to launch a new subsidiary, RadioClassics Inc., to distribute the company's proprietary old-time radio shows to multiple distribution platforms including traditional radio, cable television, satellite television, satellite radio and the Internet.
Partners in the venture include Lloyd Werner, former executive v-p of sales and marketing for CBS Cable; Stanley Moger, cofounder of SFM Entertainment, the advertiser-oriented provider of national television programming; and Richard Brescia, former senior v-p of the CBS Radio Networks. MediaBay will be the majority equity holder and will control RadioClassics.
MediaBay will provide the initial funding for the project, said John Levy, chief financial officer of MediaBay. Last summer, MediaBay began implementing a program to improve profitability and cash flow (News, Sept. 4, 2000), and Levy told PW, "We're running positive cash flow." The launch of RadioClassics "d sn't need substantial revenue to start with. As it g s along, we may seek outside funding. We've already had some interest from potential third-party investors," Levy added.
MediaBay currently produces three syndicated radio programs: When Radio Was with Stan Freberg, Radio Movie Classics and Radio Super Her s, all of which use content from MediaBay's Radio Spirits subsidiary.
MediaBay expects RadioClassics to be operational in the third quarter. The company is already in discussions with radio stations, cable companies, DirecTV and other distribution outlets. The strength of RadioClassics will be that "we can offer advertisers wholesome family entertainment and package this entertainment across multiple channels, so that one ad buy can get an advertiser on radio, cable, satellite and the Internet," said Moger.
MediaBay estimates that RadioClassics will generate revenues of $70 million and $25 million in profits over the next five years.
Volume 247 Issue 4 01/22/2001