Triton Moving Toward Barter � Eyeing Internet Radio Sales
With last week�s acquisition of Excelsior Radio
Networks, Triton Media Group aims to evolve the network radio
business beyond traditional on-air boundaries to include an
equivalent network buy on the Internet, according to MediaWeek.
Although terms were not disclosed, Oaktree
Capital is estimated to have paid Lincolnshire Management north of
$100 million for Excelsior. Lincolnshire Management will remain a
stakeholder in the combined company.
The deal combines Triton�which provides a suite
of digital products and services to 1,000 radio stations�with
Excelsior�s syndicated programming, traditional radio networks (Dial
Global), and interactive business (MJI Interactive) across 2,000
stations.
The unique combination of assets enables Triton
to bring to the online space the traditional network-radio strategy
of aggregating inventory locally to achieve national reach.
To build out a digital network that can be
integrated with Dial Global�s traditional radio networks, Triton
proposes to convert its fee-based relationships with stations to a
barter arrangement for both on-air and online inventory. Integrated
packages are expected by early next year.
Days after the acquisition was announced,
Triton�s Mass 2 One Media, which provides a suite of online audience
engagement applications (social networking, text messaging and
loyalty/reward programs), inked a barter deal for on-air and online
inventory. The agreement was with The Content Factory, syndicators
of The Dan Patrick Show, and accompanying web site.
The market Triton envisions for integrated
on-air and online radio packages is wide open. Currently about 95%
of radio internet revenue is locally generated, but Neal Schore,
Triton�s president and CEO, sees a much larger marketplace. �As it
matures, we think it will be a 75/25 split. It wouldn't shock me to
see a 50/50 split, and grow to at least $5 billion in the next few
years,� he said.
�There hasn�t been a lot of opportunity in
network online,� said Matt Feinberg, senior vice president of
national radio for Zenith Media. �One of the concerns we have is
that they be able to control what they�re selling. A big part of it
is owning the assets. That�s why network radio hasn�t gotten into
it.�