Newcastle Radio Ratings: NXFM soars as NEWFM sinks

The first Newcastle radio survey of 2008 has seen NXFM soar to unprecedented heights while competitor NEWFM sank to new lows.

NXFM won the survey with a share of 23.5 followed by stablemate KOFM on 18.8. 2HD was third on 15.1 while ABC1233 ran fourth after fall to 10.4. Triple J was fifth with 6.9 beating NEWFM for the first time as they sank to 5.6.

The cumulative audience result were even more stark with NXFM now reaching a massive 189,000 listeners, followed by KOFM 151,000, ABC1233 97,000, 2HD 91,000, and NEWFM 86,000.

Demographically the average audiences were dismal for NEWFM, receiving an * (unmeasurably small) in two demographics and only 1,000 for all other demographics.

The key breakfast shift was won comfortably by NXFM with 22.9 share, followed by KOFM 19.9, 2HD 16.9, ABC1233 12.0, Triple J 5.8 and NEWFM 5.4.

So where to now for Bill Caralis' NEWFM? The once mighty FM station has now crumbled to record lows, beaten by two non-commercial stations as well as all commercial opposition. The station hasn't been able to maintain a consistent breakfast team for about 4 years and currently operates without a program director.

The play-list is completely unfocussed and clearly not sitting well with listeners who are turning off in droves. Weekend audience figures are usually a good indicator of how well the music format is working for an FM station, as it is less reliant upon the on-air talent. NEWFM's weekend audiences are awfully low. When will Caralis realise that you can't run a station without good people in key roles?

Meanwhile the team at KOFM and NXFM are over the moon and looking for their next challenge. With daylight a distant third, one wonders what that could actually be.

The nagging question is now whether we are heading towards what could be, in effect, a commercial radio monopoly in Newcastle? It is increasingly starting to look that way, and thats not good for listeners, advertisers or radio in general.

Note: We will be breaking down the radio result in more detail in the next issue of The Sticky Report. To subscribe, please email us at enquiries@stickyads.com.au with your name and business.

Comments

[Cathy]

It's no surprise another Caralis gem bites the dust but I reckon we should all dice logic in trying to figure what this seemingly 'renegade radio marauder' is all about. Here’s my pitch.

For starters, it's a business model based on buying a string of valuable assets that you don't want to maintain beyond basic working order. You can't trash the value of radio licenses because they're not on-sold with personal or business 'goodwill'. So if you scale down station 'maintenance' crew, (programmers, journos and copy staff etc) it just means the absurd bounces off transmitters. But that's OK because the only loser is the listener. It's clearly a 'not for profit' enterprise because it's not interested in pulling listeners or advertisers. And, if the license owner has a massive private income or stash per se - from ouzo and oranges - then you don't need broadcast profits. So…I reckon this radio network is nothing more than a collection of objets d'art!

It's a brilliant commercial charter because the license holder no longer dances to the demands of listeners and advertisers. You divest yourself of expert and trained staff and reinvest the savings in more licenses. Running costs are basement level, because you open your doors to minimum wage itinerants. Novice workers have no expectations and if their roles are just to keep lights on and airwaves sounding busy, you pay them peanuts. Industry regulators are OK with rationed license compliance and they also let you hire out the airwaves to rank amateurs to run their own mini-radio programs. That then offsets advertising revenue. It’s all a bit like buying heritage listed buildings to rent to the peasants – after they’ve gutted the inside, the façade is still worth a motza. Is there any other explanation

[john]

someone has been smoking something cause that comment made no sense at all

[Bill C]

Cathy, great insight!

[Cathy]

Thanks Bill. You know, John may have inadvertantly contributed to my curiosity. I don't dabble but perhaps Bill C does and if he's a big toker it makes a lot of sense of his communication nonsense. But listen, if by chance you're the real, live genuine "Big C" of the radio industry, can you for once participate in even just a small online inquiry, nothing like the parliamentary ones you won't front, but just a mini probe so we can find out why all those radio stations in NSW and Qld you own are broadcasting generic drivel when we want relevant radio. It would be great to have the same fabulous local talkback and slick well produced programs that you can hear on real radio stations. You know, what we had before you came along? Nothing personal, but some people do things better than others. So can we have what they've got in Sydney and Melbourne?

[Bill C]

Cathy, when you say "like in Sydney" are you referring to the jewel in my network crown, 2SM? I am very proud of that station. Our ratings were so far off the charts that they couldn't measure it and gave us an asterix. Thats not easy to achieve, but we did it in a few short years. After that I didn't see the point in staying in the ratings survey. We achieved everything we set out to do so I just save money by not paying to be in the survey. Now we are trying to achieve similar success at Newcastle.

[Cathy]

Bill thank you for responding, nice to be in contact. But I like to speak plainly among friends and no, I wasn’t referring to 2SM that’s now a mere zircon in the nation’s radio industry, but differing opinions don’t make bad medicine. Well, we’re certainly on common ground with 2SM and NEWFM. Both once held in great esteem by many generations of devoted listeners and how many famous radio professionals passed through their portals? In those days though they rated through the roof, but I’ll stick with my reverse psychology and say how pleased I am to hear that your NEWFM is on track, in free-fall. Bill, there’s nothing wrong with stars or asterisks in your eyes and I’d urge you to go for broke. Pull up stumps on the Newcastle Nielsen poll tomorrow. In fact, I can guarantee on good authority there’ll be an army of people to show you how easy it is to score less and fast. Not that I think you need to know, you’ve accomplished that extremely well on your own. The art of going out backwards is a courageous step but you have much support. The industry won't forget you.

[Bill C]

Hold on a second...I thought asterix meant unmeasurably big audience. Are you trying to tell me its the opposite? Surely not. People like variety, and thats what I give them with my stations. New announcers every week, a different music format every month, dead air at various times of the day. None of that boring, predictable stuff like tight formats and longstanding on-air talent on the Supernetwork. I think you better do your homework Cathy or I will have to phone you to explain in more eloquent detail.

[Cathy]

Now don’t come the Colombo with me – that simplistic inane explanation of why radio stations virtually vanish under your stewardship might wash with the CRA and ACMA but thousands of us out here in radio land aren’t buying it. Let’s face it we’re on the receiving end of 34-plus miserable attempts you’ve had to communicate your version of no frills entertainment. Moreover, the façade of an incompetent, bumbling media novice, lumbering around in a crumpled track-suit and a beat-up 4WD emblazoned with a defunct 2SM logo doesn’t gel either. In relevant radio there’s no room for a confused individual offering a smorgasbord of yesteryear bakerlight wireless formats. There you have it Bill. I like to be frank and conciliatory, but like a lot of diligent contributors to this precious broadcasting industry, your frugal, self-serving use of the nation’s airwaves just cant be tolerated.

[Roger]

Cathy I think you have got it wrong regarding Bill's business strategy. I believe that if you checked the shareholder registers of Macquarie Media and Austereo you will find that Bill Caralis holds a ton of stock. Think about it, buy a chain of radio stations, invest heavily in your opposition then run your stations into the ground. Your competitors get more revenue, their share price rises and you have a wonderful tax loss from your own basket cases to ensure you don't have to pay any tax. Rod Adler and Ray Williams would be proud.

Already this strategy has worked brilliantly in Sydney where Bill helped the others make more money by cleverly positioning 2SM as totally unpalatable to advertisers. Now in Newcastle his Mac Media and Austereo investments will be raking in the ad dollars that are being diverted away from Sandgate.

You may mock the guy but its pure genius. I hear he has also invested heavily in Subway, but thats another story.

[Cathy]

Well, Roger’s just given us a few headlines for Monday. 'Caralis sinks Subway' or 'Caralis Kickbacks Macca’s'! And he’s certainly come up with a solid dissertation on just why we should scorn a cruel rogue media mogul (no not mongrel) – as we do.

If your whiff on BC’s ownership interests in Mac Media and Austereo is sufficiently strong, then head to ASIC and divulge the filching of media codes and practices. The ASX should be fully aware he’s got cross-media investments.

But Roger don’t tell us you’re really in awe of Caralis (pure genious?) or Adler and Williams (they’d be proud!) cause I reckon you’re a right mug if you land a limited view of Sydney’s Silverwater. It’s not the kind of real estate any clever commercial operator tucks into his futures folio.

And keep us in the loop on your Mac and Austereo theory/probe, certainly on how we can hi-jack a sure-to-fail Subway plan. If we could forecast a market surge on Macca’s or Wendy’s I’ll donate to your favourite charity, promise!!!

[chris]

hey, what about a station 4 the people. We dont care what happens between media relations, we just want a station that'll give the people what they want...
If i remember right, in 2002 NEWFM ratings sored to 16% after sitting around 6% for some time before. The station changed the format to rock with great announcers... maybe head back to the rock with a complete new format.. I know very little about radio an how it opperates... I have been a long time listener to NEWFM but it is stale an run down an is ready 4 change....