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Corporate Governance
Spanish Broadcasting System
Published, Spring 2005
You may not be surprised that Howard Stern has often ranked #1 among New York
radio listeners. But you may not know that Stern has been challenged for this
top spot by Luis Jimenez, “El Vacilón de la Mañana,” the radio morning
personality on WSKQ-FM La Mega 97.9.
Jimenez has nearly one million listeners around the country. He is among the
marquee talent for Spanish Broadcasting System. Jimenez’s counterpart in Los
Angeles, Renán Almendarez Coello, “El Cucuy de la Mañana,” of KLAX-FM La Raza
97.9, has a multigenerational listening audience of two million. Coello often
ranks as the #1 radio personality in the fiercely competitive L.A. radio market.
The success of Spanish Broadcasting talent is such that in November 2004 the
company agreed to syndicate three of its morning shows to ABC. They include
Jimenez, Almendarez Coello, and their counterpart in Miami, another top rated
local show.
Based in the Coconut Grove suburb of Miami, Florida, Spanish Broadcasting is
the largest Hispanic-controlled radio broadcasting company in the United States.
Five of seven board members and two of three senior executives are Hispanic.
Spanish Broadcasting and its primary competitor Hispanic Broadcasting account
for more than half of the U.S. Spanish-language radio market. Spanish
Broadcasting owns or operates 20 Spanish-language radio stations in seven of the
top-ten U.S. Hispanic markets, including New York, Los Angeles, Miami, Chicago,
San Francisco, San Antonio, and Puerto Rico. The programming at its radio
stations is primarily traditional music.
The growing U.S. Hispanic population is driving the success of
Spanish-language radio. According to the U.S. Census Bureau, there were 37
million Hispanics in the United States in 2002, or 13 percent of the total U.S.
population. Spanish-language radio stations now account for approximately 7
percent of radio listening nationwide.
There are more than 600 Spanish-language radio stations in the United States.
In urban areas, the Hispanic population and Spanish-language radio audience is
proportionately larger. For example, according to market research firm Arbitron,
Hispanics comprise approximately 40 percent of L.A.’s 10.5 million person
listening audience aged 12 and older.
Spanish-language radio’s growing audience is attracting advertisers—and
competition. Radio industry behemoth Clear Channel has launched Spanish-language
radio stations, and competitor Hispanic Broadcasting was purchased recently by
Univision. In response, Spanish Broadcasting sold a 10 percent stake to media
conglomerate Viacom. The company is also looking to expand an alliance with TV
broadcaster Telemundo, and to grow in other key Hispanic markets by acquiring
additional radio stations.
Look out, Howard.
—K. Scott
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