Syndcom

SYNDCOM LTD.“IF YOU COME TO A FORK IN THE ROAD, TAKE IT”

- YOGI BERRA

Tuesday, March 2, 2010

DECISION TIME

TO INTEGRATE, OR NOT TO INTEGRATE


CHALLENGES

1. Corporate direction needs to be be!er communicated and understood – eg. Tom Bradshaw not knowing where things are going.

2. Be an early mover in the news/chat format, not a laggard. Pushing innovation and discovering trends as a part of the corporate culture.

3. Syndicators have greater access to radio stations across Canada. Need to evaluate satellite distribution.


PROBLEMS WITH TRIRAD

ONLY ONE SALES REP

FAILED TO MEET TARGETS

LOCATED IN WINNIPEG

PERILOUS INDUSTRY/FINANCIAL PROBLEMS

LACK OF FEEDBACK (AFFIDAVITS)


FINANCIAL

REVENUESPAY-PER-SHOW : $140,400 ($150*18*52)

ORGANIZER ADVERTISING : $702,000 ($13,500*52)

TOTAL REVENUES : $842,400LESS - DISTRIBUTION : $252,720 (30%*$842,400)

NET REVENUES : $589,680OPE!TING COSTS

SATELLITE : $151,1802 COMMENTATORS : $240,000PRODUCTION COSTS : $40,000MISCELLANEOUS : $6,000

OPE!TING PROFIT : $152,500


IN-HOUSE DISTRIBUTION

PROMOTION : $45,0002 SALES REP’S : $200,000MISC. : $10,00010% CANCELLATION FEE : $84,240STATION MANAGER : $75,000

TOTAL COST : $414,240

ELIMINATE 30% ($252,720) DISTRIBUTION FEE

NET OUTLAY OF $161,520 IN FIRST YEAR

BACKING IN PROFITS: NET COST = $9020

POTENTIAL TO LOSE STATIONS


MARKET SHARE

76%

24%

Syndcom Total Radio

53%47%

Syndcom Newscast Total


VERTICAL INTEGRATION

BE"ER-OFF TEST

ECONOMIES OF SCOPE

CROSS-SELLING

OWNERSHIP TEST

RELATIONSHIP-SPECIFIC BENEFITS


RECOMMENDATION

BEGIN IN-HOUSE DISTRIBUTION

FOCUS ON PUSHING PAY-PER-DAY (RU!L STATIONS PREFER)

REVENUE PER STATION = $7800

COMPARED WITH $6685 FOR BARTER ADVERTISING ($702,000/105)


IMPLEMENTATION

HIRING: FOCUS ON SALES REP’S

NEGOTIATE NEW CONT!CTS WITH !DIO STATIONS

SALES REP’S FOCUS ON CERTAIN REGIONS

GENE!TE FEEDBACK WITH MORE PERSONAL VISITS

MAINTAIN 100 BARTER STATIONS IS KEY

NEW AGREEMENT WITH ORGANIZER TO ADD FLEXIBLE REVENUE FOR STATIONS OVER 100 THRESHOLD


FUTURE RISKS

IPOD (MP’3)

SATELLITE !DIO

AUDIOBOOKS

PUBLIC T!NSPORTATION


LONG-TERM OPPORTUNITIES

ONLINE GROWTH

PODCASTS

SUBSCRIPTION MODEL

METRO AREAS

TV

FULL !DIO STATION OF BUSINESS NEWS


Syndcom

Business

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