1. SYNDCOM LTD.
“IF YOU COME TO A FORK IN THE ROAD, TAKE IT”
- YOGI BERRA
Tuesday, March 2, 2010

2. DECISION TIME
TO INTEGRATE, OR NOT TO INTEGRATE
Tuesday, March 2, 2010

3. 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.
Tuesday, March 2, 2010

4. PROBLEMS WITH TRIRAD
ONLY ONE SALES REP
FAILED TO MEET TARGETS
LOCATED IN WINNIPEG
PERILOUS INDUSTRY/FINANCIAL PROBLEMS
LACK OF FEEDBACK (AFFIDAVITS)
Tuesday, March 2, 2010

5. FINANCIAL
REVENUES
PAY-PER-SHOW : $140,400 ($150*18*52)
ORGANIZER ADVERTISING : $702,000 ($13,500*52)
TOTAL REVENUES : $842,400
LESS - DISTRIBUTION : $252,720 (30%*$842,400)
NET REVENUES : $589,680
OPE TING COSTS
SATELLITE : $151,180
2 COMMENTATORS : $240,000
PRODUCTION COSTS : $40,000
MISCELLANEOUS : $6,000
OPE TING PROFIT : $152,500
Tuesday, March 2, 2010

6. IN-HOUSE DISTRIBUTION
PROMOTION : $45,000
2 SALES REP’S : $200,000
MISC. : $10,000
10% CANCELLATION FEE : $84,240
STATION 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
Tuesday, March 2, 2010

7. MARKET SHARE
Syndcom Total Radio Syndcom Newscast Total
24%
47%
53%
76%
Tuesday, March 2, 2010

8. VERTICAL INTEGRATION
BE ER-OFF TEST
ECONOMIES OF SCOPE
CROSS-SELLING
OWNERSHIP TEST
RELATIONSHIP-SPECIFIC BENEFITS
Tuesday, March 2, 2010

9. 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)
Tuesday, March 2, 2010

10. 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
Tuesday, March 2, 2010

11. FUTURE RISKS
IPOD (MP’3)
SATELLITE DIO
AUDIOBOOKS
PUBLIC T NSPORTATION
Tuesday, March 2, 2010

12. LONG-TERM OPPORTUNITIES
ONLINE GROWTH
PODCASTS
SUBSCRIPTION MODEL
METRO AREAS
TV
FULL DIO STATION OF BUSINESS NEWS
Tuesday, March 2, 2010