Jay;Ignore the master of the grand illusion He knows not what he speaks ,only his ego expelling gas.. CBS won't admit a mistake like the Master of grand Illusion. Admitting a mistake would cause their stock to stumble again and their board would not like that. Whoever had done their research apparently has one ear ,one eye and is near sighted, The Oasis was very popular in business offices,other work places,etc,plus the commute home. The research they used was narrow minded , and narrow in scope,and narrow. The oasis had leadership problems,so rather than take a look at that and fix it,dump the format. The Master of Grand Illusion would do that,and PT Barnum would applaud.
1. KOAI needed little addtional research to know KOAI was not the future for 107.5. The billing was flat (actually down adjusted for inflation), while the market was up. The 55+ component of the station was 17% in Spring of 1998 and was nearly 50% in Spring of this year, with 35-44 taking a huge hit, and 45-54 down also. They could see the station was 17th to 20th in 25-54, out of the sales demos.
2. CBS derives about 12% of its revenues from radio, or about $1.5 billion. KOAI billed about $12 million in 2005, so any change in billings on 107.5 in Dallas will have zero effect on CBS, its stock price or investor perception.
3. A format with a lower 12+ but better 25-54 will make them more money. Any research they did no doubt proved that a format like Movin' would have a much better opportunity to affect billing in a positive way than the old format.