“Life and Times in Cronkite City”
Cronkite City is a mid-sized western market with a media mix that is representative of most of America. It has four television stations, one newspaper and over 20 radio stations.
What follows is a narrative of the market, its competitive forces and the people who view, read and listen to Cronkite City’s media. There is also a discussion of the people who operate these media and the problems they face.
THE MARKET
Cronkite City is a medium-sized market nestled in the hill country of the American Southwest. It takes its name from the curious shadows on the western hills at sunset during the winter. Early residents of the village thought the texture of the hills when lit by the setting sun resembled the late broadcaster’s eyebrows. They thought so much of the journalist’s style they renamed the village Cronkite City.
Demographics of the market indicate a broad representation of ethnic groups and immigrant populations. Among the citizens are Native Americans, European groups long since in the U.S. as well as a fair number of Asian groups seeking residency following the Vietnam war.
Not far from Cronkite City is another community, much lesser known, called Flywheel Flats. A large Hispanic population resides there. “The Flats,” as it is known, is within the media coverage of Cronkite City and for all practical purposes is part of the greater Cronkite marketing area.
The only factor worth noting is the ridgeline that passes between Cronkite and The Flats that historically has impeded broadcasting signals. Television reception there is not as good as it is in Cronkite City. Cable on the other hand, thrives. The internet use, too.
No other media outlets impact or influence Cronkite City.
The Cronkite City council has determined the government operated Wi-Max Internet coverage of the city would be the public interest and has embarked on a five-year plan to “wire” the city
Cronkite City’s most significant employers are the U.S. Army Ordnance Depot just outside of town, a large auto parts plant that supplies two foreign manufacturers located outside the market and a large baby food processing plant. Together these three employers provide about 50% of the payroll in Cronkite City.
Other employers include a Cronkite City State Teachers College, a school with declining enrollment, two large shopping malls with the usual roster of tenants and a number of hotel/motel facilities since Cronkite City is located not far from an interstate highway.
Schools in Cronkite City and its neighboring community are pressed to the limit.
The Brands
The Media Marketplace
There is a local newspaper, the Cronkite Chronicle. The Chronicle’s circulation has been declining over the past decade partly because of the general decline in newspaper readership and partly owing to increased internet readership. The decline is further accentuated because of the influx of non-U.S. citizens moving into the markets. The ethnic breakdown is about 60% White, 18% Black and the balance is non-U.S.
Four network affiliated television stations, and a low power TV station that enjoys most of its viewership via the cable. There is speculation that there way other LPTV stations brought to the market, but the cable system operators have said that capacity of their system could become a problem.
There is one locally owned TV station; the NBC affiliate and the rest are owned by out of town interests. One station is owned by a small Regional Radio group, one by a large multi-media organization and one by a publicly traded company. A man who lives in another city several hundred miles away but on the same interstate as Cronkite City owns the LPTV station.
Media expenditures have totaled as high as $35 million. Of the total media market expenditures the newspaper takes 40%, television 30%, radio 25% and outdoor 5%.
THE NEWSPAPER
Livingston Grim is the publisher of the Cronkite Chronicle. He has been in charge for nearly 15 years. He is well regarded in Cronkite City.
He started as a reporter for the Arizona Republic fresh out of ASU. He moved up the ranks and became the night city editor. Following a brief experiment by the human relations vice-president to build cooperation between departments by rotating personnel through other disciplines, Grim was fascinated by the selling process. He left news in pursuit of sales and over time became first general manager and finally publisher.
This gave him a slight advantage since he felt he understood both “sides of the aisle”, sales and editorial
If ever there were a time to appreciate the challenges of both functions the start of the 21st century is surely it.
In an effort to create content for smaller audiences Grim has recently purchased a new mailroom equipment for the zoning and advertiser preferred distribution programs. The new equipment provides for further customization of single copies and the ability to produce niche products should that be important the newspaper revenue some day in the future. Beyond advertising inserts and the occasional editorial product however, there are no plans for any special product.
To accomplish this the Chronicle took on significant debt. Servicing the debt has been a worry to Grim and to shareholders close to the situation. Everyone is aware of the changes and challenges facing the media business generally and the newspaper business specifically.
Local TV Market
The “locally” owned TV station is KCCA ch 25, a network affiliate. Along with its’ network programming KCCA local newscasts at 6a, noon, 5:30p and 10p.
The station enjoys a multi-decade success in news and is branded as the most trusted source in news in Cronkite City.
Management has determined that its strategy for the digital space is to provide a digital form of their broadcast content along with a few lists of community events and some network supplements. Flat revenue growth has dictated a traditional or time-tested approach to the cost structure.
Elsewhere in the market a LPTV station has secured a cable channel and is attempting to find a niche in the Cronkite City market. It hires primarily interns and recent grads and utilizes electronic means to create visuals support. It automates wherever possible.
Start-Up
Another recent entrant in the Cronk’s media market is CronkiteCityNewsNow.com or CCNN.com. It’s a start-up funded by two wealthy families in Arizona who own second homes in the area.
In order to achieve certain financial goals (as in survive) CCNN.com has offered some content that is politically slanted in nature. It has also provided some content that has appeared to favor a certain advertiser’s products.
It promises and has mainly delivered local content from its own small staff and a battery of local and neighborhood bloggers.