Posted by Wildwood Webio on June 24, 2009 at 08:54:40:
Will we see the return of Webio?
Posted by Ed Sherman 6/24/2009 5:21 AM on Chicago Business
A question: Can Chicagosportswebio be revived? If so, could some investor actually benefit from what transpired in recent weeks?
Consider this: The tough part of a start-up is building brand recognition, right? We all know David Hernandez spent nearly $300,000 to market the idea of an Internet sports talk station, flooding the area with TV ads, billboards and other promotions. It was a ridiculous amount of money, but it did bring some brand awareness to the outlet.
Then on top of that, the coverage of Mr. Hernandez and the incredible circumstances that eventually brought down everything has given huge exposure to the Webio concept. If people didn't know about Webio before the trouble began, most of them do now.
As a result, Webio now has considerable brand recognition in the market. Wouldn't you want to take advantage of that as an investor?
"We're the most famous Internet talk show site in the country," said Mike North, the co-founder in Webio with Mr. Hernandez. "It was a bad deal with what happened, but people know about Webio."
Mr. North said he would like nothing more than to revive Webio. He said Tuesday that he has been contacted by two investors who have expressed interest. Given what happened to him with Mr. Hernandez, you could be sure Mr. North will do complete background checks this time.
It isn't surprising that investors would be calling. Aside from all that transpired in the last couple weeks, the Webio concept does have some basic fundamentals, not of the least of which, some brand recognition.
"Absolutely, I still think this thing can be a success," Mr. North said. "The concept is sound."
Program director Jesse Rogers thought the Webio enterprise was off to a good start. He maintains the shows were good and developing a following.
Mr. Rogers based his comments mostly on anecdotal evidence since he didn't have hard numbers. Mr. Hernandez did give me some figures at one point, but safe to say I'm not going to rely on that.
"I'll put up the Jonathan Hood-Tim Doyle show (11 a.m.-3 p.m.) up against any show in town," Mr. Rogers said. "We had a nice base of listeners. We heard from them through emails and texts. I'm not going to say it was in the hundreds of thousands, but we know people were listening."
From an advertising standpoint, Jeff Schwartz, Webio's director of sales, said the station had $250,000 in commitments from sponsors. Companies included Hooter's and the Bob Rohrman Auto Group.
"In a short period of time, I tried to sell excitement and what could be," Mr. Schwartz said. "Could I have turned $250,000 into $500,000? I don't know. I think it would have worked. I've always said advertising is based on relationships. We have strong relationships."
Mr. Rogers thinks Internet radio has a big future and that sports teams will eventually air their radio broadcasts on their own web sites. But much of his forecast is predicated on wide-spread access to Internet radio in cars. The rollout has began, but if you look at how long it took for HD television to reach a high penetration, it could be 10 years or more before Internet radio will be widely in use during rush hour.
An Internet sports talk station still might be ahead of its time, but the concept does make sense on one level. Broadcasting on the Internet means you don't have to spend big money to purchase and maintain a radio signal, and you don't have to deal with FCC red tape.
Mr. North contends the pieces are in place, although he agrees the business model would have to be adjusted. Mr. Hernandez spent lavishly, and that likely isn't going to happen with a new investor group.
I still have my doubts about Webio, but two months hardly is long enough to make a final determination. Mr. North said he would like to another opportunity.
"Right now, the name (Chicagosportswebio) is linked for a bad thing," Mr. North said. "I'd love it to be linked for a good thing."