Media mogul Moses Znaimer announced today his company has acquired a new radio station in Toronto. Znaimer sits down for a one-on-one exclusive with Digital Journal to talk about his expansion and how he is becoming the leader of another media empire.
Digital Journal — "When the advertising world thinks of the 50-plus demographic, they think of people who sit at home in their rocking chairs chewing their gums, waiting for their pension cheque so they can go out and buy dog food," Moses Znaimer says to me in a quiet backroom of the
Classical 96.3 radio station he bought in August 2006. "That is just dumb, and there is no other way to put it."
The Canadian media mogul is frank and honest, punctuating his sentences with a distinctive Znaimer smile that says he is up to something. And he is.
The co-founder and former president and executive producer of CityTV announced today his company MZMedia has acquired
AM 740 from Primetime Radio. The deal (which Znaimer would only say cost him between $5 million and $10 million), makes him the owner of the station with the largest coverage in Canada, extending from Maine to Minnesota, and the Carolinas north to Thunder Bay. AM 740 plays a selection of oldies ranging from big bands and 50s crooners, to the early rockers and folk singers, giving Znaimer's company a powerful presence for boomers and older generations.
"In musical terms, AM 740 is the other side of the classical coin for people who like the pop version of classical music," he says, "Together, 96.3 FM and AM 740 dominate the 50-plus space."
The deal began to brew after Michael Caine, president and general manager of AM 740, called Znaimer to welcome him to the radio business last year when MZMedia bought 96.3 FM. For more than a year, Znaimer said he and Caine shared ideas and talked about their goals, eventually turning to acquisition talks.
AM 740 President and General Manager, Michael Caine (left), celebrates the acquisition of his radio station by Moses Znaimer and MZ Media. - Photography by DigitalJournal.com
The deal is still subject to approval by the Canadian Radio-television and Telecommunications Commission (which MZMedia believes will happen by April 2008) and once completed, the acquisition will allow Znaimer to be a major player in both the classical music and oldies leagues.
The goal? Create and dominate all mediums that cater to the 50-plus demographic.
"Nobody has acted on the aging population," Znaimer says. "Advertisers don't get it — they spend a mere 4 per cent of their total budgets on a segment of the population that controls more than 50 per cent of the wealth. The world is run by people who are 50 to 70 years old, but advertisers pretend the only people who matter are 18 years old."
The announcement was fashioned in Znaimer's typical flashy style that has put his many brands on the map; media, industry pundits and classical talent were all on hand at the Queen Street radio station where champagne glasses clinked, people mingled and TV cameras and photographers buzzed around the room. The announcement was made live on the air as part of the station's 20-hour broadcast covering 96.3's new look and sound.
Znaimer addressed his audience from the station lobby after a performance by Canadian superstar tenor Ben Heppner. Delivering a Top 10 list outlining his company's new strategies for growth (to which Znaimer joked that he liked top 10 lists because they worked for the biblical Moses), Znaimer says he is looking to make his stations the dominant players in the market and leave a footprint wide enough that advertisers have to follow. Part of the growth strategy, Znaimer says, will include bringing on more on-air talent, diversifying the station's programming schedule, using multimedia and interaction through the Web and possibly putting half a dozen reporters on Toronto streets to spread the word about his station and find up-and-comers in the classical music industry.
"We are going to attack stereotypes of the types of people who listen to classical music," Znaimer says. "We have groupies show up at our station here when we have a performer in, and it's no different than MuchMusic," he says, referring to the all-music station he made famous through CityTV.
When most people think about classical musicians, perhaps the last thing that comes to mind are groupies. But Znaimer has been successful in his new marketing campaign with the station so far, bringing it out of the red in less than one year.
"This station was always blamed for the fact that most of its demographic was over 50," he says. "This station lost money for 22 years straight, but in the last 11 months we've made more than $1 million profit."
The New Classical 96.3 FM presented a 20-hour on-air celebration of the station's new look and new sound, featuring live performances by Canadian classical music superstars. - Photography by DigitalJournal.com
In addition to his newly acquired radio station, Znaimer also told Digital Journal he has bought
CARP magazine, a publication tailored to the 50-plus demographic with a circulation of 200,000 copies. The magazine is part of a private company in which Znaimer has purchased controlling interest, and details of the transaction he says will be made public in a month's time.
"I don't wake up thinking I'm creating an empire," he laughs, after I say it sounds like he is looking to become a powerful media tycoon, like
the Moses Znaimer the world remembers. "We're in the makings of something very interesting, and when the smoke clears I think we will finally get attention from the business and advertising world. Many years ago the business world misinterpreted my remarks that young people are it; that was an era where you didn't trust anyone over the age of 30. But the pendulum has swung back and older people have the power again."
Znaimer is also looking to harness the power of the Internet to help his brands grow, featuring audio and video performances online and hinting that a user-generated portion is coming soon to put the spotlight on those who sing in the shower. "It's a TV station in waiting," he says cryptically.
On the topic of television, I ask him if we should consider a TV station acquisition as part of his company's growth strategy. His reply is the signature Znaimer smile, saying, "It's very hard to find an opening," he says. "I have one thought when it comes to TV, and it will address that dirty little secret of the 50-plus demographic." Znaimer mentioned his past interest in the Toronto 1 network (which he lost by being outbid) and is not ready to give details to where or how he plans to get involved in the TV world again.
With his two new radio stations, a strong web presence, a new magazine and a potential TV deal coming in the future, Znaimer is no doubt creating an empire again. He remains cautious and reserved about certain details, but says he will be transparent as his businesses grow and all mediums will cross promote each other. Until then, his goal is to add some fun into classical radio and help advertisers wake up.
"Pandering to youth will change," Znaimer assures me. "The only sector of the music business that is growing is classical and we now have the largest audience on the continent."
