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Startup ARN Snagged Univ. Of Texas Radio Rights By Emphasizing Digital Platforms

The "cachet and advertising potential" associated with the Univ. of Texas is what Austin Radio Network co-Founders Bob Cole and Jason Nassour are "banking on after closing a seven-year deal -- plus three option years -- to broadcast UT football and other sports on their cluster of six medium-power stations throughout Central Texas," according to Chad Swiatecki of the AUSTIN BUSINESS JOURNAL. Cole said that his company is "on the hook" for about $1M per year, "including about $600,000 in rights fees paid to the university plus the staffing and production expenses to broadcast live college sporting events." The announcement in June that ARN had "swiped the contract" from iHeartMedia-owned KVET-AM "took many observers ... by surprise." UT's decision was "questioned for a number of reasons including the low wattage and somewhat spotty coverage areas." But there are "several factors in the group’s favor." Cole, who has "more than two decades" of experience on Austin radio, is "chief among them." Cole said that he knew he "had to bring something new to the table for his group to have any chance of being taken seriously by UT officials and executives with IMG College." The component that "sealed the deal was ARN’s move to aggressively broadcast Longhorns athletics on various digital platforms." With 53% of radio listeners "tuning in online or through mobile apps -- and that number growing -- the digital initiative is seen as a way to expand the UT sports brand beyond the Central Texas radio market." Cole said of ARN's technical capabilities, "We’ve got more equipment sitting on the shelves here waiting to be used than most of the other stations in Austin combined." UT women's AD Chris Plonsky said that the chance to "do a deal that creates a local success story didn’t hurt either" (AUSTIN BUSINESS JOURNAL, 7/31 issue).

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