It’s All Happening At The ZU

Michael Hedges September 30, 2009 Follow on Twitter

One trend emerging across Europe over the last year has been rising audience shares for legacy channels. Start-ups have a very tough time. It’s not always the case.

Reasoned analysis of radio audience trends suggests big name channels, often in the public sector, are pulling away from up-starts and new stations. Big stations have big resources while the rest suffer into obscurity. And listeners in the new media age are less inclined to try a new station. A new station in Romania – Radio ZU – has turned that wisdom on its head.

Audience survey figures released last week show Radio ZU – a hit music channel – zooming to 4th place nationally. A year ago it didn’t exist. The key, quite obviously, was hiring away another station’s morning DJ team and rebranding the show as the Morning ZU. And, too, the stations’ owner – locally owned Intact Media Group – poured a substantial investment in marketing. It worked.

Radio ZU pulled away listeners from Radio 21 – where the morning DJs once worked – and ProFM, both hit music stations. Radio 21 fell to 7.2% market share (6th place) from 12.8% (4th place), year on year in the May through August period. ProFM fell to 4.9% (7th place) market share from 7.1% (6th place). Radio ZU tallied a 9.8% market share (4th place) in the national survey of persons 11 years and older. Other radio channels, interestingly, haven’t been affected by this ratings battle. (See Romania national radio market share here)

Commercial channel Europa FM became the market leader in Romania as public radio Romania Actualitati fell to number 2. Europa FM, an adult contemporary music station, fell to 15.2% market share from 15.4% one year on. Romania Actualitati fell to 15.1% from 15.9%. Hi music station Kiss FM held 3rd place with 13.3% market share, up from 13.0% year on year.

Public network Romania Regional held 7.9% market share and fell in market ranking to 5th place. Public channel Antena Satelor, after recently changing to a multi-lingual format, fell to 3.1% market share from 3.9% one year on.

Magic FM, an adult contemporary station, posted 2.2% market share, up from 1.8%.

In Bucharest Radio ZU placed 2nd with 15.2% market share, slightly behind Romania Actualitati at 15.7%. Radio 21 placed 3rd (11.7%), Kiss FM placed 4th (10.1%) and Europa FM placed 5th (7.9%). Local station Bucharest station Romantic FM placed 6th .

But the attention is on Radio ZU and its morning duo – Daniel Buzdugan and Mihai Morar – the Morning ZU. In the competitive radio realm market share is often less important than trend and these guys are hot. “The success of this is unbelievable,” said Buzdugan to Saptamana Financiara (September 25). “For us, the most important thing is not the money but the soul. This is about creation. Radio is theater of the mind.”

And slightly digging at his former employer he added, “You cannot create something where you do not feel comfortable.” Interestingly, several years ago a Radio 21 morning team exited to launch what is now Kiss FM. 

“It’s true that we are a brand,” said Mihai Morar in the same interview. “For us, the ZU brand is more important. It’s our baby.”

Public broadcaster Societatea Romana de Radiodifuziune (SRR) operates four broadcast radio channels; news channel Romania Actualitati, network of regional stations Romania Regional, Antena Satelor targeting rural areas and Romania Cultural, the arts and classical music channel. Radio3Net is an internet-only channel.

Big international companies dominate private sector broadcasting in Romania. Lagardère Active International owns Europa FM and Radio 21. SBS/ProSiebenSat owns Kiss FM, Magic FM and local station One FM. ProFM and InfoPro were recently folded into Central European Media Enterprises (CME), formerly owned by CME CEO Adria Sarbu.

Intact Media Group, owner of Radio ZU, is by no means a small local operator. In addition, the company owns daily newspaper Jurnalul National, a sports and financial newspapers and five television channels. And there’s one other radio channel, Bucharest local station Romantic FM, which also showed recent audience gains with its easy listening format.