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Column: An abrupt format change at a beloved Bay Area station shows what’s wrong with the radio business

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Column: An abrupt format change at a beloved Bay Area station shows what’s wrong with the radio business

Listeners of San Francisco’s KGO radio station woke as much as a shock Monday.

The long-lasting AM station’s all-talk format was gone, supplanted by a sports activities playing format and a branding change to “The Unfold,” with the slogan, “The Bay’s Finest Guess on Sports activities.”

Listeners had nowhere to go to specific their dismay in public besides the station’s Fb web page. “Company greed at its most interesting,” wrote one listener. “There isn’t a sense of neighborhood anymore.”

KGO is a legacy radio station and it didn’t should occur like this.

— Former KGO discuss present host Pat Thurston

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The station’s hosts, their voices all of a sudden minimize off, fielded questions and feedback from their viewers members via personal emails and tweets. “Simply an avalanche of Fb responses,” says Mark Thompson, who held forth on KGO weekdays from 10 a.m. to midday. “There’s rage, incredulity and this deep emotion related to being disconnected from what was clearly a relationship that transcended data and information.”

Name it neighborhood. “Folks felt this immense connection,” Thompson instructed me. “‘You bought me via COVID,’ is what I’ve heard greater than something. ‘You have been my day by day connection.’ It’s heartbreaking.” (Disclosure: I used to be an everyday visitor on Thompson’s present.)

The sudden, disorienting change at KGO might look superficially like a neighborhood Bay Space story, but it surely displays two traits with nationwide implications. For one factor, it echoes the evolution of the radio enterprise from one reflecting native tastes and offering a communal supply of data and information right into a dispenser of homogenized, syndicated content material.

That evolution started with the Telecommunications Act of 1996, which eliminated a cap of 20 AM and 20 FM stations that might be owned nationally by a single firm and doubled to eight the variety of stations a single proprietor might management within the largest metropolitan markets.

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The regulation fostered a wave of mergers and acquisitions that produced immense nationwide networks; Atlanta-based Cumulus Media, the proprietor of KGO and the nation’s second-largest community, owns 406 stations nationally, together with six within the San Francisco market.

Cumulus didn’t reply to my requests for remark past referring me to a press launch it issued Monday, stating that KGO could be managed collectively with the corporate’s different sports activities stations within the Bay Space, KNBR and KTCT.

The assertion acknowledged KGO’s 80-year historical past at 810 on the AM dial however quoted the station’s basic supervisor, Larry Blumhagen, as saying, “Instances change, and we should change with them.”

Many of those acquisitions have been primarily based on overly optimistic expectations of the income to be made. That left the acquirers saddled with debt and subsequently inclined to chop prices. Native staffs have been minimize to the bone, and syndicated content material and infomercials started to fill the published day.

Cumulus filed for chapter safety in November 2017 and emerged in June 2018, having shed about $1 billion in debt within the course of.

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The biggest radio community, IHeartMedia (previously Clear Channel) filed for chapter safety in March 2018 and accomplished its restructuring the next January, with its debt load minimize by virtually two-thirds.

Distant possession of its radio stations hasn’t served the Bay Space nicely over time. For years, Walt Disney Co. was an enormous participant in native media, due to its 1995 acquisition of Capital Cities/ABC. Along with KGO, its properties included KSFO-AM, a chat radio station whose lineup of far-right hosts — amongst them Rush Limbaugh, Sean Hannity and Michael Savage — earned it the nickname “Sieg Heil in your dial.”

Below Cumulus, the lineup nonetheless consists of Hannity, together with right-wingers Dan Bongino, Mark Levin and Ben Shapiro and a day by day block of Fox Information broadcasting.

The second pattern is the enlargement of sports activities playing. As I reported earlier, sports activities playing has metastasized coast to coast; 36 states and the District of Columbia have legalized it in a single kind or one other since a 2018 Supreme Court docket determination that overturned a federal ban.

After shunning sports activities betting like poison, the professional sports activities leagues have gone all-in, fairly seemingly as a result of they see sports activities betting as a technique to hold younger males watching even out-of-market video games on TV.

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The newest incarnations of the sports activities betting craze are Propositions 26 and 27 on November’s California poll, which might legalize sports activities betting within the state in barely other ways.

Hypothesis among the many KGO workers has been that the format change is a calculation by Cumulus — a raffle, because it have been — that one of many measures will move. If that’s so, it’s starting to seem like a nasty guess, since each are polling very poorly and are anticipated to go all the way down to defeat.

The format change isn’t the primary misstep dedicated by KGO’s homeowners. The station was ranked No. 1 by Arbitron within the Bay Space from mid-1978 via 2008, a interval wherein it was recognized for hosts such because the perennially fashionable Ronn Owens and Len Tillem, a lawyer whose blunt-talking strategy to authorized affairs prefigured the recognition of tv hosts equivalent to Judith “Choose Judy” Sheindlin.

In 2007, Disney spun off its radio holdings to Las Vegas-based Citadel Broadcasting, which in flip was acquired by Cumulus in 2011. “We went from having a price range to having much less of a price range to price reducing,” remembers John Daly, a longtime producer at KGO.

“Cumulus was notoriously low cost,” says Pat Thurston, a KGO host whose program adopted Thompson’s. Thurston and different workers members who participated in a Twitter group chat on Monday recalled their fruitless pleas for the corporate to spend money on advertising and construct up its promoting workers.

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The schedule modified from native discuss 24/7 to infomercials on weekends. Thurston was instructed by an govt that the mum or dad thought-about infomercials a “money cow”; the supervisor instructed her that there was even some consideration given to creating KGO an all-infomercial, all-the-time station.

“We might make some huge cash doing infomercials,” he stated, “and it might be the best technique to do it.”

Quickly after taking on, Cumulus determined to alter KGO from all-talk to all-news, in a direct assault on the Bay Space’s current all-news station, KCBS. Cumulus spent lavishly to construct a newsroom, solely to find that “you couldn’t do information on a budget,” in Daly’s phrases, and that KCBS was a powerhouse impervious to competitors from a newcomer. Cumulus returned KGO to a chat format in 2016.

KCBS, which is owned by the Audacy radio conglomerate and remains to be all-news, is the No. 2-rated station available in the market, in keeping with Nielsen, behind solely the general public station KQED-FM. However KGO’s scores have been mired within the decrease depths, ranked twentieth general available in the market, although some hosts had greater scores.

The newest format change got here as a shock to the station’s hosts, engineers and different employees. They have been summoned to a workers assembly the morning of Oct. 5 and instructed solely that “KGO as we all know it is going to stop to exist,” Thurston remembers. They have been instructed that KGO had misplaced $20 million since its acquisition by Cumulus and that the format would change, however not what the brand new format could be.

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Thompson was instructed to go on the air as ordinary at 10 a.m. Thursday, however ship the station’s ID at 10:15 a.m. and go away the sales space. He pleaded with station managers for permission to acknowledge that the format was altering and bid his listeners farewell, however that was refused.

“I stated, ‘Don’t you assume we owe the viewers an evidence of what’s occurring? There are lots of people who depend on the station.’ They stated, ‘Nope. That is the way in which we wish to do it.’”

The airwaves have been then taken over by a loop of money- and gambling-oriented music, together with Pink Floyd’s “Cash” and Woman Gaga’s “Poker Face” for 3 days, till the brand new format launched within the early morning hours Monday.

It’s correct to ask whether or not extra sports activities and extra playing content material is what the Bay Space is clamoring for, or whether or not Cumulus is aware of and even cares.

“We needed to provide folks vital breaking information, however with the wildfires up right here we tried to assist folks discover assets,” Thurston instructed me.

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“Folks have been calling in to us providing data for different individuals who have been stranded,” she says. “Throughout blackouts we have been on the air, attempting to assist folks discover locations to go to seek out gasoline and primary provides. No person else had a call-in to permit listeners to take part, not simply with their opinions however to supply newsworthy data, immediately, on the air. It actually did really feel like we have been offering a neighborhood service.”

The way forward for KGO’s hosts is as unsure because the locations for his or her orphaned listeners. Thompson is launching a YouTube channel Wednesday and will discover different digital choices equivalent to podcasts, although these don’t lend themselves to interacting with listeners in actual time, as radio does. Others will attempt to discover houses on different stations.

KGO’s new listeners might be plied with syndicated sports activities applications, together with such hosts because the notable blowhard Jim Rome — who already reached Bay Space listeners by way of KNBR — and eight hours of sports activities betting ideas each weekday.

“It’s a rattling, soiled disgrace,” Thurston says. “KGO is a legacy radio station, and it didn’t should occur like this.”

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Albertsons to pay $3.9 million over allegations it overcharged, lied about weight of groceries

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Albertsons to pay .9 million over allegations it overcharged, lied about weight of groceries

Grocery titan Albertsons will pay $3.9 million to resolve a civil law enforcement complaint alleging that it ripped off customers at hundreds of its Vons, Safeway and Albertsons stores in California, authorities said Thursday.

According to the complaint, groceries sold by Albertsons Cos. — including produce, meats, baked goods and other items — had less product in the package than indicated on the label. The company also is accused of charging customers prices higher than its lowest advertised price.

“False advertising preys on consumers, who are already facing rising costs, and unfairly disadvantages companies that play by the rules,” L.A. County Dist. Atty. George Gascón said. “This kind of corporate conduct is especially egregious when it comes to essential groceries, as Californians rely on accurate advertised prices to budget food for their families.”

The case was filed in Marin County Superior Court in partnership with the consumer protection units of the district attorney’s offices of Los Angeles, Marin, Alameda, Sonoma, Riverside, San Diego and Ventura counties.

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The settlement will be divided among the seven counties and used to support future enforcement of consumer protection laws, according to the Marin County district attorney’s office. None of the money will be paid back to consumers.

The fine comes just over a year after the same company was ordered to pay $3.5 million for selling expired over-the-counter drug products. The company is also currently fighting a federal antitrust lawsuit that seeks to block its planned merger with grocery giant Kroger Inc.

Albertsons Cos. operates 589 Albertsons, Safeway and Vons stores in California. The company did not admit wrongdoing. It cooperated with the investigation and has taken steps to correct the violations, according to the L.A. County district atttorney’s office.

In a statement on the settlement, the company said it takes the matter seriously and is committed to ensuring its customers can shop with confidence.

“We have taken steps to ensure our price accuracy guarantee is more visible to customers by posting signage at multiple locations at the front of our stores,” the company stated. “We have conducted additional comprehensive training for associates to reinforce the importance of price accuracy and customer transparency. Additionally, we have enhanced price tracking systems to better ensure real-time accuracy at stores.”

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Prosecutors in the lawsuit alleged that the company failed to implement a price accuracy policy ordered by a court in 2014.

The policy requires that customers who are overcharged for an item either receive the item for free or receive a $5 gift card, depending on which option is worth more. It is designed to encourage customers to immediately report false advertising.

Under the judgment reached Thursday, the grocery giant must implement this policy and ensure staff are properly trained to place accurate weight labels on products.

The serial overcharging was discovered through inspections by Marin County’s Department of Agriculture, Division of Weights and Measures and its counterparts across the state.

“We could not have achieved this result without the outstanding work of our Weights and Measures inspectors as well as vigilant consumers,” said Deputy Dist. Atty. Andres Perez, who prosecuted the case for Marin County.

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For the next three years, Albertsons Cos. is required to hire an independent auditor to ensure it is complying with the terms of the judgment.

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Disney faces class action lawsuit over employee data breach

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Disney faces class action lawsuit over employee data breach

Walt Disney Co. has been hit with a class action lawsuit accusing the Burbank-based entertainment giant of negligence, breach of implied contract and other misconduct in connection with a massive data breach that occurred earlier this year.

Plaintiff Scott Margel submitted the complaint on Thursday in Los Angeles County Superior Court against Disney and Disney California Adventure. The 32-page document also accuses the company of violating privacy laws by not doing enough to prevent or notify victims of the extent of the leak.

The class members, estimated to number in the thousands, are described in the complaint as individuals who gave “highly sensitive personal information” to Disney in connection with their employment at the company — information that was allegedly compromised in the breach.

Representatives of Disney did not immediately respond Friday to The Times’ request for comment.

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The lawsuit cites an article published in September by the Wall Street Journal, which reported that a hacking group known as NullBulge publicly released data spanning more than 18,800 spreadsheets, 13,000 PDFs and 44 million internal messages sent via the workplace communication platform Slack.

According to the Journal, the compromised Slack messages contained sensitive information belonging to Disney cruise employees, including passport numbers, visa details, birthplaces and physical addresses; at least one spreadsheet listed the names, addresses and phone numbers of some Disney Cruise Line passengers. The publication later reported that Disney planned to stop using Slack after the breach.

The plaintiff and class members “remain, even today, in the dark regarding which particular data was stolen, the particular malware used, and what steps are being taken, if any, to secure their [personal information] going forward,” the complaint reads.

The plaintiff and class members “are, thus, left to speculate as to where their [data] ended up, who has used it and for what potentially nefarious purposes.”

In July, NullBulge said that it had leaked roughly 1.2 terabytes of Disney data in rebuke of the company’s treatment of artists, “approach to AI” and “pretty blatant disregard for the consumer.” The self-proclaimed hacktivists told CNN that they were able to penetrate Disney’s system thanks to “a man with Slack access who had cookies.”

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A Disney spokesperson said in a statement at the time that the company was “investigating this matter.”

Margel is demanding that Disney take steps to reinforce its security system and educate class members about the risks associated with the breach. The plaintiff is also seeking unspecified damages and a jury trial.

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Rivian cuts production forecast, citing supply chain issue; its stock dips

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Rivian cuts production forecast, citing supply chain issue; its stock dips

Electric vehicle maker Rivian saw its shares dip Friday after the Irvine-based company cut its production targets amid ongoing supply issues.

Citing a shortage of a component used to build its electric pickups, sport utility vehicles and vans, Rivian said production could drop as much as 18% this year at its lone U.S. assembly plant.

Rivian did not specify the part that is in low supply but noted that the shortage has become more acute in recent weeks.

The company now forecasts its full-year production will be between 47,000 and 49,000 vehicles, down from an earlier estimate of 57,000. During the most recent quarter, Rivian produced 13,157 vehicles and delivered 10,018, falling short of analysts’ expectations.

Shares of Rivian ended the day at $10.44, down 3.2%. The company’s stock has been battered since the start of the year, falling by more than 50% amid underwhelming financial reports. In the second quarter this year, Rivian posted a net loss of $1.46 billion compared with a loss of about $1.12 billion during the same period a year earlier. The company is scheduled to announce its third-quarter earnings next month.

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Rivian received a lifeline in June when Volkswagen agreed to a massive investment in the company that is expected to total $5 billion. Rivan has nonetheless continued to struggle in the face of dropping demand for electric vehicles and other supply chain issues that forced the company to pause its production of commercial vans for Amazon.com in August.

Early this year, the automaker announced a 10% cut in its workforce that sent stocks plummeting 25% in one day. The pool of interested wealthy buyers who don’t already own an electric vehicle is shrinking, analysts said, while the broader market weighs the advantages and feasibility of switching to electric.

The average car buyer is not likely to be able to afford a Rivian vehicle, and concerns remain about charging infrastructure and the distance vehicles can drive on a single charge. Rivian’s R1T electric pickup truck starts at around $70,000; its R1S SUV starts at nearly $75,000.

With sleek design and outdoorsy features, Rivian’s vehicles garnered much attention from analysts and attracted investors such as Amazon and Volkswagen. The company exceeded expectations during its initial public offering of stock in 2021, ending its first day of trading valued at nearly $88 billion.

The production issues announced this week could get in the way of Rivian’s goal of achieving positive gross profits by the fourth quarter of this year. According to analysts, the company’s gross margins are expected to remain in negative territory in the final three months of 2024.

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