I10-08

Question

In September 1997, Philadelphia’s long-time commercial classical station, WFLN, was sold for $85,000,000 and changed formats. One week later, Temple University’s WRTI, an all-jazz station since 1958, acquired WFLN’s collection and added classical music to its format.
 
After the format change, WRTI aired classical music on weekdays from 6 a.m. until 6 p.m., and jazz from 6 p.m. until 6 a.m. Saturday daytime hours were devoted to classical music (except for a 30-minute talk show at 6 a.m. and a 40-minute arts news show at 11 a.m.), while Sunday daytime hours were devoted to gospel or jazz until 3 p.m. Weekends also included syndicated programs such as  Piano Jazz ,  Jazz 20 Profiles , and  From the Top , as well as live broadcasts of performances by the Metropolitan Opera in season.
 
WRTI’s swift move not only prevented the demise of classical music radio in the nation’s sixth largest market but also benefited the station by drawing increased listeners and contributions, particularly from audiences left without another dedicated classical option after WFLN’s format change.In the summer of 1997, prior to adding classical music broadcasts, the station had approximately 6,500 average-quarter-hour (AQH) listeners. By the fall of 2005, the AQH audience had reached 18,300—a gain of 180%.
 
Membership also grew. In June 1997, WRTI had 3,371 members; one year later, membership was 9,411. It continued to rise, reaching 15,000 by 2005. In 1997, the station received approximately $259,000 in member contributions. In 1998, this amount increased to about $390,000. Member contributions continued to rise almost every year, surpassing $1,000,000 in 2003. In 2005, the station garnered $1,200,000 from members.
 
A decline in contributions and membership numbers in 1999 and 2001 reflected some strain from the station’s rapid growth. To manage the expansion, the station hired a chief financial officer in 1999 and a membership director in 2001. Both members and contributions rose following these staff additions.The graph below shows WRTI’s total number of members and total member contributions for each year from 1996 through 2005. The left vertical axis represents the number of members. The right vertical axis represents total contributions in dollars.
  https://gmatclub.com/gmat-focus-tests/resources/import/img/I10-02.png

Bunuel · Answer

Official Solution:

Addition of classical music programming 
 
• Tab 1 states that after acquiring WFLN’s collection and adding classical music to its format, WRTI drew increased listeners and contributions. Since this programming change is directly associated with a rise in member contributions, the information supports that the factor had a positive impact. Positive Impact.
 
 Lack of direct competition in classical music broadcasting 
 
• Tab 1 states that WRTI’s addition of classical programming “prevented the demise of classical music radio,” and that it benefited the station by drawing increased listeners and contributions, particularly from audiences left without another dedicated classical option after WFLN’s format change. This implies that after WFLN’s format change, WRTI faced no remaining direct classical competitor, so the lack of direct competition likely contributed to the growth in listeners and member support. Positive Impact.
 
 Hiring of a chief financial officer and a membership director 
 
• Tab 2 states that the station hired a chief financial officer in 1999 and a membership director in 2001 to manage growth. It then states that both members and contributions rose following these staff additions. This directly supports that the hires had a positive impact on member numbers and total member contributions. Positive Impact.

Correct answer:

Addition of classical music programming  "Positive Impact"

Lack of direct competition in classical music broadcasting  "Positive Impact"

Hiring of a chief financial officer and a membership director  "Positive Impact"

Bunuel · Answer

This MSR question and its solutions have been completely revised and improved.

Luca46 · Answer

I like the solution - it’s helpful.

I10-08

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My Rewards

Positive Impact	No Clear Impact
		Addition of classical music programming
		Lack of direct competition in classical music broadcasting
		Hiring of a chief financial officer and a membership director