Crystal Not Clear With Net

Crystal Media Networks, set to launch its first RADAR-rated network called Prestige in March, is off to a rocky start.

A new boutique network company formed in February, Crystal devised a plan to quickly get into the network game by paying cash for its inventory?but it didn't alert stations it was buying the spots with intent to create a network.

Station managers reported the spots weren't even bought under the Crystal company name. "That was dishonest," said one station executive. "There's no way we'll accept this business, no matter how much they pay."

Crystal's maverick approach appears to be backfiring. Because of opposition by other networks whose parent companies own the stations from which Crystal has been buying time, Crystal may not be able to guarantee to advertisers that the stations on its affiliate list will clear the spots. Multiple phone calls to Crystal were not returned.

Most networks get their inventory by providing programming or services to radio stations in exchange for commercial spots, Crystal, needing top-market clearances, decided instead to buy the inventory and resell it in its Prestige network.

Several Infinity Broadcasting stations in top markets, such as WINS-AM and WCBS-AM in New York, and WBBM-FM in Chicago, were listed by Crystal as affiliates of the Prestige network, which targets adults 25-54. ABC Radio's WLS-AM in Chicago was also on the affiliate list.

Joel Hollander, COO of Infinity, who found Crystal's practice deceptive, said his stations simply won't clear the spots. "They don't have Infinity Broadcasting stations as affiliates," Hollander insisted. He sent a letter to advertisers and agencies to clear up any confusion.

"Consolidators, barter companies or other commercial rep firms such as Crystal Radio or any company representing them offering network commercials will not be accepted," wrote Hollander.

Other network execs in the business, who would not speak for attribution, said Crystal's big mistake was not coming clean up front. "It's better to say, 'This is what we're doing.' It looks like they've got something to hide," said one exec.

Agency execs weren't impressed with the tactic either. "Buyers are unlikely to purchase the network if it has a cloud over it," said Irene Katsnelson, vp/director of network radio for Universal McCann. "I'm waiting for Crystal to address the issue. I hope they can clear it up?it would be great to have another network."

Crystal is the third company in the past two weeks to add a network to RADAR, Arbitron's network radio service that measures audience to cleared commercials.