Christian Radio Firm Branches Out

In an aggressive effort to reach one of the fastest-growing groups of consumers, a local religious radio company is expanding into Internet commerce and magazine publishing.

Salem Communications Corp., based in Camarillo, has purchased three companies: Contemporary Christian Media Communications, OnePlace and NavPress Software. The acquisitions, company officials say, will allow Salem to offer additional products and services to Christians and to expand its customer base.

Christian products and services are becoming increasingly popular, according to broadcast analyst Vinton Vickers of ING Baring, Furman, Selz, a Washington, D.C.-based investment company. Sales of Christian music have increased 22% annually since 1991, and sales at Christian retailers in the United States jumped from $1 billion in 1980 to $3 billion in 1996.

About 20.6 million people listen to Christian radio stations across the U.S., out of about 78 million Christian adults in the country, analysts say. And between 1989 and 1996, the number of radio stations offering religious programming increased by 58%.

Vickers said Salem is one of the largest players in the industry, and its entry into new media and publishing will help the company capture a larger audience.

Nashville-based CCM produces radio programs and publishes five magazines that target Christian music consumers. OnePlace, located in Greensboro, N.C., specializes in electronic commerce focusing on Christian products.

And NavPress, in Austin, Texas, develops electronic Bible and Christian reference books. The company’s products include Bible study software for adults and computer games for children.

“There are innumerable synergies inherent in the joining of these four companies,” said CCM President John Styll. “Our companies work in different yet complementary mediums, and each brings great strengths to the equation.”

Salem Communications owns 45 radio stations nationwide, as well as a Dallas-based network that offers radio talk shows, news and music programming to more than 1,000 affiliate stations.

Salem has made more than 35 acquisitions in the past 10 years, all aimed at increasing its customer base, said Edward Atsinger, Salem’s chief executive officer.

Atsinger said the Internet is the next logical place to distribute material and offer products to the targeted Christian conservative audience.

“Today’s acquisitions are in line with Salem’s overall strategy to create a multimedia network of products and services for a burgeoning market,” Atsinger said.

In addition to being a leader in Christian broadcasting, Atsinger has been involved in conservative politics. In 1996, he started a political action committee to support pro-business and socially conservative candidates. In 1998, he donated more than $500,000 to the California Republican Party, Californians for Stronger Families and other conservative candidates and causes.

Atsinger said he sees no connection between his political donations and his business transactions.

“I believe living in a civic democracy requires participation, and that’s why I have always given my support to candidates,” Atsinger said. “But the radio stations and network have never been utilized for my private political involvement.”

With the purchase of the new companies, Salem will do more business electronically, provide an Internet search engine for locating Christian resources and offer online filtering, Atsinger said.

In addition to digital imaging and consumer profiling, OnePlace develops databases of Christian products, churches, retail stores and counselors. And it advertises and sells products through its Christian SuperStore.

“We are . . . at the cusp of witnessing the convergence of telecommunications, computers and broadcasting,” said Doug Young, chief executive of OnePlace. “This is great news for the 30 million adult American Christians who are online.”

CCM publishes a contemporary journal for Christian professionals who work in youth ministries, a Christian women’s magazine and three magazines on the Christian music industry.

Salem Communications would not disclose how much it spent on the purchases. Headquarters for the companies will remain in their respective cities, company officials said.

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