KSL splitting from Bonneville; new digital media company created

Looking to better leverage its media companies with an eye to an already impressive Internet presence and financial opportunities, Deseret Management Corporation is creating two new operating divisions — one through addition, the second through subtraction.

The latter is the most simple to explain, said first-year DMC president and CEO Mark Willes, with the flagship stations of KSL-TV and KSL Radio being split from current parent Bonneville International and to comprise the new KSL Broadcasting.

Besides allowing Bonneville to focus on its 28 affiliate radio stations nationally and its broadcast distribution and public service announcement services, the new division allows the two KSLs separate standing, individual focus and a position to better integrate into DMC's second new division.

The second — Deseret Digital Media — is a new company created to manage the Web sites and business operations for DMC's Deseret News, Deseret Book and new KSL Broadcasting subsidiaries.

The companies' Web sites will remain separate, but combining them under one umbrella will allow the new division to streamline operations and increase revenue by selling bulk online advertising.

"Strategy ought to determine structure, which then determines performance," said Willes of Thursday's moves.

Of combining the KSL, Deseret News and Deseret Book technical and business Web operations, Willes said DMC is patterning itself after other media online successes and expecting to see total online revenues increase two- to fivefold.

"That's exactly what they've done," he said. "They've taken the Internet activities and set them up as a separate division so that you can have people who can focus exclusively and entirely on that business — and I emphasize 'business' because if you can't turn it into a business, you can't afford it."

The new divisions were announced at simultaneous staff meetings Thursday morning at each of the DMC's seven existing companies.

KSL Broadcasting becomes effective Thursday, while Deseret Digital Media starts to function Oct. 1, with an anticipated four- to six-week ramp up to get and running in 2009's fourth quarter in order to be on its own budget by the first of next year.

Other than the upcoming consolidation of Internet operations and personnel and the likelihood of additional hiring at the new Deseret Digital Media, staffs at the two KSL stations, the Deseret News and Deseret Book should see little change.