Cumulus Media's NCAA WCWS Play: A Strategic Broadcast Bet with Multiplatform Payoffs

Cumulus Media (CMLS) finds itself at a pivotal crossroads in the evolving media landscape. Amid a challenging macroeconomic environment that has dented traditional advertising revenue, the company is leveraging its exclusive rights to the NCAA Women's College World Series (WCWS) to fortify its position as a leader in audio content distribution. This strategic move not only diversifies revenue streams but also amplifies advertiser appeal by bridging the gap between traditional radio and digital platforms.

The NCAA WCWS, a marquee event in women's college sports, offers Cumulus Media's subsidiary Westwood One a platform to showcase its unrivaled multiplatform distribution capabilities. From May 29 to June 6, 2025, all 14 games of the tournament were broadcast live across terrestrial radio, SiriusXM, and digital platforms such as NCAA.com/WCWS and the Westwood One Sports app. This comprehensive coverage underscores the company's ability to deliver premium sports content to audiences wherever they consume media.

The Revenue Diversification Play: DMS Growth and Recurring Revenue

Cumulus Media's Q1 2025 earnings reveal both challenges and opportunities. While total revenue dipped 6.4% year-over-year to $187.3 million due to softness in automotive, retail, and CPG advertising, its digital marketing services (DMS) segment surged 30%—a testament to its strategic pivot toward digital-first advertisers. The DMS business now operates at a $70 million annual run rate and is on track to exceed $100 million by 2026.

The scalability of Cumulus's content licensing model is further amplified by its sports portfolio. The WCWS, part of a broader slate of NCAA and NFL partnerships, provides recurring revenue streams. Unlike one-off ad campaigns, these events offer predictable cash flows while attracting advertisers seeking to engage sports fans across platforms. For instance, brands can sponsor live broadcasts, digital streams, or even interactive fan experiences, creating multi-touchpoint opportunities.

Why Advertisers Are Betting on Westwood One

Westwood One's role as the “largest audio network in the U.S.” is no exaggeration. Its WCWS coverage—featuring analysts like Erin Miller and Leah Amico—draws in audiences passionate about women's sports, a demographic increasingly valued by advertisers. This event also serves as a testing ground for innovative ad formats, such as dynamic audio ads that adapt to real-time game action.

The multiplatform distribution model is critical here. By streaming games on digital platforms while simulcasting on radio, Cumulus captures both traditional listeners and younger, tech-savvy audiences. This dual reach is a rare asset in today's fragmented media environment, making Westwood One a must-have partner for brands aiming to maximize ROI.

Navigating Near-Term Headwinds

The company's Q1 results highlight short-term headwinds, including a $32.4 million net loss and a $4.9 million decline in Adjusted EBITDA. However, these figures are partially attributable to macroeconomic factors like tariffs and government spending cuts, which have dampened advertiser sentiment. Meanwhile, cost discipline—evidenced by $7.5 million in annualized fixed cost reductions—suggests management is focused on stabilizing margins.

Cumulus's liquidity ($52.7 million in cash) and extended debt maturities provide a cushion to navigate this period. The real story lies in its long-term growth trajectory: a DMS business scaling toward $100 million, a resurgent podcasting segment (up 39% excluding the Daily Wire exit), and a sports portfolio that delivers both content and audience.

A Buy Recommendation for the Media Convergence Play

Cumulus Media's valuation is undeniably challenged by current conditions. Yet its strategic focus on multiplatform sports content—exemplified by the WCWS—positions it to capitalize on two unstoppable trends: the shift to digital advertising and the rise of sports as a unifying cultural force.

Investors should view dips in CMLS stock as buying opportunities. The company's recurring revenue model, scalable DMS platform, and premium sports rights form a moat against competitors. With digital revenue now at 20% of total sales and growing, the path to sustained profitability is clear.

Action Item: Consider adding Cumulus Media to your portfolio for exposure to the convergence of sports, audio, and digital media. The WCWS is more than a broadcast—it's a blueprint for Cumulus's future.

The author holds no position in Cumulus Media. Always conduct your own research or consult a financial advisor before making investment decisions.