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West Virginia University Jasmine Hood IMC 618
……………………………………….3 2. Background…………………......
………………………………………………………………….……………….3 3. Situation
Analysis………………………………………………………………………………………… ……...8 4. Core Problem
Statement……………………………………………………………………... ……………….9 5. Key Public: End-Users – Primary and Secondary Messages……………..
…….……………….9 6. Key Public: Advertisers – Primary and Secondary Messages..…………...
………..…………11 7. Key Public: Shareholders – Primary and Secondary Messages..
…………...………..………12 8. Campaign Goal…...……………………..
………………………………………………………………………..13 9. Campaign
Hood 3 ………………….14 10. Campaign Strategies and Public Relations
Tactics…………………………….………………….15 11. Calendar of PR
Activities…………………………………………………………………………..……......19 12. Budget……………………….
………………………………………………………………………………………22 13. Evaluation Plan…………,
……………………………………………………………………………………....24 14. Personal Assessment….
………………………………………………………………………………………25 15. References…………..…..
Hood 4 Executive Summary
With a projected buying power of $1.1 trillion by 2012, targeting African American consumers is a no brainer (Dodson 2007). Reaching this unique segment, like any other group, in today’s market must be efficient and costeffective. Radio One, Inc. provides the perfect amalgamation of media that reaches over 82 percent of African American households through multiple media channels. Imagine being able to touch people in their cars, homes, on their computers, cell phones, email, at newsstands, and in their mailbox. Media connects individuals to the world around them, and circularly, the world is built on these individual connections. Radio One and its subsidiaries provide unmatched access for key publics to conveniently connect to the content and people that are relevant and essential to them personally and financially across radio, television, online, and print platforms.
Background From its humble beginning at WOL-AM on Howard University’s Washington D.C. campus, founder Cathy Hughes has built the steady empire of Radio One, Inc. with urban market radio stations across the US. Radio One is one of the largest radio broadcasting companies in the U.S. and is the largest radio broadcasting company that primarily targets African-American and urban listeners. It currently owns and/or operates 52 radio stations located
Hood 5 in 16 major markets, as well as Magazine One dba Giant Magazine, interests in TV One, LLC, Interactive One, the Tom Joyner Morning Show, and Reach Media, Inc. (www.blackamericaweb.com). They have also recently added Community Connect Inc., an online social networking company to their Interactive One portfolio. Radio One’s exclusive position as the largest broadcaster among African American audiences makes it #1 in its target market. Its stations offer an assortment of formats, including Urban, Adult Contemporary, Contemporary Inspiration, Gospel, and News Talk radio. In conjunction with Reach Media, Radio One owns Syndication One, which develops African American targeted talk show programming. The featured shows include The Al Sharpton Show, The Warren Ballentine Show, and 2 Live Stews, offering audiences relevant information and analysis from an African American perspective. TV One is a lifestyle and entertainment cable network that focuses on the adult African American community. Original and acquired programming is featured on the network that is distributed across the country on most cable and satellite service providers, particularly where there is a high African American population segment. Interactive One was launched in 2007 to round out the Radio One media family. It has quickly become the #1 online platform for African Americans. The acquisition of Community Connect, Inc. has now expanded the Interactive One offering to span 10 websites, including BlackPlanet.com, the
Hood 6 largest African American online social network. Radio One expects the integrated online experience to grow to over 60 websites in the next year as it brings content from its 52 stations online. Magazine One (dba Giant Magazine) is an urban entertainment lifestyle magazine that targets young, upwardly mobile readers with a multicultural appeal. The bi-monthly magazine is distributed nationally and features articles and advertisements centered on the worlds of music, film, fashion and style. With such extraordinary success in less than three decades, Radio One began to publicly offer common stock on May 6, 1999, making Hughes the first African American chairwoman of a publicly traded company. Unfortunately, after years of unprecedented growth and success, the current national economic conditions have hurt Radio One like many other media broadcasting companies. On October 22, 2008, NASDAQ notified Radio One (NASDAQ: ROIAK and ROI) that for 30 consecutive days prior to October 16, 2008 the bid price of Radio One’s Class D common stock had closed below the minimum $1.00 per share required to list on NASDAQ. In light of the economic crisis and the unprecedented condition of the market NASDAQ granted moratorium for the Company, with the rules to go back into effect January 19, 2009. From that time through July 20, 2009, Radio One must close at $1.00 per share or more for at least 10 consecutive business days to achieve compliance. The Company sold 20 of its stations in 2007 to reduce
Hood 7 operating expenses. Third quarter results were reported on September 30, 2008, showing net revenue $86.2 million, down 2 percent from the same period last year. In the fourth quarter of 2008, Radio One faces a new day in media and the world. The U.S. political and economic climate is both in favor and against the largest African American broadcasting company. The first African American president, Barack Obama, has been elected and the stock market is in shambles. On election night, thousands of viewers tuned in to TV One, Radio One’s cable network, to watch live coverage of the historic presidential election returns. While the network was proud to carry such a momentous event, parent company Radio One faces unprecedented challenges in the national market. Despite increased listenership, media buyers have had to cut advertising budgets across the broadcasting industry (Hampp 2007). The history of commercial radio dates back to 1920, when Pittsburgh's KDKA broadcast election returns. In two short years, there were more than 200 stations crowding the available airwaves (Bloomquist 2008). Today, there are approximately 11,000 commercial stations in the $20 billion radio broadcasting industry (the Industry) that compete in local markets across the country. Radio One is ranked number 10 of the top radio broadcasting companies in the U.S. The industry leader is Clear Channel Communications, which owns or operates 1,000 stations- three times as many as its closest competitor Cumulus Media. As a result of the Telecommunications Act of
Hood 8 1996, there has been much consolidation in the Industry with giant radio companies owning up to eight stations in large markets. These large companies operate in clusters to reduce administrative and sales costs, but allow the individual stations to target different audience segments through programming. Currently, the Industry’s greatest challenge is the national economy. National advertisers have trimmed ad spending due to the economic slowdown and the lack of optimal metrics. Until recently, stations measured their share of listeners by Arbitron’s diaries that have been criticized for having three-month delays in results and were often inaccurate. In 2007, Arbitron introduced their electronic Portable People Meters (PPM), to promptly produce more measurable results, much like Nielsen ratings in the television industry. With the rapid technology changes in the Industry companies have begun to face the issue of Internet advertising. Many broadcasters have expanded their brand to online content, generating three to five percent of the industry’s revenue from online ad sales (McClellan 2007). Internet radio, satellite radio, and mp3 players have steadily begun to take a chip out of the traditional medium’s core base. The technological advancement of high definition (HD) radio signals may possibly prove advantageous to radio broadcasting ad sales. Digital radio offers better sound quality and no subscription is necessary.
Hood 9 In the radio broadcast industry, Radio One is nowhere near its competition and, in conversely, its competition is nowhere near it. Clear Channel is the industry leader, with over 1,000 stations across the country. Other top competitors include Ciatdel Broadcast, CBS Radio, as well as Cumulus Media, Emmis Communications, and Cox Radio. However, Radio One’s focus on the African American niche market is unrivaled by any other broadcasting company. TV One’s competition is limited, with its largest and main competitor being BET. Although both networks focus on African American viewers, they have different target demographics- BET targets a young 18-34 demo, while TV One targets an older 18-49 demo. By 2006, three years from its launch, TV One had attained 40 million subscribers, compared to the 30-year old BET’s 85 million subscribers (Goetzl 2007). Another competitor that TV One has managed to outpace was the Black Family Channel, which found it difficult to gain distribution. In May 2007, the network was sold to the Gospel Music Channel and is rumored to re-launch sometime this year. Radio One’s newly acquired Community Connect, under the Interactive One brand, has placed the company in the new age world of social networking. The largest of Interactive One’s sites is, by far, BlackPlanet.com. In 2007 BlackPlanet.com ranked No.4 in Hitwise's Top U.S. Social Networking Sites Report, behind MySpace, Facebook and Bebo (Hitwise 2008). Magazine One’s Giant Magazine has the advantage of being linked to a
Hood 10 company that reaches 82 percent of African Americans across television, radio, online, and print platforms. This is something its main competitors, Vibe Magazine, the Source, XXL, as well as veterans Ebony and Essence, can’t claim.
Situation Analysis Radio One has garnered the number one position in media broadcasting for the African American community. The company’s multimedia brands reach over 82 percent of African American homes through radio, television, online, and print. Current national economic conditions have adversely affected Radio One along with the entire radio broadcasting industry. The media giant must find new and innovative ways to attract end users to ultimately attract advertisers. This diversification of the Radio One properties shows the commitment to providing advertisers with integrated marketing access into the homes and lives of consumers. According to a statement made by Barry Mayo, President of the Radio Division, “[Radio One is] no longer in the radio business, we are in the 'audio entertainment business' and we need to leverage our products well beyond the terrestrial signals we are licensed to operate.” Currently, there is a limited amount of PR communication and marketing strategies that establishes the company’s stance on being a leading provider for urban and African American entertainment and news
Hood 11 content.
Core Problem To brand itself as an integrated multimedia conglomerate, Radio One must efficiently link its print, television, radio, and online platforms to engage key publics (end-users and advertisers) in the total brand package.
Advertisers Advertisers have a self-interest as a primary public of Radio One. Radio One’s success in reaching consumers directly relates to an advertiser’s ability to reach the target segments that Radio One offers. Advertisers utilize Radio One’s dominance in African American multimedia outlets to promote their products and services. The added value of Radio multimedia properties is that African American consumers can be reached consistently and repeatedly when engaged with Radio One. If Radio One loses or misses out on potential members of the target audience (end-users) due to disconnected public relations and marketing, advertisers are subsequently affected as well. This public needs to be sure that end-users are participating across all of Radio One’s platforms so that they can feel
Hood 12 confident in spending across platforms. Primary Message: • Radio One is the leading media company for African American entertainment and news content. Secondary Message: • Giant Magazine has national distribution with a 250,000 Ratebase/362,090 Total Paid Circulation. • Interactive One is composed of a variety of sites, including
NewsOne, TheUrbanDaily, and HelloBeautiful, as well as the Community Connect, Inc. family of social networking sites. BlackPlanet.com has over 15MM registered members, 5MM Unique Visitors/month, and approximately 500mm Page Views/month. • TV One is seen in 208 markets, across 39 states and nationwide on DIRECTV. • Radio One stations are located in 53 stations in 16 urban markets.
Primary Message: • Radio One is a media conglomerate that cross-markets and shares content and resources. Secondary Message: • The Radio One online networks GIANTmag.com, Blackplanet.com, AllHipHop.com, The Urban Daily and other targeted verticals.
Hood 13 • One media buy allows you create custom campaigns across multiple websites. • Interactive One is the leading online network serving the AfricanAmerican community through social network, news, information, and entertainment. • Advertising on Radio One stations, the TV One network, in Giant Magazine, on Giantmag.com, or any of the Interactive One networks provides access to 9 million African-Americans per month. End-Users Although end-users do not necessarily invest direct dollars into the broadcast company’s revenue, they are an essential public for Radio One. End-users include listeners, viewers, subscribers, and readers that attract advertisers to spend with Radio One and trust that they are the best source for reaching specific audiences. If end-users are dissatisfied or unfulfilled (due to lack of awareness) with Radio One’s offerings they can voice their displeasure by quietly ceasing participation in one or more of Radio One’s multimedia platforms. Does Radio One have the information or content that is relevant to me? How easy is it to access this information and how can I enjoy more than one medium? These are all questions that end-users may consider when choosing to engage in Radio One media. Primary Message: • Radio One is the multimedia authority on convenient and reliable
Hood 14 African American entertainment and news content. Secondary Message: • GIANT is an urban entertainment lifestyle magazine that celebrates the best of music, film, fashion and style. • Radio One is the largest radio broadcasting company that primarily targets African-American and urban listeners, with stations in 53 stations in 16 urban markets. • BlackPlanet.com connects audience with a mix of community tools, information, entertainment and personal service based on their interests. • TV One is a cable/satellite television network, programming primarily to African American adults, that offers a broad range of lifestyle and entertainment-oriented programming that respects their values and reflects their intellectual and cultural diversity.
Shareholders During the past few years Radio One shareholders have had to endure the slowdown of the national economy and the effects it has had on the radio broadcasting industry, and Radio One specifically. Incessantly falling stock prices and recent warnings from NASDAQ can leave shareholders feeling uneasy about the security of their investments. As an internal public, shareholders are personally affected by the marketing strategies of the
Hood 15 company. This public needs to know the value of all Radio One enterprises and how they are positioned to create additional revenue. Primary Message: • Radio One is seeking to build a media conglomeration of enterprises that appeals to key publics and increases revenues. Secondary Message: • Consistent branding will attract consumers (end-users) to utilize all of Radio One’s platforms, increasing the reach available to advertisers. • Advertisers will be able to buy into a cohesive media company whose brand is bigger than the parts.
Campaign Goal Radio One is to build its overall brand position and increase revenues by integrating its marketing and public relations tactics for both end-users and advertisers to fully utilize the company’s reach. The current vision statement on Radio One’s website is outdated and only refers to its prior strategy of expanding its radio market shares amongst African Americans. However, in recent statements from CEO Alfred C. Liggins III, Radio One is seeking to build the media company into an “Univision-like conglomeration of media enterprises that cross-market and share content and resources” (Huslin 2007). To accomplish this, Radio One must develop a consistent brand that markets all of its multimedia elements.
Hood 16 VP of Integrated Marketing – One Solution, Peggy Byrd Mazard, recognizes this need for an integrated marketing and public relations approach. “As [Radio One] becomes a key media brand in the marketplace, we are excited about making sure our identity and value proposition are clear, articulated, enhanced, and differentiated,” she stated (Mazard 2008, p. 11). Radio One will need to issue a new mission statement that reflects the direction and goals that the company is trying to achieve.
Campaign Objectives 1. Develop a recognizable brand name and logo that encompasses all of Radio One’s media platforms and coincides with its current slogan. (Ex. One Media, Inc. – The Urban Media Specialist). Marketing material should reflect this unified image and be introduced by 2nd Qtr FY 09.
2. Announce press release for campaign launch across all Radio One platforms- Radio One, TV One, Giant Magazine, BlackPlanet.com on April 01, 2009.
3. Move all media websites to employ BlackPlanet.com as the host server (Ex. www.giant.blackplanet.com). Link BlackPlanet memberships to all other platform websites. (Ex. Signing in under a BlackPlanet login allows member to access information on their local radio station’s
Hood 17 webpage or leave comments on Giant Magazine’s website). Integration should be complete by May 2009.
4. Foster awareness amongst end-users of the connected media properties of Radio One. Through survey research obtain an 80 percent level of end-user awareness of all Radio One brands by January 2010.
5. Present One Media as an integrated opportunity for advertisers to gain multi-channel access into consumer’s homes. Packaged partnerships should include media buys in more than one medium, highlight level of end-user participation across platforms, and convey One Media as an expert in the African American media experience.
Strategies and Tactics Currently, Radio One has not announced any specific strategies aimed at branding itself as an integrated multimedia conglomerate. The following suggested strategies and tactics are intended to efficiently link its print, television, radio, and online platforms to engage key publics (end-users and advertisers) in the total brand package.
Advertisers Strategy One: • Develop and present a recognizable brand name and logo that encompasses all of Radio One’s media platforms and coincides with its current slogan. Tactics: • One Media, Inc. is to be established as the company umbrella in which advertisers can reach target audiences across platforms. (One Media, Inc. – The Urban Media Specialist) • One Solution must be presented as an advertising package that includes media buys across One Media and conveys One Media as an expert in the African American media experience.
Strategy Two: • Announce campaign launch across all One Media platforms and other various media. Tactics: • Issue a press release to the appropriate trade magazines, newspapers, and ad agencies announcing unique opportunities to reach African American audiences through One Media’s new image and structure. • Place a full-page ad in Giant Magazine, run 30-second spots on Radio
Hood 19 One, run 30-second spots on TV One, place web banners on BlackPlanet.com and other Interactive One networks emphasizing the new brand name, logo, and all of its properties. • Redesign company website and homepage of each One Media property to present One Media as an integrated opportunity for advertisers to gain multi-channel access into consumer’s homes.
End-Users Strategy One: • Ensure end-users are aware of One Media’s presence and the integrated channels available through the redesigned media conglomerate’s campaign launch. Tactics: • One Media, Inc. is to be established as the company umbrella in which end-users can conveniently access news and entertainment content through radio, television, print, and online platforms. • Place a full-page ad in Giant Magazine, run 30-second spots on Radio One, run 30-second spots on TV One, place web banners on BlackPlanet.com and all Interactive One networks emphasizing the new brand name, logo, and all of its properties. • Send member messages to all BlackPlanet.com users announcing the campaign launch.
Hood 20 • Use One Media’s established Email Alerts to inform subscribers of the campaign launch. • Redesign company website and homepages of each One Media property to present One Media as an integrated media company.
Strategy Two: • Link BlackPlanet.com memberships to all other platform websites.
Tactics: • Create a communications message through interactive participation. Signing in under a BlackPlanet login allows members to access information across all One Media platforms (ex. local Radio One station, Giantmag.com, TV One, etc.)
Shareholders Strategy One: • Ensure shareholders are aware of the rebranding of Radio One/One Media and its revenue potential. Tactics: • Issue a press release and announce during quarterly conference call One Media’s new image and structure. Also, use One Media’s established Email Alerts to inform subscribers of the campaign launch. • Present the One Solution advertising package that includes added-
Hood 21 value opportunities for advertisers to gain multi-channel access into consumer’s homes through media buys across One Media.
Hood 22 Calendar of PR Activities
One Media Launch Campaign Start Date: April 1, 2009 Public: Advertisers Strategy 1: Recognizable brand name and logo encompasses all Radio One’s media platforms Tactic 1: Establish One Media, Inc. as umbrella company. Tactic 2: Present One Solution expert advertising package with media buys across company. Strategy 1 Evaluation Strategy 2: Announce campaign launch across all One Media platforms and other various media. Tactic 1: Notify appropriate trade magazines, newspapers, and ad agencies. Tactic 2: Emphasize new brand through ads in Giant Magazine, on Radio One and TV One, BlackPlanet.com and other Interactive One networks. Tactic 3: Redesign company website and homepage of each One Media property. Strategy 2 Evaluation March 2Q - April May June 3Q - July 23 Hood August
Public: End-Users Strategy 1: Ensure end-users are aware of One Media’s presence and the integrated channels.
Public Advertisers Strategy One: Recognizable brand name and logo encompasses all Radio One’s media platforms Tactic 1: Establish One Media, Inc. as umbrella company. Tactic 2: Present One Solution expert advertising package with media buys across company. Strategy Two: Announce campaign launch across all One Media platforms and other various media. Tactic 1: Notify appropriate trade magazines, newspapers, and ad agencies. Tactic 2: Emphasize new brand through ads in Giant Magazine, on Radio One and TV One, BlackPlanet.com and other Interactive One networks. Tactic 3: Redesign company website and homepage of each One Media property.
Discount or Actual Sponsorsh Cost Hood 25 ip
Create new logo and marketing materials. Electronic and hard copy media kits.
Full page ad, 30-second radio spot, 30second tv spot, online web banners. Integrated web design.
Public: End-Users Strategy One: Ensure end-users are aware of One Media’s presence and the integrated channels. Tactic 1: Establish One Media, Inc. as umbrella company umbrella for convenient access to content.
Create new logo and marketing materials
Hood 26 (/= cost is already accounted for in a previous tactic) Using several of the same tactics for more than one audience can help alleviate costs. However, it is essential to remember the specific public being targeted even if similar information or material is provided (ex. press releases, emails, etc.).
Evaluation Plan PR Outtakes can be measured for short-term effects. The immediate goal is to make key publics aware of the rebranding campaign launch. Media Content Analysis can be used to research articles that feature or refer to the campaign press release. Which publications ran the article or story and was the campaign well received by the media? Public Opinion Polls can gauge key audiences’ awareness of the campaign launch, all of (or a majority of) the company’s properties, and also how the new branding of the company is perceived. Were PR tactics and cooperative marketing tools effective in informing the public?
PR Outcomes are evaluated for the long-term goal of making the new One Media brand the premier media conglomerate for African American endusers, and advertisers seeking them. To measure the awareness and comprehension of the total rebranding of the company focus groups can be utilized to determine qualitative measurement and mail, Internet, and email
Hood 27 polls can be employed to quantify the number of key audience members who “received, paid attention to and understood the messages directed at them” (Davenport 2008). This will be crucial for Radio One’s long-term goal of being recognized as the decisive Urban Media Specialist. Attitude and Preference Measurements can be evaluated after the campaign launch. Have advertisers’ attitudes about opportunities with the parent company (Radio One) and its subsidiaries changed? Have end-users changed their primary preference for entertainment and news content to the print, radio, television, and online platforms of Radio One?
Personal Assessment Throughout my research and findings of Radio One’s PR problems and strategies I found very little public information on their plans for addressing their current issues. Radio One has great potential to be the leading source for African American target audiences to not only use and participate in the media offerings, but also become available for advertisers to reach consumers almost anywhere they consume media. The key to Radio One’s success in the coming years is to go beyond simply acquiring and developing innovative media offerings, but to present an integrated package to all key publics. A single brand recognition would be the most efficient and effective way to link all of Radio One and its subdivisions, so that when a person recognizes the parent company they also recall its other brands. During a time like this, when the market is in distress across the nation and
Hood 28 ad-based industries are experiencing major setbacks, Radio One can utilize what it already has and build a great corporation of multimedia offerings. To incorporate consumer research, communication opportunities can be facilitated to allow for user insight and suggestions. Keeping up with the latest technologies, such as Twitter for example, opens a two-way line of communication so that Radio One can send and control messages to audience members, as well as receive dialogue to improve its PR dealings. Radio One needs to improve on its overall public relations engagement from this point forward. Beyond the problems, goals, and objectives laid out above, Radio One must add some transparency to its operations and dealings. End-users, advertisers, and shareholders would likely have greater faith and loyalty to the brand and company if its public image was more controlled and informative. Employing basic PR tools, particularly with the access of its own media sources, would allow information to be more readily available and spark a stronger preference for the media offerings that Radio One provides. Working toward unifying the Radio One “voice” through public relations is the first step making the communications much more succinct.
Hood 29 References
Bloomquist, R. (2008, October 9). A Journey Across the Dial. Wall Street Journal (Eastern Edition), p. A.15. Retrieved November 11, 2008, from ABI/INFORM Global database. (Document ID: 1570234381). http://cdn.giant.blackplanet.com/wp-content/uploads/2008/10/giantmagazine-2009-media-kit.pdf Davenport, D. (2008). Lesson 4: The Publics of Public Relations. West Virginia University. Dodson, D. Retrieved December 22, 2008 from http://www.terry.uga.edu/news/releases/2007/minority_buying_power_report. html http://giant.blackplanet.com/about-us/ Goetzl, D. (2007, September 17). A Decent BET: New programs, more cash boost channel. Broadcasting & Cable, Retrieved November 7 2008, from http://www.broadcastingcable.com/article/CA6478750.html Hampp, A. (2008, October). Radio gaining audience-but not ad revenue. Advertising Age, 79(39), 4,39. Retrieved November 8, 2008, from ABI/INFORM Global database. (Document ID: 1581629321). Hoover's. Radio One, Inc. Hoover's Company Records - In-Depth Records. Retrieved Nov. 5, 2008, from ProQuest Academic database. Huslin, Anita. (2008, February 22). Radio One's Losses Grow, Stock Declines. Washington Post, p. D01. http://www.interactiveone.com/about.php Mazard, P. B. (2008, November). The Powerful Advantage of One Solution. The Frequency, p. 11. McClellan, S. (2007, December). CBS Radio Eyes Internet For Growth Opportunities. Adweek, 48(45), 9. Retrieved November 11, 2008, from ABI/INFORM Global database. (Document ID: 1401241971). http://www.radio-one.com/properties/ Radio One, Business Wire. (2007, August 7). Radio One, Inc. Announces That
Hood 30 Barry Mayo Has Been Named President of the Radio Division [Press release]. Retrieved from http://www.businesswire.com/portal/site/google/? ndmViewId=news_view&newsId=20070807006452&newsLang=en Radio One, Business Wire. (2008, October 20). NASDAQ Notifies Radio One, Inc. Class D Shares Fall Below Minimum Bid Price [Press release]. Retrieved from http://phx.corporate-ir.net/phoenix.zhtml?c=63747&p=irolnewsArticle&ID=1215938&highlight= Retrieved on November 9, 2008 from http://www.targetmarketnews.com/storyid04140801.htm Retrieved on November 10, 2008 from http://www.hitwise.com/presscenter/hitwiseHS2004/social-networking-visits-in-2007.php Retrieved on November 14, 2008, from http://finance.yahoo.com/q/hp? s=ROIAK http://www.tvoneonline.com/inside%5Ftvone/
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