However, the tape is damaged because she threw it out of the car earlier. The police find Kayla who arrives at the radio station to deliver the tape.
When this comes out, Ian and a few employees side with the band and turn against Milo. During the crisis, it is revealed that Milo had secretly signed a deal to change KPPX's format to Adult Contemporary, which includes having to fire Ian and most of the other employees. His team secretly passes a gun through a roof vent to Beech who has been hiding in the air ducts. A SWAT team has also arrived whose leader prefers using force over negotiation tactics. Since the station never went off the air, news of the hostage crisis travels quickly and numerous hard rock/metal fans begin showing up outside the radio station interfering with police. They negotiate with the police who are now tasked to find Kayla who has a cassette of the demo. The guys try to run but Doug Beech, the station's accountant, had already called the police and they see the building is surrounded. After setting up an old reel-to-reel for the demo, the tape begins to play but is quickly destroyed when the player malfunctions. After Milo insults Rex, by calling him "Hollywood Boulevard trash," he and Chazz pull out realistic-looking water pistols and demand airplay. Station Manager Milo overhears them and intervenes but Ian continues broadcasting. Once inside, laid back DJ Ian "The Shark" begins talking with them on the air. After several unsuccessful attempts, a station employee comes out to smoke and they keep the door from shutting behind her. They decide to try to get the local rock station KPPX to play their reel-to-reel tape on the air and attempt to break-in through the back door. After scolding him for being lazy, Chazz's girlfriend Kayla kicks him out of her apartment. Chazz, Rex and Pip are in a Los Angeles hard rock band called "The Lone Rangers" who are continuously turned down as they try to get their demo tape heard by producers.