I did a scan of the stations in Lubbock and came up with about 36 stations. How can a market the size of Lubbock support this many stations, especially having only about 5 genres of programming? The only one that is different from the rest is KTTZ playing classical and jazz,but along with KTXT are off the air for some reason. How does other markets the size of Lubbock compare with the number of FM stations ? I'm showing my age, but I remember when Lubbock had only 7 stations (including a LP high school station) and nothing past 101.1.
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FM Stations in Lubbock
- Thread starter Twobytwo
- Start date
It's a small pie, split many ways.
On my visits to Lubbock in the late 1970’s the city had two 10 watt non-comm FMs owned by Texas Tech and the local school district. There were five commercial FMs: CHR KSEL 93.7, AOR KLBK 94.5, Country KLLL 96.3, a Spanish language station on 99.5 whose calls slip my mind, and Easy Listening KTEZ 101.1. I also recall that 99.5 went dark for a while about that time.
At the other end of I-27 is another market that has exploded with a lot of stations, Amarillo. In the early 1970’s the city had only two FMs. From 1975-78 four new stations went on the air, with two more added in 1981 and 1985. Today the market has over three dozen FM stations. Most are computers in closets running automated playlists or satellite feeds. I often wonder how a market that size supports them all.
At the other end of I-27 is another market that has exploded with a lot of stations, Amarillo. In the early 1970’s the city had only two FMs. From 1975-78 four new stations went on the air, with two more added in 1981 and 1985. Today the market has over three dozen FM stations. Most are computers in closets running automated playlists or satellite feeds. I often wonder how a market that size supports them all.
It can get real tricky making things work. Usually you need a few stations run from the same location with a shared staff to get the numbers down to where the slice of the advertising pie will cover expenses.
I think Lubbock has about 36 stations a listener can choose from. It would be interesting to know the estimated radio revenue for over-radioed markets like Amarillo, Lubbock and Abilene, for example.
I know one small town of 8,000 with 7 stations. Two companies run 3 stations each and the singleton is an AM run by a church as a non-comm. Both of the group owners have what would be a single station staff and none of the stations are live except for morning drive, if they don't opt for a syndicated morning show. Both do local news. The group owners manage about 6 to 8 units an hour in advertising and produce a slim profit. Ironically the two groups of 3 stations each do not directly compete with one another, opting for formats that are exclusive (AC,oldies, classic rock, CHR, country and talk). I don't know what either group bills but I'm guessing about $15,000 to $20,000 per station if you average it out.
I think Lubbock has about 36 stations a listener can choose from. It would be interesting to know the estimated radio revenue for over-radioed markets like Amarillo, Lubbock and Abilene, for example.
I know one small town of 8,000 with 7 stations. Two companies run 3 stations each and the singleton is an AM run by a church as a non-comm. Both of the group owners have what would be a single station staff and none of the stations are live except for morning drive, if they don't opt for a syndicated morning show. Both do local news. The group owners manage about 6 to 8 units an hour in advertising and produce a slim profit. Ironically the two groups of 3 stations each do not directly compete with one another, opting for formats that are exclusive (AC,oldies, classic rock, CHR, country and talk). I don't know what either group bills but I'm guessing about $15,000 to $20,000 per station if you average it out.
KWGO was the call letters of the Spanish station. In high school I "worked" at the high school station- KOHM 91.1. It is a good thing that it only ten watts because some of the things we did over the air probably wasnt legal. In 1976 KOHM got a new transmitter and increased the power a lot- cant remember how much though. KJAK was also on the air then.
What you’re seeing is a good example of why the Telecommunications Act of '96 passed. Love it or hate it, it was a response to the Carter and Reagan FCC's notion that more voices were needed on the airwaves. The result was, by '91, commercial radio was a money losing venture.
Lubbock and Amarillo have about the same number of owners as they did in the 70's, but each owner has a lot more stations. There was no other way to be profitable in a market like that.
Lubbock and Amarillo have about the same number of owners as they did in the 70's, but each owner has a lot more stations. There was no other way to be profitable in a market like that.
Lubbock has 27 commercial stations in the metro, and a very flat to declining $11 million in revenue.
Amarillo has 22 commercial stations for an also very flat $8 million in market revenue.
And Abilene has "only" 20 stations for a declining $4 million in revenue.
In inflation adjusted dollars, these markets have the same or less revenue as they did before Docket 80-90 screwed up the industry. More stations, same dollars on the street.
Everyone who criticizes Clear Channel and the other consolidators of the 90's needs to understand what you have said. Docket 80-90 guaranteed that many markets would never be profitable again without consolidation. Some, even with the formation of clusters, can't make enough profit to pay the "mortgage".
While many accused the study of bias, the NAB survey in the early 90's showed that half of US radio stations did not make a profit. Even if you discount the owner-operator stations where there was no profit but the owner took home a nice salary, radio had become a broadly losing proposition in many places.
Thank you for the data on those markets David. I have said to many the cash cow everyone thinks radio is does not moo as loudly as they suspect. Just operating a station is 'cheap' in many people's minds (and I was included until learning differently). The reality is any for profit company is nickel and dimed on taxes, permits and such on not only a city, county, state and federal level but also has the FCC's fees and costs in maintaining everything according to FCC Rules. Even on a shoestring it is easy to eclipse $250,000 a year before you even get to programming.
I looked at buying a small market FM. I found the station was indeed popular and had a good commercial load. It was billing about $148,000 a year as the only station in town and county. They needed somebody to 'take it to the next level' because all the nickel and dime stuff had them losing about $1,500 a month. The owner didn't take a salary. I saw where I could potentially get the station to $180,000 a year but to do so, I'd have to survive on a wage well below minimum wage. And I'd have to add the note payment to the bank out of that $3,000 I struggled to find each month. The station was already working hard to get that $148,000.
I looked at buying a small market FM. I found the station was indeed popular and had a good commercial load. It was billing about $148,000 a year as the only station in town and county. They needed somebody to 'take it to the next level' because all the nickel and dime stuff had them losing about $1,500 a month. The owner didn't take a salary. I saw where I could potentially get the station to $180,000 a year but to do so, I'd have to survive on a wage well below minimum wage. And I'd have to add the note payment to the bank out of that $3,000 I struggled to find each month. The station was already working hard to get that $148,000.
Out of curiosity, does the booming economic area around the Midland-Odessa market fare any better?
I can tell you I was spending the night in Pecos one night about a year ago. For grins, I tuned in the Pecos AM as they were running news.At about 9:00 when the news ended, they started playing commercials,mostly 30s. At 9:25 the commercial break ended and they started a Swap Shop. I have never heard so many commercials back to back on radio before.There were ads for jobs. any kind of service anybody might need that worked in the oil business. Other breaks were about 5 to 7 spots and there were quite a few breaks each hour for the next two hours. I'm guessing 50% were for jobs.
I had hoped to be far beyond Pecos by about 10 pm but a wreck on one of the highways earlier in the had me coming in to Pecos about Midnight. The main highway south was wall to wall trucks. 30 miles and not a chance to pass it was so busy. The town looked more like a major thoroughfare in a major city. Everything was open 24/7. I was 8th in line at a fast food spot for a late dinner at 12:15 am. I was told the oil industry had Pecos holding the title of fastest growing town (based on percentage growth not actual number).
If Pecos is any indicator of Midland/Odessa it should be incredible.
I had hoped to be far beyond Pecos by about 10 pm but a wreck on one of the highways earlier in the had me coming in to Pecos about Midnight. The main highway south was wall to wall trucks. 30 miles and not a chance to pass it was so busy. The town looked more like a major thoroughfare in a major city. Everything was open 24/7. I was 8th in line at a fast food spot for a late dinner at 12:15 am. I was told the oil industry had Pecos holding the title of fastest growing town (based on percentage growth not actual number).
If Pecos is any indicator of Midland/Odessa it should be incredible.
20 commercial stations for about $9.8 million in revenue, declining perhaps a quarter percent a year in the post 2008 world.
Ouch. Is there any market in the region in market 100+ that is not flat or declining?
My thinking is Abilene, Midland-Odessa, Amarillo and Lubbock are markets that are over-radioed if you look at the metro population. For the most part, the population in adjoining counties is small.
I think it is a given that market revenue in most spots is down slightly or flat likely due in part to how much local buys rule the market. The advertising pie has lots more slices these days.There are lots of non-radio advertising options these days and coupled with the large number of competing stations means likely lower spot rates and less budget per client.
I sold in a town of about 30,000 about 30 years ago. We were the top dog among 4 stations in one of the poorest counties for per capita income. We brought in about $36,000 a month and had about a dozen units an hour with plentiful agency buys. 25 years later during a visit, all the national chain stores had moved in to town. It looked more like any big city on the main drag. Instead of about a dozen units an hour, it was about 3 and 90% agency buys. They were billing about $50,000 a month. Still the market leader in sales and listeners, the station had not kept up with inflation on billing but frankly was not down that much. The change was instead of live 24/7 back when I worked there, it was just a live morning and afternoon drive jock. There were fewer salespeople. Network and local news gone except for a 3 minute capsule in morning drive. They adjusted and were doing well.
In reality, this station was in a small market and not rated but as far as billing went, they were doing about as well as a 'making it' station in a rated market like the ones mentioned in previous posts.
The number of stations is a huge factor. I worked one town as a jock about 1981. The station was one of two in the town of almost 30,000. The commercial load in 1981 assured 'one in a row' music sweeps. The spot rate was $2. The station billed about $40,000 a month then. I managed that station 12 years later. There were many more competitors. The additional stations and now a local TV station meant this barely still #1 local station could only bill about $16,000 to $18,000 a month. I tried to unsuccessfully up the spot rate to $3 but wound up selling lots of 15 second units at about $1.40. Except for a few agency buys, the average client was spending about $80 a month. My competitors charged less. The TV station charged $2 to $3 and $5 in evening prime time. By the way, we were live 18/7 but there was no longer local news and they had dropped network news. Nobody ever mentioned they missed hearing news so I guess they got it elsewhere (TV or daily paper). I got the heck out of there. The 15 hour days were killing me!
I think it is a given that market revenue in most spots is down slightly or flat likely due in part to how much local buys rule the market. The advertising pie has lots more slices these days.There are lots of non-radio advertising options these days and coupled with the large number of competing stations means likely lower spot rates and less budget per client.
I sold in a town of about 30,000 about 30 years ago. We were the top dog among 4 stations in one of the poorest counties for per capita income. We brought in about $36,000 a month and had about a dozen units an hour with plentiful agency buys. 25 years later during a visit, all the national chain stores had moved in to town. It looked more like any big city on the main drag. Instead of about a dozen units an hour, it was about 3 and 90% agency buys. They were billing about $50,000 a month. Still the market leader in sales and listeners, the station had not kept up with inflation on billing but frankly was not down that much. The change was instead of live 24/7 back when I worked there, it was just a live morning and afternoon drive jock. There were fewer salespeople. Network and local news gone except for a 3 minute capsule in morning drive. They adjusted and were doing well.
In reality, this station was in a small market and not rated but as far as billing went, they were doing about as well as a 'making it' station in a rated market like the ones mentioned in previous posts.
The number of stations is a huge factor. I worked one town as a jock about 1981. The station was one of two in the town of almost 30,000. The commercial load in 1981 assured 'one in a row' music sweeps. The spot rate was $2. The station billed about $40,000 a month then. I managed that station 12 years later. There were many more competitors. The additional stations and now a local TV station meant this barely still #1 local station could only bill about $16,000 to $18,000 a month. I tried to unsuccessfully up the spot rate to $3 but wound up selling lots of 15 second units at about $1.40. Except for a few agency buys, the average client was spending about $80 a month. My competitors charged less. The TV station charged $2 to $3 and $5 in evening prime time. By the way, we were live 18/7 but there was no longer local news and they had dropped network news. Nobody ever mentioned they missed hearing news so I guess they got it elsewhere (TV or daily paper). I got the heck out of there. The 15 hour days were killing me!
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