AAA/Alt KROI????

[MarkW]

iHeart owns KTBZ, so there's zero chance 93.7 would adopt such a format.

My guess is any new AAA/Alt flip would likely involve a non-commercial station in the region.

If KROI were to try such a format, it would be a complete flop, regardless of whomever happens to own the station. (I still believe Urban One will divest the station at some point. We shall see.)

 

[cotton belt]

iHeart owns KTBZ, so there's zero chance 93.7 would adopt such a format.

Well, there is that. Looks like you caught my pop fly at the warning track.

My guess is any new AAA/Alt flip would likely involve a non-commercial station in the region.

Ok, but where? There's not one operation in Houston's reserved band that would even consider moving toward AAA/Alt.
KUHF? Less than zero chance.
KACC? Less than acceptable signal.
KXNG? Only if KSBJ sells it out of their portfolio.
KTSU? Could you imagine the backlash??
KPFT?

If KROI were to try such a format, it would be a complete flop, regardless of whomever happens to own the station. (I still believe Urban One will divest the station at some point. We shall see.)

In full agreement on the flop, not so much on the divestment. Sure makes Mike Stude look like a freaking genius right about now.

 

[Mediafrog+]

If KROI were to try such a format, it would be a complete flop, regardless of whomever happens to own the station. (I still believe Urban One will divest the station at some point. We shall see.)

In full agreement on the flop, not so much on the divestment.

KROI could do much better with a different owner under one of the existing clusters here in Houston. I've thought Cox would be the best choice, as they could pair it in a simulcast with 97.1 and launch a new format.

Best solution would be a sale to EMF to move Air1 to 92.1, or to add the K-Love Classics format in the market. EMF could still retain 103.7 for one of its formats. I'd like to see WAY-FM get a station here, as they already have a station in DFW. Not really a fan of any of those formats, but just thinking in terms of "what will work." Also eliminates advertising competition for other stations in the market.

Sure makes Mike Stude look like a freaking genius right about now.

It sure does; timed the market peak perfectly. A KRTS insider once told me that Stude had asked station management in the early 2000's about the right time to sell. They strategically held off until 2004 when they decided that time was "NOW." Apparently Stude was expecting to get $60 million for the station, he would up selling for $72.5 million. Today 92.1 is probably worth only a small fraction of that (David Eduardo, any guesses as to what KROI would go for today based on either stick value or current cash flow?)

 

[TheBigA]

Best solution would be a sale to EMF to move Air1 to 92.1, or to add the K-Love Classics format in the market.

Or go back to the old Praise format they had 15 years ago.

 

[Mediafrog+]

Or go back to the old Praise format they had 15 years ago.

The Praise format was in raw numbers the most successful format under current ownership, often breaking into the threes in 6+ ratings. But the bulk of the audience apparently skewed way too old for decent sales revenue.

 

[Fieldtech1]

Ive gotten some clarification, this consultant specializes in alt rock formats, but has helped launch some successful mainstream rock and classic rock stations too. I dont have any more info other than he is advising a Houston station group on a possible format flip.

 

[davideduardo]

(David Eduardo, any guesses as to what KROI would go for today based on either stick value or current cash flow?)

Well, it is not a full MSA signal, so there is an instant discount. Full LA signal: $50 million.

Full Houston thus worth in the $20 to $25 million range at most. That means KROI is worth $10 million to a high of $15.

The market is so volatile that this is just a guess. Nobody is buying, except the ones like K-Love so this is a buyer's market. It depends on how badly Urban One wants to sell.

 

[stan]

Another question would be, where would K-Luv be if they lost their tax exempt breaks?

 

[TheBigA]

Another question would be, where would K-Luv be if they lost their tax exempt breaks?

We will have total gun control before anyone challenges the tax exemption of religious radio.

 

[davideduardo]

Another question would be, where would K-Luv be if they lost their tax exempt breaks?

They would be in the same place as today with added expenses in some areas such as differences in some jurisdictions on property taxes, certain sales taxes, etc.

Since they are non-profit and everything they bring in is used for the cause or ministry, there would be no "profit" to tax.

In any case, were they disqualified from being a non-profit they would be joined by every church, church group, church charity and other religious organization in the country. That won't be happening, even in an increasingly secular culture.

 

[TheBigA]

Since they are non-profit and everything they bring in is used for the cause or ministry, there would be no "profit" to tax.

The funny part is we have some profit-making companies in this country that find ways to avoid paying taxes. The real savings for EMF is operating without local studios or staff, and running a satellite distributed 24/7 format coast to coast. A lot of radio companies would like to do that, and so far, EMF is the only one I know of that works that way.

 

[TheBigA]

The Praise format was in raw numbers the most successful format under current ownership, often breaking into the threes in 6+ ratings. But the bulk of the audience apparently skewed way too old for decent sales revenue.

Seems to me there's a way to do an R&B approach to Contemporary Christian. If anybody could do it, it would be Urban One.

 

[davideduardo]

The funny part is we have some profit-making companies in this country that find ways to avoid paying taxes. The real savings for EMF is operating without local studios or staff, and running a satellite distributed 24/7 format coast to coast. A lot of radio companies would like to do that, and so far, EMF is the only one I know of that works that way.

That national radio has not returned in the US is strange.

In Europe and most of Latin America broadcasting from the capital or a major city for a whole nation or region on many local frequencies is quite common. In fact, RDS developed in Europe to allow mobile reception devices (alias "car radios") to sense the best signal for the same national service and to switch to it if currently on a lesser signal.

In the past, the FCC has always seen its mission to be to promote local radio. That is a good deal of the reason why AM power levels were capped at a rather low 50 kw and the dreadful (former) Class IV channels, originally with a maximum of 250 watts, were created. It is hard to move away from nearly 100 years of history.

I think iHeart sees the possibility of radio being a national medium with hundreds of local transmitters, but it looks like they are edging into that slowly. Perhaps this is from a PR concern, or maybe uncertainty or possibly they don't even understand how well this works in nations as diverse as Germany, Spain, Chile and the Philippines.

 

[johndavis]

That national radio has not returned in the US is strange.

In Europe and most of Latin America broadcasting from the capital or a major city for a whole nation or region on many local frequencies is quite common. In fact, RDS developed in Europe to allow mobile reception devices (alias "car radios") to sense the best signal for the same national service and to switch to it if currently on a lesser signal.

In the past, the FCC has always seen its mission to be to promote local radio. That is a good deal of the reason why AM power levels were capped at a rather low 50 kw and the dreadful (former) Class IV channels, originally with a maximum of 250 watts, were created. It is hard to move away from nearly 100 years of history.

I think iHeart sees the possibility of radio being a national medium with hundreds of local transmitters, but it looks like they are edging into that slowly. Perhaps this is from a PR concern, or maybe uncertainty or possibly they don't even understand how well this works in nations as diverse as Germany, Spain, Chile and the Philippines.

I remember all the handwringing in the first quarter as iHeart began its layoffs and implementing the 'excellence centers.' Honestly, I suspect the only thing that has slowed down that train was the disruption of COVID. There's only so many ways you want to change your company at the same time.

But 15 years ago I was putting together routing systems where a DJ in London could fire a two punch jingle, ride gain on it while talking it up perfectly, while each city across the UK heard their own local jingles and ads. This stuff can sound really good if you put your mind to it.

 

[radiohits]

I would think Regional Mexican would be great for them to try again. Things have changed since they had that big flop. They own 2 Telemundo stations and a regional Mexican station Indiana that seems to be doing well. Smaller signals with that format have been able to pull numbers in the past in Houston.

 

[Mediafrog+]

I would think Regional Mexican would be great for them to try again. Things have changed since they had that big flop.

We're probably at a saturation point for Regional Mexican with Que Buena, La Raza, and El Norte doing variations of the format, not to mention La Caliente.

However, I'll toss an idea out there, since we all love to talk about potential new owners for KROI: If Estrella Media isn't too gun shy post bankruptcy, perhaps they could take a shot at buying 92.1 and moving La Ranchera there. The current AM version seems to have a pulse, and I'm surprised at how much I hear it being played on radios while out and about. It would seem to be a good sales companion for La Raza and El Norte, and the 92.1 signal is much preferable to 850 (dying AM) and 101.7 (extreme rimshot that misses most of the metro.) In such a scenario Estrella would sell off KEYH and KNTE, and perhaps KJOJ for good measure.

Yeah, unlikely to happen for a company that just recently reorganized, but thought I'd toss that into the ring.

 

[davideduardo]

However, I'll toss an idea out there, since we all love to talk about potential new owners for KROI: If Estrella Media isn't too gun shy post bankruptcy, perhaps they could take a shot at buying 92.1 and moving La Ranchera there. The current AM version seems to have a pulse, and I'm surprised at how much I hear it being played on radios while out and about. It would seem to be a good sales companion for La Raza and El Norte, and the 92.1 signal is much preferable to 850 (dying AM) and 101.7 (extreme rimshot that misses most of the metro.) In such a scenario Estrella would sell off KEYH and KNTE, and perhaps KJOJ for good measure.

The demos on La Ranchera are really old. Hispanic buys target 18-49, not even the common 25-54 found in general market buys. Evens stations like Recuerdo in the past have had a sales disadvantage because they come short in 18-34 numbers.

Today's regional formats, whether leaning towards norteña or banda, are almost devoid of more traditional music, particularly ranchera and older norteña. The appeal of that music is mostly among significantly older groups and, more importantly, there is practically no production of that music and has not been for a decade.

 

[davideduardo]

I would think Regional Mexican would be great for them to try again. Things have changed since they had that big flop. They own 2 Telemundo stations and a regional Mexican station Indiana that seems to be doing well. Smaller signals with that format have been able to pull numbers in the past in Houston.

They had one of the country's best Hispanic format programmers back when they did regional before.

Inside the building, there were cultural differences and beyond that, the format was not understood at the management and sales level by Radio One.

Remember that the leading "regional" station is really a talk station with a few songs. There is not a huge audience to divide up if one does the third musical regional station in the market.

 

[radiohits]

They had one of the country's best Hispanic format programmers back when they did regional before.

Inside the building, there were cultural differences and beyond that, the format was not understood at the management and sales level by Radio One.

Remember that the leading "regional" station is really a talk station with a few songs. There is not a huge audience to divide up if one does the third musical regional station in the market.

I would not agree that Fernando was one of the best. I am sure language was a barrier.From what I've heard it seems those kinks have been worked out.

 

[BamaTX]

We're probably at a saturation point for Regional Mexican...not to mention La Caliente.

For the purposes of this discussion, they may as well not exist. They post a lot on their social media page, but the interaction from listeners is almost none.