HUGE news for Contemporary Christian radio as Salem Media Group is selling pretty much its entire CCM portfolio, many of which ID'd as "The Fish" to EMF, including it's popular stations in Atlanta (WFSH) & Dallas (KLTY). Also creates, a duopoly in L.A./Orange County where I'd assume 100.3 will remain K-Love & 95.9 will be Air1. Clearly, selling The Fish trio in Nashville, a city that's kinda a home base for CCM was a sign. Salem Media Group Substantially Strengthens its Balance Sheet by Repaying All $159.4 Million of its Long-Term Debt and Brings in New Strategic Investor
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Salem sells it's CCM stations to EMF
- Thread starter NYAZSporty
- Start date
Salem sells to EMF
Salem is "exiting" the Christian AC Radio market with the sell of their large market signals to EMF. I wonder what this means for their syndicated format "Today's Christian Music" also I wonder what they will do with their translator-based fish station in Columbus., OH? It runs on a translator relaying the TCM format 24/7.
Salem is "exiting" the Christian AC Radio market with the sell of their large market signals to EMF. I wonder what this means for their syndicated format "Today's Christian Music" also I wonder what they will do with their translator-based fish station in Columbus., OH? It runs on a translator relaying the TCM format 24/7.
The AMs might make less, but i bet they cost signifgantly less to operate in many cases. Most talk stations or preaching/teaching stations need alot less staff and can be largely entirely automated
There had been hints all of Salem's CCM FM stations were for sale. But who thought EMF would have the cash for ALL these stations... highly rated, full power FMs in Dallas and Atlanta. Other stations in Nashville, Cleveland, Honolulu and Orange County, California.
My first though is this: Some of these stations are highly-rated with local hosts who are part of their communities. Will EMF just make them all K-Love or Air 1, running the same national feed as you'd hear in Anchorage or Savannah? Would that make any sense? Why not keep the local staffs at the successful stations and have them do a local CCM format as they currently do. With local weather, traffic and promotions. You just shift it from commercially-supported to listener-supported.
If I sell you a beloved, high-standard hamburger restaurant, would you change it to McDonald's? Or can McDonald's run a local bistro specializing in quality burgers?
My first though is this: Some of these stations are highly-rated with local hosts who are part of their communities. Will EMF just make them all K-Love or Air 1, running the same national feed as you'd hear in Anchorage or Savannah? Would that make any sense? Why not keep the local staffs at the successful stations and have them do a local CCM format as they currently do. With local weather, traffic and promotions. You just shift it from commercially-supported to listener-supported.
If I sell you a beloved, high-standard hamburger restaurant, would you change it to McDonald's? Or can McDonald's run a local bistro specializing in quality burgers?
For the most part yes - they have some talent for their talk format that costs them $$$ but the preaching formatted stations are pretty much pay us for air time, we load your mp3 and let it run.
Apparently they don't have the cash, which is why they're paying for them with a promissory note due in 2027.
This is from RadioInsight:
They're not a for-profit business. They're a Christian mission. So they buy the beloved restaurant and turn it into a church. And don't care about the business they destroyed, because they're doing it for a bigger goal.
I also can't believe that EMF would pay top dollar for these FM stations. Were there other entities interested, or did Salem insist that the buyer be evangelical Christian and committed to continuing with a non-secular format? Sounds like religious discrimination to me, if that was the case.
I would not put money on them keeping any of the local staff in place. I suspect these will morph into KLove in places they do not already have a full power KLove signal. Example Cleveland 95.5 The Fish will no doubt become KLove.
Lot of talented people though will be let go - The Fish station had some of the best of best when it comes to CCM on air talent! I know I always enjoyed listening to the local shows on 95.5 The Fish when I have frequently visited Cleveland, OH.
The biggest hurdle EMF will have in these markets that they are moving into or adding signals is keeping the existing Fish listeners and converting them to donors. (Since Salem's stations ran commercially). I would say they have a challenge! Listeners will be losing their local 'friends' on air + being asked to give money. But I guess that's a bet that EMF's willing to take (in hopes it pays off).
Remember, the Salem stations are commercial and for-profit. EMF has different goals and operates the stations as non-commercial. No need for local voices for commercials, endorsements, liners, remotes and promotions.
The EMF model is the same as used in much of the rest of the world with one "station" on lots of transmitters. That formula works well for EMF and has for many years.
Most people today get news, traffic and weather on the web. Stations only do those features because they are easier to sell to sponsors. But they matter less and less to listeners every day that goes by.
EMF is buying facilities. In these cases, there is an added bonus of eliminating their competition. But the Salem model was designed for commercial add supported radio, and that is not what EMF does.
Just a footnote, as early as the mid to late 1990s, virtually all the popular ministries were not buying time but doing a share basis with stations commercial and non-commercial. When someone in the zip codes in your primary coverage bought an offer the ministry was offering, the station got a share of that.
It was never as much as we could get for the time if it was sold.
It was never as much as we could get for the time if it was sold.
Not that this couldn’t have changed, but Salem used to get money in advance because of its reach and it being a one-stop shop for the rent-a-preachers who used its services. In addition to the on-air reach, it also handled their streaming and podcasts and offered a web portal. I believe it also took distribution of some of those programs in-house. Smaller operators weren’t so well equipped.
This is what I want to know as well. I’ve got a local FM that runs this. I’m curious if the format continues or changes on February 1st.
Essentially no one else is buying in today's market, so any offer is probably top dollar.
Think about who could have bought in Dallas. Audacy and iHeart hold the limit of FMs. I think Cumulus has cap space, but they have no money. I suppose you could imagine Estrella or Univision being interested, but I'm not aware of their present financial condition.
From the RadioInsight article, this quote from the Salem CEO caught my attention:
“Salem will also have the benefit of working with an important new strategic investor that is expected to bring significant new opportunities to the company as well as offer incredible expertise in the area of digital media.”
Wonder what that might involve?
“Salem will also have the benefit of working with an important new strategic investor that is expected to bring significant new opportunities to the company as well as offer incredible expertise in the area of digital media.”
Wonder what that might involve?
That same article identifies the investor as WaterStone, a Christian charity.
WaterStone – Transforming Assets Into Living Water
waterstone.org
I doubt it has anything to do with radio
About – WaterStone
waterstone.org
Those $5,000 Visa gift card giveaways will entice them. Or those vacations to Hawaii. I mean, I know 'donors' give the gift cards to K-LOVE which then gives them away to some lucky person who donates $30/month ("Let's go, we need 50 people at $30 a month to meet the challenge for the $10,000 bonus! Call now!" -cue clapping and cheering from the other DJs)
How would you feel if every non-denominational church in America turned into a Lakewood Church campus? Or if your 'local' church didn't even have a pastor. A worship team comes on, plays awesome music, they pray, and then disappear, leaving Joel Osteen or Steven Furtick on a giant projector via satellite. That's K-LOVE, albeit on the radio. No local personalities. Do they bother to talk about how God is working miracles in Redding? Idaho Falls? Lincoln NE? They may have stations there but they are just satellite feeds.
I have never given a dime to K-LOVE/Air 1 and never will. KTSY Boise and Positive Life Radio (WA/OR) have gotten my money during fundraisers. They have no intentions of syndicating their format and personalities to Virginia or Alabama. (Not that PLR does that...some of their personalities are from out-of-state...Jerry Woods on weekends originates from WGTS in DC)
From what I hear it's also likely history - a majority of its talent is tracked or originates out of Atlanta's Fish. (I know the morning show is based there).
I know of one affiliate who has not heard anything yet either and airs their "TCM programming' in most dayparts. they still have quite a few affiliates - I know of at least 2 here in my state that will have to scramble for other formats/content.
A little financial note on Salem. In their quarterly report filed last month, they point out that their broadcast revenue fell 3.5% y-o-y, while expenses rose 1.6%. Together, that means operating income fell 36%. That's on a same station basis, so discarding the the stations Salem sold since 2023.
Source: company 10-Q for Q3 2024, pg. 34.
investor.salemmedia.com
This is particularly bad for Salem because they normally get a noticeable bump in political material in the 3rd quarter and 4th quarter of an election year.
Source: company 10-Q for Q3 2024, pg. 34.
Financial Results
investor.salemmedia.com
This is particularly bad for Salem because they normally get a noticeable bump in political material in the 3rd quarter and 4th quarter of an election year.
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