HOT 97.5 Sold to Good News Broadcasting

[EricStein]

It was posted in another thread (by maybe @davideduardo) that the highest billing Zelus station is Power 98.3, with something like 80% higher revenue than the Wow Factor, which is the lowest billing.

I have to agree with @ted chittenden, the retention of the KMVA calls points toward the end of the Wow...I expect to see a Hot 103.9/95.1 coming soon.

I really don’t see Zelus lasting long as an owner the way their stations are being run. Maybe a slow, piecemeal sale is happening in front of us?

 

[KilowattKat]

I really don’t see Zelus lasting long as an owner the way their stations are being run. Maybe a slow, piecemeal sale is happening in front of us?

I think more pieces will fall, also. It has to be tough as a small operator with marginal signals to compete in a major market like Phoenix. Personally,, I would hate to see the end of Wow...

 

[EricStein]

I think more pieces will fall, also. It has to be tough as a small operator with marginal signals to compete in a major market like Phoenix. Personally,, I would hate to see the end of Wow...

Sierra H has managed to survive because the owners are pretty much debt free. Zelus still has that lingering debt from nearly two decades and several owners ago, if I recall correctly.

I know it’s the last thing anyone wants to think about, but i wouldn’t be surprised if K-Love is now interested in one of those signals. Aren’t they looking for frequencies for Nueva Vida?

 

[LamptimerFan]

I think they'll move the KMVA calls to 103.9, ditch the failing "94.9 The Zone" experiment, and return that translator to a Wow Factor simulcast. They can't be making money with The Zone (and they have to pay SonicTrek a monthly fee for the technology licensing too).

If it wasn't for it feeding the translators via HD2/3, I think 103.9 would have been the frequency they would have sold. That would have made things easier for their engineers and accountants (and eliminate one more tower lease).

If cash flow is the issue I think they'd be better off either leasing out the 94.9 translator like they did with 96.1 or simulcast 98.3. 98.3 comes in pretty weak in the East Valley.

 

[lanceventa]

There's a difference between being a proponent of the "Zone" brand/format and launching something so haphazardly that it kills that brand equity. The proceeds of the 97.5 sale most likely will pay some debt off, but it won't bring human talent to a station that's all over the map format-wise and has a limited signal.

Killing brand equity to whom? A bunch of radio geeks like us on a messageboard or to the common listener who are still in the early phases of discovering the brand, which while using an identity known to some longtime residents, is also in a market full of many transients and those that have moved to Phoenix in the past two decades who never knew there was a 101.5 KZON.

Then, there's also The Zone adopting the "Arizona's Independent Radio" slogan, when KWSS-LP's slogan has been "Independent Radio" for years. 94.9 sounds nowhere near being an "independent" station. KWSS should have trademarked that.

Again it sounds nowhere being independent to someone who follows the radio industry. Zelus is a local or "independently owned" group.

By no means am I defending the Zone programming, but it is still way to early to judge whether it will succeed or fail. The odds are not in their favor being on a translator and limited marketing, but its not existing to be a powerhouse in the market either. Also like Wow Factor was done to help Sebastian prep it for national distribution, that is a similar deal being done with SonicTrek's programming services. We don't know what the deals with either are, but I bet they were done in some form to cut the programming costs for Rivieira/Zelus.

 

[lanceventa]

If cash flow is the issue I think they'd be better off either leasing out the 94.9 translator like they did with 96.1 or simulcast 98.3. 98.3 comes in pretty weak in the East Valley.

The 96.1 deal's a little more complex as Xtasis is operating out of Zelus' studios and Zelus is doing sales for the station in addition to their own.

 

[LamptimerFan]

The 96.1 deal's a little more complex as Xtasis is operating out of Zelus' studios and Zelus is doing sales for the station in addition to their own.

Forgive my ignorance, but what would you call that if not a leasing agreement?

Also, what do you think the chances are of the Xtasis format staying long-term? I'd imagine they can't be doing too well being one of several Spanish-langauge stations, and that they're bringing very little to the table that others aren't already doing better.

 

[lanceventa]

Forgive my ignorance, but what would you call that if not a leasing agreement?

Also, what do you think the chances are of the Xtasis format staying long-term? I'd imagine they can't be doing too well being one of several Spanish-langauge stations, and that they're bringing very little to the table that others aren't already doing better.

A lease would be if Xtasis was simply paying Zelus for the translator and KZON-HD3. This is more of a Joint Operating Agreement.

 

[KilowattKat]

Sierra H has managed to survive because the owners are pretty much debt free. Zelus still has that lingering debt from nearly two decades and several owners ago, if I recall correctly.

I know it’s the last thing anyone wants to think about, but i wouldn’t be surprised if K-Love is now interested in one of those signals. Aren’t they looking for frequencies for Nueva Vida?

The lingering debt is bad enough, but the dramatic decline in advertising revenue is what's really pushing changes and sell offs. Local Media San Diego had to sell off their only owned radio property a year and half ago when a balloon debt payment came due. They continue to lease their other signals. I don't know how they are doing financially these days.

As far as religious broadcasters... I'm disgusted by how they practically own the non commercial portion of the FM dial in the Valley. It has prevented the diversity in non commercial programming it is intended for. No college student run radio, no non comm AAA, no additional public radio outlets. There really should be restrictions in place on the number of religious operators between 88.1 and 91.9 FM.

 

[TheBigA]

There really should be restrictions in place on the number of religious operators between 88.1 and 91.9 FM.

It would be hard to do that politically, especially with this current FCC. It would also be difficult to justify legally.

The real consideration is other non-coms simply don't see much future in broadcast. Colleges are selling their frequencies.

 

[EricStein]

If cash flow is the issue I think they'd be better off either leasing out the 94.9 translator like they did with 96.1 or simulcast 98.3. 98.3 comes in pretty weak in the East Valley.

KKFR is still running a 20-year-old tube transmitter up atop Towers Mountain, and it sounds like they've milked that current tube for all its worth.

Killing brand equity to whom? A bunch of radio geeks like us on a messageboard or to the common listener who are still in the early phases of discovering the brand, which while using an identity known to some longtime residents, is also in a market full of many transients and those that have moved to Phoenix in the past two decades who never knew there was a 101.5 KZON.

How can a brand be discovered when it's on a highly directional translator which covers just a sliver of the entire market? I'm sure a number of people know about the station, they don't want to support an "AI-enhanced" format. When news about the format came out, people all over social media sites who weren't "radio geeks" were lambasting the execution even before giving it a listen.

 

[TheBigA]

When news about the format came out, people all over social media sites who weren't "radio geeks" were lambasting the execution even before giving it a listen.

It seems the mistake was in telling people what it was in advance, thus allowing them to form opinions before actually listening.

 

[EricStein]

The lingering debt is bad enough, but the dramatic decline in advertising revenue is what's really pushing changes and sell offs. Local Media San Diego had to sell off their only owned radio property a year and half ago when a balloon debt payment came due. They continue to lease their other signals. I don't know how they are doing financially these days.

LMSD has more than one heritage brand in their stable. They are also wise to monetize their streams. That's more than what the Zelus stations are doing.

I'm sure the sale of 100.7 helped with paying off some debt.

 

[EricStein]

It seems the mistake was in telling people what it was in advance, thus allowing them to form opinions before actually listening.

Even now, I browse their playlist every once in a while, and I find that they're playing some cuts that don't belong on the AAA format.

 

[KilowattKat]

The Zone seems to have reached it's plateau as far as listeners (0.2 share, cume just under 50K), about the same as the previous month. I think it's stuck where it is, and hopefully making some money (?).

 

[DrAkbar]

More prayer in the Media Hut for Dr. Akbar & Nurse Jeff.

Egads, no! All those prayers Nurse Jeff have made to the Gremlin gods have gone unanswered. Things were a lot more laid back when the station was known as Star 97~Five. Dewey point Humboldt, indeed!

 

[KilowattKat]

Egads, no! All those prayers Nurse Jeff have made to the Gremlin gods have gone unanswered. Things were a lot more laid back when the station was known as Star 97~Five. Dewey point Humboldt, indeed!

Thank you Dr. Akbar for resisting any offers from K-Love in taking over the Media Hut. The very thought of a "K-Love Media Hut of Religious Broadcasting" makes my stomach turn!

 

[ted chittenden]

As far as religious broadcasters... I'm disgusted by how they practically own the non commercial portion of the FM dial in the Valley. It has prevented the diversity in non commercial programming it is intended for. No college student run radio, no non comm AAA, no additional public radio outlets. There really should be restrictions in place on the number of religious operators between 88.1 and 91.9 FM.

I think it should be pointed out that the basic reason that the non-commercial sector of the FM band in Phoenix has mostly religious occupants is because no other noncommercial operation came forward to get these frequencies when they were available. This was not true in Los Angeles, San Francisco, or even your own San Diego (although the last one is a special case that I'll get to in a moment.)

When I first visited Phoenix in July of 1971, KMCR (91.5 mHz, now KJZZ) was just getting off the ground. As far as I knew for many years (I later found out I was wrong), that was Phoenix' first noncommercial outlet. The next one didn't appear until KFLR (1979 or 1980, if memory serves) at 90.3 mHz. Then came KBAQ at 89.5 in the mid-1980s (it was a joint partnership between Arizona State University and the state of Arizona) followed in the early 1990s by the shared stations at 88.3 of KPHF (religious) and KNAI (Radio Campesina) (the years are per my memory and therefore may be wrong). By the late 1990s and early 2000s, you had K-Love on89.9 mHz (licensed to Superior) and also on 90.9 (licensed to Prescott but which puts a fair signal into north central Phoenix where I live.)

Let's compare that with Los Angeles. When I finally moved from Tujunga to Phoenix in 1972, the Los Angeles noncommercial dial was pretty much set with (going backwards in frequency) KUSC at 91.5 mHz; KPFK at 90.7 mHz; KCRW at 89.9 mHz; KPCC at 89.3 mHz; KXLU (which could not be heard much outside of west Los Angeles) at 88.9 mHz; KCSN in Northridge at 88.5 mHz (it was the last to come on the air in my area); and Long Beach's KLON at 88.1. Because these (mostly) college and university stations had gotten there first, there was very little (if any) room for religious outlets to enter the noncommercial section of the FM band in that city.

I said above that San Diego was a special case. The reason is that the California city sits directly across the border from Tijuana, meaning that the available FM frequencies had to be shared between U.S. and Mexican-based stations. Further murkiing up the waters is the fact that frequencies between 88.1 and 91.9 mHz are *not* considered to be noncommercial frequencies by the Mexican government. The result is that, though there are only two U.S.-based noncommercial radio stations over there (three if you count the on-again, off-again licensed to Descanso at 89.1 mHz), U.S. religious outlets have never been able to get their foot in the door in the noncommercial band there.

And that is my point. The primary reason that religious stations now dominate the noncommercial sector of the FM band today in cities like Phoenix is because when that part of the band was wide open, few, if any, secular noncommercial entities chose to apply for radio stations in the band.

 

[KilowattKat]

I think it should be pointed out that the basic reason that the non-commercial sector of the FM band in Phoenix has mostly religious occupants is because no other noncommercial operation came forward to get these frequencies when they were available. This was not true in Los Angeles, San Francisco, or even your own San Diego (although the last one is a special case that I'll get to in a moment.)

When I first visited Phoenix in July of 1971, KMCR (91.5 mHz, now KJZZ) was just getting off the ground. As far as I knew for many years (I later found out I was wrong), that was Phoenix' first noncommercial outlet. The next one didn't appear until KFLR (1979 or 1980, if memory serves) at 90.3 mHz. Then came KBAQ at 89.5 in the mid-1980s (it was a joint partnership between Arizona State University and the state of Arizona) followed in the early 1990s by the shared stations at 88.3 of KPHF (religious) and KNAI (Radio Campesina) (the years are per my memory and therefore may be wrong). By the late 1990s and early 2000s, you had K-Love on89.9 mHz (licensed to Superior) and also on 90.9 (licensed to Prescott but which puts a fair signal into north central Phoenix where I live.)

Let's compare that with Los Angeles. When I finally moved from Tujunga to Phoenix in 1972, the Los Angeles noncommercial dial was pretty much set with (going backwards in frequency) KUSC at 91.5 mHz; KPFK at 90.7 mHz; KCRW at 89.9 mHz; KPCC at 89.3 mHz; KXLU (which could not be heard much outside of west Los Angeles) at 88.9 mHz; KCSN in Northridge at 88.5 mHz (it was the last to come on the air in my area); and Long Beach's KLON at 88.1. Because these (mostly) college and university stations had gotten there first, there was very little (if any) room for religious outlets to enter the noncommercial section of the FM band in that city.

I said above that San Diego was a special case. The reason is that the California city sits directly across the border from Tijuana, meaning that the available FM frequencies had to be shared between U.S. and Mexican-based stations. Further murkiing up the waters is the fact that frequencies between 88.1 and 91.9 mHz are *not* considered to be noncommercial frequencies by the Mexican government. The result is that, though there are only two U.S.-based noncommercial radio stations over there (three if you count the on-again, off-again licensed to Descanso at 89.1 mHz), U.S. religious outlets have never been able to get their foot in the door in the noncommercial band there.

And that is my point. The primary reason that religious stations now dominate the noncommercial sector of the FM band today in cities like Phoenix is because when that part of the band was wide open, few, if any, secular noncommercial entities chose to apply for radio stations in the band.

Yes, some very good points regarding non comm Phoenix radio history. I would like to know why Arizona State University never started a public radio station like most other large universities. Only a public television station back in 1961, KAET. I suppose they were satisfied with having closed circuit radio instead of an actual FM signal.

 

[K.M. Richards]

It was posted in another thread (by maybe @davideduardo) that the highest billing Zelus station is Power 98.3, with something like 80% higher revenue than the Wow Factor, which is the lowest billing.

I have to agree with @ted chittenden, the retention of the KMVA calls points toward the end of the Wow...I expect to see a Hot 103.9/95.1 coming soon.

Sounds to me like John Sebastian will finally have to retire. The format never took off in syndication (a feeling I know too well myself) and now his one station is apparently tossing him aside.

Which is a shame, because he is one of the all-time great programmers. I think he just misread the viability of programming a Boomer-centric format and not including enough music that also appeals to younger demos.