102.5 WHIZ Move in...

[CatFM]

What I have been told is this:

I thought they were building/had built a tower for this move in...

did that not happen?

Yes, the site has been operational since last spring, but they have only fired it up for testing so far. Everything is in place and ready to go. They hadn't decided what kind of STL to use when I saw it. Some sort of Internet connection was being considered.

CatFM,

You have been a very reliable source of info in the past. I can't see them deciding on what kind of STL to use as causing a major delay in them
hitting the Columbus radio airways. They have had at least a few years to consider that engineering issue so that doesn't make sense.

Do they plan on moving to the Columbus airways by their FCC mandated October 2, 2009 deadline? If not, why not? The station said three years ago, when they were issued a CP to move the station to Columbus, that they must have the Columbus signal operation by October 2, 2009 or they
will lose their CP to move their signal into Columbus. Things have been pretty quiet about this Move in and the deadline is getting closer and closer.

The STL is not likely what is holding them up from getting on the air, or at least it shouldn't be. It surprised me to see that everything else was in place and ready to go last spring except for an STL, which really was/is the missing link, if you'll pardon the pun. Why they wouldn't have decided how to handle that by that time is beyond me, even for a small market operator like WHIZ. The STL should have been part of the whole engineering study and equipment contract.

Here is what they need to consider, and it ties in directly with whether or not they plan to keep the new signal and run it, or just sell it when they get it on. Would it be more expensive to run several STL jumps from Zanesville to Carroll, or to just rent some office space in SE Columbus with a line of sight shot to the tower?

It seems to me that setting up a studio and office within the market they will be serving would indicate that they are planning to keep it and run it at least for a while. If they plan to run it from Zanesville, which doesn't even make sense, it would only be a temporary arrangement until they find a buyer. Everything that has and hasn't happened seems to lead to that conclusion.

 

[xmusicmatt]

It seems to me that setting up a studio and office within the market they will be serving would indicate that they are planning to keep it and run it at least for a while. If they plan to run it from Zanesville, which doesn't even make sense, it would only be a temporary arrangement until they find a buyer. Everything that has and hasn't happened seems to lead to that conclusion.

If they are planning to sell it they don't even need a STL really... Just a rack mounted automation PC and some processing at the Transmitter site and they will have an FM... Heck they could just take the current PC that is playing the country music on the frequency right now and just place it in the transmitter building and let it roll the automated country until they find a buyer.

 

[inquisitor]

It seems to me that setting up a studio and office within the market they will be serving would indicate that they are planning to keep it and run it at least for a while. If they plan to run it from Zanesville, which doesn't even make sense, it would only be a temporary arrangement until they find a buyer. Everything that has and hasn't happened seems to lead to that conclusion.

Of course they are going to sell it. That seems to be a given. I'm just talking about what would be the best way to buy yourself some time, with ...

-the least amount of additional overhead cost;
-the least loss of opportunity cost.

Money has interest and investment value. They spent money on all the engineering and tower work, they pay tower rent, they are probably paying debt service on the money it cost to buy WCVZ (unless they are doing an LMA contingent on sale). All that money needs to be making money or at least breaking even.

You have to add the plusses and minuses together to see if it all makes sense. One thing that doesn't make sense is just sitting on it without even attempting to bring in additional revenue. Let's say WHIZ-FM used to make $300,000 a year. If they spent $2 million to buy WCVZ, that means interest is probably $120,000 to $150,000, so they are already $150,000 in the hole. If you have to wait 5 years for the market to rebound, you have lost at least $750,000 by just sitting on it. I guess you also have to factor in the debt service for the digital upgrade to WHIZ-TV ... maybe all these signal shifts were just a way to cover the cost?

However, if you could actually find a format hole in the market and actually get ratings with that station at little additional cost it might make selling it easier. I do know one thing, I wouldn't just sit on it forever and ever.

 

[CatFM]

It seems to me that setting up a studio and office within the market they will be serving would indicate that they are planning to keep it and run it at least for a while. If they plan to run it from Zanesville, which doesn't even make sense, it would only be a temporary arrangement until they find a buyer. Everything that has and hasn't happened seems to lead to that conclusion.

If they are planning to sell it they don't even need a STL really... Just a rack mounted automation PC and some processing at the Transmitter site and they will have an FM... Heck they could just take the current PC that is playing the country music on the frequency right now and just place it in the transmitter building and let it roll the automated country until they find a buyer.

True, but hopefully they are thinking it will be worth even more if it sounds like a radio station instead of a jukebox. There are also important considerations regarding EAS with an unattended remote operation.

 

[OhioMediaWatch]

Oh, it's not that it's not an interesting idea...I just haven't had any indication that Mr. Littick wants to even temporarily operate or sell in Columbus - even with a simulcast of his own Zanesville-based station.

I could, as always, be wrong. I can't see "Z92.7" transforming itself even slightly away from the community service/local advertising/base in Zanesville, just because they own a signal that's about to hit Columbus. If that simulcast happened at all, it would just be to keep the Baltimore site warm.

 

[techie2]

It seems to me that setting up a studio and office within the market they will be serving would indicate that they are planning to keep it and run it at least for a while. If they plan to run it from Zanesville, which doesn't even make sense, it would only be a temporary arrangement until they find a buyer. Everything that has and hasn't happened seems to lead to that conclusion.

Of course they are going to sell it. That seems to be a given. I'm just talking about what would be the best way to buy yourself some time, with ...

-the least amount of additional overhead cost;
-the least loss of opportunity cost.

Money has interest and investment value. They spent money on all the engineering and tower work, they pay tower rent, they are probably paying debt service on the money it cost to buy WCVZ (unless they are doing an LMA contingent on sale). All that money needs to be making money or at least breaking even.

You have to add the plusses and minuses together to see if it all makes sense. One thing that doesn't make sense is just sitting on it without even attempting to bring in additional revenue. Let's say WHIZ-FM used to make $300,000 a year. If they spent $2 million to buy WCVZ, that means interest is probably $120,000 to $150,000, so they are already $150,000 in the hole. If you have to wait 5 years for the market to rebound, you have lost at least $750,000 by just sitting on it. I guess you also have to factor in the debt service for the digital upgrade to WHIZ-TV ... maybe all these signal shifts were just a way to cover the cost?

However, if you could actually find a format hole in the market and actually get ratings with that station at little additional cost it might make selling it easier. I do know one thing, I wouldn't just sit on it forever and ever.

They also paid Vern Baldwin a tidy sum (can't remember exactly, but something slightly north of $1 million) to dismiss a competing application to move 102.3 Wilmington to Mount Sterling.

 

[gabigley1]

If they move the CW format into Columbus, they will most likely not be competitive because there are already too many established stations doing that format already. They say they are "Killing" with their CW format in Zainesville, so that
may explain why they don't want to terminate the format in Zainesville before they have a chance to sell 102.5 FM.

 

[OhioMediaWatch]

I understand the economic situation, and the fact that Mr. Littick is facing a reality he didn't think he was going to face when 102.5 FM's move was first filed.

At the time he started going down this road, the Columbus radio market was a potential gold mine. It still does well, but the radio sales market tanked when the economy did.

He's probably lost a decent chunk of change between his expected price to sell 102.5 to a Columbus market operator, and what price he'll get for the moved facility in 2009(/2010?).

I still don't see the Zanesville folks operating 102.5 as a Columbus signal. To make any decent amount of money, you can't just throw a sales guy or two into a suburban Columbus office (or shuttle them from Zanesville). You have to RUN the thing as a Columbus station.

So, here's my thought as to what might happen:

1) 102.5 lights up in testing/early operation from the Baltimore COL site, running the current automated "Highway 102" country format - or, something else. It doesn't matter how "competitive" this station is...the sign on is meant solely to keep the license warm.
2) At some point, the WHIZ folks LMA the frequency short-term to someone, hoping to find a buyer in better economic conditions.
(and no, I don't know who "someone" would be...but an LMA would be doable vs. a sale if there are problems finding good buyers).

 

[Nu_Roo_2]

At the time he started going down this road, the Columbus radio market was a potential gold mine.

Wasn't that just for big signals, since there are few of them relative to Columbus's size?   I.e., my repeated complaint that a big stick here can turn a profit despite poor format and programming decisions?  I.e., be successful here with operations that would lose money and lead to management turnover elsewhere?  Put another way, it's the flip side of the truism that competition forces a station to be better:  Less competition (fewer viable signals) allows the smallish number of big-stick stations and their management to do sub-par radio and still get good ratings and revenue.  And it also means the "bar" for air talent can often be set lower,  providing another big-stick balance sheet enhancer via lower talent costs (no, I'm not saying Columbus is completely devoid of good air talent). 

I know I'm saying the same thing multiple different ways here, but sometimes I feel the point just isn't getting through.

I'm curious as to whether some local managers were on to this "secret" before accepting jobs here.  Automatic enhancement to job security is certainly nice -- for everyone except listeners.  In some cases, I think we ended up with highly talented people (JohnBoy Crenshaw is a good example despite my recent high-voltage digs at CC/Columbus), but in a non-competive setting that allows too much complacency, and conservatism that goes well beyond what you would expect even in a pretty "white bread" market.  The irony is that the paucity of big sticks should allow more room for experimenting a bit to optimze revenue even further (and better serve the market).

Bad radio. or at least sub-optimal radio, makes money here if you have a big stick.

 

[Nu_Roo_2]

A couple clarifications to my last post:

When I say, "The irony is that the paucity of big sticks should allow more room for experimenting a bit to optimze revenue even further (and better serve the market)," I mean there will be less revenue risk from any changes that turn out to be a mistake, since the competition is less intense. And also easier recovery. Upside potential without as much downward risk in Columbus.

Also -- and this one was probably obvious -- the reference to "conservatism" referred to big-stick programming stagnation and lack of experimentation, not political leanings.

 

[gabigley1]

Nu_Roo_2,

Understood the first time around.

 

[OhioMediaWatch]

Nu, I still get your point.

My own point here has nothing to do with the programming of 102.5 whenever it manages to move to Columbus. It's sheer money.

Hank Littick still stands to make a lot of money off of this move. It's just not the kind of money he probably envisioned when he first got in line to move the stick west. The "gold mine" comment of mine refers to whatever money any owner would have paid him to relocate the signal in 2006 vs. 2009...not whatever money that signal makes for the new owner.

Looking at the various "for entertainment only" maps, yes, 102.5/Baltimore is a southeastern rimshot signal after the move. It's still better than many rimshots valiantly trying to serve "Columbus" from far away.

Someone like Saga would certainly rather have that signal pumping out classic hits instead of 104.3/Richwood (or in addition?). I don't know if Saga is able to buy a new signal at this point, or even swap out 104.3 for 102.5.

Supposedly, Wilks is interested...102.5 would make a good replacement for 107.1. Wilks has actually purchased stations in the current environment... IIRC, they were the winning bidder for the CBS Radio Denver cluster at the eye-popping price of $19 million!

 

[inquisitor]

A couple clarifications to my last post:

When I say, "The irony is that the paucity of big sticks should allow more room for experimenting a bit to optimze revenue even further (and better serve the market)," I mean there will be less revenue risk from any changes that turn out to be a mistake, since the competition is less intense. And also easier recovery. Upside potential without as much downward risk in Columbus.

Also -- and this one was probably obvious -- the reference to "conservatism" referred to big-stick programming stagnation and lack of experimentation, not political leanings.

If you remember back in the old days (20-30 years ago) there was experimentation with those rimshots to a certain degree. 103.1 was "Z 103" and "Oldies Wexley 103 -WXLE" (bet you forgot about that one). For a time, WQIO was a better Top-40 than its Columbus co-horts. And then there was WWCD, WCKX (the Kix 106 version), along with the various Robb Case stations (Lady Radio, The Light, The Power Pig, Hot 105, 105.7, 107.1, AM 1550 and AM 1540). And, finally, Dick Schorr's "Super Z 103" was also a respectable station. Maybe you devotees of niche formats don't consider these to be good examples of experimentation, but I thought they all were a good effort and far more interesting than CBS/Clear Channel cookie-cutter radio. In particular, I remember the first time I heard The Power Pig driving to work, with Mike Motley (formerly of 92-X and WBLZ Cincinnati) as the morning man with "Paige Turner" (aka Stacy McKay) and what a professional-sounding station that was ... those were the days.

 

[inquisitor]

By the way, not to pick on CC too much, as I think WTVN, 93.3, The Brew and WNCI are all pretty good efforts. I just think there's too much of a canned sound to them these days. They just don't hook me in like stations of the past did. But then again, I'm not a spring chicken anymore.

It's like the difference between hand-made custom cabinets and machine made.

 

[Nu_Roo_2]

A couple clarifications to my last post:

When I say, "The irony is that the paucity of big sticks should allow more room for experimenting a bit to optimze revenue even further (and better serve the market)," I mean there will  be less revenue risk from any changes that turn out to be a mistake, since the competition is less intense.  And also easier recovery.  Upside potential without as much downward risk in Columbus.

Also -- and this one was probably obvious -- the reference to "conservatism" referred to big-stick programming stagnation and lack of experimentation, not political leanings.

If you remember back in the old days (20-30 years ago) there was experimentation with those rimshots to a certain degree.  103.1 was "Z 103" and "Oldies Wexley 103 -WXLE" (bet you forgot about that one).  For a time, WQIO was a better Top-40 than its Columbus co-horts.  And then there was WWCD, WCKX (the Kix 106 version), along with the various Robb Case stations (Lady Radio, The Light, The Power Pig, Hot 105, 105.7, 107.1, AM 1550 and AM 1540).  And, finally, Dick Schorr's "Super Z 103" was also a respectable station.  Maybe you devotees of niche formats don't consider these to be good examples of experimentation, but I thought they all were a good effort and far more interesting than CBS/Clear Channel cookie-cutter radio.  In particular, I remember the first time I heard The Power Pig driving to work, with Mike Motley (formerly of 92-X and WBLZ Cincinnati) as the morning man with "Paige Turner" (aka Stacy McKay) and what a professional-sounding station that was ... those were the days.

Oh, I definitely agree that some of those rimshot attempts were excellent efforts that involved some intelligent, restrained experimentation.  But that's just the point:  IN COLUMBUS, ONLY THE RIMSHOTS TRY THEM,  and most of them don't have much of a chance of getting anywhere simply because of the crappy signal.  Since Columbus is under-radioed in big signals, the big guys can make money here even with sub-par performance, so they lack urgency to make changes.  They're happy to lay back and glide down  the lazy river with no changes, or minor or poorly-implemented ones..  If someone (non-CC) suddenly dumped 3-4 new BIG STICKS in Columbus, I can assure you things would change fast, and you wouldn't see me on here hammering away on this topic.

Take the ratings, say, Star 107.9 was getting, and extrapolate them to a big signal (and better marketing budget), and they obviously would have been outperforming what some of the powerful FM signals are doing now.   It's certainly not my intention to focus on that particular format here -- I don't know that 80's would do as well TODAY even on a big stick.   But something like Classic Hits -- which is an exceedingly mainstream format today yet never tried on a Columbus BIG SIGNAL -- is a WAY different story.  Again, just look at how that format is doing in Cincy and Cleveland and so many other markets.  This is why I keep hammering "Big Stick" and "Big Signal" over and over (as OhioMedia knows all too well  ;D )   That doesn't mean it's a lock-tight guarantee that Classic Hits -- or any other untried (ON A COLUMBUS BIG STICK) format or major tweak would work, but chances are it would based on the track record.

And I DO remember WXLE!  Jeez, even Arrow 105.7, as well as the very first, older-skewing version of CC (Jacor's) Fox 105.7  both often exceeded a 2 share 12+, and both occurred when 105.7 still had that crappy Marysville signal.  Compare that to what some of the BIG STICKS are pulling today.

 

[OhioMediaWatch]

Oh, I definitely agree that some of those rimshot attempts were excellent efforts that involved some intelligent, restrained experimentation. But that's just the point: IN COLUMBUS, ONLY THE RIMSHOTS TRY THEM, and most of them don't have much of a chance of getting anywhere simply because of the crappy signal.

I can't believe how bad some of those rimshots are. 104.3 and 107.1 are embarrassments. 103.1 shouldn't be trying to serve ANYTHING in the Columbus market.

I fully agree with you that the classic hits format should be tried on a bigger signal (remember, we do have WMJI up here), but I just can't see what signal would try it.

 

[Nu_Roo_2]

Oh, I definitely agree that some of those rimshot attempts were excellent efforts that involved some intelligent, restrained experimentation. But that's just the point: IN COLUMBUS, ONLY THE RIMSHOTS TRY THEM, and most of them don't have much of a chance of getting anywhere simply because of the crappy signal.

I can't believe how bad some of those rimshots are. 104.3 and 107.1 are embarrassments. 103.1 shouldn't be trying to serve ANYTHING in the Columbus market.

I fully agree with you that the classic hits format should be tried on a bigger signal (remember, we do have WMJI up here), but I just can't see what signal would try it.

The painfully obvious answer at present is 93.3. But then again, you did say you can't see what signal *would* try it...not what signal *should* try it. Or maybe you are working under an assumption that 93.3 will finally flip, but to talk?

 

[Rusty Blades]

And then there was WWCD, WCKX (the Kix 106 version), along with the various Robb Case stations (Lady Radio, The Light, The Power Pig, Hot 105, 105.7, 107.1, AM 1550 and AM 1540).

Robb Case didn't have anything to do with Lady Radio. That was Nelson and Mary Embry in Circleville (107.1) in 1988-89, before they switched to Classic Hits 107.1. Case bought the station (and 1540 AM WNRE) from the Embry's in 1990.

 

[Nu_Roo_2]

And then there was WWCD, WCKX (the Kix 106 version), along with the various Robb Case stations (Lady Radio, The Light, The Power Pig, Hot 105, 105.7, 107.1, AM 1550 and AM 1540). 

Robb Case didn't have anything to do with Lady Radio.  That was Nelson and Mary Embry in Circleville (107.1) in 1988-89, before they switched to Classic Hits 107.1.  Case bought the station (and 1540 AM WNRE) from the Embry's in 1990.

In the cobwebs of my mind I seem to recall that Greg Jordan was on Lady Radio -- maybe even the PD?  Anyone know whether that's correct?  The only thing I recall about Classic Hits 107.1 is a syndicated show with the Real Don Steele.  I agree with OhioMedia that it's an embarrassment to try to pass off 107.1 as a "Columbus" station.  If it were in any other market this size (i.e., with more Big Sticks), I doubt it would even make the book at all.  It's mind-blowing to think CBS owned it at one time, since it came as part of the package with Q-FM.

 

[markbohach]

I can't believe how bad some of those rimshots are. 104.3 and 107.1 are embarrassments. 103.1 shouldn't be trying to serve ANYTHING in the Columbus market.

Amen!

103.1 is 28 air miles from downtown Columbus with a Class A signal. But try to get the owners to realize that when it comes to a "Columbus" signal, they have a turd floating in a swimming pool. They think the station is worth north of $2MM. What a joke.

Meanwhile Circleville- a city of 15,000 + in a decent size county has NO LOCAL RADIO station because 107.1 tries to play to Cbus.