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Audacy discontinuing HD2 to save money?

rustyhodge

rustyhodge

Looks like the HD2 on KFRC and KITS are gone. KLLC's HD2 "Channel Q" still there, but it probably makes money.
What are all the costs involved with running a HD2? Is there an additional annual licensing fees to iBiquity for an HD2/3? There are also BMI/ASCAP/SESAC but I have no idea of what they'd cost in this market.
 
....and that ends 14 and a half years of a mostly-unattended computer running a jockless version of the previous KFRC 106.9 Classic Hits format.

I just went to Audacy-dot-com, and while Classic Hits KFRC is still shown, pushing the "play" button now starts Audacy's 60s stream.

So, one more time for the hourly ID that ran from 2008 until now, unchanged (KFRC.com ceased to exist years ago):

 
It seems like from looking at BMI (for example) site that it's all percentage of revenue based for the overall station.
"Licensing fees are based on a percentage of the station’s gross broadcast and new media revenues, subject to certain allowable deductions."

I'm wondering if this is more about steering listeners to their main channels, to raise the ratings on them?
 
rustyhodge said:
It seems like from looking at BMI (for example) site that it's all percentage of revenue based for the overall station.
"Licensing fees are based on a percentage of the station’s gross broadcast and new media revenues, subject to certain allowable deductions."

I'm wondering if this is more about steering listeners to their main channels, to raise the ratings on them?
Click to expand...
Reasonable thought. If you can't monetize HD2, and you're siphoning off potential listeners to your main stations with them, that's counter-productive.
 
Bonneville seems to be the only station really putting effort with their HD2s. Highway 1 on KOIT & KUFX is locally programmed and has specialty shows and even started running ads. The 70s & 80s Old School one on KBLX HD2 also seems to be locally programmed and has specialty shows, but has no ads.
 
rustyhodge said:
I'm wondering if this is more about steering listeners to their main channels, to raise the ratings on them?
Click to expand...

michael hagerty said:
Reasonable thought. If you can't monetize HD2, and you're siphoning off potential listeners to your main stations with them, that's counter-productive.
Click to expand...
What Rusty and Michael posit makes sense IFF ("if and only if") the main and subchannel formats are similar enough, like KOIT having an alternate music format on their HD2. But on KFRC, which simulcasts all-news KCBS on analog and HD1 and the 70's revival format on HD2, I doubt many listeners who went to the effort of tuning in KFRC-HD2 are going to be satisfied settling for all-news on analog or HD1. If they were, they'd have stayed with KCBS in the first place.
 
Weiserguy said:
What Rusty and Michael posit makes sense IFF ("if and only if") the main and subchannel formats are similar enough, like KOIT having an alternate music format on their HD2. But on KFRC, which simulcasts all-news KCBS on analog and HD1 and the 70's revival format on HD2, I doubt many listeners who went to the effort of tuning in KFRC-HD2 are going to be satisfied settling for all-news on analog or HD1. If they were, they'd have stayed with KCBS in the first place.
Click to expand...
Consider the news demographic---let's just take the 55-64 slice. When that person wants music, KFRC HD-2 had exactly what they grew up with---and if they're Bay Area natives, it sounded like KFRC from that time.

Clearly, it didn't draw significant numbers of listeners. And clearly, the licensing money is the primary factor. But if that money is going to create something that gives any number of the KCBS audience an excuse to take a break from the news, and Audacy can’t monetize that, management's not wrong to ask why they're doing it.
 
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Audacy's five FM's in San Diego have also dropped most of their HD2's. Among those gone: KXSN HD2 (the long-time KIFM Smooth Jazz format that pulled big numbers a few decades ago), KSON HD2's Nashville Legends (Classic Country), a hard-rock channel, and a few others.

97.3 The Fan used to have three HD's. Now they're done to just a sports betting sub-channel -- which is probably a simulcast of KGO/San Francico or maybe a national version of it.
 
Signal Geek said:
Audacy's five FM's in San Diego have also dropped most of their HD2's. Among those gone: KXSN HD2 (the long-time KIFM Smooth Jazz format that pulled big numbers a few decades ago), KSON HD2's Nashville Legends (Classic Country), a hard-rock channel, and a few others.

97.3 The Fan used to have three HD's. Now they're done to just a sports betting sub-channel -- which is probably a simulcast of KGO/San Francico or maybe a national version of it.
Click to expand...
Audacy has sports betting stations. No reason to simulcast a Cumulus station.
 
But Cumulus is using Audacy's syndicated programming on KGO for most -- if not all -- of its broadcast day.
 
While arguing against eliminating costs that aren’t showing much, if any, additional revenue is difficult, I do find funny that Audacy is cutting digital programming after trying to reposition itself as a more digitally-focused operation.
 
The difference, of course, is that they have means of monetizing the Audacy app.
I don't know if the app's operations are profitable on their own, but that's still an improvement over HD Radio subchannels, where the revenue is mostly nil.
 
michael hagerty said:
....and that ends 14 and a half years of a mostly-unattended computer running a jockless version of the previous KFRC 106.9 Classic Hits format.

I just went to Audacy-dot-com, and while Classic Hits KFRC is still shown, pushing the "play" button now starts Audacy's 60s stream.

So, one more time for the hourly ID that ran from 2008 until now, unchanged (KFRC.com ceased to exist years ago):

Click to expand...
Audacy dropped WLYF-HD2 soft AC from Miami and replaced it with something called "The Torch." Too bad. "Today's Life" had a South Florida vibe.
 
michael hagerty said:
Not all digital is equal. HD-2, HD-3 and HD-4 have been around a long time and there aren’t big success stories to be told.
Click to expand...

You won’t get any argument out of me that the HD subchannels don’t get much off-air listening. What I don't understand is how cutting those saves more money than cutting the streaming only digital channels currently being offered, especially when you consider the bulk of the HD subchannels' listening is online on the Audacy platform. Last I'd heard, the HD channels were relatively low cost, and, since advertisers buy the entire platform, they essentially have the same value that the online only channels have. At roughly $35.00 per 1,000 impressions plus high royalty and bandwidth costs, margins are going to be low no matter what.

Maybe those online only streaming channels really do generate more interest than the less interactive HD subchannel streams. Maybe that side really has been showing substantial growth. I can’t imagine it could be enough to harbor such an optimistic view, though, as the costs go up with each listener.
 
Audacy's Baltimore stations have dropped their extra HD channels. 101.9 WLIF-HD3 had been oldies, 106.5 WWMX HD2 had been alternative "HFS".
 
Kent said:
You won’t get any argument out of me that the HD subchannels don’t get much off-air listening. What I don't understand is how cutting those saves more money than cutting the streaming only digital channels currently being offered, especially when you consider the bulk of the HD subchannels' listening is online on the Audacy platform. Last I'd heard, the HD channels were relatively low cost, and, since advertisers buy the entire platform, they essentially have the same value that the online only channels have. At roughly $35.00 per 1,000 impressions plus high royalty and bandwidth costs, margins are going to be low no matter what.

Maybe those online only streaming channels really do generate more interest than the less interactive HD subchannel streams. Maybe that side really has been showing substantial growth. I can’t imagine it could be enough to harbor such an optimistic view, though, as the costs go up with each listener.
Click to expand...
Everybody has a computer or smartphone. Fewer than 25% of the cars on the road have HD. And home units are exceedingly rare.
 
Signal Geek said:
Audacy's five FM's in San Diego have also dropped most of their HD2's. Among those gone: KXSN HD2 (the long-time KIFM Smooth Jazz format that pulled big numbers a few decades ago), KSON HD2's Nashville Legends (Classic Country), a hard-rock channel, and a few others.

97.3 The Fan used to have three HD's. Now they're done to just a sports betting sub-channel -- which is probably a simulcast of KGO/San Francico or maybe a national version of it.
Click to expand...
u mean BETQL
 
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