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City Of Dallas Seeking Non-Profits To Operate WRR

Here's the thing about this, we've been down this road many times before. It winds up being way too hot for the council to handle and they always back off.
Demographic changes in the City of Dallas proper might have changed the dynamics in the past few years.

I have long wondered this, and it has been amplified in the post George Floyd reality: How much actual support is there amongst the diverse citizens of Dallas for running a money-losing Classical Music station, which mainly serves older Whites who for the most part, live outside the city proper? Do those citizens want their city owned station to better reflect the diversity of Dallas? Face it, there are many amongst what is called either the "woke" movement or "cancel culture" that have blasted Classical music as "the soundtrack of White supremacy." Is there a future for the format given recent changes in society?

As I said earlier, Friends of WRR have to put their money where their mouth is. Not sure that will be as easy as they think.
 
WRR is a commercial station. KUHA was non-commercial. So it was 100% dependent on listener donations. HPM bought KTRU and moved classical to that station. I can't find the purchase price, but I recall it was around $9 million. That was a lot of debt to overcome.
The purchase price of KTRU was $10 million, IIRC. HPM sold it for the same price five years later. KSBJ Educational Foundation (now Hope Media) was desperate to get their hands on the signal, so HPM got lucky.
So it depends on the deal the new operator makes with the city. If they can do a revenue share, where the city gets a percentage, rather than a hard dollar figure, they might be able to make it work.
It's not clear what model is being proposed here. Is the station going to be run as a non-comm? Or will it be a commercial station operated by a not-for-profit? Fine lines need to be walked here...an example of the latter is WFMT in Chicago, which, although commercial, is owned by the local PBS station WTTW.
 
Demographic changes in the City of Dallas proper might have changed the dynamics in the past few years.

That's also true in Chicago, yet WFMT continues to find a way to remain solvent. These "Friends" groups have a loud bark but not much bite. There was a "friends" group in NY that kept WNCN from going rock in 1975. That worked for a few years, but ultimately the station was sold in 1996 and is now a classic rock station. So history is not on the side of classical music.

It's not clear what model is being proposed here. Is the station going to be run as a non-comm? Or will it be a commercial station operated by a not-for-profit?

I think they're open either way. It's up to the people making the proposal on how best to operate the station. If Dell Computers or Texas Instruments is looking for a tax write off, this is a good opportunity.
 
KFAC had a rather sizable listeners' guild starting in 1970. Didn't stop the stations from being sold off in 1989 and ultimately dropping the format.

If I'm not mistaken, WCLV 104.9 Lorain had a two-year transitional period between 2010 and 2012 when ideasteam (WCPN/WVIZ) gradually absorbed all operations from commercial operator Radio Seaway. It began with the move of WCLV's studios to the WCPN/WVIZ Idea Center and a merger of some administrative functions, and ultimately ended with Radio Seaway donating WCLV's license to ideastream outright, with the license being reassigned as a non-comm.

That's probably the best course of action to take with WRR, especially if the end result is a merger into KERA. Make it a transitional process so the city can "donate" WRR in a mere formality, and then make WRR a non-comm.
 
If I'm not mistaken, WCLV 104.9 Lorain had a two-year transitional period between 2010 and 2012 when ideasteam (WCPN/WVIZ) gradually absorbed all operations from commercial operator Radio Seaway.

It's a bit more complicated. The original WCLV was on a different frequency, that was sold to Salem in 2001 for big dough. It's now The Fish. They used part of the money to buy 104.9 and donate to ideastream.
 
Earlier in this string of posts, WRR was compared to what KUHF did with their classical audience by purchasing KTRU. I was in Houston at that point and recall thinking a little simple math indicated KTRU was doomed. KUHF effectively split their listener base across two stations, one that was rather pricey. I remember thinking KUHF moving the classical programming to KTRU and requiring it to support itself was failure about to happen. It seemed to me they were looking at a way to eliminate classical music. Indeed moving it to a satellite delivered format on a HD channel took it to a .1 rather quickly.

As for WRR, if the council actually acts, things do not have to be very drastic. There are a number of organizations that can operate WRR for the city. The library system comes to mind. The Friends of WRR is a natural. WRR does not have to become non-commercial. Simply put, the station can continue much as it has been under another organization and the employees can opt to go to the new organization. There may be existing arts organizations that can take on the station. Naturally the city must be willing to create a win-win scenario.

Consider this may be a political move to appease the complainers that don't think the city should be in the radio business. Politically, to take just enough action to get the complainers to settle down may be enough to move the issue off for a few years.

That WRR has operated at a loss for the past eight years is likely. Covid-19 killed lots of billing that is just now beginning to come back. In fact many potential advertisers are at a point they can't take on more business because of lack of product or lack of workers. I have car dealers that spent big amounts with me that cannot keep cars on the lot and restaurants that can't go beyond 50% capacity because they can't find the workers to do the job. The list goes on. My point is, WRR and lots of other broadcasters are in the red or are barely seeing that red ink go black at this point. It is likely WRR is not losing much money in an average year and it is likely trimming just a little fat will remedy this.

I'm going to compare KMFA in Austin to other Classical stations in Texas. Like WRR, KMFA has a long past in the format as a non-commercial station. While Austin and DFW are different animals, it is true KMFA's revenue universe is much smaller than WRR's but KMFA can support 24/7 live programming (although recently they have used Classical 24 in overnight hours at times). KMFA seems to be doing just fine. KMFA gets rather creative in obtaining dollars and more inclined to think outside the box a bit more than WRR or other Texas classical outlets.

Granted the classical format is akin to carrying a 50 pound box up the stairs to the 10th floor when other formats offer an elevator and maybe a dolly, but the format does not have to lose money or be relegated to a 24/7 satellite delivered format with the localism being the underwriting spots. You just have to step out beyond the conventional to make it.

It's much like a newspaper publisher I know. When circulation dwindled to 400, they were losing money. The dropped the printer and conventional format opting for a laser printer and 8.5 by 14 inch legal pages. After a few weeks the printer was paid off and they were making a profit. The hardest thing they did was change their mindset that they were still a newspaper even if they didn't look like a conventional newspaper. The news was still the same. They sacrificed nothing but the format of the printed word but this thinking outside the box took a financial loser to making a small bit of profit.
 
It's a bit more complicated. The original WCLV was on a different frequency, that was sold to Salem in 2001 for big dough. It's now The Fish. They used part of the money to buy 104.9 and donate to ideastream.
That and the 104.9 Lorain license was transferred to a non-profit organization whose backers included most of the local museums and art institutes, the Cleveland Orchestra, and ideastream. And a correction on my end; Radio Seaway only operated WCLV-FM via LMA.

Speaking of, that asset/license swap happened 20 years ago this past July 3. Radio Seaway also acquired the erstwhile and current WHK 1420 in the swap from Salem, operated it with an adult standards format (scrapping plans to have it a WCLV simulcast), then sold it back to Salem a few years later.
 
As for WRR, if the council actually acts, things do not have to be very drastic. There are a number of organizations that can operate WRR for the city. The library system comes to mind. The Friends of WRR is a natural.

Neither of them are broadcasters who know how to operate a technical operation and handle the legal paperwork. The city wants to get out of all of that. The library system is still part of the city, paid for by taxpayers, subject to rules for city employees. That's what the RFP is trying to avoid. The Friends are classical music enthusiasts. They don't understand the complications of declining audience base and staffing. They just want to hear their favorite music. That won't solve the problem the city has.
 
It's clear the City has little business owning a commercial, stand-alone broadcast facility, especially in 2021. They should have acted in the best interest of their constituents and done a sale or swap when the market was hot. While I appreciate a diversity of formats and I hope classical continues to have a place on the radio in North Texas, none of this is set up to be winning strategy.

The City wants to dictate a declining, and commercially unviable format continue while also mandating that the station carry audience destroying content like the council meetings that are of interest to essentially no listeners even in the City of Dallas. That kind of "programming" should be provided live or on demand on a website for those who want it (which it already is).

If the City wants to outsource operation of WRR, why continue holding the license which will likely continue to depreciate in value over the next decade or two? All this so they can keep an extremely niche format on the air that most of the council members and residents don't even listen to and is a financial burden?

I hope this call for proposals will perhaps spur something beyond the requested type. Perhaps the City will decide to go ahead and sell off the facility or donate it to a competent broadcasting group like NTPB without strings attached. Or some other broadcaster will figure out a different solution involving multiple parties or providing the city a translator and an HD subchannel.

I do think the format can have a future if it is part of a group and can go non-commercial.
 
I remember a decade ago KDFC San Francisco was converted into non-profit once Entercom sold KDFC to KUSC inc owners of KUSC-FM Los Angeles. Also in that deal KUSC inc had to move KDFC to 89.9 and 90.3 as a result of the deal. Plus there was "Friends of KUSF" that tried to stop the deal on the 90.3 FM San Francisco but that didn't work because of USF's budget allocation reasons at the time.
 
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The station doesn't have to be non-commercial to enjoy non-profit status. I suppose the big question might be the cost of obtaining commercial revenue. Certainly few are ready advertisers and uncovering those and serving the accounts has a certain cost that must be weighed by total commercial revenue. It might be more cost efficient to go non-commercial.

I think DFW is certainly big enough to support a classical radio station. I suspect the city has run the station without trimming the fat away for many years.
 
I suspect the city has run the station without trimming the fat away for many years.

In other words, they're looking for someone to be the bad guy and make the tough decisions. Any of that will piss off the Friends of WRR. There is a similar group in Boston that continually complains about WCRB. The signal isn't good enough for them, the coverage of the Boston Symphony isn't good enough for them, and on and on. That's what the new operator of WRR can expect.
 
It's clear the City has little business owning a commercial, stand-alone broadcast facility, especially in 2021. They should have acted in the best interest of their constituents and done a sale or swap when the market was hot. While I appreciate a diversity of formats and I hope classical continues to have a place on the radio in North Texas, none of this is set up to be winning strategy.
Had that proposed 2003 asset swap with Susquehanna/WRR intellectual property sale to KERA gone through, the city would absolutely have made a pretty penny.

By 2021 standards, you take what you can get.
 
Earlier in this string of posts, WRR was compared to what KUHF did with their classical audience by purchasing KTRU. I was in Houston at that point and recall thinking a little simple math indicated KTRU was doomed.
After Houston Public Media eliminated most of its KUHA airstaff in 2013 the station was little more than a computer in a closet, along with a transmitter site. Even that drastic move could not keep the station out of the red. Its HD-2 successor does manage a pulse in the ratings, so there are a few Classical fans still out there able to find what they want.
While Austin and DFW are different animals, it is true KMFA's revenue universe is much smaller than WRR's but KMFA can support 24/7 live programming (although recently they have used Classical 24 in overnight hours at times). KMFA seems to be doing just fine.
Austin is psychographically worlds apart from DFW and Houston. Look how much of the radio audience KUT and KUTX grab...amazing for college owned non-comms. Just a different mindset there.
 
Had that proposed 2003 asset swap with Susquehanna/WRR intellectual property sale to KERA gone through, the city would absolutely have made a pretty penny.
The City of Dallas might have gotten between $100M to $125M had they outright sold the signal around 2003...was pretty much the peak of the market.

Just a year later, Houston's commercial Classical station, KRTS, was sold to Radio One for $72.5M, and that was a deficient Class C1 signal. Today (six format changes later) the station might struggle to fetch 20% of that number.
 
After Houston Public Media eliminated most of its KUHA airstaff in 2013 the station was little more than a computer in a closet, along with a transmitter site. Even that drastic move could not keep the station out of the red.

Because of the debt on the $10 million purchase price. Their pockets simply weren't deep enough to sustain it. you can't pay local staff if there's no money. The classical audience didn't step up to the plate.

Keep in mind that prior to 2010, KUHF had been vey successful as a classical/news hybrid. But it became obvious which format attracted the most money.
 
That and the 104.9 Lorain license was transferred to a non-profit organization whose backers included most of the local museums and art institutes, the Cleveland Orchestra, and ideastream. And a correction on my end; Radio Seaway only operated WCLV-FM via LMA.
WCLV was a definite Cleveland institution starting around 1962 from a location out on Mayfield Road at the Eastgate shopping center. Robert Conrad engaged with all the "Severance Center Hierarchy" including the ones you name. It did not hurt that many local business leaders were also on the boards or trustees of those organizations and others like Case and Western Reserve.
Speaking of, that asset/license swap happened 20 years ago this past July 3. Radio Seaway also acquired the erstwhile and current WHK 1420 in the swap from Salem, operated it with an adult standards format (scrapping plans to have it a WCLV simulcast), then sold it back to Salem a few years later.
And that was something that Conrad seemingly had to set in motion, realizing that the old guard was dying off and he had to make some provision for the station to survive.
 
And that was something that Conrad seemingly had to set in motion, realizing that the old guard was dying off and he had to make some provision for the station to survive.

A similar thing happened in Washington DC, where WGMS was still getting great ratings, but aging demos. Bonneville made a deal with non-commercial WETA (which had been a classical/news hybrid) to pick up the all-classical banner. The original WGMS frequency at 103.5 is now Bonneville's very successful all-news WTOP-FM.

The WGMS call letters still live on a WETA translator in Hagerstown.
 
A similar thing happened in Washington DC, where WGMS was still getting great ratings, but aging demos. Bonneville made a deal with non-commercial WETA (which had been a classical/news hybrid) to pick up the all-classical banner. The original WGMS frequency at 103.5 is now Bonneville's very successful all-news WTOP-FM.

The WGMS call letters still live on a WETA translator in Hagerstown.
What happened to WGMS was a little bit more complicated; Bonneville initially moved the WGMS intellectual property onto the 103.9 Frederick/104.1 Waldorf simulcast when 103.5 was flipped to WTOP-FM. It wasn’t a straight up donation of WGMS’s intellectual property over to WETA inasmuch as WETA dropped almost all spoken word programming and acquired WGMS’s music library/callsign rights, and hired at least two WGMS air personalities.

Arguably what spurred that move were emerging rumors that Dan Synder had seriously inquired about purchasing the 103.9/104.1 combo for his Red Zebra venture.
 
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