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Clear Channel donates radio stations

T

TheBigA

In case you missed it:

http://www.radio-info.com/news/announced-today-at-the-mmtc-conference-clear-channel-donates-two-more-stati

I can't wait to hear what all the regulars have to say about this.

The fact is that CC has a bunch of stations that no one wants, and cost more money to operate than they're worth. They've donated six, but they probably have 50 or more in this same category. They're not the only owners in this situation. The AM band is dead man walking. Might as well donate the whole band. See if minorities can do a better job than corporate owners.

I really thought CC was going to wait until the FCC came up with a plan for minority ownership. That's never going to happen. Your tax dollars at work.

I wish they'd donate one of their stations to the Future of Music Coalition. I'd love to see what they'd do with a radio station. Give another one to the RIAA. And another one to the AFM. That might change the ball game when it comes to royalties.
 
Since I am in Minneapolis at the moment I went to Radio-Locator and looked up KFXN. The station just barely covers it's city of license (and that is in the daytime - at night the power is 5 watts). Ratings show that it barely made the book. I would take a humungous tax writeoff as well.
 
That's the case with most of these stations. Look: Until the FCC actually comes with with some sort of policy to handle its agenda of encouraging more minorities to become owners, THIS is the best they can expect. That's what you get when you have private companies owning the airwaves. You can't mandate racial quotas in ownership. Either minorities want to buy, or they don't.
 
What I'm seeing here is that Clear Channel spent money on some bad signals, and has decided to give them away because they cost more to operate than they're worth. Maybe they were originally packaged with good signals. I guess that they couldn't find FM translator frequencies that might make the stations viable.
 
Nice of Clear Channel to do. Sure, great PR, but they are truly giving something of value and a dream come true for a few.

Wow, I have 32 years in the business including on air, programming, selling and GM. I'd love such an opportunity, but then again I'm not a 'minority'. To know I could never have a chance at this, can I shout discrimination? I really don't know the answer?

Don't get me wrong, I think minority ownership is important, but why not consider the little white guy that cannot compete with the incredible resources of larger companies during AM and FM filing windows. Unless I want a station 100 miles from anywhere, I could never win the auctions even with the FCC's special rules.
 
Agree it's a nice gesture but coming from the business side, it's a great way to write off properties that are draining the company. Be careful what you wish for, you're getting a money pit.
 
"The AM band is dead man walking. Might as well donate the whole band."

Not really. Well programmed stations attuned to their markets still thrive.

If AM really is dead, how do companies like CBS continue to make money hand over fist from their AM properties?
 
K6JHU said:
I would take a humungous tax writeoff as well.
Click to expand...

Was it Bill Clinton who got some bad press because he was donating his old underwear to charity and someone challenged the "donation value" he assigned to it for tax purposes?

You can't give your worn out underwear to Goodwill and claim each pair is worth $50.00 on your tax return.

When Clear Channel files their tax return and takes a deduction for donating a radio station to some not-for-profit group, will the tax write-off be humongous? If the station is not worth keeping, what value will an arms-length appraiser assign to the write-off? Humongous may not be the operative word when the dust settles.
 
Bob1370 said:
Not really. Well programmed stations attuned to their markets still thrive.
Click to expand...

I don't think you can make that generalization.

Here are the generalizations I can make about AM stations that thrive:

1) They have huge signals that dominate their market

2) They have no format competition in the FM band.

3) There is a limit to TWO AMs that thrive in a market, outside of NYC.

If I'm wrong, tell me. But I'm pretty sure those three things are true. Great programming on a weak AM signal isn't going to "thrive." If there are two AMs doing well, as is the case in Buffalo, great programming on a third signal won't succeed.

CBS tried to duplicate its success with NYC AMs with their AMs in LA, and KFWB is clearly the odd station out. They have the weakest signal, and their format was drawing listeners away from KNX. So KFWB is a done.

The other truth we have seen about AM is that it is a two format band: News/talk or sports. Otherwise, you get ethnic or religion. Adult standards, maybe. But it's not going to thrive. And I'm not just talking about commercial radio here.
 
TheBigA said:
I don't think you can make that generalization.

Here are the generalizations I can make about AM stations that thrive:

1) They have huge signals that dominate their market

2) They have no format competition in the FM band.

3) There is a limit to TWO AMs that thrive in a market, outside of NYC.
Click to expand...

You can add Chicago - WSCR, WGN, WBBM, and WLS - at least in the short-term. But in time, even they will have to move to FM. CBS & Citadel can move or simulcast their AM stations whenever they want to (give it a couple of years), but Tribune has a problem, seeing as how they're prohibited from owning an FM stick without selling one of their other Chicago properties.
 
Tribune sold the Cubs. That doesn't count?

(Kidding, of course)
 
KeithE4 said:
You can add Chicago - WSCR, WGN, WBBM, and WLS - at least in the short-term.
Click to expand...

Yep...Chicago has more than its fair share of 50K AMs, and there are 3 doing well. But the interesting story to me is the number of 50K AMs that are struggling in Chicago, like the former WMAQ and WCFL.
 
TheBigA said:
KeithE4 said:
You can add Chicago - WSCR, WGN, WBBM, and WLS - at least in the short-term.
Click to expand...

Yep...Chicago has more than its fair share of 50K AMs, and there are 3 doing well. But the interesting story to me is the number of 50K AMs that are struggling in Chicago, like the former WMAQ and WCFL.
Click to expand...

Maybe in the ratings, but how about billing? Sports stations usually have poor overall ratings, but make money. In the case of WMVP, they don't absolutely have to make a profit since the purpose of ESPN Radio is to promote ESPN, not make money as a stand-alone station (although they might be making money anyway - I don't know). The Score, at least in years past, was one of the highest-billing stations in the country, IIRC.
 
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