The problem was that half of all stations in the US were not profitable following the over-population of the FM band due to Docket 80-90. Stations could not take risks, so you ended up with 3 or 4 AC stations in every market because the format was easier to sell and generally not as expensive to run."With consolidation taking place in the mid 90's, owners of clusters found they could make plenty of money without trying to have every station be #1. "
But you see, that's part of the problem. In the old days, when you had a dozen different owners and they could only own one AM and one FM in a market, they put effort into making these stations successful.
Owners who were not profitable had no money to try anything risky. A new format mean a year of minimal revenues, as well as start-up costs and the like. So small independent owners preferred, generally, proven and established formats and little innovation.
Yet they are programmed to serve the greatest number of people possible withing their formats. The biggest issue is that the economy, the PPM and new media has caused radio to lose two-thirds of its revenue in the last 22 years.Now, when a handful of companies own most of the stations, they have a cluster strategy whereby they don't have to be aggressive and vibrant with any one station. They can piece together a bunch their stations to make a number and none have to be programmed to be outstanding.
The real issue, beyond revenue, is that new media is preferred by nearly everyone... and so radio listening, expressed as Persons Using Radio, in 2000 was between 18% and 21% 6 AM to Midnight in all rated markets. Today, in the PPM markets, it is around 6%. That is a loss of 2/3 or more of the former audience levels.
Most of those losses in revenue and audience hit in just a few year's of those total twenty-two years, starting around 2008. We had a perfect storm of the recession, the arrival of smartphones and the change to the PPM is the largest markets. Within just a couple of years, PUR (Now PUMM) was down to under 10, with radio losing roughly 50% of its listening due to a changing economy and new media.