You bring up a very important point. When an owner has 4 or 5 FMs in a market, they sell combos of 2, 3 and even all of them to advertisers. So they don't have to always fight for the biggest possible format, but for groups of formats that can be sold even more effectively than single stations.The new stations either signing on or moving in provided narrower, more focused programming. I don't know if you remember radio around 1990, but I remember San Antonio having five oldies stations (860 and 930 on AM, 99.5, 101.1, and 105.3 on FM) because everyone wanted to chase the 25-54 demo. Consolidation got rid of three of them and provided service to an audience that was either unserved or not as well served.
When I owned clusters in now-ancient times, I'd nearly always sell at least 3 together, and often all 6. I could have very limited formats, like classical music, but combined with other "bigger" stations, I could sell it. Otherwise, I could not have run classical as a stand alone format.
One of the issues is that not even the government SBA gave loans to radio stations. A huge issue for smaller markets is the unavailability of financing. You run out of money, you turn off the transmitter.While you have some inaccuracies in those statements, I have found myself making a similar argument that, whatever you might think about consolidation, it probably hasn't worked out as hoped. Small local companies going bankrupt (and plenty did) is arguably more perilous for the station licenses and to the listening audience than a large company going broke because the latter will have a better chance of continuing business as usual while it goes through the bankruptcy process, but the four largest consolidators filing bankruptcy isn't a success.
Yep, as I mentioned above, clusters enhance the ability to build groups of stations that can be combined to win ad buys.I would also assert that programming diversity, at least at the local level, generally improved after consolidation. Again, look at San Antonio. Is programming more diverse with five oldies stations or with two?