DavidEduardo said:
Except that deregulation in 1996 did not create any significant changes in station counts. It was Docket 80-90 which was the offshoot of the Bonita Springs case dating back to the early 80's that created thousands of new stations, move-ins and upgrades that caused the issues that several larger companies seized to promote changes in ownership caps. But the raw number of stations changed in the window around the end of the 80's into the beginning of the 90's.
You are correct about the station count increasing due to Docket 80-90. Mia culpa, but the fervor of the 1990's resulted in lots of stations (including some of the new ones) moving away from their original city of license and reappearing as rim-shots in metros where the larger audiences are located. That greatly increased the choices (and competition) in many cities, even if they were marginal signals.
For a while, the "station shuffle" game was where the big money could be made in broadcasting. It became very attractive to speculative investors who cared little about broadcasting but liked making money. There is nothing wrong with making money, but because their ultimate goal had little to do with programming or ad sales, the "art" of radio suffered.
If you were to purchase a station with the intent of moving it (and maybe a few others) so you could sell it to the next guy, then you tend to not be very concerned about improving the quality of the day to day operation. About all you want to do is keep it on the air and reasonably viable until the next purchaser comes along. It's "the greater fool theory." For about ten years, it worked. Fortunes were made in buying, selling and trading stations. I know a several people who became quite wealthy by doing this. In an odd sort of way, I wish I'd thought of it.

The down side is, just like a game of Musical Chairs, someone ends up the loser. That bubble has burst. The good news is there are now quite a few stations for sale at reasonable prices. The down side is they are real "fixer-uppers," which may never amount to anything, no matter how much cash you pour into them.
In any case, the number of stations on the conventional broadcast bands has greatly increased. Some of those stations do quite well, but many are marginal. Do we really need even more?
Many years ago, when I lived in Dallas, I seem to recall that there were something like 16 FM stations and about 8 or 9 AM stations that were easy to receive with any regularity. A quick look at Radio-Locator, entering my old zip code of 75220, yielded 82 signals! Even if Radio-Locator isn't all that accurate, it is still obvious that there are a lot more choices, which results in a fragmented audience share.
Of course the DFW metro area is a lot bigger than it was in the 1970's, but there are also a lot more non-radio distractions out there which didn't exist 40 years ago. There was no satellite radio, no Internet, no ipods. There wasn't even a Sony Walkman to be had for love or money. But there were a core group of radio stations that "everyone listened to." We are way past that now. I think it is very fair to say that the audience is extremely fragmented, even in less heavily populated areas. Does dividing the pie even more really make that much sense?
RF's point about trying to keep those fragmented bits and pieces under your company's banner sounds reasonable. It certainly is the logic that many companies have used to justify HD-sub channels, but I don't think works out as intended. Maybe it will in the future, but I have my sincere doubts. When Internet access becomes commonplace in cars - and it will - then the audience fragmentation you see now will look very minor. I have a hard time getting very enthused about paying for something that has the potential to make life even more difficult.
So far, the only reason I've been able to come up with to justify the cost of HD is to use it to jam my adjacent or co-channel neighbors. With the new power increase, I may have to do that, just to protect my own stations coverage area. I'm pretty sure the FCC won't do it for me.