FM WINDFALLS

[CAPECRUSADER]

Who can forget some lucky guys who got FM frequencies on the cheap and made well.

ARONLD LERNER...WLLH FM TO WSSH (WISH 99)
NORMAN KNIGHT...WTAG FM TO WSRS
JAY WILLIAMS.....WFMP TO WXLO

who else can we think of that made well with those un-desirable FM frequencies back in the day

 

[aerie]

I find equally interesting those people/companies who thought FM would never be important, and sold their FM stations on the cheap. Westinghouse had WBZ-FM on 92.9 and 106.7 and sold both for peanuts compared to what those stations are worth now.

 

[DanStrassberg]

I find equally interesting those people/companies who thought FM would never be important, and sold their FM stations on the cheap. Westinghouse had WBZ-FM on 92.9 and 106.7 and sold both for peanuts compared to what those stations are worth now.

But what they are worth now is supposed to be pretty small peanuts compared with what they WERE worth about 2-1/2 years ago (AKA, at the market top). At that time, full Class B signals licensed to Boston (or Brookline as 92.9 is now) were going for $100 million. Not sure what they would fetch now, but I think it would be less than half as much and quite possibly as little as one-fifth as much. Anyone have an estimate that they can support--presumably through the use of prices paid in recent deals for comparable signals in comparable markets (whatever those might be).

 

[pqgeorge]

Everything in the market was overpriced to the hilt during the peak of the market. And to think that the original WJIB-FM (96.9), a full Class B FM facility was sold back in 1990 for a paltry $6 million to Emmis Broadcasting. WBZ-FM (the third one on 106.7) was sold to Greater Media for $5 million dollars back in 1981.

In the 90's, the old WCAV (97.7) in Brockton, MA owned by the Brockton Enterprise was sold for $1.5 million dollars, which included the AM (WBET/1460). The publisher of The Enterprise knew absolutely nothing about the radio market. The new owner basically upgraded the FM to an equivalent power of 6000 watts. He did practically nothing to the AM side. Before you knew it, the new owner sold the FM to Radio One for $10 million. I can only imagine how the old owner (Enterprise) was not too happy that he lost a goldmine. (Oh, well...c'est le vie). After a couple of format and call-letter changes, the station is now a repeater of WAAF (107.3) Westborough, MA aiming its' signal from Great Blue Hill in Canton, MA, with a city grade signal into downtown Boston. As for their signal in Brockton, well....

 

[cdsull502]

I think Westinghouse simply mailed back the license for the original WBZ-FM on 92.9. Really dumb. They could have simply simucast the AM on it. They owned the tower it was on; they presumable owned the transmitter, etc. The only cost incurred to operate it was the light bill. I think WBZ-TV and WBZ radio made enough money to cover that expense. I will never understand why Westinghouse constantly screwed up their FM operations.

 

[johnster]

I think Westinghouse simply mailed back the license for the original WBZ-FM on 92.9. Really dumb. They could have simply simucast the AM on it. They owned the tower it was on; they presumable owned the transmitter, etc. The only cost incurred to operate it was the light bill. I think WBZ-TV and WBZ radio made enough money to cover that expense. I will never understand why Westinghouse constantly screwed up their FM operations.

There were and still are "Real" operating costs of radios stations. Back then a full staff of folks would have been required to operate an FM station. All the things that you take for granted with automation came years later. Transmitter sites and studios required first class licensed folks which is why so many transmitters were at studios. Not really possible for WBZ-FM as well as diffrent rules in total ownership limits for media corperations and license holders. So in that day if they didn't think FM was going to be economically viable for years there were reals costs with hanging in there. Obviously we know today they could have made real money holding on to these. But that wasn't as clear back then when they looked at the day to day costs.

 

[pqgeorge]

I think Westinghouse simply mailed back the license for the original WBZ-FM on 92.9. Really dumb. They could have simply simucast the AM on it. They owned the tower it was on; they presumable owned the transmitter, etc. The only cost incurred to operate it was the light bill. I think WBZ-TV and WBZ radio made enough money to cover that expense. I will never understand why Westinghouse constantly screwed up their FM operations.

There were and still are "Real" operating costs of radios stations. Back then a full staff of folks would have been required to operate an FM station. All the things that you take for granted with automation came years later. Transmitter sites and studios required first class licensed folks which is why so many transmitters were at studios. Not really possible for WBZ-FM as well as diffrent rules in total ownership limits for media corperations and license holders. So in that day if they didn't think FM was going to be economically viable for years there were reals costs with hanging in there. Obviously we know today they could have made real money holding on to these. But that wasn't as clear back then when they looked at the day to day costs.

WBZ-FM (92.9 Mc/s) operated on the Channel 4 tower at Soldiers Field Road from 1948 until they turned in the license in 1952. They returned WBZ-FM to the air on 106.7 in 1956. Eventually when the new Needham tower was put on the air in 1957, WBZ-FM moved to it (along with WBZ-TV, Channel 4). Westinghouse, a legendary operator of AM and TV stations had never been a very good operator of their co-owned FM stations. They basically operated their FM stations (including WBZ-FM.... 100.7, 92.9 and 106.7) as a "loss leader". The "idea" was simple.... take one FM frequency out of contention, in the same market as their AM stations. Basically, to protect their AM sticks. The FM's were operated as a public service, no "FM-only" spots were aired. The only time you heard ads on the FM is during simulcasts of the news from WBZ-AM. When WBZ-FM made the switch to Stereo on 12/30/71, as an automated FM Rocker, it actually DID get a following. They didn't expect 106.7 to get the response it got. It got ratings. So what did they do? They basically (kinda deliberately) botched the FM format just enough to keep it from taking any of the AM's ratings. They really had nothing to worry about. The FM audience was of a different demographic (12-25) while the AM audience was a little higher on the age bracket.

 

[aaronread]

The rumor was that 102.5 sold to Greater Media for $125 million. IIRC, 99.5 was sold to WGBH for $14 million.

Granted, both are Class B FM's but 102.5 has a much better location and thus serves the Boston market much better than 99.5 does. And I wouldn't be surprised if there were some other considerations in there, too. But still...that's nearly an order of magnitude in price difference, with only a few years' separation in time. I think this is probably one of the more stark indications of how overpriced stations were throughout most of the 2000's and how far the market has plummeted. The other big example being WQXR in NYC, too.

(note: I am not a station broker, just an observer...but I can't help seein' what I'm seein', ya know?)

 

[LA_Guy]

Entercom bought 97.7-by then non-directional on the Great Blue Hill-for $30 million.

 

[Don Juan]

The rumor was that 102.5 sold to Greater Media for $125 million.

It was a combined deal all totaling about 100 mill. But I think it you break apart just the WCRB part...it was more like 65 mil. Still a lot....but not $125 mil

 

[JustinT]

The rumor was that 102.5 sold to Greater Media for $125 million.

It was a combined deal all totaling about 100 mill. But I think it you break apart just the WCRB part...it was more like 65 mil. Still a lot....but not $125 mil

If I'm remembering correctly: the physical property of 102.5 was $100 mil, then the physical property of 99.5 + the intellectual property of 102.5 was $65 mil. The Philadelphia station involved in the swap, which when sold to GM had not been built out (was still in Trenton) and did not come with studios, sold for somewhere in the 70s.

 

[DanStrassberg]

Everything in the market was overpriced to the hilt during the peak of the market. And to think that the original WJIB-FM (96.9), a full Class B FM facility was sold back in 1990 for a paltry $6 million to Emmis Broadcasting. WBZ-FM (the third one on 106.7) was sold to Greater Media for $5 million dollars back in 1981.

In the 90's, the old WCAV (97.7) <SNIP>After a couple of format and call-letter changes, the station is now a repeater of WAAF (107.3) Westborough, MA aiming its' signal from Great Blue Hill in Canton, MA, with a city grade signal into downtown Boston.

When Entercom bought 97.7, the station had already moved to Milton but had not yet been upgraded to 6 kW (equivalent @ 100m) at the new location (though, I believe the CP for that upgrade had been granted). Entercom paid $30 million for 97.7. I wonder what that signal would fetch today. I suspect not more than $6 million.

I think you have to put Greater Media at the top of the list of radio companies in this market that aggressively sought to maximize its portfolio of FMs in the market (both in number of stations and their facilities), and, with the exception of 102.5, got its stations at good prices.

 

[MassMusicMan]

Ignoring the economics, who could possibly believe that FM would fail? Did anybody actually listen back then? FM sounds better than AM. That didn't register with owners back then?

 

[pqgeorge]

Ignoring the economics, who could possibly believe that FM would fail? Did anybody actually listen back then? FM sounds better than AM. That didn't register with owners back then?

My first extended experience with FM was in late September, 1966. I was almost 7 years old and was using my oldest brother's GE AM/FM portable radio. I was trying to listen to WMEX/1510 or WBZ/1030. Inadvertently, I hit the red "band select" button on the side of the radio. The radio sounded quite different after I did that. It was cleaner and crisper than the AM side. So, I fiddled with the tuner and found a station playing some great (what we would call today: "oldies") music. It was WRKO-FM playing "Can't You Hear My Heartbeat" from Herman's Hermits. This was several weeks before automated "ARKO" was born (October 12, 1966, at midnight). There was actually a live jock on a Sunday afternoon, who basically called the station "WRKO-FM 98.5" . They must have been getting the place ready for "ARKO". I was a radio geek at 6 and I knew that FM was special. I didn't know all of the terminology about it back then, but I had a rough idea. Once "ARKO" came to play, I listened to nothing else. Mind you, this was a first grader in Suburban Boston (Randolph, MA), barely 7 years old. I wanted to have my own FM station! (That would take about 40 more years for this writer. It was WORTH the wait!).

Maybe some enterprising radio entrepreneur could have listened to some kid from Randolph back in 1966 saying FM is going to be BIG! I knew, even back then, FM was going to be BIG! Watch out WIMMEX and 'BZ.... "ARKO-matic" is going to start the whole ball rolling.

 

[aaronread]

Ignoring the economics, who could possibly believe that FM would fail? Did anybody actually listen back then? FM sounds better than AM. That didn't register with owners back then?

If you're talking about analog FM vs. HD Radio FM...you could say the same thing. It sounds better, especially in the car, and it gives you access to two or three extra stations, and has artist/title/PAD displays. How can it fail? heh heh heh

It's easy to look back at something that's been a huge success for 40 years and forget that it had lot of perceived shortcomings...some of which probably looked insurmountable back in the day. I'll bet a lot of the debate of AM vs FM back then, sounded a lot like the debate of analog FM vs HD Radio FM does today.

 

[JIBGUY]

Ignoring the economics, who could possibly believe that FM would fail? I'll bet a lot of the debate of AM vs FM back then, sounded a lot like the debate of analog FM vs HD Radio FM does today.

But there are two big differences between AM/FM and the now FM/FMHD......

1) - FM sounded a LOT better than AM. The difference to the average ear of FM and FMHD is not that noticable.

2) - FM never had any proprietary licensing fees. Now, HD on FM requires a greedy licening fee on BOTH ENDS: a giant one paid by the broadcaster, AND the other paid by the end-user (consumer) to buy the new type of radio. The vicious circle doesn't allow most broadcasters to go HD if there's virtually no audience; and the audience has little to hear if the stations aren't HD. A smart company holding the patent would not be so greedy so fast. But you know how most coporations are these days.... gotta make THIS quarter look good for the stockholders/Wall Street, regardless of how much that will harm the big long-term picture.

3) - unrelated to my comparing point, but today, we also have so many alternate forms of media.

 

[Don Juan]

I think you have to put Greater Media at the top of the list of radio companies in this market that aggressively sought to maximize its portfolio of FMs in the market (both in number of stations and their facilities), and, with the exception of 102.5, got its stations at good prices.

What do you think 102.5 is worth today?

Great signal....and even a viable format with billing.

Whatever they paid, it was probably worth it to them not letting it get into the hands of someone else....wouldn't you say?

 

[Don Juan]

But there are two big differences between AM/FM and the now FM/FMHD......

1) - FM sounded a LOT better than AM. The difference to the average ear of FM and FMHD is not that noticable.

I wouldn't say at the time it was a LOT better. Radios weren't that good. Signals weren't that good. transmitters and audio chains weren't that good. etc. Better, but most people didn't care at the time. It was more of a mental thing....to have a station say stereo, and have the little red stereo light come on.

2) - FM never had any proprietary licensing fees. Now, HD on FM requires a greedy licening fee

The fee is really minimal for most major stations. And why is it "greedy" to get a proprietary license? Isn't that what Microsoft does...and does well? I don't know a major station that could operate without licenses from MS. Same thing for licenses for ASCAP/BMI, etc. Why is it "greedy"? That's just how some businesses run.

The best part of HD is the extra channels. I think it is the one thing that people might care about. But the public has no idea of whats on any of those sub-channels.

I would like to see WJIB operate on on of the FM sub-channels. (and find a cheap way to stream, for post-sunset listening, and listening otuside of the signal.)

Isn't there some cheap way to do that? With Shoutcast or something?

 

[pqgeorge]

2) - FM never had any proprietary licensing fees. Now, HD on FM requires a greedy licening fee


The fee is really minimal for most major stations. And why is it "greedy" to get a proprietary license? Isn't that what Microsoft does...and does well? I don't know a major station that could operate without licenses from MS. Same thing for licenses for ASCAP/BMI, etc. Why is it "greedy"? That's just how some businesses run.

But for the small broadcaster, especially for the high-school, college or community broadcaster who doesn't have the same "footprint" that the major stations do and does not have the budget to afford it, it's prohibitively expensive. First you have to get the equipment to go with IBOC (provided your antenna is broad banded enough to handle it) $75,000+ worth. And then you have to pay for luxury of getting a proprietary license just to be able run the first stream. $5000 for every stream thereafter. And they don't even have any educational discount. And with the Northeast with so many stations boxed in, the interference that IBOC is already providing is substantial. For example in the commercial band, 92.5 in Andover (considered to be part of the Boston market) is no longer available south of Boston due to 92.3 in Providence firing up it's IBOC component. Pre-IBOC, 92.5 was easily available. Imagine if all of the non-comms went IBOC, their coverage areas would be dramatically reduced to next to nil.

I'm not anti digital. I think the IBOC system was poorly designed in the first place. We've already seen what has happened to the AM band with first second adjacents being blown to smithereens. The FM is so badly performing that now they require another 10db of injection just to get it inside buildings. The FMeXtra version of DAB was much better than IBOC could ever be. It had the coverage of an FM Stereo signal, multicast capability and it did not cause undue interference to first or second adjacents. But, unfortunately DRE became "investors" of iBiquity and no longer is promoting their system for broadcast use.

 

[Eli Polonsky]

I would like to see WJIB operate on on of the FM sub-channels. (and find a cheap way to stream, for post-sunset listening, and listening otuside of the signal.)

Isn't there some cheap way to do that? With Shoutcast or something?

It doesn't matter what carrier you use for streaming, whether it's Shoutcast, Live365, or your own server, or whatever. The fees to the music licensing industry for a broadcast station also streaming their music on the web would still be the same.