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Good News for AM Radio

When a radio professional attempts to convince a local business owner to buy airtime on a local station, ratings alone aren't usually enough to persuade the business owner. The local business owner is comparing the cost of radio against the cost of print media, direct mail, internet, banners towed behind airplanes, people in funny costumes dancing with a sign in front of their store, and anything else they can think of. But often, the biggest problem is simply convincing the business owner that he needs some advertising, period. Yet those same radio professionals who try to convince local merchants that they need to advertise don't seem to understand that radio stations also need to advertise, to give people a reason for turning the radio on instead of popping in a CD, or for hitting the AM band button for a change. In the radio market where I live, I can't recall seeing anything in any advertising medium that gave me a reason for even turning my radio on, let alone hitting the AM band button. I've seen some billboards with the names of some guys I've never heard of being on some AM station, though I'm not sure when. That's it.

That's one aspect of radio that always puzzled me. How can a business built on convincing people that they need to advertise to get new clients, not put much stock in advertising themselves tog et new listeners.

The obvious answer? They are either perpetually stupid, cheap or both. Anyone who's worked at enough radio stations knows the answer to that.
 
Giving a translator to AM operators is a form of a bail out. That's not such a bad thing, but it should only be for small, low wattage type stations, graveyard stations, daytimers and stations that used to cover a metro well but no longer do because of sprawl. . . And the translator should be out there on the other side of town or the county, the place where the AMer doesn't quite reach but is now part of the market. It does nothing to "save the AM band" if a station is given a FM and every one downtown listens to FM now cause it sounds better.
 
Hear, hear.

Cue "BigA" to tell us why that would be the worst thing ever.

OK...first of all, who would do the breaking up? The FCC? Really? Aren't they the same folks who screwed things up in the first place? Not exactly the people I'd trust with the future of radio. Secondly, who would buy the stations? Right now, both CC and Cumulus have a few hundred stations in trusts at rock bottom prices waiting for people to rush in and buy them. No one with any money is thinking about spending it on transmitters and towers. And regardless of what you may think, it costs a lot of money to run a radio station. In all of the examples I've seen where small owners have bought stations formerly owned by large radio companies, the results have been devastating, where the staff and services have been cut.
 
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OK...first of all, who would do the breaking up? The FCC? Really? Aren't they the same folks who screwed things up in the first place? Not exactly the people I'd trust with the future of radio. Secondly, who would buy the stations? Right now, both CC and Cumulus have a few hundred stations in trusts at rock bottom prices waiting for people to rush in and buy them. No one with any money is thinking about spending it on transmitters and towers. And regardless of what you may think, it costs a lot of money to run a radio station. In all of the examples I've seen where small owners have bought stations formerly owned by large radio companies, the results have been devastating, where the staff and services have been cut.

LOL

The obvious "competition" gains that result from a lack of monopolizing the marketplace aside; I guess you've never worked for a small operator who doesn't need to kick up 40% of their revenue to corporate, no matter what. Makes a BIG difference.
 
LOL

The obvious "competition" gains that result from a lack of monopolizing the marketplace aside; I guess you've never worked for a small operator who doesn't need to kick up 40% of their revenue to corporate, no matter what. Makes a BIG difference.

You ignored the main part of the question: Who would buy the stations, and why aren't they buying now? Lots of stations available at very reasonable multiples. The fact is the money has to come from somewhere. Either the corporate owner, or a bank that is charging you a huge interest rate because radio is not seen as a safe risk. Either way, you're paying for the use of someone else's money.
 
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Break up these moronic monopolies; that'd be a marvelous way to improve radio across the board.

That's one I have to disagree with. In theory, that makes sense. In practice, it means every individual station is attempting to compete with every other station for the biggest market share. The result is even more homogenization. It would put an end to companies with multiple stations assigning each one of their stations to handle a different market segment. That means that the larger market segments would be over-served, and the smaller segments ignored.

However, if you were to suggest replacing the current companies who own huge numbers of stations with better companies, companies more attuned to what the public really wants and needs, then I'm totally with you. The current problem with the oligopolies that dominate radio isn't that there are too few with too much power, it's that the few there are don't seem to have much of a clue.
 
That's one I have to disagree with. In theory, that makes sense. In practice, it means every individual station is attempting to compete with every other station for the biggest market share. The result is even more homogenization. It would put an end to companies with multiple stations assigning each one of their stations to handle a different market segment. That means that the larger market segments would be over-served, and the smaller segments ignored.

Imagine that? Stations actually competing for market share instead of having their piece of the pie pre-cut and unchallenged. Geeez, stations might actually TRY to be better.

I heard a rumor that it used to be like that for real, a long, long time ago. (shivers)
 
OK...first of all, who would do the breaking up? The FCC? Really? Aren't they the same folks who screwed things up in the first place? Not exactly the people I'd trust with the future of radio. Secondly, who would buy the stations? Right now, both CC and Cumulus have a few hundred stations in trusts at rock bottom prices waiting for people to rush in and buy them. No one with any money is thinking about spending it on transmitters and towers. And regardless of what you may think, it costs a lot of money to run a radio station. In all of the examples I've seen where small owners have bought stations formerly owned by large radio companies, the results have been devastating, where the staff and services have been cut.



The FCC was wrong when it deregulated the industry, and allowed these companies to purchase hundreds of stations. Do you honestly believe that the business is run better today, with companies like Clear Channel and Cumulus pumping out sub-standard programming, and rigging the outcome?

As for small owners purchasing stations previously run by larger companies declining, those are usually cases involving former corporate hacks who got together, and have no experience. Take Peak Broadcasting, for example; you had former Citadel loons purchase a CBS cluster, cut back on staff, take huge gambles, and then sell it off to another 3rd rate company.
 
The FCC was wrong when it deregulated the industry, and allowed these companies to purchase hundreds of stations.

But it was also wrong when the FCC over-licensed the spectrum with docket 80-90, and allowed small markets that once had a couple of radio stations to now have a dozen. That dropped market shares to single digits, and made it unprofitable for people to make money with only one AM & one FM. THAT is why they had to change ownership laws. The entire media marketplace changed, and you needed five stations in a market just to reach the same number of people that you once got with just two. In any case, radio can't go back to the past. So there's no point even discussing it.
 
Imagine that? Stations actually competing for market share instead of having their piece of the pie pre-cut and unchallenged. Geeez, stations might actually TRY to be better.

I heard a rumor that it used to be like that for real, a long, long time ago. (shivers)

You're speaking in hypotheticals and theoreticals, I was speaking in actuals. The olden days of stations competing by offering different programs, as in specific shows, are long gone and never coming back. Now, all they offer is "programming", which like manure is dispensed in shovelfuls. Except for a few programs on public radio or the Sunday night syndication ghetto, commercial radio now is mostly just an undifferentiated offering of music and pointless patter between songs. News/talk, the subject of this sub-forum, is slightly different, but only slightly. Depending on when you tune in, the pontificating pundit's name might change, but the content remains the same. A half an hour shovelful of one host's show is pretty much the same as a half an hour shovelful of some other host's show.

I think the current situation is bad. On that we agree. The only thing we disagree on is what remedy would correct the situation. I agree that a remedy would be a good idea. But I disagree that returning to those thrilling days of yesteryear would result in any improvement. I suspect that if the oligopoly of companies that own most of the stations were to be changed, all we'd see is a plethora of independently owned stations plugging into a small handful of syndication companies for content. There would be a different oligopoly running things, with different rules, but with the same result.

You might want to look at when they broke up the relationship between movie studios and theaters. That was supposed to bring about changes also. It didn't. The same handful of players who currently own stations and operate them with voice-tracking systems would instead offer the exact same voice-tracked content in a slightly different format. For the listener seeking something to listen to that wasn't deadly dull and boring, nothing would be any different.
 
Relaxing ownership rules SAVED hundreds, if not thousands of stations. Many of them AM stations.

Radio isn't a jobs program for out of work jocks, like some here seem to think. It's a BUSINESS. A business that has to compete with lots of other outlets for ad money. A business that isn't what it used to be.

Anyone who thinks radio would be better off under the old rules should take a basic econ class, then Google "economies of scale".
 
Consider the condition of broadcast television. Even when ownership of multiple stations was forbidden, the vast majority of content on television was the shows provided by the big three network, the programs of "National Educational Television", and reruns of those shows. I'd be willing to bet that if the FCC changed the rules about oligopoly ownership, it wouldn't be long until old-fashioned simulcast radio networks returned, with four or five national network feeds being carried almost 24/7.
 
I'd be willing to bet that if the FCC changed the rules about oligopoly ownership, it wouldn't be long until old-fashioned simulcast radio networks returned, with four or five national network feeds being carried almost 24/7.

Of course it would. Lots of people on radio forums seem to think that these stations would come crawling back to them and offer then huge salaries to babysit an automated station and yap for 2 minutes an hour, but it ain't happening.
 
I wish a company would make a software upgrade that would let you translate a AM radio station to the FM dial on my Sony Ericsson Walkman W518A cell phone. Can't pick up KTSA because it is on AM only. Ditto for WOAI-AM, and no thanks I don't want one of those privacy invading Smart Phones because I am a simpleton! So I guess I got to lug a AM/FM Cassette Walkman with me just to listen to AM radio programming in San Antonio unless I am in Austin because Austin has KLBJ AM on the FM dial while using public transportation.

Others will say, well you can stream it... But just try to do that on the MegaBus, or the Greyhound, the Via, or Capital Metro's Wireless B connection. Buffering.... Buffering.... Buffering.... FORGETABOUTIT!
 
Consider the condition of broadcast television. Even when ownership of multiple stations was forbidden, the vast majority of content on television was the shows provided by the big three network, the programs of "National Educational Television", and reruns of those shows. I'd be willing to bet that if the FCC changed the rules about oligopoly ownership, it wouldn't be long until old-fashioned simulcast radio networks returned, with four or five national network feeds being carried almost 24/7.

I want Lifetime Medical Television to return to airwaves since the mid 90's! That's educational too!!! Well time to dust off one of my many VHS tapes.
 
stream it... But just try to do that on the MegaBus, or the Greyhound, the Via, or Capital Metro's Wireless B connection. Buffering.... Buffering.... Buffering.... FORGETABOUTIT!

BUT THE INTERNET IS WHERE EVERYONE SHOULD BE RIGHT NOW! RADIO IS DEAD!

(Your example is yet another reason why radio will be around long after most of us are dead.)
 
Consider the condition of broadcast television. Even when ownership of multiple stations was forbidden, the vast majority of content on television was the shows provided by the big three network, the programs of "National Educational Television", and reruns of those shows. I'd be willing to bet that if the FCC changed the rules about oligopoly ownership, it wouldn't be long until old-fashioned simulcast radio networks returned, with four or five national network feeds being carried almost 24/7.

Bassackwards as usual. The situation you described is exactly what we have in radio NOW, with Delilah or Rush or Ryan Seacrest running everywhere at once. Tune across the AM dial late night and you'll catch George Noory in progress anywhere you go. In TV, before the clustering started, most local stations took pride in how much local production they did. In my market, not only was there news, but local kiddie shows, movie hosts, interview shows, game shows, musical shows, live sports remotes, you name it. And network shows not only could be but were pre-empted for local ones. The buying of syndicated shows was different too; stations competed for the ones they wanted rather than having them stuffed down their throats by corporate HQ. I don't know why I'm even bringing this up, though, you'll just turn it around again. Also as usual.
 
In my market, not only was there news, but local kiddie shows, movie hosts, interview shows, game shows, musical shows, live sports remotes, you name it.

The thing that killed a lot of that local TV was the cost. Most of the things you list went away in most of the country in the 70s. Maybe your market was the exception.
 
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