Sorry for that response but I was getting tired of the negativity. I look at it like "the little train that could" rather than take the "it can't be done" stance.
Many downtown areas in various cities became ghost towns when the malls opened. But some cities have fixed up their downtown neighborhoods and have gone after a specific type of business. The “Specialty Shop.” Stuff you can't get at the mall. And as a result many downtown areas are making a comeback. I absolutely, positively believe that the same can be done with AM radio. Call it “Specialty Formats.” One such example would be a 50′s and 60′s oldies format. Yes, it is an older demographic. But they are still out there and they spend money too. No, you won’t be making Bill Gates money but if done right this kind of format would be very successful and make money. AM & FM radio have more competition now than ever before. To succeed, you MUST think outside the box. Those oldies are STILL goodies. And just waiting to be picked off the vine. Time to put on the work gloves.
I appreciate optimism. Those who know me say I can be too optimistic about most things.
But you have to understand what you're dealing with here.
The difference in investment and expense between a specialty shop in a storefront and even a small terrestrial commercial broadcast station is immense. Making a profit in that kind of retail is a much lower threshold to clear than making a profit in commercial radio.
I worked for one of the smallest radio stations in America (KIBS in Bishop, California) for the first three years of my career. I work for the largest media company in America (iHeartMedia) now. In between, I've worked for mom and pops, small local and regional chains and majors like Journal, Bonneville, Nationwide, Belo, Hearst, Emmis and Scripps). No one in broadcasting, not even the giants of the industry are making "Bill Gates money".
I've said it before...I wish there was a radio version of Microsoft Flight Simulator....where you could run a radio station and get an accurate reflection of what the costs and liabilities are...what's at stake when you don't do your homework and maximize your chances of success.
The 50s and 60s "Oldies But Goodies" format just wrapped up on a strong AM signal out of Modesto...good enough to make the 80 miles up to Sacramento and still be listenable. They thought outside the box, they promoted in targeted fashion, made sure they were tied in with every Boomer-friendly event in North-Central California.
They ended up running up the white flag, selling to Immaculate Heart Radio and going online-only.
So let's say we take your life's savings and buy a radio station with it. In fact, to be realistic, let's make that the down payment and put you a few hundred thousand dollars in debt on the rest. You have all the costs I outlined in the earlier post that have to be met. Let's say you can get by with five people on your staff, all of them wearing multiple hats. You have to feed, clothe, provide medical care, education and shelter for your family...and those five people are dependent on their paychecks from you to do the same for their families.
Are you going to look each of them in the eye and tell them you're sure it will work? What will you tell them if it doesn't?
This is why broadcasters (who, whether mom and pop or corporations, are simply businesspeople, like that specialty store owner...just with many times the expense and liability) choose what's likely to work rather than "thinking outside the box."
You would need to start with "Bill Gates money"...and be willing to lose it...to do otherwise.