Almost every radio broadcaster is losing money! Radio is in bad shape. There were actually a few reasons why CBS flipped 97.1. CBS owns KROQ, KCBS and KRTH. These stations are faring well with the male demographics. Since KTWV attracts mostly 55+, CBS didn't have any stations focusing on a more female/family demographic. That is why 97.1 was flipped to CHR. CHR is a more female friendly format compared to Classic Rock, Alternative, Hot Talk or Classic Hits. It also attracts the young demographics that advertisers are interested in. CBS also flipped 97.1 because CBS had to cut costs. FM Talk is an EXPENSIVE format compared to CHR. Operating a CHR like AMP costs nothing compared to what it cost to run FM Talk.
FM Talk was a great format to run back in its heyday when Stern was still on the air, the economy was good and PPM wasn't around. Stern attracted millions of people to listen, those millions stayed on the station to listen to FH&F and Leykis. But when Stern decided to leave, the new Free FM that was launched after he left was hanging on a thread. However, it still managed to get by unlike other Free FM, affiliates, Leykis still attracted people to listen, FH&F were still bring people in and Carolla was growing on the morning audience. But then PPM came into effect, and when the station saw the drop in listeners compared to the diary, KLSX had to start going into salvation mode. And they decided to cut commercials and advertise more. But this came at the wrong time, the economy was weakening while this was happening. Advertisers cut back, and a station that used to make big bucks was hardly making enough to survive. FM Talk NEEDS money in order to survive. If the station is not using syndicated material (which KLSX never used most of the time), you need engineers, call screeners etc. You need to pay first rate talent. Leykis always said radio made him a multi-millionaire. You could see the paychecks he was receiving were big. So with the economy the way it is, KLSX couldn't have survived ANY LONGER the shape it was.
CBS for sure scored a great deal by switching to CHR. More audience share, more revenue and cheaper to operate. Do you think they pay Stryker, Booker or McCabe big paychecks? No. Not at all. HAHA
