travisl5678 said:
I thought that KFAX made its money like a talk station, making its money off of advertizing rather than the programing itself. I am young, but I'm learning the bussiness quickly.
There are several business models.
(1) The traditional one is building programming designed to reach a certain part of the listening audience, say, males age 18 to 34 or females 25 to 49. The stations make their money selling 30 and 60 second ads around the programming.
(2) There is also the "brokered" arrangement. In this case the station sells blocks of time to program producers. They could be 5 or 15 or 30 or 60 minute segments, or in the case of KNEW several years ago, they sold the entire broadcast day to CNet. The program producer then makes their money any way they choose.
(2a) The program producer can sell their own ads, so for instance if the station sold time to the producer of "The Greek Hour", the producer would probably be programming in Greek and play Greek music, etc. It would be logical for them to sell ads to Greek restaurants, Greek-owned travel ageneices, etc.
(2b) If the program producer is a religious outfit, instead of selling ads they might ask the audience for donations instead. Most religious program producers do this.
In example #2, ratings aren't going to matter to the station -- they've already sold their time in blocks to program producers who have to find a way to make their money back. Back some years ago when Sturdevant and company owned KFAX, the ratings didn't even show up in Arbitron, yet they were totally sold out of time -- AND there was a waiting list of over a year to get anywhere on the schedule. KFAX paid their staff well, and it was said that the only way they'd ever leave was if they died there. KFAX was able to pay its staff well because they were SWIMMING in money, and yet they never sold advertising and their ratings were nowhere. They were a time broker. They sold program time and let the program producers do whatever they needed to make their money.