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KFI and KEIB - Almost Seven Years Later

The Tavis Smiley thread was going in this direction so I thought it would be best to separate out this thread as I find it quite interesting on its own.

It was nearly seven years ago (can't believe it has been that long!) that in a programming and asset reallocation, iheart decided to remove Rush Limbaugh from his longtime slot of 9:00 am to noon on KFI and replace him with hosts that had less staunch conservative viewpoints. Rush was really the only arch-conservative left on the station as Dr. Laura had been removed several years earlier, and KFI's other most popular hosts John and Ken in the afternoons and Bill Handel in the mornings were not nearly so conservative anyway. Rush's ratings had been slipping on KFI and it was felt this would be a win-win situation.

KFI could still be presented as a "more stimulating" talk station without the "baggage" of total conservative hosts. It was felt that this represented the views of the LA population in general and would serve the blowtorch signal on KFI well, allowing them to market to a much broader SoCal audience.

As for KEIB, they could put Rush and a collection of other conservative hosts together which would take the relatively small but loyal conservative audience and give them a station of their own. It would generate shares through large TSL, as many of these conservatives tune Rush in during the morning hours and leave the radio on all day afterwards. In order to unruffle Rush's feathers for the "demotion" to the weaker signal, they gave him his own call letters, EIB standing for Rush's self-proclaimed "Excellence in Broadcasting Network".

From my point of view, although I have little empirical evidence to support my thesis, I think this has actually worked out well for both stations and for iheart as an owner. Even after the failure of Air America, KTLK on 1150 was still airing bad syndicated liberal hosts and getting almost no ratings for it, so putting conservative talk on made for an older and perhaps less desirable selling demo for KEIB 1150, but at least they were a reliable audience that could be sold. And I could use a little help on this point, but I think iheart was syndicating some of the other hosts and could use 1150 to get LA clearance? In any case, the move to conservative talk was a net benefit for the 1150 signal. As for KFI, like David said, I don't think they have ever really been able to duplicate the ratings success that Rush and Dr. Laura brought to them in the 90s and early 2000's during the middays, and that carryover affect has also affected other programs. But I also do not doubt that, as planned, they have picked up talk listeners who do NOT want to hear conservative talk all day. So I think KFI is overall a bit down from its heyday, KEIB is a bit up from libtalk, and overall the decision iheart made was the correct one because the ratings and revenue success of the KFI/KEIB combo now is greater than the KFI/KTLK combo of yesteryear. (I do realize these two stations are not sold together, there are several other stations that iheart sells together, but I am only focused on the reallocation of programming and assets between KFI and KEIB as a stand-alone analysis - that is how the original decision was made.)

Any empirical evidence to support or refute the thesis, or even competing theses would be appreciated.
 
Any empirical evidence to support or refute the thesis, or even competing theses would be appreciated.

In 25-54 in 10 AM to 3 PM, KFI averages over the last 6 months around a 3 share, while KEIB has been around a 0.3 share for the last few months, although it was up around a 0.5 at the start of 2020.

There is no evidence of long listening spans to talk in the PPM. Even someone who listens to much of a show listens to bits and pieces, and they are in and out of the meter detection as they do things in their daily routine. There certainly is very little crossover to the next daypart.

In fact, KEIB's morning show has been way ahead of mid-days in 8 of the last 10 months, and tied in the other two. Because the shares are so low, the wobbles in sub-0.5 share stations are enormous, percentage wise.

KFI wobbles overall wobbles between 10th (April, the first full month of the Coronavirus) and 20th. Currently, they are 13th in 25-54. KEIB is 43rd.
 
My view is that this decision was made strictly for money, not ideology or ratings. The market manager likely said KFI's revenue was underperforming its ratings, and said they could make more with local talk. By dropping syndication, they could double the number of local spots in that daypart. So that's what they did. At the time Rush had been hit by an advertising ban following his comments about Fluke. Most agencies still have "do not air" blocks on their spots airing in Rush, Savage, Hannity, or any other "controversial programming." I still see it now. So by going all local, KFI freed itself from any of those limitations, and obviously is happy with that decision. iHeart managers in San Francisco and Boston have done the same thing.
 
My view is that this decision was made strictly for money, not ideology or ratings.

I completely agree and this is as it should be.

What is good for the goose is good for the gander and if the far left has to earn its spot on top stations, as I have maintained all along, then those same rules must apply to the conservatives. If Rush wasn't pulling his weight on KFI, then demotion to KEIB is completely justified. If he doesn't bring ratings there, then outright cancellation is also in order. To paraphrase a famous movie quote, "It's nothing political, it's just business".
 
If he doesn't bring ratings there, then outright cancellation is also in order. To paraphrase a famous movie quote, "It's nothing political, it's just business".

But as I said, it wasn't ratings, it was money. Not the same thing. Rush is a syndicated show, so the station splits its commercial inventory with the syndicator. By dropping the syndicated show, KFI immediately had twice as much inventory to sell, and more money at the end of the year, thus a bigger bonus for the GM. Meanwhile, because of the ad boycott, Rush immediately changed his business model to one based more around his web site, charging a fee to members, and doing more personalized ads for sponsors.
 
But as I said, it wasn't ratings, it was money. Not the same thing. Rush is a syndicated show, so the station splits its commercial inventory with the syndicator. By dropping the syndicated show, KFI immediately had twice as much inventory to sell, and more money at the end of the year, thus a bigger bonus for the GM. Meanwhile, because of the ad boycott, Rush immediately changed his business model to one based more around his web site, charging a fee to members, and doing more personalized ads for sponsors.

I agree, I should have said, "If Rush isn't bringing in the dollars, his demotion was appropriate". You explained the situation very well. Ratings and dollars are NOT the same thing. Ratings only mean something if they can be sufficiently monetized by the station that is carrying him, regardless of the revenue model. It doesn't matter if Rush has a 10 share if the station cannot monetize that level of listening into an appropriate ROI.
 
Wow. 43rd out of how many total?

There are 92 licensed signals in the market. A few are simulcast or trimulcast, and there are Riverside, Oxnard and San Diego stations that get listening in the market.

And unsubscribed stations that do not make a 0.1 rating do not show in Nielsen... and that is about a 1.3 share level.
 
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