From the look of things KHLC is doing quite well. A post hinted the station might do even better by adding HD services. As a guy on the street selling in small market radio, here's my take:
1. It's hard to find good salespeople that know it's all about relationships and if they like you. If they trust you and know some personal info on you, you have a client that will spend with you. Try selling differently and you'll fail in a small market.
2. Small markets don't have limitless ad dollars as it seems in the big city. Here a client can spend, pick a number, $1,000 a month. If they're spending the bulk of that with you, adding another service isn't going to get you extra ad dollars. If you're in small town radio you already have have all your clients doing all they can.
3. Always have an Ace in your hand you can reveal when needed. Small market radio means you always have a low cost, easy to implement something extra you can add to what you're doing when you need to freshen it up.
4. Spending cash to build out additional services that will be advertising supported does not make sense. It will not produce more income than you have. It creates debt and gives you more to worry about. It goes against the trend that fewer dollars will be there in the future. I have a client that spent $1,200 a month in 1980. Today I get $600 and that figure will not go up in the future thanks to national chains. If the community starts to blow up as a retirement community and that business growth is not all national chains, then I might consider a capital improvement or better yet, buying nearby stations.