KSBJ Educational Foundation Buys KSHN 99.9 Liberty

[gr8oldies]

KSBJ has owned the donor base in Houston forever though. Even with K-Love's reach, that's going to be hard to overcome.

 

[Mediafrog+]

Checked 99.9 today and the switch to KSBJ has taken place. Good audio quality, though there was the occasional digital hiccup in whatever they are using as an STL (direct transmitter feed now?)

Wonder if there will be a call letter change for KSHN? I assume one is coming for KETX-FM, which flipped to KSBJ a few weeks ago.

 

[rageradio]

Checked 99.9 today and the switch to KSBJ has taken place. Good audio quality, though there was the occasional digital hiccup in whatever they are using as an STL (direct transmitter feed now?)

Wonder if there will be a call letter change for KSHN? I assume one is coming for KETX-FM, which flipped to KSBJ a few weeks ago.

I listened to the last hour last night. Bill signed off with a quick goodbye following the very first record ever played on KSHN. Station was silent for about 7 minutes

 

[JustinT]

The thinking has been that EMF kept K-Love out of the Houston market as to not go against another Christian broadcaster with a very similar format. Air1 was musically different enough that it got the nod over K-Love when the 103.7 signal was acquired. However there are so many religious operations popping up everywhere that the "deference" thinking is going out the door, and the mission now is to have as many signals as possible broadcasting a Christian message.

KSBJ has greatly expanded its reach, and I imagine they have much bigger dreams to go statewide, regional, or even national. Look at another Houston example: KHCB, which now has stations all over Texas and has expanded into Louisiana, Oklahoma, Arkansas, and Florida. Also their Spanish language service has over a dozen stations.

EMF is raking in a lot of money, which they need to spend, as they are a "not-for-profit" business. And that spending will involve buying more stations. I just don't see them passing up the #6 radio market, especially when two of their programming services aren't on the air here (yet.) Thus the speculation on what they might buy in Houston (KROI.)

WAY-FM is another similar national programmer that seems to be doing well with its DFW station. Would think they would want to add Houston to that coverage.

I agree with many of your points, and I think this business model is tricky to analyze. Theoretically, if EMF put K-Love on in Houston tomorrow, even with KSBJ holding strong, K-Love would probably be able to hold its own as demand for Christian programming in this market is strong, and operating expenses would be low.

As the smaller dog, KSBJ needs to have a competitive advantage in what they're doing. Today, they're the regional leader in the format, hands down, with a noticible presence in the Houston community. The 99.9 acquisition works to grow their coverage while pushing into an adjoining -- but not culturally distant -- market. Put KSBJ on in New York City, and now KSBJ can no longer super-serve Southeast Texas, nor would they have a draw to pull listeners away from the new full-power K-Love there. When it comes to a national, perhaps vanilla presentation of mainstream CCM, nobody does it better than K-Love -- that's their specialty. KSBJ's speciality is knowing this region well -- they've had boosters out to Victoria for years, so I see this as an expansion of that strategy.

I do think there's a long-term risk in filling the dial with so many religious stations that you create such limited options for those who don't want to be preached to, and with so many streaming/podcast options, it becomes not worth it to turn on the FM dial. But Houston has plenty of frequencies, and at this point, one more KSBJ or K-Love won't sink the ship.

 

[b-turner]

I contend the issue with too many Christian focused stations is share of audience. Only a percentage of all radio listeners want a Christian emphasis for their radio listening. When the number of options gets too numerous, everybody suffers because the audience size is only so big. The last figures I saw (and they're a few years old, maybe 4 years old) show 6.3% of radio listeners choose Christian radio and 56% want only music. I'd imagine that percentage is higher in southern states. I'd love to know more current numbers.

 

[stan]

It’s called saturation. Too many stations for a particular audience would normally mean a change in format for a station. However, I don’t see EMF dropping their network crap and becoming live and local. Or something other than the awful programming currently offered.

And I meant what I said about that they should be taxed like any other broadcaster.

 

[EddieTheRapFan]

No reason to tax a non-commercial station. That's the point of being non-commercial.
And of curse, you wouldn't like their programming if it were "live and local" either so what's the point of complaining?

 

[ContinuousWave]

I agree with many of your points, and I think this business model is tricky to analyze. Theoretically, if EMF put K-Love on in Houston tomorrow, even with KSBJ holding strong, K-Love would probably be able to hold its own as demand for Christian programming in this market is strong, and operating expenses would be low.

As the smaller dog, KSBJ needs to have a competitive advantage in what they're doing. Today, they're the regional leader in the format, hands down, with a noticible presence in the Houston community. The 99.9 acquisition works to grow their coverage while pushing into an adjoining -- but not culturally distant -- market. Put KSBJ on in New York City, and now KSBJ can no longer super-serve Southeast Texas, nor would they have a draw to pull listeners away from the new full-power K-Love there. When it comes to a national, perhaps vanilla presentation of mainstream CCM, nobody does it better than K-Love -- that's their specialty. KSBJ's speciality is knowing this region well -- they've had boosters out to Victoria for years, so I see this as an expansion of that strategy.

I do think there's a long-term risk in filling the dial with so many religious stations that you create such limited options for those who don't want to be preached to, and with so many streaming/podcast options, it becomes not worth it to turn on the FM dial. But Houston has plenty of frequencies, and at this point, one more KSBJ or K-Love won't sink the ship.

And then there's KHCB...their reach is even farther than KSBJ...translators and sat stations all over...into Ark and N Texas.. plus the number of other independent religious stations in SETX...88.1 and 88.5 in BMT for example..sad state of radio these days. Plus Family Radio, EMF, etc hogging the $$ .. it's all about the cash flow..not bringing religion...

 

[bradgoehl]

It makes me sad to see a local small operator sell, but I totally understand why. If your in a position to want to retire and don't have someone to mind the store in your absence the only real option is to sell. Bill is a class act and a terrific human.

 

[2Speakers]

And then there's KHCB...their reach is even farther than KSBJ...translators and sat stations all over...into Ark and N Texas.. plus the number of other independent religious stations in SETX...88.1 and 88.5 in BMT for example..sad state of radio these days. Plus Family Radio, EMF, etc hogging the $$ .. it's all about the cash flow..not bringing religion...

Nobody is getting rich with KHCB. With no measurable listenership, how large could the potential donor base possibly be?

 

[davideduardo]

Nobody is getting rich with KHCB. With no measurable listenership, how large could the potential donor base possibly be?

KHCB does not show in the public rankers from Nielsen as it does not subscribe.

Before Nielsen had the "no subscription - no show" policy, it was a 0.7 to 1.1 share stations, with about 150,000 cume (plus all the translators and satellites). That's enough to be self-sustaining.

 

[davideduardo]

And then there's KHCB...their reach is even farther than KSBJ...translators and sat stations all over...into Ark and N Texas.. plus the number of other independent religious stations in SETX...88.1 and 88.5 in BMT for example..sad state of radio these days. Plus Family Radio, EMF, etc hogging the $$ .. it's all about the cash flow..not bringing religion...

Those stations do not compete for general market ad revenue. They actually benefit the market by letting the available revenue be split between fewer stations.

 

[Kent]

Nobody is getting rich with KHCB. With no measurable listenership, how large could the potential donor base possibly be?

Commercial broadcasters have made several attempts at cashing out KHCB over the years. Obviously, none were successful. If it wasn’t at least successful enough, HCB would’ve most likely taken the money and run. Instead, it’s been expanding.

 

[wildthangjim]

I would imagine that KHCB has been offered tens of millions to sell out, offers probably sufficient if you're a commercial owner with a standalone signal with a 150,000 listenership. Even as a Christian broadcaster, it seems like there might be a way to sell 105.7, buy another inferior signal, and use the money you had left to expand elsewhere, etc.

 

[KTN Corp]

I would imagine that KHCB has been offered tens of millions to sell out, offers probably sufficient if you're a commercial owner with a standalone signal with a 150,000 listenership. Even as a Christian broadcaster, it seems like there might be a way to sell 105.7, buy another inferior signal, and use the money you had left to expand elsewhere, etc.

Here is an excerpt from an interview with Bruce Munsterman, GM, in 2011:

http://www.hisair.net/interviews/bruce_munsterman2011.htm

I am still hesitant to invest in the HD technology. Since the car manufacturers have not offered digital radios yet, I am reluctant to invest. The idea is great, and would multiply the offerings one ministry could have, but until more people have easy access to receiving the transmission, it might have to wait.

8 years later, HD penetration in OEM radios have gone up from 1:3 to 1:2.

Another organization would benefit from the powerhouse class C signal, albeit on an HD-2 subchannel. EWTN Radio and/or the local affiliate may be a perfect partner to help defray the costs of installing the HD transmitter. Leasing an HD subchannel is a lot better than the scratchy night signal of KSHJ.

 

[Fieldtech1]

Here is an excerpt from an interview with Bruce Munsterman, GM, in 2011:

http://www.hisair.net/interviews/bruce_munsterman2011.htm



8 years later, HD penetration in OEM radios have gone up from 1:3 to 1:2.

Another organization would benefit from the powerhouse class C signal, albeit on an HD-2 subchannel. EWTN Radio and/or the local affiliate may be a perfect partner to help defray the costs of installing the HD transmitter. Leasing an HD subchannel is a lot better than the scratchy night signal of KSHJ.

My understanding is that KHCB installed an HD capable Nautel a few years back. They may just need the importer exporter to go HD.