Lubbock Station KRBL Bankrupt - To Be Sold

[bturner]

The 'Alternative' format in Houston is a top rated station. It is not college radio. Yes, 'Alternative' is over used much like 'Contemporary' and the definition I saw on an earlier post seems to be way too narrow.

One thing I know as a GM is something you already know: when you have the sort of money invested that radio requires, you're not doing anything that you believe will cause more red ink to flow. You can bet the format choice is the one that research shows will work.

Funny think about niche/boutique formats: listeners are really loyal and a fringe signal might not be preferred but those listeners will suffer through it because it is the only station that plays what they want to hear. Rush Limbaugh began on a 250 watt station in bad conductivity in an outer suburb of Houston. When they started putting a huge dent in full coverage stations during that time slot, I learned the right content on even an ultra fringe signal pulled in listeners because it was the only choice. The risk is if you start doing well, just how hungry are those full market signals? Rush got picked up by a full market signal shortly after the little station roped in the listeners.

 

[cspotrun]

seems like there are some "True Believers" on this blog, i don't imagine you guys will be around when or if it goes bust, and it won't be your financial loss either. but if it works i will be the first to congratulate it. before you claim victory, give it some time, talk to you in a year, or less.

 

[DG]

...(Walker) brought in our first Texas country station and now our first alternative station. It's about time something different comes out here instead of just another duplicate format that the market does not need.

I'd argue that KTXT-FM was Lubbock's first alternative station.

88.1 may not be "alternative" now by whatever metric that format is currently defined, but it was the first such station in Lubbock.

 

[DG]

...it holds up even more so, walker doesn't have the kind of pockets that a ClearChannel, Townsquare has, he can't affort (sic) to keep a loser, and if it doesn't make money quickly he will drop it like a bad habit and move on, he has no choice...

I don't know ANY profitable entity in the radio business that thinks it can "make money quickly" with any station it owns. I know Dave and I know some of his motivations, and the one thing I can say about his business acumen is that he isn't doing it to get rich quick. He's in the business for the long haul and I think he's done well in that regard- not because "DG said so", but because he has built his product. He started with zero stations and now has 4. That he has been able to gain the credit lines needed to buy them speaks volumes I think.

Radio isn't rocket surgery, but to succeed financially one needs to understand the fundamentals of the business and I think he does, much to the chagrin of the corporate groups with whom he competes.

And one more point I'd like to make: the Arbitron numbers that are still freely available show an interesting trend- the percentage of radio listenership in Lubbock attributed to large radio groups has been in decline for the last several years. I do indeed think Mr. Walker has contributed to that.

 

[cspotrun]

the % of Radio listenership is down nationwide, Lubbock reflects that, and its true the more stations you add to a market the shares go down, no matter who or what it is. but remember this, Radio is Not an Art Form, it is and will always be a Business, walker wants to make money, and nobody corporate or otherwise will throw good money after bad. in all of the cases he bought low and hopes to sell high. walker like several others is waiting out the clock for radio properties to rise in value then sell at a big profit, it might be quite a while. and i hope a big payday is waiting for him someday. but for now, he won't outbill the big boys or achieve the highest ratings(if he cares about such things).. but sometimes good things happen for those who wait.

 

[DG]

the % of Radio listenership is down nationwide, Lubbock reflects that, and its true the more stations you add to a market the shares go down, no matter who or what it is...

I think you missed my point. Of the TOTAL radio listenership in Lubbock, LESS of it is to corporate-owned radio stations. Yes, the pie itself may be smaller, but corporate radio in Lubbock is enjoying a smaller piece of it, not because overall listening is down (and I agree it is), but because smaller, leaner operations (like Walker's) are gaining more share.

How many new stations has Lubbock added? One? 107.7 is about the only one I can recall, and one new station doesn't dilute the market share the way you would suggest. Besides, 105.7 isn't new.

 

[DG]

...walker like several others is waiting out the clock for radio properties to rise in value then sell at a big profit, it might be quite a while. and i hope a big payday is waiting for him someday...

Actually, he's not waiting to sell at a big profit for 2 reasons: 1) the days of cashing in from the sale of stations are pretty much done. Stock in large conglomerates is worth less than toilet tissue because they hold assets that aren't worth what was paid for them. How much did the Bros Benavides cash in? and 2) Dave suffers the worst from of broadcast disease: OWNERSHIP. He has always wanted to own a radio station. He's taken some horrible signals in the market and made them profitable so yes, he could sell them for a pretty sum, but I don't think he will. He likes being an owner too much I think.

but for now, he won't outbill the big boys or achieve the highest ratings(if he cares about such things).. but sometimes good things happen for those who wait.

He doesn't need to "outbill the big boys" or "achieve the highest ratings"- that's the point. He has however managed to lure talent from the "big boys" which I find quite hilarious.

 

[cspotrun]

you are Either Dave's Press Agent/Minister of Propaganda or should be.. not sure i buy it, but Hell! Good Job..

 

[rockchicktx]

RADIO is still a Business, Not An Art Form or Charity... lets see its a Niche/Boutique Format with no broad based appeal, on a station that takes some effort to recieve(if you can)... to make money its got alot going against it, but good luck to you dave.

I find the first line of your quote to be a "niche" viewpoint. One held and trumpeted by those who have put dollars over sense. Tell me the product is better and then sit patiently while I display how it is not. If I'm not mistaken, stations made money 20 years ago. When radio folks were forced out of radio based on spreadsheets and not merit...not much canvas for an artist left to paint.

That being said..."art" is hard and few can do it and even fewer left to pass it on.


But I get what you are saying...

 

[cspotrun]

...walker like several others is waiting out the clock for radio properties to rise in value then sell at a big profit, it might be quite a while. and i hope a big payday is waiting for him someday...

Actually, he's not waiting to sell at a big profit for 2 reasons: 1) the days of cashing in from the sale of stations are pretty much done. Stock in large conglomerates is worth less than toilet tissue because they hold assets that aren't worth what was paid for them. How much did the Bros Benavides cash in? and 2) Dave suffers the worst from of broadcast disease: OWNERSHIP. He has always wanted to own a radio station. He's taken some horrible signals in the market and made them profitable so yes, he could sell them for a pretty sum, but I don't think he will. He likes being an owner too much I think.

but for now, he won't outbill the big boys or achieve the highest ratings(if he cares about such things).. but sometimes good things happen for those who wait.

He doesn't need to "outbill the big boys" or "achieve the highest ratings"- that's the point. He has however managed to lure talent from the "big boys" which I find quite hilarious.

Ya, those poor souls who were recently let go..."Talent" who are desperate for a job who are happy to take a pay cut...

if you believe what you are posting, You must be Very NAIVE.

 

[DMcCloy]

I certainly wouldn't suggest that DG is naive. He's quiet active in the radio industry and has been around a while.

I see his point. The point being that Walker doesn't have to make a monster profit to pay the corporate Gods in some other city. Walker has the ability to make a modest profit and pay his employees and continue to fuel, as DG stated, his ownership disease.

Plus, how much of the day to day work does Dave Walker's son do? He's the one on the air mornings on 105.3 and is listed as the program director. I like to flip through in the mornings on the way to work. He plays mostly music, though I'll hear him interview a band from time to time. I'd assume he's acting as PD of the new 105.7, as well.

Quick side note: I really miss Bobby Bones on Kiss FM. The show can be childish at times, but I couldn't help but laugh. Now that that's gone, I'll scan around, as I haven't settled on a new show. I didn't care much for the new Kiss FM show. I haven't heard much of the 105.7 morning show yet. I digress.

The point I'm making is perhaps Dave Walker isn't interested in making some big score because he has his family involved in it as well. If he turns a profit, has his son running the stations and adds a new station every few years then God speed. He's been buying radio stations for a decade and has stayed in business. He must be doing something right.

 

[cspotrun]

i don't know, this Philosophy of "Gee lets just make enough money to survive, and Heck, own a few stations along the way", kind of runs Counter to (not only MY Philosophy, which is, Lets make this thing a success, make money ,grab the ratings, have fun and Kill the Competition) but also runs counter to the "Spirit" of Capitalism.
On the other hand.. i guess If you're never going to win in terms of outbilling the other guys, or being on top with ratings, i guess its a Pragmatic approach to what you do.. but i would find it hard to get out of bed and go to work everyday if i didn't have a will to Succeed and Win. at the very least i hope they are all enjoying what they do.

 

[stevensonair]

Some people truly love running radio stations and are happy to make a modest living doing it. It's not contrary to capitalism if you make enough money for your own needs. Some people just prioritize money less than other things in their lives, and that's a perfectly valid choice. More power to Walker & family if they're happy.

One of my favorite owners of all time, Doug Balough of the great 97X WOXY once said:

"We have an obligation to be profitable. Not to be greedy."

And I think Doug, his wife Linda and the crew of that station had a great run, creating a fun and meaningful local radio station that achieved some fame along the way, but never chased the big dollar morning crews or tried to create the perfect "power rotation" of the same 20 tracks. And enough people agreed to keep that station profitable for 20 years until they retired.

Many of us in this business should be so lucky.

 

[DMcCloy]

i don't know, this Philosophy of "Gee lets just make enough money to survive, and Heck, own a few stations along the way", kind of runs Counter to (not only MY Philosophy, which is, Lets make this thing a success, make money ,grab the ratings, have fun and Kill the Competition) but also runs counter to the "Spirit" of Capitalism.
On the other hand.. i guess If you're never going to win in terms of outbilling the other guys, or being on top with ratings, i guess its a Pragmatic approach to what you do.. but i would find it hard to get out of bed and go to work everyday if i didn't have a will to Succeed and Win. at the very least i hope they are all enjoying what they do.

But as has been pointed out, originally by DG, Walker IS making money. He's turning a profit. None of us know how big a profit he makes, perhaps DG does, but regardless, he's doing exactly what capitalism calls for. He started his own company doing what he loves and makes money doing it. On top of that, he operates formats that aren't satellite programmed, and are locally focused. Isn't that what we all miss about radio?

 

[DG]

Ya, those poor souls who were recently let go..."Talent" who are desperate for a job who are happy to take a pay cut...

if you believe what you are posting, You must be Very NAIVE.

I believe what I post, but I didn't post what you allege I did. Take a look at reply #47 in this thread if you have any doubts. I didn't post the above.

As many others have stated better than I, private radio ownership doesn't have to out bill the competition, or even pull better Arbitron numbers to be profitable. I'm very happy to point out the many ills that comprise corporate radio, but I am also happy to point out when local radio is done well too, and that's been my point with Mr. Walker all along. He is not perfect, and I even have a few nits to pick with him about some things, but he's doing well as far as I can tell.

As for the remark above that was incorrectly attributed to me- when you are feeding a family and trying to keep a roof over their heads, yes, retaining employment at a reduced salary is FAR better than having no job at all. And I know MANY in this business who are in that situation.

 

[cspotrun]

I stand by my last post and i Apologize for nothing.

 

[DMcCloy]

I stand by my last post and i Apologize for nothing.

I don't think anyone was asking you to apologize. We just have a difference of opinion. That's all.

 

[cspotrun]

I stand by my last post and i Apologize for nothing.

I don't think anyone was asking you to apologize. We just have a difference of opinion. That's all.

yes, we will disagree, but it was not personal, from all i've heard walker is a nice guy. what i meant was i will not go back on my opinions. but, wish em' well.