The Big A: I am amused by your response. I work for a former corporate banker. I learned from him how important it was for the corporate owners to have stations in top markets in their portfolio. This brought investors and gave them more capital to work with. Price was not a consideration but holding a license in a top 10 market was. The price was insignificant to the cash it could generate from investors/stockholders. Conspiracy? I call that business. The trouble was there were quite a few groups after a select group of stations. That is why the price went up...easily doubling in a couple of years here in Houston.
My boss and I used to talk frequently about how the numbers couldn't work. We figured they needed to own more and more of the media in their markets to grab a big share of advertising revenue and then needed to own concert venues and other companies that could utilize anything these corporations were creating. I'm talking along the lines of owning the radio and TV traffic service, selling news to other media, owning concert promotion, having billboard companies, internet services, etc.
The big boys did get creative. I recall when Clear Channel decided they liked a particular automation system and bought the company. They sold the same system to other stations as well.
Nowdays, according to a radio station broker I know, a station would now go for about 35-40% of the price paid only a decade or so ago. He jokes he now stays busy playing solitare, as I called him about a major market CP we might want to sell.
My boss and I used to talk frequently about how the numbers couldn't work. We figured they needed to own more and more of the media in their markets to grab a big share of advertising revenue and then needed to own concert venues and other companies that could utilize anything these corporations were creating. I'm talking along the lines of owning the radio and TV traffic service, selling news to other media, owning concert promotion, having billboard companies, internet services, etc.
The big boys did get creative. I recall when Clear Channel decided they liked a particular automation system and bought the company. They sold the same system to other stations as well.
Nowdays, according to a radio station broker I know, a station would now go for about 35-40% of the price paid only a decade or so ago. He jokes he now stays busy playing solitare, as I called him about a major market CP we might want to sell.