Oh WOW, May 6+

[kwthom]

Do those small stations near you have any local talent? Because KOAI does not. The fact that KOAI has no local talent, doesn't hire local sales staff, and is still getting great 6+ ratings tells me that they're running a low budget operation.

...but, is it enough to be making the owners money, after they've accounted for all of their current expenses keeping that computer in the closet running, and the transmitter on the hill with sufficient current to move those electrons into the ether?



If the answer is 'yes', then at the end of the day, it doesn't matter.

 

[TheBigA]

...but, is it enough to be making the owners money, after they've accounted for all of their current expenses keeping that computer in the closet running, and the transmitter on the hill with sufficient current to move those electrons into the ether?

As long as they are satisfied with the revenue KOAI brings in. Curious though, if profitable?

As pointed out earlier, the group owns 4 stations, and the other ones are delivering an audience that's more in demo.

The main operating expense (other than utilities and rent) for KOAI is John Sebastian.

 

[indieradioguy]

That was a lot of scrolling to get to 92.3. The closer we get to November, the more likely those numbers will keep dropping - lower than the jingle on the Fry's commercial. Beans & Rice and MAGA - at least someone's getting billed.

 

[davideduardo]

But they'd have to hire a sales staff. That would cost money. Just as giving away the stream for free would cost money.

They have a local sales staff. The three stations, with their set of translators and simulcast partners, bill over $10 million and they are very focused on local direct and local agency sales.

 

[davideduardo]

I see they are owned by Desert Valley Media, formerly Riviera. So, obviously a small operator of stations, and prefers operating on a low budget. As long as they are satisfied with the revenue KOAI brings in. Curious though, if profitable?

The cluster bills around $10 million a year. That is going to be significantly profitable.

On a personal note, would like to see enough more $ come to them to be able to resume streaming. 😊

Because the format is unique, it was getting way too much out of market streaming, and every song in every stream costs them money. It brings no income, so why do it?

 

[TheBigA]

They have a local sales staff. The three stations, with their set of translators and simulcast partners, bill over $10 million and they are very focused on local direct and local agency sales.

The sales staff isn't specific to KOAI. That's what I meant.

What percentage of the $10 million comes from KOAI. Based on your earlier post, it appears to be a little over 10%.

 

[davideduardo]

The sales staff isn't specific to KOAI. That's what I meant.

What percentage of the $10 million comes from KOAI. Based on your earlier post, it appears to be a little over 10%.

It's apparently around 15% now.

Most clusters don't have station-specific sellers as most clients get royally pissed if three or four sales persons from the same company call on them.

 

[TheBigA]

Most clusters don't have station-specific sellers as most clients get royally pissed if three or four sales persons from the same company call on them.

Then again if you have one station in that cluster that mainly reaches a 65+ demographic, that likely means a unique clientele.

The issue regular listeners to KOAI have pointed out is they don't hear a lot of local spots regardless of ratings.

 

[kwthom]

The issue regular listeners to KOAI have pointed out is they don't hear a lot of local spots regardless of ratings.

Thus, the rest of the cluster is 'carrying the load' for KOAI's lack of local spot clearance.

So, question seems to be are those three stations adequate to do this for a long period of time (or until all the Baby Boomers die off?)

 

[TheBigA]

So, question seems to be are those three stations adequate to do this for a long period of time (or until all the Baby Boomers die off?)

John Sebastian seems to be counting on longevity.

 

[davideduardo]

Thus, the rest of the cluster is 'carrying the load' for KOAI's lack of local spot clearance.

No, the other stations have higher rates because they deliver 18-49 or 25-54 and KOAI does not. KOAI likely gets very little agency business, while the other two stations seem to do well with those shops.

So, question seems to be are those three stations adequate to do this for a long period of time (or until all the Baby Boomers die off?)

The cluster has a nice balance of offerings for rate-conscious local buyers. It will take more time to see if the gold based format can develop more and more local accounts. A lot has to do with whether they can generate success stories and renewals that can be used to show other advertisers the value of the old demographic.

 

[TheBigA]

A lot has to do with whether they can generate success stories and renewals that can be used to show other advertisers the value of the old demographic.

One of the disadvantages of having no local talent is the sales team can't use a local personality to promote local business. A big part of station sales is local reads by air talent. Sales can charge a premium for it.

 

[davideduardo]

One of the disadvantages of having no local talent is the sales team can't use a local personality to promote local business. A big part of station sales is local reads by air talent. Sales can charge a premium for it.

I know of major market stations in a major group that moved all production to one of two creative centers and they hardly ever used local talent after that. It did not affect sales at all and they save a lot in talent fees. With today's fragmentation as well as alternative media, advertisers do not seek talent endorsements the way they did a decade or two ago.

And there are some stations that do not want their talent to do spots. I've managed or programmed such stations in some very large markets and we felt the lack of "contamination" was important in keeping the talent in a positive listener perspective. It did not ever affect sales.

"Does Joe Morning Guy do reads?"
"No, we don't offer that."
"OK".

 

[TheBigA]

I know of major market stations in a major group that moved all production to one of two creative centers and they hardly ever used local talent after that. It did not affect sales at all and they save a lot in talent fees.

Some talent have host reads built in to their deal, so unless it's an endorsement, they get no fee.

The location of a production center has no bearing on a host read. It can be done live with no production necessary.

 

[davideduardo]

Some talent have host reads built in to their deal, so unless it's an endorsement, they get no fee.

The location of a production center has no bearing on a host read. It can be done live with no production necessary.

I was speaking of a total creative center, not a remote production studio. The concept includes creative, writers, producers and voices as well as on-call character voices and such.

My point is that when use of local station talent in production was eliminated or at least reduced, there was zero impact on sales. In fact, a driving force behind the concept was to have the ad budget all go to the station and not be split with talent fees taking away from the buy.

 

[TheBigA]

I was speaking of a total creative center, not a remote production studio. The concept includes creative, writers, producers and voices as well as on-call character voices and such.

No need when you have a bought-out local host who simply reads the copy he's been given. It happens every day.

 

[davideduardo]

No need when you have a bought-out local host who simply reads the copy he's been given. It happens every day.

So many stations have eliminated live reads that this is becoming quite rare. In fact, when live reads are asked for, most stations that do even allow it have the talent do ten or twelve different recorded spots in one sitting and they are put in the system and rotated.

If you hear a Seacrest "live read" it is always recorded as he is seldom in the KIIS studio and does his shows in bits and ´pieces that are assembled at each station.

 

[TheBigA]

So many stations have eliminated live reads that this is becoming quite rare.

I said "host reads." They don't have to be live. Although I still hear quite a few that are. You can tell because the host might refer to something he had said outside the stop set.

 

[phildavis]

The station seems to be less eclectic than what it was like when it was launched.

Basically it sounds like an oldies station in 1992. 60s and 70s pop and rock hits, and an occasional 80s song that fits the sound.

This is WJMK or WOGL or WODS (etc etc) from 30 years age (with a smidgen of 80s added).

 

[TheBigA]

The station seems to be less eclectic than what it was like when it was launched.

Yes they removed all the 90s country.