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Smallest Economically Viable Market

Is there some algorithm (ha ha ho ho) to predict what the smallest community (say an economically healthy one by Indiana standards) than can support a small FM station? Full commercial, not volunteer, donor supported.
 
There may not be a finite answer to your question. The skills, sales ability and chrisma of the owner operator may be a bigger factor than the size of market.
 
I would say 10,000 in an isolated community is roughly the threshold to operate. WITZ/Jasper, WRAY-AM/FM/Princeton, WIFE-AM/Connersville and FM/Rushville for instance.

10,000 in a bedroom community (Speedway, Floyds Knobs) is another thing.
 
dfwrunner said:
Is there some algorithm (ha ha ho ho) to predict what the smallest community (say an economically healthy one by Indiana standards) than can support a small FM station? Full commercial, not volunteer, donor supported.
It's based on annual retail sales for a market area balanced against existing competition. Other factors may include the local industrial base, local sales tax numbres and cyclical analysis of real estate values. Our group also used to factor in things like how many fast food chains and franchised restaurants have stores in the market.
 
Douglas B. said:
dfwrunner said:
Is there some algorithm (ha ha ho ho) to predict what the smallest community (say an economically healthy one by Indiana standards) than can support a small FM station? Full commercial, not volunteer, donor supported.
It's based on annual retail sales for a market area balanced against existing competition. Other factors may include the local industrial base, local sales tax numbres and cyclical analysis of real estate values. Our group also used to factor in things like how many fast food chains and franchised restaurants have stores in the market.

:( I guess Brownstown is out.
 
There are very very few places in America where a stand alone station is doing well today.
I mean making money.

If one wants to own a radio station, that's great. Do it because you love radio because those who
are in this for money would now be wise to find another investment.

Even the big boys are now in trouble.
 
I did a very, very quick-and-dirty study of Brownstown. The only business that showed up from Brownstown in a Google search for local websites was the Siemens Electric "training schedule" which had nothing to do with reaching local people. The only others I found were the public library and the volunteer fire department. The school system has pages on what looks like a larger collection of schools.

No churches showed up. No retailers showed up.

Seymour with a population about six times as large wasn't large enough to keep a commercial FM station anchored down. I would poke around and find out how healthy the AM station is. If it isn't healthy, little Brownstown does not look like a great prospect. With Seymour so close by, there is little incentive for the retail sector to be or become healthy in Brownstown.
 
Goat Rodeo Cowboy said:
I did a very, very quick-and-dirty study of Brownstown. The only business that showed up from Brownstown in a Google search for local websites was the Siemens Electric "training schedule" which had nothing to do with reaching local people. The only others I found were the public library and the volunteer fire department. The school system has pages on what looks like a larger collection of schools.

No churches showed up. No retailers showed up.

Seymour with a population about six times as large wasn't large enough to keep a commercial FM station anchored down. I would poke around and find out how healthy the AM station is. If it isn't healthy, little Brownstown does not look like a great prospect. With Seymour so close by, there is little incentive for the retail sector to be or become healthy in Brownstown.

:) I'm quite familiar with Brownstown AND Seymour. Actually, there are quite a few radio stations IN Seymour, just not officially licensed to Seymour. The issue with 93.7 was just incompetence, lack of community focus, and a desire to increase/add signals in Indy (93.9) and Louisville (93.9) (ulterior motive). 106.1 (50kw) is in North Vernon only a few miles to the east in a town about 1/3 the size of Seymour with barely more businesses than Brownstown.
 
I don't have any personal knowledge, but Rob Weaver's stations in Portland and Berne still have the lights and transmitters on.
 
I will throw my 2 cents in. There are radio stations in many small communities that are still on the air. Are they profitable? I don't know, but they are still on the air. I am thinking of stations in Knox, WKVI, Plymouth, WTCA, and Rochester, WROI. The Knox and Plymouth AM stations audio quality leaves a lot to be desired, but to stay on they air, cuts are made...ie...audio processing upgrades..improved antenna ground systems...or transmitters upgrades....technology wise...(not power output). WROI has pretty decent audio processing..although when there is dead air...a low level hum is heard. I think many stations don't not try to be local with their programming. Too many jukebox stations with no air personalities, or just liner card readers. Satellite programming of music also an audience killer..especially when three signals overlap and they are carrying the same satellite music format with the same announcers. Generally speaking....radio today sucks for the most part....but there are a few, very few exceptions.
 
dfwrunner said:
Douglas B. said:
dfwrunner said:
Is there some algorithm (ha ha ho ho) to predict what the smallest community (say an economically healthy one by Indiana standards) than can support a small FM station? Full commercial, not volunteer, donor supported.
It's based on annual retail sales for a market area balanced against existing competition. Other factors may include the local industrial base, local sales tax numbres and cyclical analysis of real estate values. Our group also used to factor in things like how many fast food chains and franchised restaurants have stores in the market.

:( I guess Brownstown is out.
Brownstown...great place to hike in Jackson-Washington Forest...probably not ready to support a local station...even though it's the Jackson county seat.
 
ten_four said:
I don't have any personal knowledge, but Rob Weaver's stations in Portland and Berne still have the lights and transmitters on.

The couple of times I've been in their areas over the past couple of years, there was local talent and content on a weekend, no less.
 
BobOnTheJob said:
dfwrunner said:
Douglas B. said:
dfwrunner said:
Is there some algorithm (ha ha ho ho) to predict what the smallest community (say an economically healthy one by Indiana standards) than can support a small FM station? Full commercial, not volunteer, donor supported.
It's based on annual retail sales for a market area balanced against existing competition. Other factors may include the local industrial base, local sales tax numbres and cyclical analysis of real estate values. Our group also used to factor in things like how many fast food chains and franchised restaurants have stores in the market.

:( I guess Brownstown is out.
Brownstown...great place to hike in Jackson-Washington Forest...probably not ready to support a local station...even though it's the Jackson county seat.

You can hear my Seymour signal in Brownstown on 98.3. I have listeners
there. But, Brownstown hasn't brought me any money yet.
 
Earl Park, No Wait, Oxford. No, Lafayette. The station at earl park ran as a hobby for years then Sid Thompson bought it and then it was sold. Still can't hear it in lafayette.
 
I remember WIBN when it was in that dilapidated school building in Earl Park. Since they raised their power and moved to 98.1, Ive never had trouble getting them in Lafayette
 
How about Warsaw or Angola? They're far enough away from Fort Wayne that they're not considered part of the FW market, like, say, Huntington, Kendallville or Columbia City.
 
Warsaw and Angola both have great radio stations. I'd love to buy the stations in Madison someday and be an owner-operator. What a cool place to live.
 
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