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The linked article doesn't say anything about revenues. That's what makes a format viable.
The biggest reason I would want to see a Oldies/Classic Hits format in Houston is to give it a chance to fail.
The linked article lists KGLK as a classic hits station in Houston.
Somebody is making money with it - or all those stations in other markets wouldn't be on the air.
Everybody can keep rationalizing why Houston is the one place in the country where the format wouldn't work.
As ContinuousWave observed, Houston is a very "young" market, and, generally speaking, people under the age of 40 don't like the same Oldies that people over 50 or 60 tend to like. It's a generational thing.
Houston has also become a very ethnic market. 17% Black, 34% Hispanic. That's over 50%.
Maybe those who sing along about dancing with Jagger can listen to some good old rock and roll, and maybe they'll learn something, while good old rock and roll tells on them. And their generation. Maybe the younger generation will learn something about telling the world who they are.
The music from decades ago endures today. Most of today's crap will not.