I did say the point about "opting out" today from satellite and to both Hammando and Chuck (who I've had a great opportunity to know through his station ... I haven't had the chance, yet, with Hammando,) I see that you are both right. We just see it differently.
Chuck is right ... "combined technology" is the key.
Hammando is right ... those expenses in a small market would kill me. I, too, am in my mid-50s.
Here's my point on why I'd opt out:
First, we three obviously love this format. We'd do anything to make it successful in our local markets, be it through ad sales or even underwritten as a community station ... because we, first, believe it the format as we hope that our community does, as well.
Now, to Hammando - that "one spot per hour" (and I come from a long stay in national format sydnication where barter & cash were both our bread and butter,) I can tell you horror stories as to how much that "one spot per hour" ended up costing local broadcasters.
Let's say you have for a full minute a net rate of $10 (just grabbing a number here.) That's $240 a day of inventory given away.
OK, so, let's write off everything from 7p to 6a. That leaves us with a net loss of $130 a day. Times 10 days, that comes to $1300, times 30 days, that's $3900 a MONTH. Multiply that over a year and the "inventory giveaway" of just one spot an hour (or 2-:30s) at a low spot rate comes to over $46,000 a year.
Imagine the cost if the low end rate card cost is closer to $15 or more. That's some serious money.
With this format, in particular, in this "Less is More" age, it doesn't work. Spot prices are not, in your local market, going to keep up with the price needed per spot to justify it's means. You are limited by how many spots you can put in an hour, even with network cut-aways to "fill" a 2:10 second spot set and still play their national spot(s). I don't like giving away any time at all.
Dial-Global in the market I'm in runs 4 minutes and gives the affiliate back 8 minutes, with the guarantee that the station airs one minute, barter, around the clock.
That's a HUGE revenue loss and not one person is involved. Do that over a three year contract, and you've just invested nearly $150,000 of your radio station with NO control whatsoever.
Even at a rate of $3 a spot per :30, $6 an hour total -- that adds up to $72 a day (below minimum wage) - $720 in 10 days, $1440 in 20 and in a month -- nearly $2200 a month just in "primetime". Now, maybe that doesn't sound like much ... but I'd sure like to pocket that nearly $24,000 a year into something else be it for the station's promotion, staff, technical, etc...or my family.
When the time comes, in the fourth quarter, instead of running 8 minutes an hour, I just might want to bump it up to 10, even 12 minutes (not units...minutes) in a small market and to hell with CC and "Less is More." It's not working in many of their own markets and they still run 10 minutes or more.
Why should I be limited? That revenue goes right to the bottom line.
Barter, as they say, is NOT free.
I understand your points about the people, especially in small markets. But the people problem is something we, as broadcasters, have to take time to handle before we rush out the door to that 8 a.m. meeting with our first client.
The thing is, with an investment in the right places -- a newsperson, for instance, who can voice track an afternoon airshift, a program director who does crack production and is dependable, as well as a morning shift or a "the music's on us" midday with inexpensive liners but lots of community calendars, jobline info, local event news, etc...it's not expensive at all, while being void of huge benefits to boot.
Sure, the newsguys's going to want a vacation. He's entitled to it. So, you do the morning news. Or, the PD does double duty. I know...I've been there, as I'm sure your have. It's only for a week at a time.
I've utilized many a receptionist in doing spots and liners to save the expense. It's a kick to them. I also budgeted for my small town of 27,000 to have Charlie Van Dyke cut my liners, so, it was a savings for me to not have to hire a "button pusher."
When I discovered that I didn't need a board up to run the local talk show for 2 hours a day, I gave the board op a night shift or he could hit the pavement...because by pressing the enter key on that big-box computer, it ran the spots all by itself with a contact closure to the master control big box computer ... and the "talent" -- even the mayor of our city -- could do it within about 3 minutes.
That trade you have for music? That's gold. Use it to every quarter, build up that library as discussed here. Check the songs YOU want, not the one's (300-500) the satellite service says you should have, and have the PD, your child, etc. put them in for you. You can do about 10 to 20 an hour. In 5 days, you have a complete library. In 2 weeks...the ultimate.
Then, turn the songs over every three months. Not a big investment of time or money.
With this format, "More is less" ... not the other way around. It will pay off hugely for you.
In fact, I'd love to show you how it can be done. Email me. I'll gladly help you.
And Chuck, keep that community station of yours local and humming. It's a great model and my city best be on that list...you have many fans here in California!
