Station Revenue

[Dick's History]

As someone who was never a radio professional I have always been curious about what stations would have needed to earn to exist, pay their obligations, make a living wage for their owners. In the 1960s and 70s. I have found very little published about individual station revenues during that period. Have read that some owners were able to realize a 30% profit on their earnings and a few as much as a 50% profit.

 

[secondchoice]

In the 60' & 70's a "reference" starting price for smaller stations was two and half to three times the billings*. Some of the times the owner financed for ten years. Sales commissions could be around one third of the billings. In smaller markets usually the manager or the owner handle the agency and inherited the accounts of a sales person who left. Of course every station is different.


*Sometimes a station will have a really good construction permit which could have great value.

 

[davideduardo]

As someone who was never a radio professional I have always been curious about what stations would have needed to earn to exist, pay their obligations, make a living wage for their owners. In the 1960s and 70s. I have found very little published about individual station revenues during that period. Have read that some owners were able to realize a 30% profit on their earnings and a few as much as a 50% profit.

Some of the FCC Annual Financial Reports which were required of every station back in that era you refer to are available at www.worldradiohistory.com. Look in the index for “FCC reports and publications“. In those reports you can see stations divided by state and type of station.

In the 50s and 60s about half of all stations were not profitable, and were breaking, even or losing money. The first US license station I managed had about a 50% margin in 1971 and 1972. It was tied for number one in a top 30 market in that same market. There were numerous stations that were not profitable.

 

[Dick's History]

Some of the FCC Annual Financial Reports which were required of every station back in that era you refer to are available at www.worldradiohistory.com. Look in the index for “FCC reports and publications“. In those reports you can see stations divided by state and type of station.

In the 50s and 60s about half of all stations were not profitable, and were breaking, even or losing money. The first US license station I managed had about a 50% margin in 1971 and 1972. It was tied for number one in a top 30 market in that same market. There were numerous stations that were not profitable.

Thank you David, guess I have not as yet found those!

 

[Dick's History]

In the 60' & 70's a "reference" starting price for smaller stations was two and half to three times the billings*. Some of the times the owner financed for ten years. Sales commissions could be around one third of the billings. In smaller markets usually the manager or the owner handle the agency and inherited the accounts of a sales person who left. Of course every station is different.


*Sometimes a station will have a really good construction permit which could have great value.

Thank you very much, I was not aware of that.

 

[TexasTom]

Some of the FCC Annual Financial Reports which were required of every station back in that era you refer to are available at www.worldradiohistory.com. Look in the index for “FCC reports and publications“. In those reports you can see stations divided by state and type of station.

In the 50s and 60s about half of all stations were not profitable, and were breaking, even or losing money. The first US license station I managed had about a 50% margin in 1971 and 1972. It was tied for number one in a top 30 market in that same market. There were numerous stations that were not profitable.

As I recall, Broadcasting Magazine also printed summaries of the information from the FCC showing revenue and profitability by market for radio and TV markets with at least three separately-owned stations. And of course those back issues will also be at David Eduardo's link.

 

[davideduardo]

As I recall, Broadcasting Magazine also printed summaries of the information from the FCC showing revenue and profitability by market for radio and TV markets with at least three separately-owned stations. And of course those back issues will also be at David Eduardo's link.

Thanks for the plug. I do not generally recommend specific items on the site, as that would be "editorializing" by virtue of preferential treatment. I am vastly concerned by AI and, even worse, Wikipedia, creating a wealth of false, incomplete or biased information on the history of radio so I try to present the actual journals and publications that presented the goings-on in the industry when they happened.

I recently took a random sample of radio station articles from Wikipedia and found 75% or better to contain false data, incomplete histories or confusions due to changed call letters where some facts about one station are attributed to another broadcaster.

 

[Dick's History]

As I recall, Broadcasting Magazine also printed summaries of the information from the FCC showing revenue and profitability by market for radio and TV markets with at least three separately-owned stations. And of course those back issues will also be at David Eduardo's link.

Thank you, I will look for them.