SmokeRing said:
They took many days of data on many stations from PPM and compared it to the times when stopsets ran. It is 100% replicable.
By the way, the issue isn't whether you can use the same method to gather data again, it's whether the results can be replicated. I hope you know the difference.
And aren't you the guy who told this board that Corporate Radio wouldn't take losses on stations when it started selling them off. But Infinity-San Antonio barely made half of what it paid for that cluster. And that's a market you should know something about. But you didn't see that coming? Oops.
Station prices are based on cash flow, revenue, real estate and other assets as well as stick value.
The Infinity properties were negative cash flowing when sold, while they had been strong earners when purchased.
In this particular case, CBS could not hold the value of the stations due to the combined competiton of WOAI with KTSA, and KBBT which decimated KTFM. Obviously, I knew about this one because KBBT was the main reason why CBS could not get a good value for a station, particularly since there was no cluster to hold up the overall value... Infinity had a combo, not a cluster, so there was no "cluster" as you say, anyway.
There are a number of specific cases where stations have lost value... KKBT in LA, where about $410 million was allocated for the purchase, is probably worth less than $300 million.
On the other hand, most stations purchased at the offset of consolidation are going, today, for the same or more money than they did in the 1996-1998 time frame. Values are not up over this 8 to 10 year period in the traditional amounts, but they are up. Except for the odd "failed station" that has lost the underlying revenue and BCF, the values are high.
As to the PPM data about stopsets and tune-out, unless TSL changes significantly on a significant number of stations, the overlay of MediaMonitor stopset times with PPM listening minute by minute will produce the same results over and over and over and over. It is 100% replicable.