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the best story on this TMO change

Interesting article... If you interpolate the rating of TMO's highest rated station according to the Hamptons-Riverhead book, they have an average of about 4600 listeners in any given hour.

If they consistently ran 12 spots per hour at a CPM of $10 you would expect each spot to cost about $46 and hourly revenue of about $552 (12 X $46).

So the article is asking... with reduced expenses, can they live on half that amount...about $276 per hour? If you multiply that by 18 hours per day times 365 days per year it would bring them annual billings of $1.8 million per year.

Is that good or bad for an eastern LI radio station?<P ID="edit"><FONT class="small">Edited by Great Call of the Northeast on 09/14/05 05:07 PM.</FONT></P>
 
I would expect that with the amount of spots going down and the fact that these spots wont be "lost in the shuffle" that the price will exponentially increase.
 
> I would expect that with the amount of spots going down and
> the fact that these spots wont be "lost in the shuffle" that
> the price will exponentially increase.
>
A lot of us will be watching this closely. First, it is unlikely that they will do $ 1.8 million. . .remember not all time periods are desirable and it is hard to find small, local retailers who will spend $ 100.00 a week, let alone $ 100.00 a day in the five East End Towns. No matter what the revenues will be, TMO will enjoy significant savings that translate directly to the bottom line.

Agree or disagree, you have to give John Caracciolo credit: he is always willing to take a chance and try something new.
 
> http://www.kurthanson.com/archive/news/091305/index.asp
>
Does the average listener listen for a full hour? I assume they have already sent out questionaires to their advertisers to prove in this idea.

The artical has several incorrect facts and some outdated information. I am wondering if they captured the concept correctly.

Why is Satellite becomming popular? I don't believe it is because of the lack of DJs. Stern should get the credit for the uptick in Satellite Radio Popularity.

It is because it is somewhat commercial free - addressed by TMO
It is because the digital signal is clean and high quality - not addressed by TMO
Its signals cover the entire US - A big problem for TMO
Many format choices - Not addressed by TMO. In fact in any given area, you probably cannot get all three channels.

<P ID="edit"><FONT class="small">Edited by epete on 09/15/05 02:23 AM.</FONT></P>
 
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