The Future of KHCB

[JustinT]

KHCB is a station that really intrigues me. Not for the programming, but with Family Radio stations disappearing in other markets, and Pacifica's future unclear, the commercial side of the dial in big cities seems to be going much more, well, commercial in recent years. With Pacifica's stations in New York and San Francisco and a few NPR/classical stations aside (WNYC/New York, WFMT/Chicago, WRR/Dallas), KHCB is maybe the most valuable non-commercial station on a commercial frequency in the country.

This leads me to a few questions. Perhaps none of these can actually be answered by this forum, but I'm interested if anyone knows anything. I do wish the station well in what they do, but KHCB is part of a dwindling breed...

- Does the leadership at KHCB know what they are sitting on with 105.7?
- Financially, is KHCB solid, or is it the next Family Radio (well, of course it isn't, but in terms of $)
- Have there been any buyout attempts in the past?
- How do they plan to attract younger listeners once the current audience dies?

 

[johndavis]

From what I know:

Yes, they know the value of their stick. They've had offers and turned them all down. They believe that what they're doing is more important. I don't think they carry any debt, and they're dedicated to doing what they do.

 

[fybush]

WFMT and WRR are commercial stations, even though they're owned by nonprofit entities. The better example might be KING-FM in Seattle, which was a commercial station but became nonprofit/noncommercial a few years back, as did WCLV in Cleveland.

And for every WFME or WKDN that's sold from noncommercial into commercial status, EMF is buying just as much reach in the opposite direction, often by converting commercial FMs to noncommercial - look at 101.7 Azle/Dallas, for instance.

 

[Mediafrog+]

There has been speculation about KHCB on this board for many years. Most common proposals involve KSBJ taking over the frequency, or swapping the KHCB programming to a lesser signal (92.1 came up in this regard some years back.)

KHCB isn't going anywhere in the foreseeable future. They've been around for over 50 years, running their old style FM religious format. And, unlike Family Radio, the KHCB leadership hasn't made any stupid pronouncements that kill fundraising efforts.

KHCB also missed out on maximum return on the stick anyway, as station values have fallen in the past decade. Still, I'm sure lots of station groups would love to get their hands on the 105.7 frequency.

I suspect the KHCB audience is very old, and consists of devout listeners who still have a world view that might have been found in the early 1950's. That is their right, but I sense KHCB is preaching to the choir. I doubt the format has any appeal to younger demographics, who are much more likely to resonate with Air1 or other religious broadcasters with a contemporary programming model. This is the challenge that KHCB faces. If the audience dies off, so does the funding, and thus the format.

 

[Kent]

- Does the leadership at KHCB know what they are sitting on with 105.7?

Yes. See below..

- Financially, is KHCB solid, or is it the next Family Radio (well, of course it isn't, but in terms of $)

From everything I've heard, KHCB is solid, though we'll never know for sure since it's a private company and doesn't have to reveal its financials.

- Have there been any buyout attempts in the past?

Yes. Nationwide offered them a reported $40 million for 105.7 in '96. There have probably been more. I can't imagine Chancellor/AMFM didn't at least pick up the phone. Same for Jacor after it bought Nationwide. I don't see KHCB selling, though, if Pacifica really goes under, they might be interested in buying 90.1 so they could sell 105.7. However, that's pure speculation, and Pacifica's obituary has been written many times before.

- How do they plan to attract younger listeners once the current audience dies?

Your guess is as good as mine.

 

[rbrucecarter5]

- How do they plan to attract younger listeners once the current audience dies?


Your guess is as good as mine.

Simple answer to that is - they DON'T. The only broadcasters in the area that care about reaching young people for Christ are NGEN and Air-1. I find the attitude of not reaching out to young people curious, as it doom a station to eventual financial failure as its demographic grays and dies off.

The only person I know of that listens to KHCB is a 60 year old man. Since I am a Christian I know a lot of Christians, only one listener out of the dozens I know is not encouraging. But, it is like a brokered station, preachers come in, drop off their tapes and their checks, pay the bills. They don't have any ratings, and they don't need any ratings because preachers like to hear themselves on the air and think that is reaching people for Christ.

I tried listening in the 80's, and was greeted by a dogmatic anti-CCM preacher on a call-in show. It was disgusting, borderline hate speech against some CCM artists I know personally, and who are serious about their faith. The heck with them - if they have kept that type of programming through the years, they will go the same way as "Family" radio and Mr. Camping because God won't bless hate speech and heresy.

 

[OldChicago]

- How do they plan to attract younger listeners once the current audience dies?


Your guess is as good as mine.

Simple answer to that is - they DON'T. The only broadcasters in the area that care about reaching young people for Christ are NGEN and Air-1. I find the attitude of not reaching out to young people curious, as it doom a station to eventual financial failure as its demographic grays and dies off.

The only person I know of that listens to KHCB is a 60 year old man. Since I am a Christian I know a lot of Christians, only one listener out of the dozens I know is not encouraging. But, it is like a brokered station, preachers come in, drop off their tapes and their checks, pay the bills. They don't have any ratings, and they don't need any ratings because preachers like to hear themselves on the air and think that is reaching people for Christ.

I tried listening in the 80's, and was greeted by a dogmatic anti-CCM preacher on a call-in show. It was disgusting, borderline hate speech against some CCM artists I know personally, and who are serious about their faith. The heck with them - if they have kept that type of programming through the years, they will go the same way as "Family" radio and Mr. Camping because God won't bless hate speech and heresy.

They have raised money to buy a new antenna. Who are they sharing an antenna with, or do they stand alone.


OLD CHICAGO

 

[bturner]

I would have to say KHCB likely has the cash to run forever. Time is a big factor for such stations. In some instances listeners remember KHCB in their wills. Over the decades that really piles up if managed correctly. I knew one man that ran a ministry all his life. He was quite aged when I met him. Simply put, he had enough 'reserve' to operate without seeing new donations. Then again this guy coached Billy Graham when he started out. Some avid listeners might donate their homes, savings and such to a ministry when they pass. It is not a large percentage by any means but over the years you get quite a nest egg.

I really wouldn't suspect KHCB will want to move down the dial to a non-commercial frequency. Doing so always results in some audience loss. If anything, KHCB may opt to purchase a station for its Spanish language segment of their ministry. I believe they still own a pair of stations on the AM dial (1400 in Galveston and in Huntsville). Remember KHCB has a number of other stations elsewhere.

As for their audience dying off, I would think their audience is Conservative Christian. These denominations have been around much, much longer than KHCB and I doubt they will go away. As for Christian denominations, they vary greatly. A church of 25 families actively involved with the church might contribute more in human power and monetary power than a denominational church with 500 members who show up for weekly services when the mood strikes them. The KHCB target will always replenish itself with some younger folks. Pretty much if you're born into a denomination you'll return to it if you ever moved away from it in the first place. And I would think, especially overnight, they'd want shut-ins and elderly, providing a service to these folks. Literally targeting these people during the lonely hours of the day, some might feel KHCB a 'friend' that is there for them while family and children are too busy to spend time with them. Some might feel a substantial gift after they pass would be well served by such a service being available to those who find themselves in the same position in future years.

Before you get confused about their operation, KHCB broadcasts popular national ministries on a 'share' basis. When a national ministry receives a donation from a listener from a zip code covered by KHCB's signal, they get a percentage in the form of a monthly check from that ministry. From figures I heard, about 1 in 2,000 actually contribute but I cannot verify where I heard that, so checks with lots of zeros and comma is not the case. As for local programs, mostly these are offered gratis in hopes the program might 'carry itself' financially but the financials do not dictate whether a local program hits the air.

KHCB doesn't fundraise itself over the air. A couple off times a day they say what the expenses are and how much has come in. That works for them as listeners step up and make sure they have the cash to operate. Plus, they run a very lean operation. As I understand it, most are volunteers and paid employees are not laughing all the way to the bank. If you look up things, they run on much less money than KSBJ but then again that's apples and oranges. Of all the stories you hear about ministries milking listeners, KHCB is not among them. I'd rather all the others use KHCB's style.

As for how I know all of this, I have spoken with them in the past when I was doing sales at another station with a Christian format.

How everything will play out with Pacifica and Family radio is yet to be seen. The only thing I can say about both organizations is you don't wind up with such a stable of assets without some sharp financial minds guiding you. Chances are they have a way to dig themselves out of any hole they dig. Sure, that might mean selling some properties or reorganizing but mostly such organizations never really go away. They just evolve and recreate themselves.

 

[rbrucecarter5]

I would have to say KHCB likely has the cash to run forever.

I really wouldn't suspect KHCB will want to move down the dial to a non-commercial frequency. Doing so always results in some audience loss. If anything, KHCB may opt to purchase a station for its Spanish language segment of their ministry. I believe they still own a pair of stations on the AM dial (1400 in Galveston and in Huntsville). Remember KHCB has a number of other stations elsewhere.

As for their audience dying off, I would think their audience is Conservative Christian.

KHCB doesn't fundraise itself over the air. A couple off times a day they say what the expenses are and how much has come in. That works for them as listeners step up and make sure they have the cash to operate. Plus, they run a very lean operation. As I understand it, most are volunteers and paid employees are not laughing all the way to the bank. If you look up things, they run on much less money than KSBJ but then again that's apples and oranges. Of all the stories you hear about ministries milking listeners, KHCB is not among them. I'd rather all the others use KHCB's style.

As for how I know all of this, I have spoken with them in the past when I was doing sales at another station with a Christian format.

Unfortunately, you are probably right about the funding. Unfortunately, because they are tying up a frequency that could otherwise actually be used for reaching people for Christ, not just a station operating as a preacher juke box for a tiny set of contributers. For the rest of us, it is on our presets - NEVER - showing up in ratings - NEVER. Having a single listener who is a non-believer - NEVER. No non-Christian listeners = nobody getting saved. What a waste of a frequency!

Well, I am a conservative Christian, about as conservative as you get, am 58, and I ROCK ALONG with NGEN! I'd totally love to see NGEN on 105.7 - what an impact that would have on the city of Houston!

I'm not saying they don't have integrity. I;m just saying they don't have listeners who count - non-believers - so what is the point of the station? Preachers wanting to hear themselves on the radio, a few shut-ins, and major contributors feeling good because they think they are doing something that reaches lost people.

 

[purpledevil]

Liberman also offered them an ungodly amount for 105.7 a number of years back, and Houston Christian Broadcasters told them flat out that it the signal is not for sale. Period. Under no circumstances. IIRC, it was an offer north of $50 mil.

Houston Christian Broadcasters do own 1400 in Galveston, 1410 in Huntsville, and a multitude of other FM's around Texas that rebroadcast the programming originating from KHCB-FM.

 

[TXCalradio]

IF they decide to sell, CBS or Clear Channel (for example) wouldn't be able to buy that signal because they can only own a certain number of stations in each market, correct?

 

[davideduardo]

Liberman also offered them an ungodly amount for 105.7 a number of years back..

Liberman never, ever offered a premium price for a station. Ever. :-\

 

[Mediafrog+]

IF they decide to sell, CBS or Clear Channel (for example) wouldn't be able to buy that signal because they can only own a certain number of stations in each market, correct?

CBS has room for one more FM in the Houston market. Clear Channel does not, due to restrictions placed on it because of investor interests in Cumulus and Univision (which is why KLOL and KHMX were spun off.)

During the peak of station values some years back the 105.7 stick probably could have fetched $100 million. Recall that the exurban KRTS C1 signal sold for $72 million in 2004.

 

[ChuckTiller]

Salem has room to add a station. However, KHCB is not selling anytime soon.

 

[JustinT]

Liberman also offered them an ungodly amount for 105.7 a number of years back, and Houston Christian Broadcasters told them flat out that it the signal is not for sale. Period. Under no circumstances. IIRC, it was an offer north of $50 mil.

From this discussion, I definitely take it that KHCB isn't likely to go anywhere and seems to doing well financially.

It does seem, however, that these offers for 105.7 were not swaps for another FM property. It would appear that if somehow KPFT (or similar) were offered to KHCB, along with a big chunk of cash (which would allow KHCB to expand to new markets or expand Spanish/Vietnamese programming), that the identical coverage would give them something to consider.

During the peak of station values some years back the 105.7 stick probably could have fetched $100 million. Recall that the exurban KRTS C1 signal sold for $72 million in 2004.

Speaking for big market stick values alone, KFSG in Los Angeles (#2) went for $250 million in 2000. WCRB in Boston (#10-ish) went for $100 million in 2005. Keeping in mind the limited number of Class C licenses in Houston with full market coverage, I'd have to imagine KHCB's peak value would have been somewhere between these two.

 

[johndavis]

Radio isn't Fantasy Football. You don't swap signals for the sake of swapping signals.

 

[clouseau]

You don't swap signals for the sake of swapping signals.

True, that, John. But radio is a lot more like fantasy football than we would all like.

> WWRL buy a few stations and shuts them off to get a power upgrade in NYC.

> Someone Buys WOWO indianapolis to dial it back and upgrade WLIB - NYC.

> Over the years, KVIC Victoria gets downgraded several times and ends up on 104.7. The owner made Far More than the station was ever worth, incrementally downgrading it.

Fantasy Football geeks are ethical compared to radio owners.

 

[sfradio]

Radio isn't Fantasy Football. You don't swap signals for the sake of swapping signals.

CBS radio and Family Radio did it in San Francisco twice, in 1978 they swapped 97.3 and 106.9 and then in 2005 they swapped 106.9 and 610

 

[Ryan Williams]

Radio isn't Fantasy Football. You don't swap signals for the sake of swapping signals.

CBS radio and Family Radio did it in San Francisco twice, in 1978 they swapped 97.3 and 106.9 and then in 2005 they swapped 106.9 and 610

It wasn't just a swap in 2005 (or probably 78 either). It was a swap plus a pile of money.

 

[fybush]

Radio isn't Fantasy Football. You don't swap signals for the sake of swapping signals.

CBS radio and Family Radio did it in San Francisco twice, in 1978 they swapped 97.3 and 106.9 and then in 2005 they swapped 106.9 and 610

It wasn't just a swap in 2005 (or probably 78 either). It was a swap plus a pile of money.

And they weren't done "for the sake of swapping signals" - they were done (especially the 1978 swap) because CBS was seeking a much more potent signal than its existing 106.9, and was willing to pay decently for the privilege.