Townsquare buys NNB stations in Yakima and Tri Cities

[Jay Peninger]

Hardware is completely different than publicly-owned spectrum which has ability to influence people and force set rate for advertisers all under control of only one licensee.

Business is business, whether hardware or radio. It just happens that the spectrum is controlled and charges for use of the spectrum by the US Government. The reality is you nor I "own" the airwaves, no more than you own a section of I-405 or your local post office. Broadcasters make the investment in equipment and staff to utilize the airwaves. Without the investment, airwaves are empty air.

It's easy for Bong or you to act as if a group owner is committing some form of illegal monopoly by operating several stations in a small or medium market, having never owned or operated one or more stations yourself. The fact remains that if you or your buddy Bong had more ball$ and less keyboard, you could pool your resources and pick up a station, going up against any competing station or group. There is nothing stopping you from under-cutting the rates of Saga. I guess it's just cheaper and easier to complain about the perceived injustice on some discussion board.

What I don't get is why you can't make your point without spewing venom at other contributors who are entitled to their opinions??? For somebody who has Guru in their name you sure do try overly hard to belittle and berate people on here rather than acting like a Guru and constructively providing them with the benefit of any expertise you might have.

You know I don't run a Hardware Store but I am smart enough to know that if one person does run all the local hardware stores and they sell hammers for $600 it isn't a good thing.... And the only thing I took away from that post was simply that, if one company owns all the stations it would not be good for listeners or for advertisers...

If you represent the "Guru's" of your industry it is a wonder anyone would want get involved in radio...

 

[bossbill]

Used to be there was "scarcity of spectrum". No more. With satellite radio, iPods, Facebook, youtube, internet streams, WiFi, 200 TV channels, TiVo, cell phone apps, etc, terrestrial radio does not have a license to steal. We compete for listeners' ears, and we compete for clients' dollars. While newspapers are fading, numerous other venues compete with us for revenue. In today's high-tech multi-media world, I can't imagine it being easy to successfully operate a single station in a multiple station market.

I don't know Saga well, but the last time we visited Whatcom County, we were exposed to several dozen FM signals from Victoria, Vancouver, Seattle, and Bellingham. Given the competing signals and various other media, I wouldn't consider owning a couple of FMs a monopoly.

You'd think a guy with four FMs in Grays Harbor might be driving a Rolls, but my '99 Explorer works just fine.

Sure, I'd rather have all the stations in the market, that would allow me to offer more format diversity... but I doubt if my bottom line would be any better.

 

[LITTLEBOYBLUE]

I don't know Saga well, but the last time we visited Whatcom County, we were exposed to several dozen FM signals from Victoria, Vancouver, Seattle, and Bellingham. Given the competing signals and various other media, I wouldn't consider owning a couple of FMs a monopoly.

I agree with you there is variety for listener ... but doesn't the evaluation criteria change if you are just focused on Bellingham market opportunities (news or advertisers)? There is large variety of product in the market .. but only a few of those are (supposedly) focused on trying to serve local first (and in this case all held with one set of keys!)? But you also make great point that perhaps we consider the OPPORTUNITY for message competition by going outside boundaries of radio-only and then competition is more plentiful and perhaps rate structure and balance of news is preserved.

 

[TVradioguru]

What I don't get is why you can't make your point without spewing venom at other contributors who are entitled to their opinions??? For somebody who has Guru in their name you sure do try overly hard to belittle and berate people on here rather than acting like a Guru and constructively providing them with the benefit of any expertise you might have.

You know I don't run a Hardware Store but I am smart enough to know that if one person does run all the local hardware stores and they sell hammers for $600 it isn't a good thing.... And the only thing I took away from that post was simply that, if one company owns all the stations it would not be good for listeners or for advertisers...

If you represent the "Guru's" of your industry it is a wonder anyone would want get involved in radio...

Point #1.. So Mr. X, if someone made a statement that all independent 'webcasters' were ripping off the music industry and taking advantage of the current laws for streaming music, you wouldn't correct them? They are entitled to an opinion, but if stated as a fact without actual working knowledge of the actual facts, what good does it serve? Some on this forum regularly make statements about the current business of broadcasting, having admittedly not been involved in ownership or management operation of a station. Recently they attacked the business practices of Saga, yet have no idea what they're talking about. Ultimately there are numerous opportunities to put their money where their keyboards are, yet they choose point fingers on some discussion board rather than show us all how it's done. I'll always attempt to answer questions to those who ask, but make unknowledgeable statements as if they KNOW how it is, then expect to be corrected. No venom intended.

Point #2.. The whole 'it's the public airwaves', so the public should be able to decide who uses them or not, is nothing more than a tired cliche'. If Bong and LittleBoy actually mortgaged their homes, were on the hook to make payroll on a broadcast facility, or were out there busting their butt$ trying to sell advertising, I guarantee they would have a different point of view about 'using the public airwaves' when those bank payments are due each month or quarter.

 

[SRP]

If Bong and LittleBoy actually mortgaged their homes, were on the hook to make payroll on a broadcast facility, or were out there busting their butt$ trying to sell advertising, I guarantee they would have a different point of view about 'using the public airwaves' when those bank payments are due each month or quarter.

Well put, Guru. And for those of you who don't agree:

You'd think a guy with four FMs in Grays Harbor might be driving a Rolls, but my '99 Explorer works just fine.

Now THERE's reality.

 

[scott salvatori]

You'd think a guy with four FMs in Grays Harbor might be driving a Rolls, but my '99 Explorer works just fine.

Now THERE's reality.

what one drives is not a reflection of ones wealth, or lack of, in many cases. the smart businessmen doesnt need to prove their wealth, by driving the latest elexus, or mercedes. in many cases, it is the insecure yuppie, who is maxed out on their credit, who drives the latest expensive new car to put on a facade to showcase their success to their peers.
boss bill, looks like boss hogg, to what i drive. ha ha. i run several old pickups from the 70's and 80's, and do all the mechanical work, and maintenance on them, freeing me from having to pay the bank, on some trendy newfangled car. sure, i may look like poor white trash to some city people. but, this free's up my income for investment. and maybe i will buy that new cadillac some day in 2025.

and now back to radio talk......

 

[Jay Peninger]

Point #1.. So Mr. X, if someone made a statement that all independent 'webcasters' were ripping off the music industry and taking advantage of the current laws for streaming music, you wouldn't correct them? They are entitled to an opinion, but if stated as a fact without actual working knowledge of the actual facts, what good does it serve? Some on this forum regularly make statements about the current business of broadcasting, having admittedly not been involved in ownership or management operation of a station. Recently they attacked the business practices of Saga, yet have no idea what they're talking about. Ultimately there are numerous opportunities to put their money where their keyboards are, yet they choose point fingers on some discussion board rather than show us all how it's done. I'll always attempt to answer questions to those who ask, but make unknowledgeable statements as if they KNOW how it is, then expect to be corrected. No venom intended.

Point #2.. The whole 'it's the public airwaves', so the public should be able to decide who uses them or not, is nothing more than a tired cliche'. If Bong and LittleBoy actually mortgaged their homes, were on the hook to make payroll on a broadcast facility, or were out there busting their butt$ trying to sell advertising, I guarantee they would have a different point of view about 'using the public airwaves' when those bank payments are due each month or quarter.

Let me first say that after I re-read the thread, that what you said wasn't as bad as I apparently took it the other day and I apologize for letting a bad day bleed over into a post. I agree with what you are saying and at the time it just came off to me as a tad venomous.

I haven't mortgaged the home yet and with the current economy that probably would net me two mid sized tin cans and a giant ball of string... And banks despite what you hear on the news are not loaning money to small businesses these days or I might consider investing in a terrestrial station. I have never been scared of work or a challenge.

That is the nice thing about having a dream, occasionally they do actually work out and come true...

Again sorry for allowing my bad hair day to overflow here.

 

[TVradioguru]

Thank you for being so gracious Mr. X, but no need to apologize. Sometimes text in E-mail or forums can be read and interpreted in many ways, depending mainly if someone is being challenged in a view.

 

[crainbebo]

Response to Bong's old post "Who is listening to all those stations over there?"

I do, I do! I actually am a country lover, and usually listen to 92.9 The Bull and sometimes KXDD, but it's actually kinda sad KFFM will have to leave 107.3, because it's been on that frequency for a long time.

-crainbebo

 

[chokesman-review]

I can understand KEGX and KEYW swapping formats. Hot AC on 98.3 performs much better than 106.5's classic rock. KFFM though, makes no sense to me. KFFM's last book was #3 at a 7.1 while KDBL was a minor country player with a 3.2.

So... take the dominant CHR in the market and move it? KFFM was and always has been a great buy for the female demos in Yakima. All this so Townsquare can have KXDD and KDBL doing a little inhouse competition? I would argue the community is better served by KFFM on 107.3 on a big signal instead of two countrys with different imaging (104.1/107.3) on big signals and the CHR being degraded to a 17kw C2. Reduced to real estate terms: location, location, location. People will adjust, people will figure it out. Townsquare wants the big sticks.

I always hated it when a good station gets moved or blown up so 'competition' can happen. The upstart station ends up not lasting anyway being many times it's a shoe string operation. The secondary station's mission is to pull .5 share and a get a piece of the billing pie. Often, its not about meeting the needs of the community, its old fashioned profit.

Contrary to my above statements, I'm not hostile in any way to corporate radio. It's the way the Federal Cash Commission set it up in this country. That is the reality. My issue here is that this is a business decision that moves a station that is performing well and replaces it with a station that is #11 in the market for no reason other than they want the big sticks. That isn't normally a reason a station gets moved or blown up and a successful one at that.

Feels like to me, 'if we can't own it, we are going to damage the trust franchises to enhance our properties' in addition to the aforementioned desire to concentrate all the big signals under one tent in both markets.

This is nasty in more ways than one.

Who loses? The 'coal' formats, stations and listeners of those stations.

.... but it's actually kinda sad KFFM will have to leave 107.3, because it's been on that frequency for a long time.

 

[Steenman]

Radio is no longer individual sticks, but rather clusters of properties set up with the goal to generate maximum ad revenue. We see this in many of the markets we buy and in fact other ad mediums (cable, on line, and others) are also moving in this direction. You buy clusters of channels because no one station, site, or channel - commands enough viewer or listeners. Good to keep in mind when one evaluates Yakima radio, tries to predict who will buy a move in signal, or to guess where a displaced morning show will end up. You have to think in three dimensions, not one or two.

 

[TVradioguru]

Excellent point Steenman. Granted in the old days, demographics were broken into two listening camps; adults over 35 which listened to the 'full-service' format and youth under 35 which listened to Top 40. There were far fewer stations in, or around a given location.

Take the Seattle Tacoma market for example, where you have well over 65 signals in or around the market. With the fractionation of formats to demographics, it simply isn't possible to survive in business with a single station with one format. So when it comes to being viable business model, you need to own multiple signals and provide multiple formats to in essence, aggregate the total number of listener tastes and demographics which used to listen to only a handful of stations back in the day.

Now one could argue that radio was harmed by allowing the expansion of so many stations in domestic markets, but I would respond that had so many choices not be made available to consumers, when technology grew with more ways to consume media as there are today, radio would have really been in trouble.

 

[notalent]

"it simply isn't possible to survive in business with a single station with one format."

Especially when the investment bankers want 40% off the top!!

 

[AQH]

Take the Seattle Tacoma market for example, where you have well over 65 signals in or around the market. With the fractionation of formats to demographics, it simply isn't possible to survive in business with a single station with one format.

While you cited this, the Seattle/Tacoma market, WBEB in Philadelphia does quite well as a stand-alone and has done so for a decade and a half.

 

[Dennito]

OK, peace, bro. I get defensive about "the 2nd city." Your station is a juggernaut rock-hammer and you are doing a fine job with it. 8)

"Who is listening to all those stations over there? Did they install FM chips in the Taters?"

Significantly more listeners than your little onlline "radio station." Put away your Western Washington snobbery and 1980s views of Eastern Washington and you might find there is culture, intelligence, opportunity and a nice quality of life over there.

Don't get your panties in a wad Dennito, heaven forbid somebody tosses out a little levity... I own a home in beautiful Eastern Washington and enjoy golfing there during the summer. Fall and winter I bird hunt there, I know much more about that side of the mountains than you might assume...




And talk about snobbery what did our little insignificant online radio station ever do to you?

Mom Dennito's picking on me, make him stop ;D O

OK

 

[SRP]

Take the Seattle Tacoma market for example, where you have well over 65 signals in or around the market. With the fractionation of formats to demographics, it simply isn't possible to survive in business with a single station with one format.

Really?

So companies like Christa, 3 Cities, Premier Broadcasters and KGY Inc. aren't surviving?

That'll be news to KCMS, KXXO, KRXY and KGY!

Yeah, I know, Christa and KGY have an AM & an FM but they count as examples to disprove your assertion.

 

[Jay Peninger]

Take the Seattle Tacoma market for example, where you have well over 65 signals in or around the market. With the fractionation of formats to demographics, it simply isn't possible to survive in business with a single station with one format.

Really?

So companies like Christa, 3 Cities, Premier Broadcasters and KGY Inc. aren't surviving?

That'll be news to KCMS, KXXO, KRXY and KGY!

Yeah, I know, Christa and KGY have an AM & an FM but they count as examples to disprove your assertion.

I think SRP is right while it might be cheaper in the long run to operate more than one station, sharing staff etc. you can't say a single station has no chance to survive... Any station be it single or otherwise provided it puts out a quality product can compete and certainly can survive.

Listeners don't judge what they tune in based on who owns the station or how many station in their cluster, they tune in to be entertained and engaged by the programming and any station single or not can make a living if they can do it well.

 

[chokesman-review]

In light of the Townsquare' KXDD and KDBL country juggernaut that is coming in Yakima, I was rereading this thread in total.

Question: What about KIOK (94.9) in the Tri-Cities? I see no mention of it. That is a former New Northwest Property as well.

Inquiring minds... ;D

Here's some additional information

Tri Cities,
KORD FM, KXRX FM and KFLD AM are retained and all unchanged.
KEYW FM moves from 98.3 to 106.5 (12,500 watts to 100,000 watts)
KUJ FM is added at it's current 99.1. (#1 12+ and most demos up to age 49)
KALE AM is added at 1340 (moving sports programming and call letters from 960 AM)
we give up KOLW FM 97.5

 

[TVradioguru]

You're right I should qualify my earlier statement. The point being that in order to really compete in a given market, especially up against other group owners, one should have a stable of formats which appeal to the appropriate demographic. The only way to do that is to operate several properties.

KCMS is an interesting model.. Like other large market religious stations, they have the lions share of Christian music listening sewn up. But I think we'd agree that Christian music has seens its share of big up and down swings, as has KCMS in popularity. I seem to recall that the ownership operates essentially as a profit-non profit hybrid. That being anything top line in revenue goes toward the operation of their other non-broadcast not-for-profit facilities. I'm surprised so far that the folks from K-Love haven't aquired a full market signal in the Seattle area yet to give KCMS a run for their money as in other markets. That being said, I've never consulted for Christian music stations, other than watching their market performance from the periphery.

The other stations listed are really out of market and whereas they certainly do survive, being stand-alone, that's about it, survive. I'd be willing to bet that their owners would love to have another or two stations in their stable for the reasons I cited earlier.

 

[boiseengineer]

-wrong thread-