Why Is KABG's Website All White?

[Kent]

Yeah, I heard about that, too. Makes me wonder if they've found a buyer for 104.7.

 

[Broadcast Receptor]

Trying to understand the thought process here. I understand Clear Channel must sell 104.7. It's in a trust. If it is getting a 2.3 why would you change the format. It is currently the only format of it's kind in the market. Changing to Classic Hits it has to go up against Big 98.5, KOOL 94.5 and to some degree Ed 103.3. Wouldn't 104.7 be worth more with a 2.3 rating than splitting the Classic Hits audience and maybe getting a 1.0? Or do they already have a buyer and don't want to give them the Country format? The new owner could do their own Classic Country. I would think an FM in Albuquerque would go for multiple millions of dollars, but ratings and cash flow have to increase the sale amount. Could it be it's Clear Channel and the just don't care?

 

[davideduardo]

Wouldn't 104.7 be worth more with a 2.3 rating than splitting the Classic Hits audience and maybe getting a 1.0?

KABQ FM has on average a 1 share or less in 25-54, and ranks below 25th in the demo. Even in a market that has a lot of local direct and no so much agency business, the appeal is way too old.

I would think an FM in Albuquerque would go for multiple millions of dollars, but ratings and cash flow have to increase the sale amount.

Ratings without cash flow are not of much value, and in this case, none.

Two signals that were sold long ago went for $5 million (WLVO in '97) and $7 million (KAGM, 2000). Today's prices are much lower, probably by a factor of 3 to 4. So a decent facility with no cash flow might be worth $2.5 million or something in that range.

 

[Broadcast Receptor]

OK. This makes sense. Their audience is too old. They are playing mostly 80's Country. I guess my next question is why change to Classic hits. Generally 70's and 80's pop hits. Won't they have the same problem plus competing with the other Classic hits stations? I know if I had a choice, I would rather have cash flow than ratings. If you walked in to a mom and pop business to sell them a radio ad, they would probably not ask for ratings or understand how to read them anyway. They would probably turn on a radio if they were interested in advertising and if they liked the station and the price was right, buy some ads. I don't have 2.5 million dollars to buy KABQ so I guess I will sit back and watch what happens.