What happened to 910 am

[JimmyJack]

Re: What happened to 910 am

Suffice it to say, radio is a tough business. If your programming supplier raises the rates, what can you do?

[filbert]

Re: What happened to 910 am

Suffice it to say, radio is a tough business. If your programming supplier raises the rates, what can you do?

I should have said "unless your name is Limbaugh or ESPN" . . .

[jackrabit1]

Re: What happened to 910 am

Being a radio guy, I'd like to chip in a few cents worth...

This last year was especially trying for radio stations across the country. According to several sources, including the National Association of Broadcasters, radio revenues AS A WHOLE dropped 40-percent last year. Some economists were going "Chicken Little" when holiday sales dipped three percent this last year; can you imagine what a 40-percent drop would have done?

This drop has affected local broadcasters, as well as national broadcasters/syndicators like ESPN. ESPN has to watch their bottom line, which is probably why they're raising rates or clamping down on the amount of flexibility that local sports stations have to interject their own programming. That was the case with KWSN in Sioux Falls dropping ESPN. The network wanted a bigger share of the station's airtime and the station didn't want to lose the revenue generated from high school games, University of Sioux Falls, etc.

Now while ESPN has to watch its bottom line, the local stations have to as well. I remember talking to a radio station owner a few years ago who said this... "Sports stations are widely listened to... they also don't make a lot of money." I think a big reason for this is because sports stations like KWSN, KJJQ (before the switch) and KLMS (the former ESPN station in Lincoln) are geared towards a predominantly male audience.

Do any research and the target demographic MOST advertisers want to reach is females that are 18 to 49 years old. Why? Because they're the ones that are making most of the spending decisions in households. As was mentioned in an earlier post, advertisers want more bang for their buck, and if it boils down to a station that plays "Hot AC" that more women would listen to compared to a sports talk station, they're more likely than not going for the Hot AC station.

Now does this mean I don't like sports radio? Absolutely not! You have to remember, I'm a sports director... the channel that I turn on first thing in the morning or when I go to work out is ESPN. I enjoy sports talk, but if I'm a radio station owner and I just took a massive hit in station revenues the year before, you bet your sweet bippy I'm going to be looking at ways to protect my bottom line so I don't have to do things like fire staff, cut back on equipment, or God forbid, go "Dark".

I'm sad to see ESPN leave 9-1-0. But at the same time, it's an economic thing.

[zooropa]

Re: What happened to 910 am

So is 97.3 'Hot AC' or is 104.7?

BTW: I'm a bit of a fan of old country music on AM radio. It's the closest we've come as human beings to inventing a time machine.

[jackrabit1]

Re: What happened to 910 am

97.3 is "Hot AC"... 104.7 is "Top 40"

[1stRowFANatic]

Re: What happened to 910 am

BTW: I'm a bit of a fan of old country music on AM radio. It's the closest we've come as human beings to inventing a time machine.

I've always thought the time machine was a fully refurbished "it" car from your high school days.

Sorry for adding to thread drift.

[JimmyJack]

Re: What happened to 910 am

I'm lead to believe that the current "impediment" to a Jackrabbit (Men's Basketball/Football) Network is the current contract with WNAX. However, if both WNAX/Saga Communications and SDSU can see advantages in re-negotiating that contract early, they'll do that, too.

I believe there are still two years left on the WNAX contract. But you're right, this is an evolving situation. The goal for most athletic departments is to get to a point where your content has enough value that you can basically open it up for bids to maximize the return on that value. I'd say SDSU is definitely heading in that direction, but it won't happen for at least a couple of years.

The good news, of course, is that every game that is televised now adds to the value of that content, which will pay off down the road.

I would also point to the Jackrabbit Insider as a great development. We now have a radio affiliate in Rapid City. And everybody should take note of the improvements in the quality of the WBB radio broadcasts this year on 910: We all know Tyler is really good. Melum has been great. And Tyler has added more microphones and such to capture natural sound (note that you can now hear the ball hit the rim on home games... that's because Tyler climbed up there and placed some little mics there.) That kind of stuff really makes a difference.

Bottom line: We're moving in the right direction on media stuff, both radio and TV, largely because of some solid leadership from the AD. With the new Associate AD for External Affairs soon to come online, those efforts will only increase.

[/end_drift]

[BTownJack]

Re: What happened to 910 am

Bottom line: We're moving in the right direction on media stuff, both radio and TV, largely because of some solid leadership from the AD. With the new Associate AD for External Affairs soon to come online, those efforts will only increase.

[/end_drift]

[/continue_drift]
I've heard the candidates being interviewed for that position are very qualified to increase those efforts. The sooner we can fill that critical position, at a critical time, the better. Mark Burgers, who is now at Creighton, set the bar very high for the person coming in.

[MikeHenriksen]

Re: What happened to 910 am

jackrabbit1 and filbert have some good information. However, it is much deeper than that. Pardon a "rant".

When Larry Pressler sponsored the Telecommunications Act of 1996 it was supposed to do a lot of things. The biggest long term effect it had was in the relaxation of station ownership limits. Prior to that, a company could own no more than 2 stations in any market and no more than 7 AMs and 7 FMs anywhere in the country. Once that went away, large companies started to buy up every station in sight. That, you may notice, is the same time that syndicated programs exploded across the county. So for example, Bill Smith had owned the radio station in Dell Rapdis for many years and had made a nice living serving his community. Now Bill sells to Big Evil Radio company in New York, for much more than the station is actually worth. New York could not care less about Dell Rapids or serving a community. The radio station simply became a line item. Big Evil had shareholders and investment bankers to pay off, and they now owned 1500 radio stations. Quick way to cut the bottom line? Get rid of local people and go syndicated.

Meanwhile, the number of stations has exploded, and yet the number of listeners has dropped. You can blame new technology if you wish, but if radio had been delivering a worthwhile product there would be no need for everyone to be in a rush to own an Ipod or the tons of other ways to get their information and music. The thing that radio can do best is "local", and yet the efforts to do that continue to fall by the wayside.

That is overly simplified, but you get the idea. I have a Christmas card that was sent out from KELO AM and FM in Sioux Falls, the only 2 stations in the building at 500 South Phillips, in 1994. It is a picture of us 11 full time announcers for those stations since we were live 24/7 and had a news department. Right now in that same building there are 8 radio stations, with 12 announcers.

In other words, don't feel bad for radio. I have never seen a business that has done a better job of screwing itself.

End of rant. For now.

[Nidaros]

Re: What happened to 910 am

jackrabbit1 and filbert have some good information. However, it is much deeper than that. Pardon a "rant".

When Larry Pressler sponsored the Telecommunications Act of 1996 it was supposed to do a lot of things. The biggest long term effect it had was in the relaxation of station ownership limits. Prior to that, a company could own no more than 2 stations in any market and no more than 7 AMs and 7 FMs anywhere in the country. Once that went away, large companies started to buy up every station in sight. That, you may notice, is the same time that syndicated programs exploded across the county. So for example, Bill Smith had owned the radio station in Dell Rapdis for many years and had made a nice living serving his community. Now Bill sells to Big Evil Radio company in New York, for much more than the station is actually worth. New York could not care less about Dell Rapids or serving a community. The radio station simply became a line item. Big Evil had shareholders and investment bankers to pay off, and they now owned 1500 radio stations. Quick way to cut the bottom line? Get rid of local people and go syndicated.

Meanwhile, the number of stations has exploded, and yet the number of listeners has dropped. You can blame new technology if you wish, but if radio had been delivering a worthwhile product there would be no need for everyone to be in a rush to own an Ipod or the tons of other ways to get their information and music. The thing that radio can do best is "local", and yet the efforts to do that continue to fall by the wayside.

That is overly simplified, but you get the idea. I have a Christmas card that was sent out from KELO AM and FM in Sioux Falls, the only 2 stations in the building at 500 South Phillips, in 1994. It is a picture of us 11 full time announcers for those stations since we were live 24/7 and had a news department. Right now in that same building there are 8 radio stations, with 12 announcers.

In other words, don't feel bad for radio. I have never seen a business that has done a better job of screwing itself.

End of rant. For now.

Mike, I gave you rep points especially for mentioning the Telecommunication Act of 1996, as I have had others mention the same thing. Ownership is becoming more concentrated and Big Evil radio is becoming the boss, and I believe Filbert mentioned that syndication is not expensive, which explains this domination of radio with right of center talk hosts, and maybe George Orwell novel 1984 has a some validity. I think so since the same people say the same things over and over. Are we being brain washed just a little perhaps?

I agree doing things local works. I think Rick Nobe's VPU is an excellent program, and keeps KSOO like it was growing up. Wayne Pritchard had a morning show years ago and during the cold winters like this year had chirping birds sounds playing the background. It made you want to think spring. Another progam local that I like is on KWAT "Whats up". That program is very local and JackJD could tell you more about, but you find out what is going on in Watertown. Both shows I mentioned are non-sports, but have and had listeners

[JimmyJack]

Re: What happened to 910 am

jackrabbit1 and filbert have some good information. However, it is much deeper than that. Pardon a "rant".

When Larry Pressler sponsored the Telecommunications Act of 1996 it was supposed to do a lot of things. The biggest long term effect it had was in the relaxation of station ownership limits. Prior to that, a company could own no more than 2 stations in any market and no more than 7 AMs and 7 FMs anywhere in the country. Once that went away, large companies started to buy up every station in sight. That, you may notice, is the same time that syndicated programs exploded across the county. So for example, Bill Smith had owned the radio station in Dell Rapdis for many years and had made a nice living serving his community. Now Bill sells to Big Evil Radio company in New York, for much more than the station is actually worth. New York could not care less about Dell Rapids or serving a community. The radio station simply became a line item. Big Evil had shareholders and investment bankers to pay off, and they now owned 1500 radio stations. Quick way to cut the bottom line? Get rid of local people and go syndicated.

Meanwhile, the number of stations has exploded, and yet the number of listeners has dropped. You can blame new technology if you wish, but if radio had been delivering a worthwhile product there would be no need for everyone to be in a rush to own an Ipod or the tons of other ways to get their information and music. The thing that radio can do best is "local", and yet the efforts to do that continue to fall by the wayside.

That is overly simplified, but you get the idea. I have a Christmas card that was sent out from KELO AM and FM in Sioux Falls, the only 2 stations in the building at 500 South Phillips, in 1994. It is a picture of us 11 full time announcers for those stations since we were live 24/7 and had a news department. Right now in that same building there are 8 radio stations, with 12 announcers.

In other words, don't feel bad for radio. I have never seen a business that has done a better job of screwing itself.

End of rant. For now.

Well said. You should come to my Introduction to Mass Communication class and say it. Maybe they'd believe it coming from somebody in the business.

There was a reason the system encouraged locally originating content, via limitations on ownership, before 1996. That's because the public owns the airwaves (Radio Act of 1927) and public service is part of how radio broadcasters earn the right to use those airwaves. When you nationalize ownership, local content goes out the window and you have changed that public service formula completely.

Also, as you suggest, local content sells. It worked for 910 when they had Scotty and then Tyler and Brad in the morning and Grant Peterson in the afternoons. They still have some local content (and their news is pretty good) but I think they, and many other broadcasters, would be better off with more locally originating content.

[MikeHenriksen]

Re: What happened to 910 am

Thanks guys. JimmyJack, I would be happy to if you ever need me. We (Chad McKenzie and I) did that a few times in the early 90s. And you know me...where 2 or 3 are gathered, there also shall I talk!

[zooropa]

Re: What happened to 910 am

When you nationalize ownership, local content goes out the window and you have changed that public service formula completely.

It's interesting to contrast the change in ownership laws re: radio with the still enforced three-tier structure in alcohol sales.

There's a reason why all the big US breweries are now foreign owned. Foreign brewers can profit on every aspect of alcohol sales; whereas Budweiser, etc., can only take a wholesaler's profit. They're huge, but not as profitable as brewers in other countries.

As it relates to the Telecom act & radio ownership, while the laws in place prior to '96 had certain benefits, I wonder if they would've prevented what's happened to the industry if left in place: the three tier structure in the alcohol industry has prevented consolidation in the distribution network, but not consolidation in the manufacturing end of things.

What I'm suggesting is that even if the act had remained in place, price pressure on radio stations might have led to an environment where radio stations remained locally owned, more or less, but with an increasing amount of syndicated content anyway.

[JimmyJack]

Re: What happened to 910 am

What I'm suggesting is that even if the act had remained in place, price pressure on radio stations might have led to an environment where radio stations remained locally owned, more or less, but with an increasing amount of syndicated content anyway.

Good point. It's possible, I suppose. But when two companies buy up 90 percent of the stations, the loss of local content becomes a certainty.

I can offer a newspaper industry example that might help: Typical newspaper profit levels (in good times) expected by corporate owners are thought to be in the 27 percent range. A few years ago, the second-largest chain of papers, Knight-Ridder, was broken up by shareholders because it was making "only" 21 percent.

Contrast that with a regional chain like the one owned by the Marcil family in Fargo. The Marcils don't have shareholders to satisfy. They can "accept" lower profits like those "woeful" 21 percent profits that Knight-Ridder papers were accepting. As a result, they have been slower to dismantle their newsroom staff and I think that will ultimately save them.

The difference, then, is shareholder pressure to achieve certain earnings at all costs, which is something that wouldn't be nearly so widespread in the radio industry if local ownership (and by that I mean literally some family or person) was the norm.

Sorry, still drifting. But it's an interesting topic, I think.

[MikeHenriksen]

Re: What happened to 910 am

Interesting point, and certaily possible. However, I think the biggest effect was the elimination of competition, and in the attitude of the owners. For instance, in Brookings, not all the bars are owned by the same company. That sparks competion. In radio, one company is getting "all" the radio advertising dollars because they own all the stations.