Who says radio isn't fun any more?

Who says radio isn't fun an more? Here is WDHA (Morristown, NJ) market manager Nancy McKinley.

Rumor has it that an NTR Revenu line item has been added to her 2011 budget: Crop Dusting

George
Media Services Group

More news-talkers moving to FM

Last week's announcement that heritage, big signal, Atlanta News-Talker WSB-AM (750 kHz) was adding an FM simulcast is yet another benchmark in the growing trend of talkers migrating to the FM band. It follows similar moves by KSL in Salt Lake City and KCBS in San Francisco. While these appear to be smart moves, I believe that they sound a large warning signal for AM station values in the future.

A strong case could be made that the big AM News-Talkers like WSB have kept the AM band alive. News-Talk listeners have been content to seek out their programming on the AM band. If all of the major AMs throw in the towel for the FM band, who will be listening to AM? My guess is that AM will be dominated by niche players in the future: foreign language, religious, and other specialty programming.

Station prices are based on supply and demand. It looks like AM supply will be increasing at the same time that demand is decreasing.

Those are my thoughts. What are yours?

George
Media Services Group

Inc. magazine's business plan presentation

If you are working on a business plan (hopefully for station acquisitions!), Inc. magazine has a good resource: Business Plan Presentation. It is a basic PowerPoint template which may serve you well as a starting point for your presentation. At worst, it would serve as an antidote for writer's block.

George
Media Services Group

Have your tried mind mapping? (Article from Inc. magazine)

Here is a good article from Inc. magazine on mind mapping. I have found the concept to be very useful for project management; there are a lot of ways for entrepreneurs to put it to effective use.

I use software from Mindjet (MindManager) and can recommend it highly. For project management, ResultsManager is a great add-in.

George
Media Services Group

MSG transactions for the first six months of 2010

The bad news is that is was a very slow first half of station trading. The good news is 1) it was a lot more active than a year ago, and 2) things are shaping up nicely for the second half. Here are the transactions announced by Media Services Group for the first six months (Note: we used BIA estimates of revenue):

Sale Announced: 01/10
Calls: WMNE-AM (now WHTY-AM)
Buyer: Travis Media
Seller: Radio Disney
Market: West Palm Beach-Boca Raton
Market Rank: 47
Price: $500,000
Gross Revenue (BIA): $150,000

Sale Announced: 3/10
Calls: FM CP
Buyer: Chadrad Communications Inc.
Seller: Big Cat Broadcasting, LLC
Market Rank: Unrated
Price: $85,000
Gross Revenue (BIA): N/A

Sale Announced: 2/10
Calls: KCUV-FM, KJAC-FM
Buyer: Moreland Properties, LLC
Seller: NCR Broadcasting Inc.
Market: Denver-Boulder
Market Rank: 20
Price: $5,000,000
Gross Revenue(BIA) : $800,000

Sale Announced: 3/10
Calls: KDJQ-AM
Buyer: Iglesia Misionera Pentecotes, Inc.
Seller: KDJQ, LLC
Market: Boise, ID
Market Rank: 100
Price: $325,000
Gross Revenue (BIA): N/A

Sale Announced: 4/10
Calls: WCKZ-FM, FMW204BF
Buyer: Star Educational Media Network
Seller: Northeast Indiana Public Radio
Market: Orland, IN
Market Rank: Unrated
Price: $225,000
Gross Revenue (BIA) : N/A

Sale Announced: 5/10
Calls: AM CP
Buyer: Acme Broadcasting III
Seller: Pamplin Broadcasting Inc.
Market: Reno, NV
Market Rank: 121
Price: $20,000
Gross Revenue: N/A


Sale Announced: 7/10
Calls: WHPI-FM, WPIA-FM, WZPN-FM, WWCT-FM
Buyer: Big Toe Communications, LLC
Seller: Independence Media Holding, LLC
Market: Peoria
Market Rank: 150
Price: TBA
Gross Revenue: $1,350,000

George
Media Services Group

A number of broadcasters support the AM/FM Subcaps

A number of broadcasters teamed up to file reply comments with the FCC seeking repeal of the AM/FM subcaps on July 26. The coalition represents some 668 stations in markets of all sizes. My two broadcasting companies (Monticello Media and MSG Radio) as well as our brokerage firm signed onto the comments.

If the subcaps are repealed, it will result in new capital coming into our capital starved industry. I predict that a number of broadcasting companies may be saved from bankruptcy if the subcaps are removed on a timely basis.

The subcaps are no longer (if ever) justified. You can read the details in the Reply Comments. Essentially, if you operate in a market where ownership of four FMs and two AMs is allowed (or four AMs and two FMs), the removal of the subcaps would allow you to own six stations, regardless of flavor. If they are repealed, unprofitable clusters can swap/trade/buy/sell and improve their strategic and financial positions.

Repealing the subcaps will awaken a stagnant industry, introduce fresh capital, and open doors for new minority ownership. Let's hope that the FCC sees the wisdom of eliminating an antiquated burden on broadcasters.

Click here for the filing: Reply Comments

That is my opinion. What is yours?

George
Media Services Group

Syd Small of Acccess.1 passed away last weekend

Our condolences go out to the family, friends, and colleagues of Syd Small, who passed away last weekend. Syd was President and CEO at Access.1, where he ran radio stations and networks. He may be best known for operating WWRL in New York, which he ran for almost 30 years.

Here is the story from NYDailyNews.com.

Syd was a good guy. He will be missed.

George

Radio industry second quarter revenue results

Here is a look at second quarter revenue from around the radio industry:

FMQB

George
Media Services Group

Dave Martin's post on "Eating your own dog food" (station website)

David Martin has a good post about station websites on his N=1 blog. Click on:

"Eating your own dog food"

George
Media Services Group

Time to set appointments for the Radio Show in Washington

The Radio Show comes to Washington, DC, September 29 through October 1. This year's show is a joint undertaking between the NAB and RAB. Media Services Group will be located at the headquarters hotel, the Grand Hyatt Washington.

If you would like to set up an appointment to meet, please drop me a line at:

mailto:george@mediaservicesgroup.com

I hope to see you in DC!

George
Media Services Group