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Eduardo - lower-ranked AM talk formats generated more revenue than higher-ranked FM music formats!

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PocketRadio

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May 22, 2009, 3:06:40 PM5/22/09
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Is This The Breakout Year For FM Talk?
A message from Radio Ink Publisher Eric Rhoads

Pioneers are the people with arrows in their backs. Talk radio pioneer
Walter Sabo told me more than 15 years ago that FM talk would become a
hot format, but it was a tough sell. He suffered a lot of criticism
and resistance because companies that owned big talk stations didn't
want to cannibalize their successful AMs. After all, AM had been dead
for years until it was born again with talk radio. Sabo's vision from
back then has yet to come to full fruition -- but it may be just
around the corner. Here's why:

There is a 50-50 chance radio will lose the performance fee issue this
year or next and will have to pay some percentage of revenues to
record labels. With the current state of radio, taking dollars off the
top line may be economically impractical, especially if the rates are
as far out of line as some anticipate. Music radio could become a
shadow of its former self, and we may see a proliferation of FM-based
talk formats. Though there will likely be multiple traditional talk
outlets doing politics, I believe a new breed of FM talkers will
succeed by offering variations on talk lifestyle formats with younger
demographic targets.

Because many believe they see this coming, there will be companies,
perhaps those with less successful music stations, that will want to
establish a beachhead now, before everyone comes to the realization
that music formats will be less profitable.

The generation that grew up with music on FM is now favoring talk
programming, and the generation behind them is entering the age when
talk becomes more interesting. Younger, hipper FM-talk presentations
like "real radio" and new variations for younger audiences will be
embraced in every market. And with PPM results showing how much
listenership National Public Radio is taking, it's clear that a large
chunk of all listening is talk-based. Commercial radio will begin to
engage strategies to take those audiences away from NPR.

According to BIA, in 16 of the 20 top U.S. radio markets, lower-ranked
AM talk formats generated more revenue than higher-ranked FM music
formats. Meanwhile, Arbitron says the combined spoken-word formats --
news, talk, sports -- add up to the most most-listened-to format in
the country, comprising 17.5 percent of radio listening.

But 80 percent of all radio listening takes place on FM. So imagine
what could happen to talk stations on FM. If the total of all the talk
in your market is a combined 10 share or less, there is an average of
seven points to be gained by an FM talker.

Of course, the talk format has more available inventory before it's
not considered annoying. Music stations may find they need to reduce
inventory in order to compete. And in almost all markets where an FM
talker competes with an AM talker, the FM is outperforming the AM.
Typically, there are multiple choices for similar music formats, which
further dilutes opportunity. But FM talk takes over in most of its
markets rapidly, often within one or two rating periods.

For those of you who fear that putting on an FM talk station could
cannibalize your AM talker, the evidence is to the contrary,
especially if you're doing a talk format designed for FM. For
instance, when Walter Sabo launched WTKS, it took no audience from
traditional AM talker WDBO and shared no cume. Most of its cume is
shared with the alternative rocker in the market and with WOCL and,
formerly, with WMMO. The same held true at NJ 101.5, which shared
audience with classic rocker WAXQ-FM.

If I were a betting man, I'd bet that spoken word, which saved AM
radio, may in fact be the format that soars on FM in every market. New
iterations of talk will emerge as this soon-to-occur phenomenon takes
radio by storm. Can you say "opportunity"?

Eric Rhoads
www.radioink.com

Fm music-oriented stations will die - AM news/talks/sports rule! Hear
these words:

"According to BIA, in 16 of the 20 top U.S. radio markets, lower-
ranked AM talk formats generated more revenue than higher-ranked FM
music formats. Meanwhile, Arbitron says the combined spoken-word
formats -- news, talk, sports -- add up to the most most-listened-to
format in the country, comprising 17.5 percent of radio listening."

You are provd full-of-shit once again - LOL! HD Radio is dead!

David Eduardo

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May 22, 2009, 3:35:08 PM5/22/09
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"PocketRadio" <sidwell...@aol.com> wrote in message
news:e52464b6-9b6c-4077-901a->

> "According to BIA, in 16 of the 20 top U.S. radio markets, lower-
> ranked AM talk formats generated more revenue than higher-ranked FM
> music formats. Meanwhile, Arbitron says the combined spoken-word
> formats -- news, talk, sports -- add up to the most most-listened-to
> format in the country, comprising 17.5 percent of radio listening."
>

In LA, 13.6% of listening by persons 12 and over is to talk (news, talk and
sports) stations, and it takes 10 of them to get this.

In 25-54, where nearly all the money is made, not one talk station is in the
top 10, and the first one appears at #15. In that age group, there are under
10 shares of listening to talk, news and sports.

The reason talk stations are good revenue generators is that they average
50% to 60% more commercial time per hour than music stations... with music
stations around 10-12 minutes per hour and talkers closer to 20 minutes.

What is happening is that talk formats are moving to FM... the latest is
Memphis... leaving AM with even less a draw for listeners.


PocketRadio

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May 22, 2009, 5:21:12 PM5/22/09
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On May 22, 3:35�pm, "David Eduardo" <da...@davideduardo.com> wrote:
> "PocketRadio" <sidwellfrie...@aol.com> wrote in message

"For those of you who fear that putting on an FM talk station could


cannibalize your AM talker, the evidence is to the contrary,
especially if you're doing a talk format designed for FM. For
instance, when Walter Sabo launched WTKS, it took no audience from
traditional AM talker WDBO and shared no cume. Most of its cume is
shared with the alternative rocker in the market and with WOCL and,
formerly, with WMMO. The same held true at NJ 101.5, which shared
audience with classic rocker WAXQ-FM."

Not happening, to your shagrin.

David Eduardo

unread,
May 22, 2009, 5:52:09 PM5/22/09
to

"PocketRadio" <sidwell...@aol.com> wrote in message
news:9ce16d98-6589-4052...@r33g2000yqn.googlegroups.com...

WTKS and NJ 101 are several decades old in their formats, and are not
traditional news talk, so they would not take audience from that sort of
station. Both are sort of alternative talk, and are rather unique in the
industry.

The stations having success moving or migrating to FM are the "Rush and
Friends" stations, which note incredible 25-54 jumps immediately.

~ RHF

unread,
May 22, 2009, 8:16:29 PM5/22/09
to
On May 22, 2:52 pm, "David Eduardo" <da...@davideduardo.com> wrote:
> "PocketRadio" <sidwellfrie...@aol.com> wrote in message

>
> news:9ce16d98-6589-4052...@r33g2000yqn.googlegroups.com...
> On May 22, 3:35 pm, "David Eduardo" <da...@davideduardo.com> wrote:
>
> <"For those of you who fear that putting on an FM talk station could
> <cannibalize your AM talker, the evidence is to the contrary,
> <especially if you're doing a talk format designed for FM. For
> <instance, when Walter Sabo launched WTKS, it took no audience from
> <traditional AM talker WDBO and shared no cume. Most of its cume is
> <shared with the alternative rocker in the market and with WOCL and,
> <formerly, with  WMMO. The same held true at NJ 101.5, which shared
> <audience with classic rocker WAXQ-FM."
>
> <Not happening, to your shagrin.
>
> WTKS and NJ 101 are several decades old in their formats, and are not
> traditional news talk, so they would not take audience from that sort of
> station. Both are sort of alternative talk, and are rather unique in the
> industry.
>
- The stations having success moving or migrating
- to FM are the "Rush and Friends" stations, which
- note incredible 25-54 jumps immediately.

Proving that the Younger Generations Likes {Loves}
the "Rush and Friends" Talk-Radio Formats once
they hear them on FM : Within 5~10 Years FM Radio
will be Talk-Radio; and 50% of "Rush and Friends"
Broadcast Radio Stations will be on FM. Thus creating
a whole new Generation of Conservative Talk-Radio
Listeners on the FM Radio Band. This 'trend' could
spell the Political Doom of the Democrat Party of
the USA and the ObamaNestas© for 15~25 Years.

The Future of Radio is the FM Radio Band.

The Future of Talk-Radio is on the FM Radio Band.

The Future of American Political Thought
will be heard on the FM Radio Band.

rush my friend to the fm radio band
and just listen to the radio - yeah ! ~ RHF
.
The Answer to the Growth of Terrestrial Radio Broadcasting
in the USA is an Expanded FM Radio Band from 76 MHz to
88 MHz with 60 More FM Radio Channels and and more
available FM Radio Channels for the migration of former AM
Radio Stations to improve the Local Service Signal Levels
of those AM Radio Stations.
{Better Local Public Service Via FM Radio}
.
Expanding the FM Radio Band from 76 MHz to 88 MHz
http://groups.google.com/group/rec.radio.shortwave/msg/93586e2bf667afb2
http://groups.google.com/group/rec.radio.shortwave/msg/7acdb337d9029df4
.
Wake-Up FCC Expand The FM Radio Band - Do It Now !
http://groups.google.com/group/rec.radio.shortwave/msg/deb423d8c51f486c
http://groups.google.com/group/rec.radio.shortwave/msg/40f71d0af799af5e
.
Forget IBOC : AM & FM Radio Featuring the Right Content
for the Right Audience : It $ell$
http://groups.google.com/group/rec.radio.shortwave/msg/192325ec3b3dd453
http://groups.google.com/group/rec.radio.shortwave/msg/d8dd8d5d3b0865c7
.
RHF's Plan For The "HD" AM/MW Radio Band
- Going All Digital And Beyond !
http://groups.google.com/group/rec.radio.shortwave/msg/e0c90cb1dfb18bc5
.
Expand the FM Radio Band -by- Moving AM Radio
Stations to Old TV Channels 5 & 6 !
http://groups.google.com/group/rec.radio.shortwave/msg/8b403d27fe07c27f
http://groups.google.com/group/rec.radio.shortwave/msg/92eec9db49629a49
.
Oops Dang Liberal {Left-Wing} Talk-Radio on
the 2500+ NPR/CPB FM Radio Stations has
been there for Decades -so- It is only 'fair' that
Conservative {Right-Wing} Talk-Radio has Equal
Access to the FM Radio Band. - imho ~ RHF
.
.


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