{"id":628,"date":"2010-03-02T17:59:45","date_gmt":"2010-03-02T21:59:45","guid":{"rendered":"http:\/\/www.engineeringradio.us\/blog\/?p=3928"},"modified":"2023-04-30T12:55:52","modified_gmt":"2023-04-30T16:55:52","slug":"future-of-am-radio","status":"publish","type":"post","link":"https:\/\/www.engineeringradio.us\/blog\/2010\/03\/future-of-am-radio\/","title":{"rendered":"Future of AM radio"},"content":{"rendered":"\n<p>It is clear to me that radio is changing, in some ways, it is changing for the better, and in many ways, it is changing for the worse. \u00a0In spite of many bad business decisions made by overpriced MBAs, large consolidated radio groups seem to be hanging on, if only by their fingernails. \u00a0It is very likely that the investment banks, who have the most to lose, are not interested in seeing their loans written off in a bankruptcy proceeding. \u00a0As we all know, the consolidators that paid multiples of 15 to 16 times cash flow for stations, way overextended themselves. \u00a0There is no hope that values will ever return to those levels, so the banks are now in the radio business.<\/p>\n\n\n\n<p>Sure, the banks are not the owners of record, and the FCC never would consent to transfer all those licenses to so many investment banks. However, they are calling the shots, making &#8220;suggestions&#8221; on how best to run things. \u00a0Offering perhaps a 1\/4 percent reduction in an interest rate if the expenses can be reduced below a certain level. \u00a0Unfortunately, for the communities like <a rel=\"noopener\" href=\"http:\/\/en.wikipedia.org\/wiki\/Ellenville,_NY\" target=\"_blank\">Ellenville, NY<\/a>, their <a rel=\"noopener\" href=\"http:\/\/en.wikipedia.org\/wiki\/WRWD_(AM)\" target=\"_blank\">local radio<\/a> station means nothing to the banker living in Manhattan. \u00a0It is a number, and more than likely, a negative number on a spreadsheet. \u00a0It means nothing to the <a rel=\"noopener\" href=\"http:\/\/en.wikipedia.org\/wiki\/Clear_Channel_Communications\" target=\"_blank\">group owner<\/a> in San Antonio, other than some miscellaneous real estate assets. \u00a0The same can be said for all the radio stations in the Hudson Valley if not the entire country.<\/p>\n\n\n\n<p>Why is this important? \u00a0I mean, who really cares? \u00a0The apparent answer is no one seems to care. \u00a0Local news, or what used to be local news such as town board meetings, high school sports scores, police blotter, and all of the many other small town things do not get the hearing they used to. \u00a0Town boards; well if no one shows up for the meeting to pass the new zoning laws, so be it. \u00a0School boards; sure, raise the taxes, most homeowners will just pay the new higher amount and not say anything. \u00a0It is for the children, after all. \u00a0Seems that the local constabulary is spending more time at the Dunkin Donuts than out walking around checking doors. \u00a0That&#8217;s the way it goes. \u00a0With the demise of local newspapers, detailed in a previous post, who is keeping an eye on things? Who lets the community know when something doesn&#8217;t pass the smell test?<\/p>\n\n\n\n<figure class=\"wp-block-image alignnone\"><a href=\"https:\/\/www.engineeringradio.us\/blog\/wp-content\/uploads\/2010\/03\/Kenwood-R-2000.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"650\" height=\"352\" src=\"https:\/\/www.engineeringradio.us\/blog\/wp-content\/uploads\/2010\/03\/Kenwood-R-2000.jpg\" alt=\"Receiver tuned to local AM station playing good sounding music\" class=\"wp-image-632\"\/><\/a><figcaption class=\"wp-element-caption\">A receiver tuned to a local AM station playing good-sounding music<\/figcaption><\/figure>\n\n\n\n<p>A small AM radio station can be made profitable, just not at the margins expected by the big boys. \u00a0There is a niche for perhaps a 1 KW or 5 KW non-directional station with its own real estate that is not in too bad shape and can be turned into a community radio station. \u00a0Those types of stations are fairly low maintenance, most have some type of PSRA and PSSA to keep them on at least during drive times if they are daytimers. \u00a0Others have minimal amounts of nighttime power. \u00a0Almost all of them cover their city of license, even with small nighttime powers.<\/p>\n\n\n\n<p>I have been looking into good quality AM radio receivers and there are a few out there which are not too expensive. \u00a0Most GM car radios and older Chrysler radios have good AM radios. \u00a0A group formed to promote AM radio, ensure that automakers install radios that are at least as good as their older versions, and work with manufacturers to make better small tabletop receivers and such would go a long way to improving the unjustly bad reputation that AM broadcasting has received. \u00a0Further, working with the ARRL (amateur radio) to reduce and keep noise levels from things like BPL and other noise-making technologies that do not comply with current FCC regulations would also help. \u00a0It is true that our environment has become electrically noisier, one might not be able to listen to the 50 KW clear channel station 500 miles away, but the local station should come in well enough to enjoy, especially if the programming is good.<\/p>\n\n\n\n<p>FM radio is becoming crowed with translators, adjacent channel HD radio interference, LPFMs, and whatever else can be shoehorned into the band. \u00a0The quality of FM is set to decline precipitously in the next few years. \u00a0It seems that with the right combination of good local programming, good receivers, and radio station owners\/operators that are not looking to get listed on the NASDAQ, small AM stations could survive, if not thrive in the business that the big stations turn away.<\/p>\n\n\n\n<p>There are a number, a small number, of stations already doing this. &nbsp;As long as there is free local news and free quality programming, people will listen, no matter what band it is being broadcast on. &nbsp;Free trumps paid any time, any day.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is clear to me that radio is changing, in some ways, it is changing for the better, and in many ways, it is changing for the worse. \u00a0In spite of many bad business decisions made by overpriced MBAs, large consolidated radio groups seem to be hanging on, if only by their fingernails. \u00a0It is &hellip; <a href=\"https:\/\/www.engineeringradio.us\/blog\/2010\/03\/future-of-am-radio\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Future of AM radio<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[87,75],"class_list":["post-628","post","type-post","status-publish","format-standard","hentry","category-general","tag-am","tag-community-radio"],"_links":{"self":[{"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/posts\/628","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/comments?post=628"}],"version-history":[{"count":5,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/posts\/628\/revisions"}],"predecessor-version":[{"id":11821,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/posts\/628\/revisions\/11821"}],"wp:attachment":[{"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/media?parent=628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/categories?post=628"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.engineeringradio.us\/blog\/wp-json\/wp\/v2\/tags?post=628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}