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Radio industry in flux
Stations change hands for big money
Every commercial station in the Concord
area has had new owners recently. With them have come new call
letters, new DJs and new formats.
By ANNE RUDERMAN Monitor staff
February 06. 2005 10:00AM
O
n long
car trips, or even short jaunts to the store, the person who
gets to fiddle with the radio has a coveted spot, the car
music czar. But lately around Concord the privilege has come
with a special challenge, too: remembering which station plays
what.
Over the past five years, commercial radio stations in the
Concord area have changed hands, call letters, talk
personalities, genres and formats at a fast clip. The
financial stakes have grown, too.
Just last week, Nassau Broadcasting, which paid a combined
$26 million for nine Concord stations a year ago, announced
its classic rock station 93.3 FM, "I-93," would be renamed
"The Wolf"and play country. Its country station "Outlaw" 102.3
FM would be called "The Hawk" and play classic rock,
broadcasting the same music as another Nassau classic rock
station, 101.5 FM in Meredith.
The radio station shuffle in Concord has mirrored
consolidation in the radio industry throughout the country
over the past decade, since the Federal Communications
Commission relaxed ownership regulations and allowed companies
to own multiple stations in the same market.
But things have been more confusing in Concord than
elsewhere because the city has experienced not one wave of
ownership consolidation but two. And that's not the only
change: Despite changing hands four times in the past five
years, local news station WKXL 1450 AM has returned to
covering the nuts and bolts of local life - city council
meetings and high school sports. And classical music, which
went off the air entirely in 2001, came back last year when
nonprofit Highland Community Broadcasting put WCNH 94.7 FM on
the air and WKXL started broadcasting classical at night.
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"One of the
really remarkable things in all this is that every single
commercial station in the Concord area has changed hands in
the last few years," said Scott Fybush, a radio analyst who
publishes the online NorthEast Radio Watch. "Certainly
stations in a lot of places have changed hands, but for all to
change is remarkable."
If video killed the radio star, no one around here seems to
have noticed.
"Radio is a hot property. All of the sudden someone woke up
and said radio is important," said WTPL radio personality
Arnie Arnesen. "It's the oldest thing around but the most
intimate. . . . Radio can go in the car with you, in the tub
with you, room to room with you."
Few restrictions
For most of New Hampshire's radio history, stations were
owned by small companies or private individuals, who were
prohibited by the FCC from controlling more than one FM and
one AM station in the same market.
But the recession in the early 1990s took its toll on
stations across the band, prompting companies to clamor for
looser rules, according to longtime radio personality Dick
Osborne, one of the former owners of WKXL. As a result, the
FCC eased up slightly on the restrictions in 1992, allowing
companies to own two FM stations in the same market, and
overhauled them completely with the Telecommunications Act of
1996, which allowed companies to own four FM stations in a
small market, like Concord, and more in big cities.
And consolidation began.
"Very few restrictions have remained and like in many other
businesses, companies found it advantageous to own
clusters,"Osborne said. "I doubt very seriously we're headed
back the way we came from."
In New Hampshire, the first wave of consolidation occurred
in 1999 and 2000, when Delaware-based Tele-Media paid a
combined $9 million for three stations, including Oldies 99,
and Vox Radio Group bought five stations, including WJYY 105.5
FM and WKXL 1450 AM, for $5.1 million.
Consolidation wave No. 2 happened a year ago, when New
Jersey-based Nassau Broadcasting bought three stations from
Vox for $9 million, another three stations from Tele-Media for
$12 million and three stations from New Hampshire-based
Sconnix Broadcasting for $5 million, including WBHG 101.5 FM.
At about that time another Vox station, WTPL 107.7 FM,
splintered off and was bought by Great Eastern Radio for $1.5
million, while Vox sold WKXL 1450 AM to Warren Bailey's Embro
Communications for $370,000 in 2002 and Bailey sold it to
former U.S. senator Gordon Humphrey for $800,000 last year.
'Crying out in the wilderness'
Founded by Dartmouth College friends Jeff Shapiro and Bruce
Danziger and Vermont radio station owner Ken Barlow, Vox Radio
Group was created in 1999, purchasing WKXL 1450 AM in Concord
and several stations in Vermont.
Named for the Latin "voice" and for Dartmouth slogan "Vox
clamantis in deserto" ("A voice crying out in the
wilderness"), Vox quickly amassed 35 stations throughout New
England, taking advantage of the fact that consolidation had
hit the big-city radio markets but had not yet trickled down
to places like Concord.
"Our whole strategy was to go into a market like Concord
and see if we could buy stations from what were still then
individual owners, who did not have access to big-time capital
and had no plans to expand, but might like to sell," Danziger
said.
For Vox, the turnaround was quick. Just five years later,
the company has stripped itself of all but a handful of
stations, clustered in western Massachusetts.
"Venture capital needs high returns," Danziger said. "For
our capital sources, their goal was not to be in there for 20
years, their goal was to invest in us and have us grow their
stations and then sell them."
And in early 2004, at least around Concord, the timing
seemed right.
"The general reason we sold last year was growth was
slowing down and (the stations) were maturing,"he said. "We
had taken them about as far as we could take them, and there
was demand, so we thought we could get a good price."
At Tele-Media, the story was a bit different. While Vox
doubled its investment in New Hampshire stations over four
years, Tele-Media made some money, but not nearly a 100
percent return.
"Tele-Media expanded so rapidly and had so many stations in
secondary markets and paid too much for these stations," said
Ed Brouder, a broadcast historian who works for WZID 95.7 FM
in Manchester. "You could speculate that's why Tele-Media sold
recently to Nassau, to get out from under it."
For Clark Smidt, the founder of Oldies 99, selling to
Tele-Media proved something of a disappointment.
"It was tough being a solo operator," said Smidt, who sold
to Tele-Media for $2.5 million in 2000 and is now a
consultant. "I wanted to grow, and I really couldn't do the
whole thing myself. At the time, radio didn't look as valuable
as it is today -consolidation changed that. Tele-Media said
they wanted me to help their company, but unfortunately
Tele-Media did not grow - they sold their station."
By consolidating stations, Vox and Tele-Media did the heavy
lifting, according to Fybush of NorthEast Radio Watch,
smoothing the way for the 52-station New Jersey company to
come into New Hampshire.
"It was a very convenient opportunity for Nassau to come
into the market as easily as it did," he said.
Duplicate programming
A group that stays out of big city markets, preferring
suburban and rural areas, Nassau Broadcasting has begun to
take advantage of having a cluster of stations in the same
market.
With this week's station shuffle, the company has enabled
itself to duplicate classic rock programming on 101.5 FM and
102.3 FM, keeping commercials and community announcements
local.
It's a strategy that has worked for the company before.
"We did have success with two classic rock stations in New
Jersey," said Mark Edwards, Nassau's New Hampshire programming
director. "It was a very successful approach."
At the other end of the spectrum, Humphrey, a former
two-term senator, has rededicated WKXL 1450 AM to being as
local as it can.
"We want to be as good as the Concord Monitor in reporting
the local news, stressing the word local, and as good or
better than WEVO in providing intellectual and cultural
contact in local, again stressing local programming," he said.
With four reporters, Humphrey said WKXL probably has more
radio journalists than any other commercial station in the
state and boasts the heaviest schedule of high school sports.
"We've gotten rid of all of the horrible nationally
syndicated programming the station featured in recent years
over the last three months and created local programming of a
variety of kinds," he said. The station's new motto is
"Celebrating Concord and the Capital Region."
"The quality of radio broadcasting nationally has declined
precipitously, and we're out to prove that a small local radio
station that's independently owned can make a go of it," he
said. "We're trying to be just one little candle in the
darkness of radio broadcasting."
He's even decided to air classical music from 10 p.m. to 1
a.m. weeknights and challenged WEVO to do the same. "It's
really cheeky for a little AM station to be broadcasting
classical music," he said.
He has company, albeit on the FM dial.
Classical station WCNH went on the air last February,
broadcasting Mozart, Beethoven and Bach 24 hours a day. The
nonprofit company gets its music via satellite from Chicago
and does some local programming, but it defers to a national
music host to give background.
"There was nothing to be gained by doing it locally; it
would be inferior," said Highland Community Broadcasting
president Harry Kozlowski, a former program director for WJYY
and I-93.
The station went on the air for just $17,000, and the
organization spent another $10,000 upgrading facilities. But
the trim budget was possible only because the station is a
low-power frequency, the radio equivalent to community-access
television. Otherwise, airtime would have been impossible.
"There was a time when you could buy radio stations for a
few thousand dollars, but those day are long gone," Kozlowski
said. "Radio stations are beyond the reach of citizens. The
average public citizen has no prayer of ever owning and being
able to broadcast on a public frequency."