[BC] In the AM radio wars of the '60, they talked big and talked back

[Rich Wood]

------ At 12:44 AM 10/9/2009, Broadcast List USER wrote: -------

>Those AMs on HD2 are trying to get radio networks to "affiliate" the
>HD2.  I don't see the point if they are not able to carry the network
>commercials.  In fact, if I were in charge of the network, I would
>refuse to allow network programming without commercials to be carried
>on the IBAC channels.

If every HD-2 in the nation affiliated with a single network there 
wouldn't be enough listeners to contribute numbers to the network's 
sales. The AFTRA problem doesn't affect radio, just streaming. The 
downside to running commercials on HD-2 is that the IBUZ company 
sucks away a percentage. For 8 listeners, that's not even worth the 
reporting hassle. As it is, the station has to fill out network 
affidavits if they haven't automated the process, the Performance Tax 
will add more paperwork. Why bother with even more revenue reporting 
for such a tiny audience? HD-2s that simulcast another station in the 
cluster cover the commercials to avoid the royalty payments. 
News/Talk stations that are carried on HD-2 generally cover the AM's 
spots with some sort of non-commercial feature to fill the time. I 
wouldn't be a bit surprised if the IBUZ company took a piece of the 
action of the analog revenue if spots run on HD-2.

The only way a network could make it work is to turn the barter into 
cash with the understanding that, if a "real" station with ratings 
wanted the affiliation the HD-2 loses it. Another option often used 
with low rated stations is to require that the network inventory be 
run on the analog or on a sister FM with significant numbers. 
Advertisers who don't buy specific shows only care about body count. 
The HD-2 body count is probably less than that in a truck stop restroom.

Like Cable TV they'll be stuck with the bottom fisher PI (Per 
Inquiry) spots for penis enlargement and Shamwow. At ABC we often 
made deals where the AM was low rated and the FM was dominant in the 
market. We got the numbers to sell from the FM and the AM got the 
programming they needed. Ultimately, it's a very high price to pay.

Rich