Sports radio always talk of the townCourtesy
Houston Chronicle
(August 21, 2009) Every time I write about sports radio in Houston, I get hit with proclamations from readers that one of the four stations must emerge triumphant and that the rest should be drawn and quartered and their remains placed on display for the greater hilarity of all.
I’m not sure why people think that way. Frankly, I enjoy the carnage of the continuing competition. There’s more than enough news and gossip to keep me occupied. I hope all four sports stations stay around indefinitely. There is, however, another perfectly good reason for the status quo, as reflected in the annual revenue reports compiled by Miller, Kaplan, Arase & Co., which tracks the financial side of the radio industry. According to Miller Kaplan, sports is the most efficient way to produce revenue of any radio format. While sports stations accounted for 1.6 percent of the audience share in Miller Kapan’s sample in 2008, they produced 3 percent of the revenues. That equates to a 1.88 power ratio, which exceeds that of rock, adult contemporary, talk, urban and every other format. That is why stations switch to sports, and that’s why they’re staying. And, yes, that includes Clear Channel’s KBME (790 AM) and Cumulus’ KFNC (97.5 FM). “I will generate more than a million dollars in profits on (KBME) this year, and I’m excited about that,” Eddie Martiny, general manager of Clear Channel Houston, said recently. “So it’s not changing formats, and you can write that down.” The four Houston sports stations accounted for 2.7 percent of this market’s weeklong listening audience for persons 12-and-older during July, according to Arbitron. The three stations that report to Miller Kaplan — KGOW (1560 AM) does not — accounted for 4.3 percent of revenues for the six major radio groups (Cox, Clear Channel, CBS, Univision, Radio One and Cumulus). “Sports is not a ratings buy. You don’t sell toothpaste or tires on a sports station,” said Michael Berry, Clear Channel’s director of AM programming. “You sell shows — come up and meet the guys and watch the game. “If you look at dollars and cents, the station is performing very well. I don’t get pressure from (Clear Channel) on that station. It performs well, and clients love it.” _______________________
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