8-2-2012
Radio One spent $72 Million on KROI-FM in Houston and the Gospel format just wasn't cutting the mustard. Before the flip to all-news, the Gospel station was generating $4 Million in revenue and $2 million in cash flow and according to Liggins, "that's an awful use of that kind of investment." So, late last year Radio One flipped the format to the very expensive all-news format, but the ratings have not materialized as of yet. Despite the low ratings, Liggins told investors and analysts yesterday the all-news format is here to stay in Houston.
Liggins says he's committed to the all-news format. "I still believe the #6 market can sustain one all-news format." Despite having only a 1 share, Liggins says revenue at the station is increasing. "We are increasing revenue nicely and we continue to market the station." And, Liggins says he's hoping the station can produce 4-5 million in cash flow rather than the $2 Million in cash flow it was producing with a Gospel format.
(8/3/2012 12:53:59 PM)
I'm sympathetic to a broadcaster that wants to bring a high-quality-if-done-properly format like all-news to a city (cf: WEMP-FM, NYC). But KROI is the latest iteration of a station operating on the frequency that was once the commercial classical-music station in Houston. From time to time, I perused its playlist and it provided a better repertoire of the genre than some other classical outlets in Boston,SF and DC. Other FMs that abandoned classical didn't do all that well either.
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