"But what (Docket 80-90) did was dilute the audience and advertising money. Markets have a finite number of dollars, and this spread that money around more people, making localism harder to do. Five years after Docket 80-90, longtime owners were getting out like rats deserting a sinking ship."
Bingo, A!
Economics 101, folks. Competition drives down prices...read, "spot rates".
And now the extra competition from the Internet, satellite radio further dilutes the revenue available to each station.
"Whuut? Satellite doesn't hurt local revenues?!"
But it hurts PUR. And the fewer people you have using radio in general, the more difficult it may be for your station to justify higher rates. And if PUR in WNY is flat or even up, that's an anomaly...I'm guessing it's down like everywhere else.
I've stated before...allowing hurting stations to turn in their licenses for a tax credit may be a help. It certainly can't hurt.
Someday I want to do a little digging around my cluster - which houses The World's First Commercial Station - to see what they billed, say, back in 1948, before TV. Or 1964...or 1987...I know the billing has dropped since 2000. It takes fewer people to do the job so that helps but as we all know, many operators have long ago cut the fat, then they cut the meat and now are gnawing off bone.