Great post gr8oldies. There seems to be some thinking that if a station targets the largest town in the area versus the city of license it destroys localism. I get what the comments are based on. Their thinking is a bunch of small town stations could have no local presence and run from one centralized location. I get that but I have to question if that has any negative consequences for the community of license. Such decisions are typically economic as in the community of license just can't produce the income for a fully staffed station but combining makes it possible. I get the small town station next to the larger city focusing on the larger city. After all, most in that small town likely commute to the larger city and it just makes economic sense.
All of this is happening now. It has been happening. And those stations that must have a local office/studio as well simply have an extra expense. For the FCC to remove the rule, all that happens is the extra office/studio is not required. As far as programming and the station's focus, it is unchanged.
Talking to a fellow radio guy, he recalled a group of 5 stations separated by about 100 miles over very rural Texas. They all operate from the largest town. They maintain offices/studios in the three other small towns because FCC rules require it. They send salespeople out to these towns to sell. He said they acquired one station because it had gone dark...best sales it had was $4,500 a month. I remember that station under the prior ownership and the guy did a good job although it was completely automated. In the next town it was on satellite with local commercials for local content, run by a husband and wife who barely scraped by when it was bought. Before satellite delivered formats, it had been automated and shut down at 7 pm claiming financial hardship...if they had a commercial or two an hour, it was a good day based on my listening in the past. The third town was the same, satellite delivered but the owner managed to gather some local news amid sales calls.
They came in and bought the stations, are live 24/7, can afford to do some local news and literally provide a better service to these towns than they had because they could share staff. If the rule on the office/studios goes away they can do more. In fact, he thinks, based on the sales he gets from these towns, all of these stations would be dark by now if locally owned and operated. As he put it, they've lost a little population and people are more apt to shop out of town than they did about a decade ago. Plus, chains like Dollar General and others that go in to smaller towns skim off some local dollars, the mini-Walmart syndrome. I've never heard Dollar General or the other chains that you find in such towns utilizing local radio buys. By the way, they get calls and they are in contact with officials in these towns pretty much daily. Their PSAs are typically emailed to them. I wonder if anyone in these towns mind that the local programming comes from the biggest town around instead of down the street?
There is a company I need to learn more about that began building a network of stations serving the 'oil patch' in Texas. The format is perfect and I understand they are well liked by radio listeners and I understand they do quite well. Their stations were once either dark or greatly distressed stations mostly. From what I can gather most did under $50,000 a year in billing. I don't have any insight in to this radio group but I understand they provide programming from a centralized location.
The current oil patch was very depressed in prior years. You almost had to be a one man operation to keep a station on the air in some of these towns. In fact, in one town a local non-profit ran a station and they only did about $14,000 a year in Underwriting and donations.
A guy I worked with ran a station in Cotulla. It went dark. His best billing months were around $6,000 because he worked so hard and accepted any cash, going to San Antonio and Laredo weekly to sell anybody to get revenue. As he put it, his rate was $3 but if they'd buy $20 in spots at 25 cents a spot, he took the money and ran because he needed $8,000 to break even. He said he would try to get at least $500 in cash and checks on each trip to the big city. In his mind he couldn't let his minimum wage two jocks down by not meeting payroll. I asked if he did any local news and he said he never had the chance to cultivate that because they were bleeding money every month. He did say the morning jock would get the weather forecast off the cable TV at the motel room where he lived so the station could do the forecast in morning drive.
If you had a string of stations such as the above example, you could do something with them and serve the community better but a required local studio would sure limit what you could do.