I suppose I should add not all station owners are smart business people. I recall a very successful small town AM and FM. The AM had morphed in to a mostly news and information with ag emphasis, simulcasting the FM, a top 40, after about 3 and most of the weekend. The two stations were doing about $850,000 a year in the 1980s. The new owners came in and went with a beautiful music format on AM and FM. The AM offered 5 minutes of news at :60 and :30, while the FM ran a minute of news on the hour and weather at :30. The AM format was mainly 60s plus covers while the FM was much more traditional as far as beautiful music went. Billing went down the tubes and folks in the area resented their heritage stations vanishing. Finally they got a nice offer on the FM (eventually upgraded) that actually kept them from going under. A buddy that worked there said the stations billed about $300,000 a year as beautiful music stations.
I have a similar story which goes back to the late 1970s/early 1980s, just to further prove this is not a new phenomenon.
Small but rated (100+) market. AM had been affiliated with NBC's News and Information Service and was getting the best numbers -- both ratings and sales -- in its history. FM came on the air as a new station in 1976, running an automated "contemporary MOR" format with most of its commercials being bonused to AM advertisers and the rest trade accounts.
When NBC pulled the plug on NIS, they started simulcasting the FM on the AM, except for a regional sports network (MLB, NFL, college football/basketball) which they still split to run only on the AM. I went to work for them shortly afterwards because the canned format needed a lot of tweaking, but no one had really noticed how bad it was until it became the only programming in the building.
In 1979, after a format overhaul to morph a 50% current/50% recurrents and gold AC, the simulcast cracked the book for the first time, coming in at #3 in 18-34 and #5 in 25-54. We rode the crest of that wave for two years before a group of "know-it-all" radio guys whose primary experience had been at a standalone AM on the outskirts of Denver offered $1.2M for the station. The keys were barely warm in their hands when they ripped the existing, still-successful AC format off the air, replacing it with a vocal-heavy beautiful music on the FM (I should point out that there was already a beautiful music station in the market, on a far superior signal, and four others on the dial from adjacent markets) and a "personality-based" MOR format on the AM.
What a mess. I left the day the ownership changed after giving them the free advice that they were going to be far from successful with their plan. I even suggested that they go ahead with their AM experiment in the daytime but leave the FM alone and simulcast at night (when the AM signal was 250 watts and had poor coverage) so they would be able to keep as many of the existing clients as possible. Oh, no ... they knew everything. They were from the much larger market of Denver, Colorado!
The AM immediately faltered. Their "personalities" weren't. The morning guy/PD filled the first show with inside jokes like "mile high (insert name of local community)?" and laughingly mispronounced community names. They had six minutes of news on the hour and four minutes plus three minutes of sports on the half-hour. The sports guy was given the last two hours of afternoon drive to do a talk show, which turned into him begging for people "to call in so we talk high school football". The midday guy, who probably should have been the morning guy, had an invented sidekick voice but didn't have the wit to make it work (imagine a very, very bad version of the late Jack Armstrong and the Gorilla then imagine it even worse than what you're thinking). Meanwhile, every one of the FM's advertisers bailed.
Every single one.
Six months in, they were simulcasting again, with a less personality/more music approach, but still running the beautiful music format on both stations overnight. By the end of the first year, none of the original airstaff was still there, and all but two of the staff I'd had there under the previous owners had also moved on. (I should also mention that for much of that year, they had been reduced to recording the two-minute FM news briefs for the automation and doing production the rest of the time.)
Before the end of the second year, they went Chapter 11 and converted to a Chapter 7 before it was over. The
new new owners split the simulcast again, went live AOR on the FM and automated standards plus Larry King on the AM, then went CHR with the FM in 1984 (at which point I inexplicably rejoined the station). In the midst of an internal argument between the GM who wanted to stay CHR and the majority owner who wanted us to transition to AC, I left again. They went dark in less than nine more months and ended up spinning the AM and FM off to separate owners.
Through all this, I remained in touch with the original owners, who said if they'd been able to know all that would happen they would have just kept the stations and not changed anything. At least, they said, we were solidly in the black once we went AC.