From: fybush@y (Scott D Fybush)
Subject: Duopoly <was Re: Ownership of Multiple FMs>
Originator: wdp@gagme
Organization: world.std.com
Date: Tue, 26 Jan 1993 22:53:04 GMT



I've been thinking this over at great length lately, as the Boston
market gets more and more consumed by duopolies.  In the last few
months we've seen:

1) The Boston Radio Group:  WXKS AM-FM from Pyramid Bcstg,
WRKO-WBMX(FM) from Atlantic Ventures merging and purchasing WHDH(AM)
in the process.

2) Infinity (WBCN-FM) planning to buy Cook Inlet's WZLX-FM, thus
consolidating the town's AOR and classic rock outlets.  (This deal
still awaits all-but-certain-now FCC approval).

3) Greater Media (WMEX-WMJX(FM)) buying Emmis' WCDJ(FM).

4) Granum (WBOS-FM) buying Noble's WSSH-FM.

Boston is now the most-duopolied city in America.  And although I
despised the duopoly when it was first made legal, I'm starting to
change my mind.  Here's my logic:

Each individual radio station still needs more or less the same amount
of air talent to operate, no matter who runs it.  So far, the total
jobs lost to jocks here is exactly one, as WBMX's live overnight is
replace with automation.  Casualty of the duopoly?  Not so...the
live overnight had only been introduced a few months ago anyway,
and it was just as non-cost-effective for Atlantic Ventures as for
the new Boston Radio Group.  There may be a second jock slot lost,
but that would be if Stern lands somewhere, and THAT has nothing
to do with duopoly.  In fact, in order to win FCC approval to
buy Cook Inlet, Infinity sent a letter to the FCC vowing NOT to
run Stern on any of the Cook Inlet stations (WZLX, WUSN Chicago, or
WZGC Atlanta).  

As for consolidation of staffing, if that has any effect it will
not be to the creative/talent types, but to the front-office
salespeople and managers.  I can't see where the number of sales
or management jobs out there will affect the future of radio.


Another thing to remember: The listener doesn't know about a duopoly.
They listen to stations, not companies.  It's still in the duopoly
owner's interest to make EACH of their stations interesting to
listen to.  And if a group owner wants to promote a WHDH talk
show with spots on WRKO, so what?  It's not harming the WRKO air
product.

Will the duopoly rule force the "little guy" out of broadcast
ownership?  Let's get real.  In the markets where duopolies are
allowed, those with 5 or more stations, the little guy's
been priced out of the market for years.  Can you afford to pay
14 million dollars for a low-rated class B FM?  Me either.

And in the markets where AM-FM combos still sell for $300K, the
big corporate duopoly owners will never want to buy anyway.  If the
little guy had a chance in those markets before duopoly, that
hasn't changed.

I've been discussing the business end of the duopoly rule in e-mail
with Mark Guidotti, who has some points to make of his own as a
former "little guy" station owner...so maybe he can be persuaded
to post those.  Mark?

And as for BENEFITS to duopoly...well, here are a few:

1) Programming shifts.  Now that BRG owns Boston's two talkers,
WHDH and WRKO, they can more easily move programming from one to
the other.  When Gene Burns left WRKO to find fame and fortune
at WOR in NYC, there was no open time slot on WRKO for Gene's new
syndicated show.  No problem, though...it moved to an open
slot on WHDH.  The same is likely to happen with Larry King.

2) Increased money to spend on talent.  If a station owner owns
5 stations in one market and is profitable, that's 5 successful
stations...where there might once have been 2 successful ones
and 3 on the verge of failure.  A station that's successful
can afford to spend more to maintain that success.

I'd be interested to hear if anyone in a duopoly market can
cite any legitimate, verifiable negative effect so far from
the duopoly.

Scott Fybush -- fybush@world.std.com.  This is not necessarily the opinion of

Group W, which owns no duopolies (yet), or of WBZ, the only station in
Boston's= top 10 that's not part of a duopoly now.

[Moderator's Note:  I started to reply to Scott's article here, but it got to
be too long for a Moderator's Note.  See my followup article.  Bill]


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