From: lightw@cetra.trl.OZ.AU (Liron Lightwood)
Subject: Dying AM stations (was Re: AM stereo)
Originator: wdp@gagme
Organization: GAGME - Public Access UNIX of Chicago, Illinois, USA, Earth
Date: Wed, 22 Jul 1992 09:48:33 GMT

john@zygot.ati.com (John Higdon) writes:

(deleted)

>As our moderator is aware, my opinion is that AM is dead and is just
>waiting to be buried. Frankly, I hope someone does it soon so that the
>corpse does not stink up the environment. This particular station is
>being kicked off the land that its towers occupy and is having
>considerable difficulty finding somewhere to go. I think the owner is
>nuts to even consider spending the cool quarter million that it will
>take to relocate it, but then it is his money. It would be the
>first AM in this market to go dark and maybe that is the reason he
>wants to keep it alive for now.

>Pride is certainly expensive!

Yeah, that happenned to an AM station here in Melbourne Australia last
year - it went off the air for nearly a year and only just started up
again on a new frequency and with a new identy and owner.

The station was called 3XY on 1422 Khz and was the number one rock station in 
Melbourne during the 1970's and early 1980's.  Here is a brief history of
its demise.  Note that the company names are to the best of my knowledge
and may not be 100% accurate.  Moderator: if you feel that the company
names should be deleted, you are free to do so.

All $ values are in Australian dollars, $1 Aus = $0.74 US at present,
though was $75-$80 or more during 1988-1991.

1986 or 1987, - ratings of 8% compared with 11%-13% for the two only FM rock
                stations
              - Sold to Paul Dainty corporation (a music promoter I think)
                for $35 million! (that's over $US25 million - still !)

middle 1988   - ratings of 6% compared to 13% for two FM rock stations
              - Bought by Catholic Church for $12 million

late 1988     - Format change from Ppo and rock to "Easy rock" (over 30's)
              - ratings immediately plummited to 3%, while ratings of
                FM rock stations jumped to 15%

late 1989     - ratings of around 1-2%
              - Station bought by a Geelong (small city 80 km from
                Melbourne) FM station for $1.5 -2.0 Million.  The Geelong
                FM station, BAY FM 93.9 starts broadcasting in December and
                simulcasts with 3XY from 6am to 6pm nightly.  Format of BAY
                FM is everything from rock to dance music, a little of
                everything but not much of anything.  3XY's format is
                unchanged from 6am to 6pm daily.

January 1990  - Existing Geelong AM station (3GL 1341) (with existing audience
                and therefore, quite an advantage) moves to FM 95.5.
                Format is rock, but targeted for an older audience than BAY FM
                N.B.  BAY FM and FM 95.5 are the only commercial stations
                in Geelong
              - 3XY is now simulcasting 24 hours a day with BAY FM, with
                all programs coming from Geelong.  3XY has lost its
                Melbourne identity, and continues to do poorly in the
                ratings.

February 1991 - BAY FM/3XY is losing lots of money (in the order of
                thousands per month.  Receivership looks like a real
                possiblility.
              - Furthermore, they are forced to stop simulcasting 3XY with 
                BAY FM (by the Australian Broadcasting Tribunal I think) and
                now have to produce separate programs for 3XY.
              - BAY FM makes a format change to easy listening, in order to
                capture the over 40's market which is uncatered for in
                Geelong (a good move financially in my opinion).
              - 3Xy starts separate programs, but they still come from
                Geelong

March 1991    - 3XY cannot afford to subscribe to the radio ratings
                service, and their ratings results are no longer published.
              - 3XY moves to a new transmitter site and erects a new
                transmitter, one which (based on what I have read or heard)
                was of considerably lower quality than the previous one.  For
                example, the AC hum was quite loud during quite music periods 
                or when the DJ was talking.  Whether this move was voluntary 
                or forced upon them, and why, I don't know, but I suspect it 
                had to do with saving money.
              - The owners of 3XY want to sell the station

Mid 1991      - Morale at 3XY is at an all-time low, and finances are getting
                desperate.  Reports in the papers say, for example, that they 
                are only able to give out the weather forecast because the
                brother of someone who works there rings up every morning!
              - Meanwhile, BAY FM is doing much better.  They are alot
                healthier than before their format change
              - 3XY has been sold to a consortium for $500,000 (!)  They
                prepare a new format, studios, lineup, even hire people who
                quit their old jobs.  A relaunch date is set.
              - Due to financing problems the sale falls through.

August 1991   - 3XY is bought by AWA media for $500,000.  This time the sale
                is successful.
              - After a couple of days, 3XY is closed down.  The end of an
                era in Melbourne.
              - The new owners prepare a new studio, transmitter location,
                format, etc for the relaunch of 3XY, which would occur on a new 
                frequency of 693 Khz and under a new callsign of 3EE
                Expected commencement date is in February 1992

February 1992 - Commencement date delayed to March or April, then to Jun3
                1, then to July 3, due to various delays
 
July 1992     - 3EE commences transmission again with an easy-listening/talk
                format.
                 
>From what AWA media have said, 3EE has a good chance of being a successful
station, even if they only get low ratings.  The current owners have had
quite alot of experience in radio (owning a very successful Melbourne radio
station at one time) and are running 3EE with very few staff (only around
19 full-time staff).

Also, BAY FM is doing quite well.

Liron Lightwood                     Internet : r.lightwood@trl.oz.au
Telecom Research Laboratories       Phone : +61 3 253 6535
770 Blackburn Road                  Snail : P.O. Box 249 Clayton 3168 Australia
Clayton  Vic. 3168 Australia        Disclaimer : My views are not my company's

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