It was just announced that Audacy will add an FM component to its Houston sports station KILT. On the surface, this seems logical. Spoken-word programming has been migrating to the FM band for quite some time, with varying degrees of success.
So why are many asking if Audacy made the right play?
First, the casualty in this situation is KKHH, an Adult Hits station known as “The Spot.” There have been times when KKHH has been a market force, but over the last year or so it has landed in the second half of the top ten 6+ consistently. That said, it has been one of Audacy’s better-performing stations. This is also a low-budget operation in the manner of the Jack format, so there is little savings there.
The sports format is a proven revenue generator. Sports radio runs more spots, but does that counter KKHH’s lost inventory? We know endorsements are huge in this format. Perhaps the added exposure for KILT will make these testimonials more valuable.
Second, Houston is not lighting the sports radio market on fire. Besides KILT-AM, iHeartMedia has KBME at 790AM. In the July survey, the stations COMBINED for a 2.3 share 6+, with KBME capturing more than half of that. Not exactly world-beating numbers for the format.
Every market has a different relationship with its sports teams. Perhaps the Texans, Astros, and Rockets do not generate the same level of passion we see in more provincial markets like Philadelphia or Boston. Will a migration to the FM dial tap into some currently dormant fan passion? That would be an excellent research question.
Third, could this be a preemptive strike? iHeartMedia may have an FM they would be willing to sacrifice for KNME’s gain (looking at you KQBT), but this is not something they are necessarily prone to do. We have already seen Audacy make this move in Los Angeles.
Fourth, does this have anything to do with Audacy’s new partnership with SiriusXM? This seems unlikely as the feeds are not frequency dependent.
Fifth, KILT-AM is the flagship for the Houston Texans. In the past, the games have been simulcast on KILT-FM (The Bull), which is in a constant battle with Urban One’s Country KKBQ. We have looked at the simulcast situation in the past, and it does not seem to provide a huge ratings benefit for the country station. Taking that non-music distraction away from KILT-FM could help that station in the country wars.
Finally, how will Audacy promote this merger? Obviously, the goal is to reach a wider (and younger) audience. That audience is currently not listening to KILT-AM. It will be interesting to see if Audacy invests in this situation.
The timing for this is right. An August launch puts everything in place for sports radio’s best time of year: the NFL season.
Stay tuned.
