Mephis Gooseberry
05 July 2006, 11:34 AM
WRR proposal: Is this the one?
Dallas: Latest signal swap offer sweeter than most, but still divisive
11:30 PM CDT on Tuesday, July 4, 2006
By DAVE LEVINTHAL / The Dallas Morning News
Like a leap year or daybreak, there's regularity to signal swap proposals for WRR-FM (101.1) that would make an atomic clock jealous.
They go as such: A radio enterprise lusts for the Dallas-owned WRR's lucrative commercial license and transmitter tower that throws its classical music signal halfway to Austin. Wooed with promises of tens of millions of dollars, Dallas City Hall flirts with its suitors before unceremoniously sending them away, no deal.
Noncommercial Christian radio station KVTT-FM (91.7) last month became the fifth entity in 20 years to propose a signal swap. The differences this go-around are the deal itself and the timing of it. Consider:
•Some of WRR's staunchest supporters are themselves wondering whether their beloved station's value is fated to decline, as millions more people let Debussy soothe them, Jay-Z rock them and Casting Crowns inspire them via satellite or iPods or the Internet.
Leaders of Friends of WRR, a nonprofit organization that helps support the station, are noticeably divided on how best to proceed. That stands in contrast with their lock-step opposition to any past proposal slated to alter WRR's commercial status, signal or spot on the radio dial.
•KVTT-FM boasts a radio signal with identical wattage and similar coverage to that of WRR. The lousy broadcast strength of stations previously seeking to trade up for the 101.1 frequency helped unravel those deals.
•Depending on the terms of any deal, City Hall could stand to earn tens of millions of dollars – $50 million, $60 million or more, some say – simply by swapping for KVTT's more restrictive, and less valuable, noncommercial radio license.
Could it survive?
What's at stake is whether WRR – if it were to swap signals – might have a harder time surviving when it can't sell regular commercial advertising. Some fear advertisers might not follow the station to a different place on the dial where, on a noncommercial station, they'd be limited to dry sponsor spots.
"Any of the past deals have been miserable deals, but this is far, far better than any of those swap deals," said Clayton P. Henry, president of Friends of WRR, which averages about 1,000 dues-paying members. "By becoming a noncommercial station, it would take away having a big, red target on our back. It could preserve classical music in Dallas."
Future Dallas City Councils – they have ultimate control over WRR – would be less apt to sell a noncommercial WRR during difficult fiscal times because of its decreased value, Mr. Henry said. And any cash earned from a signal swap should be placed in a protected endowment not easily tapped by politicians for general city use, he said.
But Sarah White, a co-founder of Friends of WRR, roundly disagreed.
"What we have now is a free and important service for citizens. It's a cultural asset not to be tampered with," Ms. White said. "And as a noncommercial radio station, there's just too much money for WRR to raise. It'd compete with other arts organizations. And the station in that form wouldn't exist very long. I'd give it a year to 18 months."
Said Louis Ainsworth, another group member: "The only true way to support WRR is by leaving what's working, working."
Cherri Oakley, an executive board member of Friends of WRR, and Donna Blumer, a former City Council member and longtime classical music supporter, said they're torn.
Ms. Oakley's primary concerns are WRR's signal strength at the 91.7 frequency and its ability to remain profitable.
"This has signs of being a better deal. We're not giving up as much," she said. "But I'm still not sure if it's worth it."
Ms. Blumer said she's "waiting to learn more about the deal. Maybe things are changing. Maybe the city has to take another look at it. Whatever happens, I just hope listeners don't lose anything in the translation."
Not a financial burden
Unlike most city-owned entities, WRR is self-sustaining and doesn't typically receive city subsidies.
And the station has turned a modest profit – between $215,679 and $1,066,768 – in each of the past 10 years, city records indicate. In 2004, WRR recorded its third-lowest unadjusted profit of the past decade ($273,890), and in 2005, it recorded its fourth-lowest ($345,131).
In contrast, the city-owned Meyerson Symphony Center, which is not a self-sustaining entity, has seen its annual expenditures outpace revenues by more than $2 million in recent fiscal years, according to city records. The city-owned Latino Cultural Center has also lost money in each of the three full years it has operated.
Opponents of a signal swap fear WRR would also begin losing money if it couldn't sell "call to action" advertisements, as it may currently do given its commercial status.
A primary difference between commercial and noncommercial is this: On a commercial station, Wild Bill may hoot and holler and insist you patronize his general store, lest he send his posse out in your direction. On a noncommercial station, Wild Bill is relegated to informing you of his store's existence, its location and the services he provides.
Subtle? Maybe. But Greg Davis, WRR's general manager, said many of the station's current advertisers wouldn't migrate to a noncommercial WRR or would buy fewer spots, even if it remained Dallas' only on-air classical music station.
Mr. Davis' boss, Dallas Office of Cultural Affairs director Maria Munoz-Blanco, says her office will continue researching signal swaps. Numerous questions, especially WRR's viability as a noncommercial property, remain.
"I don't know how it's going to play out," Ms. Munoz-Blanco said. "The opinions on what to do seem to go in both directions."
Anatomy of a deal
In late spring, Martin Greenberg, a local radio guru and businessman who is representing Christian radio broadcasting company Salem Communications, began discussing a signal swap proposal with City Council members and City Manager Mary Suhm.
Ms. Suhm directed Mr. Greenberg to Larry Davis, chairman of the City Council-appointed Commission on Productivity and Innovation, which exists to investigate ideas that make Dallas government more efficient.
While Salem Communications does not own KVTT, it's forged an investment relationship with the station, those close to the station and company say. Salem Communications spokeswoman Denise Davis said she wasn't initially aware of her company's involvement with KVTT but would investigate. She did not return follow-up phone calls.
Ron Evans, KVTT's general manager, says he's aware of the talks and remains relatively indifferent.
"For us, it's basically a 100,000-watt signal here or a 100,000-watt signal there," he said. "If we go to 101.1, I don't foresee any changes in our format."
Mr. Davis has pursued the signal swap aggressively. He hosted two WRR-related commission subcommittee meetings in June, in addition to one full commission meeting.
While he's friendly with both Mr. Henry and Mr. Greenberg, he said he "doesn't have a dog in the hunt." Mr. Davis said his only concerns are investigating what's best for Dallas residents and preserving city-owned classical music radio.
"Do we deal with this issue now or do we deal with this again in three or five years when the next station wants to swap for WRR? And then, that deal might not be as good," Mr. Davis said. "For people who don't support a swap, I wonder do they just want to gamble on what future councils may do to a commercial WRR?"
Mr. Davis' commission and city staff plan to use the next month to structure a potential WRR endowment, create a station business plan for operating under a noncommercial license and meet with individual City Council members, as well as Dallas arts supporters.
Proposal next month
In August, Mr. Davis says he hopes his commission will make a recommendation to Ms. Suhm. From there, city staffers will choose whether to bring the recommendation to the City Council.
City Hall is also required to request proposals from other interested parties who may also want to swap – and may be willing to pay more for WRR's signal and license than KVTT and its investors.
A survey of council members last month indicated that many of them are skeptical of a swap but remain open to the idea. Two of the three highest-ranking members – Mayor Laura Miller and Deputy Mayor Pro Tem Elba Garcia – say they categorically oppose any swap.
But unless something unforeseen derails KVTT's swap proposal, Mr. Davis says he believes the council will review it in one form or another.
E-mail dlevinthal@dallasnews.com
--------------------------------------------------------------------------------
Online at: DMN Article (http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/070506dnmetwrr.140a2c1.html)
Dallas: Latest signal swap offer sweeter than most, but still divisive
11:30 PM CDT on Tuesday, July 4, 2006
By DAVE LEVINTHAL / The Dallas Morning News
Like a leap year or daybreak, there's regularity to signal swap proposals for WRR-FM (101.1) that would make an atomic clock jealous.
They go as such: A radio enterprise lusts for the Dallas-owned WRR's lucrative commercial license and transmitter tower that throws its classical music signal halfway to Austin. Wooed with promises of tens of millions of dollars, Dallas City Hall flirts with its suitors before unceremoniously sending them away, no deal.
Noncommercial Christian radio station KVTT-FM (91.7) last month became the fifth entity in 20 years to propose a signal swap. The differences this go-around are the deal itself and the timing of it. Consider:
•Some of WRR's staunchest supporters are themselves wondering whether their beloved station's value is fated to decline, as millions more people let Debussy soothe them, Jay-Z rock them and Casting Crowns inspire them via satellite or iPods or the Internet.
Leaders of Friends of WRR, a nonprofit organization that helps support the station, are noticeably divided on how best to proceed. That stands in contrast with their lock-step opposition to any past proposal slated to alter WRR's commercial status, signal or spot on the radio dial.
•KVTT-FM boasts a radio signal with identical wattage and similar coverage to that of WRR. The lousy broadcast strength of stations previously seeking to trade up for the 101.1 frequency helped unravel those deals.
•Depending on the terms of any deal, City Hall could stand to earn tens of millions of dollars – $50 million, $60 million or more, some say – simply by swapping for KVTT's more restrictive, and less valuable, noncommercial radio license.
Could it survive?
What's at stake is whether WRR – if it were to swap signals – might have a harder time surviving when it can't sell regular commercial advertising. Some fear advertisers might not follow the station to a different place on the dial where, on a noncommercial station, they'd be limited to dry sponsor spots.
"Any of the past deals have been miserable deals, but this is far, far better than any of those swap deals," said Clayton P. Henry, president of Friends of WRR, which averages about 1,000 dues-paying members. "By becoming a noncommercial station, it would take away having a big, red target on our back. It could preserve classical music in Dallas."
Future Dallas City Councils – they have ultimate control over WRR – would be less apt to sell a noncommercial WRR during difficult fiscal times because of its decreased value, Mr. Henry said. And any cash earned from a signal swap should be placed in a protected endowment not easily tapped by politicians for general city use, he said.
But Sarah White, a co-founder of Friends of WRR, roundly disagreed.
"What we have now is a free and important service for citizens. It's a cultural asset not to be tampered with," Ms. White said. "And as a noncommercial radio station, there's just too much money for WRR to raise. It'd compete with other arts organizations. And the station in that form wouldn't exist very long. I'd give it a year to 18 months."
Said Louis Ainsworth, another group member: "The only true way to support WRR is by leaving what's working, working."
Cherri Oakley, an executive board member of Friends of WRR, and Donna Blumer, a former City Council member and longtime classical music supporter, said they're torn.
Ms. Oakley's primary concerns are WRR's signal strength at the 91.7 frequency and its ability to remain profitable.
"This has signs of being a better deal. We're not giving up as much," she said. "But I'm still not sure if it's worth it."
Ms. Blumer said she's "waiting to learn more about the deal. Maybe things are changing. Maybe the city has to take another look at it. Whatever happens, I just hope listeners don't lose anything in the translation."
Not a financial burden
Unlike most city-owned entities, WRR is self-sustaining and doesn't typically receive city subsidies.
And the station has turned a modest profit – between $215,679 and $1,066,768 – in each of the past 10 years, city records indicate. In 2004, WRR recorded its third-lowest unadjusted profit of the past decade ($273,890), and in 2005, it recorded its fourth-lowest ($345,131).
In contrast, the city-owned Meyerson Symphony Center, which is not a self-sustaining entity, has seen its annual expenditures outpace revenues by more than $2 million in recent fiscal years, according to city records. The city-owned Latino Cultural Center has also lost money in each of the three full years it has operated.
Opponents of a signal swap fear WRR would also begin losing money if it couldn't sell "call to action" advertisements, as it may currently do given its commercial status.
A primary difference between commercial and noncommercial is this: On a commercial station, Wild Bill may hoot and holler and insist you patronize his general store, lest he send his posse out in your direction. On a noncommercial station, Wild Bill is relegated to informing you of his store's existence, its location and the services he provides.
Subtle? Maybe. But Greg Davis, WRR's general manager, said many of the station's current advertisers wouldn't migrate to a noncommercial WRR or would buy fewer spots, even if it remained Dallas' only on-air classical music station.
Mr. Davis' boss, Dallas Office of Cultural Affairs director Maria Munoz-Blanco, says her office will continue researching signal swaps. Numerous questions, especially WRR's viability as a noncommercial property, remain.
"I don't know how it's going to play out," Ms. Munoz-Blanco said. "The opinions on what to do seem to go in both directions."
Anatomy of a deal
In late spring, Martin Greenberg, a local radio guru and businessman who is representing Christian radio broadcasting company Salem Communications, began discussing a signal swap proposal with City Council members and City Manager Mary Suhm.
Ms. Suhm directed Mr. Greenberg to Larry Davis, chairman of the City Council-appointed Commission on Productivity and Innovation, which exists to investigate ideas that make Dallas government more efficient.
While Salem Communications does not own KVTT, it's forged an investment relationship with the station, those close to the station and company say. Salem Communications spokeswoman Denise Davis said she wasn't initially aware of her company's involvement with KVTT but would investigate. She did not return follow-up phone calls.
Ron Evans, KVTT's general manager, says he's aware of the talks and remains relatively indifferent.
"For us, it's basically a 100,000-watt signal here or a 100,000-watt signal there," he said. "If we go to 101.1, I don't foresee any changes in our format."
Mr. Davis has pursued the signal swap aggressively. He hosted two WRR-related commission subcommittee meetings in June, in addition to one full commission meeting.
While he's friendly with both Mr. Henry and Mr. Greenberg, he said he "doesn't have a dog in the hunt." Mr. Davis said his only concerns are investigating what's best for Dallas residents and preserving city-owned classical music radio.
"Do we deal with this issue now or do we deal with this again in three or five years when the next station wants to swap for WRR? And then, that deal might not be as good," Mr. Davis said. "For people who don't support a swap, I wonder do they just want to gamble on what future councils may do to a commercial WRR?"
Mr. Davis' commission and city staff plan to use the next month to structure a potential WRR endowment, create a station business plan for operating under a noncommercial license and meet with individual City Council members, as well as Dallas arts supporters.
Proposal next month
In August, Mr. Davis says he hopes his commission will make a recommendation to Ms. Suhm. From there, city staffers will choose whether to bring the recommendation to the City Council.
City Hall is also required to request proposals from other interested parties who may also want to swap – and may be willing to pay more for WRR's signal and license than KVTT and its investors.
A survey of council members last month indicated that many of them are skeptical of a swap but remain open to the idea. Two of the three highest-ranking members – Mayor Laura Miller and Deputy Mayor Pro Tem Elba Garcia – say they categorically oppose any swap.
But unless something unforeseen derails KVTT's swap proposal, Mr. Davis says he believes the council will review it in one form or another.
E-mail dlevinthal@dallasnews.com
--------------------------------------------------------------------------------
Online at: DMN Article (http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/070506dnmetwrr.140a2c1.html)