"Betting" on KNX

Numerous outlets, including the LA Times, are reporting on the future format change of 97.1 FM to "The Fan," an all-sports outlet debuting on May 11. The all-news format will continue on 1070 AM.

For the last few years, Audacy has been expanding the reach of their BETMGM network, identified on air as "The BET." It's described as "sports programming and wager-tainment." The network is a partnership between Audacy and BETMGM, the latter based on a joint venture with MGM Resorts and London-based GVC holdings known as Roar Digital (I know, that's a lot). Roar Digital targets US markets where gambling is legal via sports betting and online gambling.

One of The BET's prominent hosts is SoCal native Jim Rome. Other than 93.1 FM HD3, Rome has not been heard in the LA market since the demise of "The BEAST 980" (KFWB) in 2016.

KNX has largely promoted their FM signal, although the AM signal continued to simulcast 90 percent of the programming (weekend mornings offer informercials only on AM). The ratings for KNX continue to improve, landing the station into the top 10, sometimes the top 5. So why would Audacy make such a drastic change?


There are two other sports outlets in the SoCal market, AM 570 (KLAC) the flagship for the MLB Dodgers, the NBA's Clippers, and providing supplemental programming for the NFL's Chargers. AM 710 (KSPN) is the flagship for both the NBA's Lakers and NFL's Rams, plus the USC Trojans. 



What the LA market lacks is a sports station on the FM dial, which is already offered in New York (WFAN), Chicago (WSCR), Dallas (KRLD-FM / KTCK), Houston (KFNC-FM), and San Francisco (KNBR-FM / KGMZ-FM). 

By creating "97.1 The FAN," Audacy will distinguish their latest venture as LA's only full-time sports offering on FM. It's also fairly well known Audacy has long been frustrated in not having an LA outlet for The BET network, as it is betting on (excuse the pun) the future of radio will be on sports-related wagering and that the all-news audience will migrate back to AM. 

The AM station is still one of the strongest on the west coast, only iHeart's KFI has a more powerful signal. KNX offers a Class-A 50,000 watt signal, easily reaching all of Southern California and beyond. Yet given the improvement in the station's ratings since the introduction of the FM simulcast, it is viewed as a surprise by many, including the staff at the station's Wilshire Boulevard studios.

A veteran radio executive with extensive knowledge of information programming offered the following:
 
You cannot have a network, sports or otherwise, and not be in the #2 market in the country. The shortsighted mistake is assuming the 70% of the current audience that is on the FM will simply shift to the AM, or stream the station. That never happens. In every instance I know of where an FM was taken from an AM simulcast, and there are many, the audience dropped 20 - 30% at the flip and continued to erode. Same with revenue. Another really bad business decision by a dying desperate company with weak, feckless LA management. 

Courtesy Rob Archer

Others state it's another vote of "no confidence" about the future of all-news programming in SoCal. A couple of months ago, Audacy decided to simulcast KNX and sister station KCBS-San Francisco overnights to save money. With the announcement of the demise of the FM simulcast, several KNX staffers "are quite concerned" about their future.

For what it's worth, we were working on a story wondering if the radio industry is literally training their local audiences not to care anymore about what they're hearing. It's a work in progress. Today's news about KNX isn't challenging that thesis.

ayodaradio@gmail.com

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