Exploring options for Classic KING-FM
Welcome to Seattle's next media melodrama, this time concerning an icon in Seattle's cultural history. Much more than a single radio station is at stake.
KING.org
Seattle classical music station KING-FM last week laid off three on-air hosts in a cost-cutting move. Station manager Jennifer Ridewood said that the board that governs KING-FM directed her to reduce expenses “proactively” in the face of looming economic troubles. While the layoffs will reduce expenses in the short term, the future of KING-FM will require the station to generate more revenue. Oddly enough, this crisis may be just the opportunity that KING-FM has needed for years.
To understand how the station got into this fix, and what may be next for KING-FM, it’s useful to understand the station’s complex history and management structure.
KING-FM’s governing board oversees a non-profit organization called “Beethoven,” which was created in 1994 to assume ownership of the previously for-profit classical music station, which the two Bullitt sisters were donating. Classic KING-FM first came on the air in 1948. After KING Broadcasting sold its commercial TV operations to the company publishing the Providence Journal (later sold to Dallas-based Belo), KING-FM was donated to Beethoven to preserve the classical format and benefit local music groups.
The Beethoven board is made up of representatives from the Seattle Symphony, Seattle Opera, and ArtsFund, as well as representatives for Priscilla Bullitt Collins and Harriet Bullitt. KING-FM is owned by a non-profit but is still run as a commercial station. When it makes money, it gives the profits to the three non-profit arts groups in the partnership, who each receive a one-third share or “dividend.” That dividend has totaled $7 million over the years.
According to Beethoven board member Jim Tune, CEO of ArtsFund, this past June, KING-FM paid a total dividend of $210,000, which was split three ways among ArtsFund (which passes money on to smaller musical groups), the Seattle Symphony, and the Seattle Opera. This year’s dividend was down about 40 percent from the year before. In fact, the dividend amount topped out at $750,000 during the dot-com boom of 1999, but has been in decline ever since (though stable at $500,000 from 2001 to 2006). Here’s a year-by-year rundown: 1995, $200,000; 1996, $400,000; 1997, $425,000; 1998, $600,000; 1999, $750,000; 2000, $625,000; 2001, $500,000; 2002, $500,000; 2003, $500,000; 2004, $500,000; 2005, $500,000; 2006, $500,000; 2007, $350,000; 2008, $350,000; 2009, $210,000; 2010 (projected), $0.
Next year will be the first time that KING-FM will not pay a dividend to the three partner organizations since the partnership was formed. When asked about the specific impacts that declining KING-FM dividends have had on the Seattle Opera, Seattle Opera executive director Kelly Tweeddale said, “Any time an arts organization loses a significant funder, it has impact.” Seattle Symphony executive director Thomas Philion said, “KING-FM is an essential part of our community, and contributes so much more than annual dividends.”
So what's causing the decline? Obvious culprits are the faltering economy and the moribund broadcasting industry. Radio advertising revenues are down everywhere as broadcasters grapple with the effects of the recession and the continued erosion of the traditional broadcast radio audience thanks to the Internet, mp3 players, satellite radio, etc.
But the situation for KING-FM is different. It doesn't face the typical revenue fluctuations of a station that sells its own advertising. According to Fisher Broadcasting general manager Jim Clayton, Fisher (who operates several radio stations, including KOMO, KVI, and Star 101.5) has a “Joint Sales Agreement” with KING-FM, paying the station a flat amount each month for the right to sell KING's commercial airtime. Fisher keeps all the proceeds from what it sells of KING-FM’s time up to a certain undisclosed amount, above which Fisher and KING-FM share the revenue. Clayton says that this revenue-sharing level has not been reached during his three years with Fisher.
KING-FM’s Jennifer Ridewood says that under the current contract, Fisher pays less per month than it did under a previous agreement, adding that Fisher made reduction of the flat monthly fee a condition of renewing for the current period. KING-FM had no other choice than to go along, Ridewood says, since there weren’t any other companies interested in selling KING-FM airtime.
Another reason for the drop in KING's payout to the arts groups is that the $500,000 paid out in 2006 and the $350,000 paid out in both 2007 and 2008 was probably too much. These amounts were based on projections of revenue-sharing with Fisher that simply didn't come true. In effect, the Symphony, Opera, and ArtsFund were overpaid by KING-FM for the past several years. Now the station is catching up, and moving toward a dividend system based on actual numbers rather than projections.
Clayton says that KING-FM’s classical music has always been a “niche format,” and that it has been especially tough to sell during the recession. He also says that in the old ratings system (diaries filled out by a sample group of listeners), KING-FM’s ratings were “not very big to begin with” and that with the new automated, real-time People Meter ratings system, “they disappeared.” KING-FM listeners, says Clayton, “are a small but very devoted group.”
Add all this up and you have a station in trouble and likely to need to make some serious changes to avert a chronic crisis. But KING-FM is not just any old Seattle radio station that can fire a morning host here, or a program director there, and then maybe flip the format to oldies or talk. KING-FM occupies a special role in the fragile ecological system that is Seattle culture. It is an icon, having been founded by the legendary broadcasting pioneer Dorothy Bullitt, who nurtured (and likely subsidized) the station's format for more than 40 years. Then her daughters saved it from almost-certain format change by donating it to the community and the musical beneficiaries. It's also the only outlet for classical music in the Seattle area. The stakes for KING-FM have always been high.
Assuming that KING-FM wishes to continue to provide these dual services to the community — playing classical music, and providing support to its three partner organizations — it appears that the board has three options.
Business As Usual. KING could keep minimizing costs and pushing for more revenue (say by running ads more frequently), just like any radio station trying to stay afloat in a challenging time. But given the radical changes in media and audio content delivery, KING-FM (or any radio station for that matter) may never again generate the kind of revenue that was common just a few short years ago, and this may mean that arts groups may not see another penny from KING-FM.
KING's sales agreement with Fisher runs through July 2011. Fisher's Clayton says, “we want them to succeed, and we have a financial stake in the station’s success.” He seems ready to work with KING-FM to try a new approach, noting that he found management receptive in the past when Fisher asked KING-FM to change “somewhat restrictive” policies that, for example, limited individual advertisers to only one commercial per hour. Also likely to be looked at: tinkering with the format and programming.
The Nuclear Option. Though certainly only a remote possibility, the board could sell the station and split the proceeds three ways. While the station was donated to Beethoven with the intent that Beethoven would operate KING-FM as a classical station in perpetuity, Jennifer Ridewood says that there is nothing that would legally prevent the board from selling KING-FM, though it has not recently discussed this option.
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Comments:
Posted Thu, Oct 1, 10:26 a.m. Inappropriate
Thanks for writing this article. Very good.
Posted Thu, Oct 1, 10:41 a.m. Inappropriate
The worst would be a sale. Once gone, it would not be replaced. That said, some additional new ways to earn revenue should be explored. The station has been on autopilot, with few resource put toward it in any outside efforts, such as issuing CD's, charging for custom podcasts, or offering specialized back channels: Imagine the option for all Opera, or all Chamber Music, or all Mozart, etc. I seem to recall they cut the positon of Promotions Person a while back, and have attempted to do a lot but only with the resources on hand.
I believe there is a lot more KING FM could do if given the resources to help increase their audience, their ratings and their revenue.
Posted Thu, Oct 1, 12:12 p.m. Inappropriate
So, the local "arts community" viewed (and operated) KING-FM as a means to an end (more money for themselves) rather than an end in itself (a secure source of classical music broadcasting). Poor Dorothy Bullitt must be turning over in her grave. The revenue from KING-FM, first and foremost, should have gone into a trust fund to keep the station going during lean times like these. Instead, the arts establishment bled the operation dry and is now looking to cut its losses, just like any cynical commercial venture might. How ennobling are the arts.
Posted Fri, Oct 2, 12:28 a.m. Inappropriate
As a Seattle area resident and a producer of national radio broadcasts, I couldn't disagree with dbreneman more -- respectfully, of course.
I like to think of a classical station and the local arts organizations as a synergistic partnership.
KING-FM should be ARTS CENTRAL, promoting arts events, supporting local and visiting artists, stimulating passion for and engagement with live performances at every turn. The arts orgs in turn should provide audience and patron support for the station. KING's model of giving back to the arts organizations is community building at its absolute best.
It's not working well at the moment, though. Many of the arts groups have a dickens of a time getting air support from the station, so why should they tout the station to their patrons? Did you know that Seattle Baroque Orchestra and the Early Music Guild have their performances airing free on a national radio program that goes to 242 stations, 1.2 million listeners, but they can't get on their own local station?
KING-FM should have been keeping the city's central arts calendar and doing much more on-air to support local arts events, including having the best of the live artists in the studio.
And underlying the entire question of the station's health is the programming. We could go on for days about dull programming, but I'll just say this: in a city as smart as Seattle, it's a mistake to underestimate the listeners. We need smart programming and smart announcing. There's a lot of interesting information you can say about a Beethoven symphony but to say it's "juicy" is just so dumb it's embarrassing. Who wants to support that??
Of course, as a national producer I think Seattle residents should get to hear the best national shows. I did an interview with Paavo Jarvi today that was absolutely stunning. And I'm just editing a feature on Sibelius that inspires even jaded old me. Too bad it won't air here.
Come on, Seattle. Demand more.
Marty Ronish
Producer, BP Chicago Symphony Orchestra Broadcasts
Edmonds
Posted Fri, Oct 2, 2:57 a.m. Inappropriate
I agree fully with dbreneman. KING has been used as a cash cow, and run dry. The author touches all too briefly on the vulgarity of the commercials that blight its broadcasts. How, or why, anyone would listen is beyond me. The classic offerings on satellite may not be perfect, but are a heckuva lot better than KING. In its present, unlistenable form, KING deserves to quietly die.
But then, I'm still mourning the loss of the old KING TV. I'd take it over the Bullitt Foundation any day.
Posted Fri, Oct 2, 9:36 a.m. Inappropriate
Well, it seems as though Snoqualman and I are in complete agreement. What happened to KING Broadcasting is a real shame, because Dorothy Bullitt had a spiritual heir (a niece, I believe) who actually wanted to go into the "family business" and could have run KING Broadcasting as the founder intended. However, the Bullitt kids wanted the money; and the rest, as they say, is history. KING-TV used to have a first rate news organization, but after Belo took over they became just another KOMO-Muppet-Nooz outfit. I can't watch that stuff. It turns my stomach. What a shame that a great broadcasting empire was lost due to the lust for money. I have no use for the Bullitt Foundation and the shameful way it was funded on the backs of hundreds who lost their livelihood when "Mom's silly business" was shut down.
Posted Fri, Oct 2, 2:43 p.m. Inappropriate
Hi HacknFlack,
I just wanted to let you know about some of our offerings beyond the original 98.1 frequency. We now broadcast with three channels on HD radio, and have five channels online, including a dedicated KING FM Seattle Opera Channel, with host Speight Jenkins. These online channels are proving to be amazingly popular and are funded through both advertiser and listener support.
One of those channels, heard both online and on HD radio, is called the KING FM Arts Channel, where we give dozens and dozens of arts groups the opportunity to share their music and their message. The same is true on NW Focus, weeknights at 8pm on 98.1 KING FM radio, where we share word of upcoming concerts. On the KING FM Arts Channel we talk about the arts, with short musical examples. On NW Focus it's the other way around really, with performances of the music featured, but we have just enough talk to give people the information they need to learn more about the upcoming concerts, such as website URLs. While we don't choose to air much Nationally syndicated programming on NW Focus, we do feature or preview local groups every weeknight, including Seattle Baroque and Early Music Guild. If a group has a high quality recording that is "legal" for us to play, we invite them to submit it to us. We'd love to get recordings from even more NW groups and ensembles.
Our online channels?
98.1 KING FM online
KING FM Evergreen Channel
KING FM Symphonic Favorites
KING FM Seattle Opera Channel
KING FM Arts Channel
Other ideas for us? Please write me any time: PD@king.org
Bryan Lowe
Program Director
98.1 KING FM
Listen online at http://www.king.org/listen
Posted Sat, Oct 3, 3:18 a.m. Inappropriate
Thanks, dbreneman, for the history behind the death of KING broadcasting. While I do not doubt that the Bullitt Foundation has probably done worthy things, I believe that Seattle and Washington state would have been far better served had KING TV stayed alive instead. What has the plethora of enviro foundations really accomplished other than making those who fund them feel good? I have always felt that none of them can ever "buy" environmental or conservation achievements. Indeed, too much of the NW's enviro movement has become more adept at extracting money from foundations than doing what they were initially formed to do. One could even argue that by offering the drug of easy money, foundations have actually hindered rather than helped the enviro movement, and derailed it off into an endless money chase. Had KING TV stayed as it was, it would likely have done far more good than the feel-good cash dispenser we got instead.
Posted Sat, Oct 3, 10:10 p.m. Inappropriate
Speaking as a consumer, Bryan Lowe's suggestions don't help me. When I'm on-line, which isn't often, I very seldom listen to music, and I don't have HD radio (nor do I know what it is). Most people who listen to classical music aren't in their 20s, and they aren't necessarily conversant with new technologies. What they really wish to do is simply LISTEN TO THE RADIO. But when when we do, either at home or in our cars, those hideous commercials make us switch the station. I don't want to listen to the 9th and then be assulted with a loud, stupid faux conversation. I realize that you need to finance the music and you can't logically choose your sponsors, but it's just too big a hurdle. Somehow other localities manage to fund their stations without shoveling that garbage into their listeners' ears. Why is Seattle different?
Posted Tue, Oct 13, 6:02 a.m. Inappropriate
Writing from Chicago (with WFMT on in the background):
One of the reasons for the WFMT Fine Arts Circle (the official name of the listener support program) is to preserve those "tony" ads. WFMT experimented with "regular" ads about fifteen or twenty years ago. The backlash was so profound that station management started the fundraising operation and basically said to the listners, "We lose x dollars per year in advertising revenue by not accepting recorded advertising. Please help us fill that gap."
If KING wants to adopt the WFMT model, they should go all the way and get rid of the recorded advertising.
One historical note: WFMT has not always been a listener supported organization. Chicago Magazine started as the WFMT Program Guide, gradually added listings of various kinds, and ultimately became a cash cow whose profits helped subsidize the radio station. IIRC, when WFMT's owner (which also holds the license for Chicago's main PBS station) sold the magazine, the proceeds were used for general purposes rather than to support WFMT. That's when WFMT's money problems started.
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