I wan to start a radio FM channel, What are the cost involved?

Question

I get all content from another provider. I want to braodcast using radio in US. I have some questions.

- Whare to look for prices?
- What is the difference between AM and FM.
- Is AM cheaper ?
- Can i get one frequency for entire USA?
- What are the initial costs and running costs?

Thanks,
Kris

Answer 1

you are in luck, ClearChannel, which owns 2000 some stations is looking for buyers.

AM stations often sell for much less than an FM in the same market. AM is generally only good for local daytime broadcasting. There are a couple of AM frequencies reserved for very high power stations to use at night without interference and they can cover about half the US. As you might imagine these are seldom sold, and the price would be outrageous.

FM coverage does not change day or night. About half of the US audience can be covered by having a station in each of the top 20 Markets (see Nielsen DMA ranks). To get the other half would require at least 200 more stations.

Both FM and AM channel assignments have been issued for years so it is not possible to get a blanket frequency at this point. But stations have minimum separatoin distances to prevent mutual interference so there would be extensive dead spaces in coverage if you stuck to one channel.

I am assuming you want to buy existing stations, and not build new. New station frequencies are auctioned off periodically by the FCC and bidding can be expected to be high. Either way, the costs of obtaining a license varies by the population base that it can cover. A station in a top 20 market may cost $200 million down to about $2 million in a very tiny market. The cost of a transmitter is usually under $200 thousand, assuming you can share existing site and tower space. Since you are not producing programs, the only other cost is to operate a business office in the station city of license.

For regulatory information, go the the site FCC.gov

FYI you cannot own a Radio or TV station in the United States if you are not a citizen.