LOS OSOS, CALIF. — For nearly 10 years, a tastemaker NPR Member station known for decades as a hub for unique Adult Alternative-influenced music and several spoken word programs has served the Central Coast of California with its “Eclectic 24” service. Soon, that will come to an end — but it depends on the FCC’s OK of a waiver putting the proposed buyer over the local radio ownership limit.
Santa Monica Community College District, licensee of KCRW in Santa Monica, Calif., and its collection of simulcast FMs and translators across Southern California, has agreed in principle to sell KERW-FM 101.3 in Los Osos-Baywood Park, due west of San Luis Obispo, to Dimes Media Corp., the privately held station ownership group born out of the Buckley family’s longtime radio operation.
With David Oxenford of Wilkinson Barker Knauer, the acclaimed Washington, D.C., attorney assisting Dimes and equally respected Brad Deutsch at Foster Garvey representing KCRW, the goal is to get the Commission to grant a waiver allowing Dimes to acquire KERW, a Class B facility with a city-grade signal stretching from the Monterey County line to the north to the city of Santa Maria, to the south in Santa Barbara County. KERW enjoys a tower atop Cuesta Peak, allowing it to clear “the grade” to the north toward Paso Robles and Templeton.
How does Dimes explain to the Commission that it can add KERW to a collection of local radio stations comprised of KYNS-AM and FM translators K229AK at 93.7 MHz and K265FI at 100.9, Classic Country “The Grade“; Americana-focused “KPIG” simulcast partner KPYG-FM 94.9 in Cayucos; Rhythmic Top 40 KWWV “Wild 106.1” in Santa Margarita; and Adult Hits-Adult Alternative hybrid KXTZ-FM in Pismo Beach and KXDZ-FM 100.5 in Templeton, branded as “The Beach“?
First, Dimes asserts that “even with this acquisition, the audience and advertising share of Dimes is far below that of the dominant radio competitor in the market.” That would be American General Media, which was unable to buy the facility today known as KERW in 2016 and presently owns FMs including Country KKJG “K-Jug,” Adult Contemporary KSTT “Coast 104.5,” Classic Rocker KZOZ, and Adult Alternative KKAL “The Krush.”
Indeed, AGM’s ratings and revenue position in San Luis Obispo have been stronger than Dimes Media and its predecessor. But, does that justify a fifth FM, growing the Dimes stable past that of its competitor? “The unique terrain of the San Luis Obispo, Calif., market supports a different ownership analysis, particularly as no Dimes stations provide full market coverage.”
That statement will most likely be challenged by AGM or another local operator. KWWV is most certainly a full market signal when considering its signal contour, a Class B1 with a pair of HD offerings that can be heard from Paso Robles to Santa Maria. Yet, the Longley-Rice propagations model shows the Wild 106.1 signal in Paso Robles is just shy of city grade — giving Dimes an argument.
Supporting its claim is the KPYG signal contour, which hugs the coast, and its statement that KXTZ cannot be heard in North San Luis Obispo County — hence the simulcast with KXDZ, which is a Class A facility with a signal that fades when one drives down the Cuesta Grade to San Luis Obispo and points south.
As such, KXDZ — in Dimes’ opinion — should not be counted as a San Luis Obispo station, and therefore KERW can be acquired.
There’s also a matter regarding AGM that Dimes addresses: its ownership of radio stations in Santa Maria, Calif., that have proven to be very popular and attract listeners in the “Five Cities” region of San Luis Obispo County, south of the city. Country KSNI-FM 102.5 is singled out, using Nielsen Audio ratings to substantiate its popularity within the San Luis Obispo market. Rhythmic Top 40 KPAT “The Beat” also attracts listeners, but this station’s city grade signal ends just shy of the Five Cities.
A LONE BIDDER SURFACES
While California’s Central Coast is one of the Golden State’s more underdeveloped areas, it is rich with vineyards, unspoiled surf and top-flight universities. San Luis Obispo is also home to Mindbody, the wellness industry app developer.
Local media, however, has been severely challenged as some marketers have placed their ad buys in bigger San Francisco and Los Angeles, respectively. Fresno is a two-hour drive to the northeast. Thus, McClatchy’s The Tribune has cut back on its printed editions. The E.W. Scripps Co.’s NBC affiliate, KSBY-6, has noticeably introduced young journalists and reporters following the departure of Ed Chapuis over what sources say were revenue challenges. Then, there is the radio marketplace, which has been mired in a thick marine layer for several years. Popular hosts including Adam Montiel were dismissed from AGM due to budget concerns. Dimes Media has been a laggard, but sees potential to better compete and grow.
As such, Dimes put in a bid for KCRW’s “Eclectic 24” home. It was the only bidder for the station, and the argument is made in the waiver request that a third-party buyer is unlikely because KERW cannot be operated profitably as a stand-alone station. Notably, Adelman Broadcasting, which owns KTEA-FM and KCJZ-FM in Cambria, did not submit a bid, likely due to financial constraints or disinterest.
Lastly, “competitive pressure from digital audio platforms” and serving the public interest are noted as reasons to grant the waiver.
THE DEAL DETAILS
The proposed sale of KERW, signed on December 16, will come at a total cost of $237,500. A $13,750 deposit has been placed in escrow. That deposit may be kept should KCRW’s parent terminate the agreement.
Additionally, an extension fee of $23,000 has been agreed to, should FCC approval be a lengthy process requiring a comment period and decision from the Media Bureau based on public input.
Serving as Santa Monica College’s broker is Brett Miller.
Should the FCC allow Dimes to acquire KERW, the reaction from AGM could be one of anger. A decade ago, El Dorado Broadcasting began the process of selling its stations in San Luis Obispo. AGM could not purchase the property then-known as KSTT-FM. Instead, it acquired the KSTT call letters and intellectual property and moved it to 104.5 MHz, where it resides today. In July 2016, a donation of the property which had temporarily taken the KJRW call letters was put in place, giving it to KCRW’s parent.
At the time, KCRW had big ambitions, including a Berlin, Germany FM. Jason Bentley and Anne Litt were key presenters offering listeners artists such as Hozier and Gotye before becoming best-selling acts at Top 40 radio. Then came an administrative change, the COVID-19 pandemic and the more recent loss of Corporation for Public Broadcasting funding. A backlash of NPR Member stations tied to perceptions over its spoken word content’s liberal bias also played a specter to KCRW.
In this case, however, the sale of KERW signals a changing paradigm for how to deal with royalty fees associated with recorded music. Some industry observers believed the acquisition of KERW was a way Santa Monica College could reduce its fee payments for “Eclectic 24,” heard only on HD2 signals across the KCRW network and via streaming audio. Others contended KERW provided KCRW a voice in a market where simply simulcasting its HD1 programming put locally based NPR Member KCBX at risk, in addition to Cal Lutheran University’s KCLU.
For nine years and nearly two months, “Eclectic 24” has attracted a small but loyal group of listeners to 101.3 MHz in San Luis Obispo County. Soon, that will end. The biggest questions, however, are when — and if Dimes will be the company getting the station.
— With coverage from RBR+TVBR in Grover Beach, Calif.
