FCC sputtering fluttering flag flies again

Citadel's $750K deal to acquire KTIK-AM in the Boise market (RBR Daily Morning Epaper, 12/17) has drawn yet another FCC red flag. Citadel is proposing to buy the station from Diamond Broadcasting.

It would give Citadel a two-AM, four-FM cluster in Arbitron's #121 market. KTIK, which has been slowing building a Sports audience, inched up to a 1.9 12+ rating in the Spring Arbitron survey.

RBR Observation:

There are two other big clusters in town. Clear Channel (N:CCU) and Journal both have two-AM, four-FM clusters, just like Citadel will have if this deal goes through (one of Journal's AMs was unrated last spring). Five other companies hold a few more rated stations - - one AM and five FMs in all.

The following charts show the competitive situation with Citadel not owning KTIK and with it as part of the Citadel cluster. It's based on RBR database information and the Arbitron spring 2002 survey for Boise, using combined 12+ share for each owner.

If Citadel does not own KTIK

Owner AMs FMs Share

Clear Channel 2 4 28.2

Citadel 1 4 25.2

Journal 1 4 19.3

Others 2 5 10.0

If Citadel does own KTIK

Owner AMs FMs Share

Clear Channel 2 4 28.2

Citadel 2 4 27.1

Journal 1 4 19.3

Others 1 5 8.1

Source: Arbitron, RBR database

The obvious conclusion here is that the station is not strong enough to pull one of the five "other" owners up into the race at the top (the strongest of the five had a combined share of 2.6). At the same time, its impact on the top three is negligible. This is not a high-impact station transaction any way you slice it. It is just another inexplicable waste of time and money by a flag-happy FCC.