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Salem sets rates for 2004 blocks

Religious radio giant Salem Communications, which realizes significant income from renting blocks of time to local religious organizations, has completed its annual rates negotiations with its airtime tenants. On average, it is going to be banking a 5% increase over 2003 rates.

The company also announced that, as per usual, over 90% of its tenants renewed for the year.

"The combination of our national station platform and focused programming strategy provides us with the ability to offer our block programming partners a desirable audience and national reach," said CEO Ed Atsinger. "Overall, our block programming business represents a reliable stream of revenues and cash flow which grow steadily and consistently, something no other publicly traded radio broadcaster can claim."

RBR observation:

Ain't that the truth - - Salem is the one broadcasting company of national scope with a sizable revenue stream which is not held hostage to conditions in the overall advertising environment. It sticks close to the knitting - - most of its programming is strictly on the Religious side, and its stretch into Conservative Talk is likely to appeal to its core audience.

It sells advertising, but via its block programming sale, it doesn't have to rely on advertising revenue exclusively. It has a wide-ranging portfolio of O&O stations in varying but related formats, and also serves hundreds of other stations via its radio networks.

Salem has managed to find an expansive approach to its business while keeping its overall theme tightly focused - - a pretty neat trick in the end.