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WEBVTT 00:00:00.000 --> 00:00:04.400 Every time I post something about AM radio, somebody's 00:00:04.400 --> 00:00:06.580 got to show up in the comments with, radio is 00:00:06.580 --> 00:00:11.980 dead. I have Spotify. And I get it. But the framing 00:00:11.980 --> 00:00:15.320 misses almost everything that's actually interesting 00:00:15.320 --> 00:00:19.179 about this story. I'm Tyler. This is the Tyler 00:00:19.179 --> 00:00:22.640 Woodward Project at tylerwoodward .me. And everything 00:00:22.640 --> 00:00:27.719 in this episode is my opinion. Now today, I want 00:00:27.719 --> 00:00:30.280 to talk about what's really happening to AM radio. 00:00:30.839 --> 00:00:34.520 Not the consumer side, but the infrastructure 00:00:34.520 --> 00:00:37.740 side, because those are very two different conversations 00:00:37.740 --> 00:00:48.000 and only one of them really matters. Let's start 00:00:48.000 --> 00:00:52.500 where things actually stand. The FCC had about 00:00:52.679 --> 00:00:55.859 a little over 4 ,300 licensed AM stations as 00:00:55.859 --> 00:01:01.179 of early 2026, down from the peak of nearly 5 00:01:01.179 --> 00:01:06.819 ,000 back in 1991, and down about 7 % over the 00:01:06.819 --> 00:01:10.420 last decade. Commercial FM has only slipped about 00:01:10.420 --> 00:01:14.019 2 % over the same period. The decline is real, 00:01:14.540 --> 00:01:17.480 it's definitely measurable in specifically hitting 00:01:17.480 --> 00:01:22.469 AM radio. But... The license count doesn't tell 00:01:22.469 --> 00:01:24.750 you what's actually happening. It's not the whole 00:01:24.750 --> 00:01:28.950 story a station can hold a license and be completely 00:01:28.950 --> 00:01:32.829 silent at any given moment and Well, there's 00:01:32.829 --> 00:01:35.269 roughly about 100 a .m. Stations that are licensed 00:01:35.269 --> 00:01:39.590 in dark right now and the FCC has a 12 month 00:01:39.590 --> 00:01:43.609 rule if you go silent for a year Your license 00:01:43.609 --> 00:01:47.269 automatically expires recent FCC decisions have 00:01:47.269 --> 00:01:50.450 been pretty clear that financial reasons don't 00:01:50.450 --> 00:01:53.670 qualify for the hardship exemption you choose 00:01:53.670 --> 00:01:57.109 to go dark you choose to lose the license which 00:01:57.109 --> 00:02:01.730 means groups have been quietly making a choice 00:02:01.730 --> 00:02:06.510 in early 2025 cumulus and town square both of 00:02:06.510 --> 00:02:09.530 those guys silenced more than 20 stations in 00:02:09.530 --> 00:02:14.530 a single month wftw 1260 fort walton beach on 00:02:14.530 --> 00:02:18.939 the air for over 70 years just gone Not sold. 00:02:19.240 --> 00:02:24.639 Not reformatted. Off. Townsquares, COO said that 00:02:24.639 --> 00:02:26.860 these stations are losing money on tower leases 00:02:26.860 --> 00:02:31.259 and utility costs. That's not a spin. That's 00:02:31.259 --> 00:02:36.020 the actual problem. Because, well, the dirt is 00:02:36.020 --> 00:02:39.900 worth more than the signal. The thing that explains 00:02:39.900 --> 00:02:44.159 AM's decline more than any audience number metric 00:02:44.159 --> 00:02:47.979 is this. For a lot of stations in major markets, 00:02:48.199 --> 00:02:52.099 the transmitter site itself is worth substantially 00:02:52.099 --> 00:02:58.159 more than the broadcast license. Cumulus sold 00:02:58.159 --> 00:03:01.939 WMAL 630, the transmitter site in Bethesda, to 00:03:01.939 --> 00:03:08.479 a home builder for $74 million. A Clear Channel 00:03:08.479 --> 00:03:12.360 AM in New Jersey sold its tower property to a 00:03:12.360 --> 00:03:15.400 warehouse developer for $51 million. million. 00:03:16.340 --> 00:03:19.639 iHeart sold off hundreds of tower sites to third 00:03:19.639 --> 00:03:23.060 -party owners and leased them back. The real 00:03:23.060 --> 00:03:25.740 estate transactions, they're not incidental to 00:03:25.740 --> 00:03:30.240 the story, they are the story. And on the operating 00:03:30.240 --> 00:03:34.800 side, a 50 ,000 watt AM in New Jersey can run 00:03:34.800 --> 00:03:37.500 eight to nine thousand dollars a month in electricity 00:03:37.500 --> 00:03:40.939 alone. That's before tower maintenance, before 00:03:40.939 --> 00:03:44.379 the FAA repainting requirement that runs Anywhere 00:03:44.379 --> 00:03:46.939 up to a hundred thousand per tower every few 00:03:46.939 --> 00:03:52.400 years before the ground system And get this speaking 00:03:52.400 --> 00:03:54.759 of the ground system an AM directional antenna 00:03:54.759 --> 00:03:58.379 Needs hundreds of buried copper radials people 00:03:58.379 --> 00:04:00.860 literally dig these things up and sell them for 00:04:00.860 --> 00:04:04.139 scrap I Don't recommend doing it because AM is 00:04:04.139 --> 00:04:05.900 quite dangerous if you decide to touch it while 00:04:05.900 --> 00:04:10.379 it's live, but you know you do you All I'll say 00:04:10.379 --> 00:04:13.199 is stations have gone dark for over a year because 00:04:13.199 --> 00:04:17.579 of copper theft that's just where we are when 00:04:17.579 --> 00:04:20.779 ad revenue is falling and the dirt under your 00:04:20.779 --> 00:04:24.660 tower is worth eight figures the math on keeping 00:04:24.660 --> 00:04:29.079 the transmitter running well it's stops working 00:04:29.079 --> 00:04:33.160 pretty fast the group owners they've all made 00:04:33.160 --> 00:04:37.720 their decision the major groups are each handling 00:04:37.720 --> 00:04:41.180 this a little differently but They're all trending 00:04:41.180 --> 00:04:45.220 in the same direction. iHeart has been running 00:04:45.220 --> 00:04:50.500 its AMs primarily as a feeder for its FM translators. 00:04:51.180 --> 00:04:54.259 The AM stays licensed so the translator can exist, 00:04:54.680 --> 00:04:58.079 but the FM is where the audience went. Broadcast 00:04:58.079 --> 00:05:02.279 radio revenue fell three years running to 1 .63 00:05:02.279 --> 00:05:07.310 billion in 2025. Odyssey! Came out of bankruptcy 00:05:07.310 --> 00:05:11.910 last fall and reformatted WCBS 880 in New York 00:05:11.910 --> 00:05:17.389 Nearly 60 years of all news as now ESP in New 00:05:17.389 --> 00:05:23.490 York KGO 810 San Francisco one of the defining 00:05:23.490 --> 00:05:25.889 news talk brands in the country retired its call 00:05:25.889 --> 00:05:33.490 letters on January 1st Cumulus silenced it after 00:05:33.490 --> 00:05:38.589 dropping the format The pattern is the same everywhere 00:05:38.589 --> 00:05:42.930 you look. Move the valuable content over the 00:05:42.930 --> 00:05:46.230 FM or digital, let the AM run as long as it has 00:05:46.230 --> 00:05:49.649 to, then decide whether the real estate is worth 00:05:49.649 --> 00:05:52.970 more than the license. Of course, we can't talk 00:05:52.970 --> 00:05:55.110 about AM right now without talking about what 00:05:55.110 --> 00:05:58.850 just happened to KNX. And it's the freshest example 00:05:58.850 --> 00:06:02.699 of all this. Last week, Just last week, Odyssey 00:06:02.699 --> 00:06:07.060 announced that KNX news 1070 in Los Angeles is 00:06:07.060 --> 00:06:12.399 losing. It's simulcast on FM. KNX has been on 00:06:12.399 --> 00:06:16.699 the air since 1921. It's a 50 ,000 watt class 00:06:16.699 --> 00:06:20.240 a clear channel station. As I would call it an 00:06:20.240 --> 00:06:22.639 AM flamethrower, one of the most recognizable 00:06:22.639 --> 00:06:26.639 all news brands in this country. I stream it 00:06:26.639 --> 00:06:30.529 up here in Wisconsin. It's been so it's. It's 00:06:30.529 --> 00:06:34.209 been simulcasting on 97 .1 FM for the last few 00:06:34.209 --> 00:06:38.670 years, which gave it reach into cars with FM 00:06:38.670 --> 00:06:42.850 only tuners and newer vehicles that had stopped 00:06:42.850 --> 00:06:48.470 supporting AM. As of May 11th this year, 97 .1 00:06:48.470 --> 00:06:54.370 goes to sports, 97 .1 the fan. KNX news, it'll 00:06:54.370 --> 00:06:58.819 stay over on 1070 AM and it'll... Pick up 97 00:06:58.819 --> 00:07:02.759 .1 HD 2 which in practical terms nobody's listening 00:07:02.759 --> 00:07:06.579 to Well, I shouldn't say that I guess in cars. 00:07:06.759 --> 00:07:08.939 Yes, there is still HD tuners. So I don't get 00:07:08.939 --> 00:07:13.500 the HD fans upset the journalism it didn't get 00:07:13.500 --> 00:07:18.560 worse the reporting didn't deteriorate a 105 00:07:18.560 --> 00:07:21.899 year old news operation got bumped off of FM 00:07:21.899 --> 00:07:25.970 because a sports format is worth more money on 00:07:25.970 --> 00:07:29.730 that frequency in 2026. That's the whole story 00:07:29.730 --> 00:07:35.410 in one example. We got to talk about the part 00:07:35.410 --> 00:07:40.370 that changes this conversation. PEP, it's a network 00:07:40.370 --> 00:07:44.529 of 77 radio stations. About 85 % of them are 00:07:44.529 --> 00:07:48.110 AM, specifically hardened to stay operational 00:07:48.110 --> 00:07:52.029 during national emergency. Reinforced shelters, 00:07:52.509 --> 00:07:55.910 independent fuel storage, backup transmitters, 00:07:56.209 --> 00:07:59.029 a direct line to FEMA's Mount Weather Operations 00:07:59.029 --> 00:08:04.009 Center that bypasses the public internet. WBZ 00:08:04.009 --> 00:08:09.730 1030 Boston, WWL 870 New Orleans, KIRO 710 Seattle. 00:08:09.850 --> 00:08:13.009 These are not just commercial broadcast stations. 00:08:13.790 --> 00:08:19.750 They are nodes in a federal warning system covering 00:08:19.750 --> 00:08:24.839 90 % of the U .S. population and They're built 00:08:24.839 --> 00:08:27.920 on top of a commercial medium whose economics 00:08:27.920 --> 00:08:33.299 are, let's be honest, collapsing. When Hurricane 00:08:33.299 --> 00:08:37.000 Maria hit Puerto Rico in 2017, it took out 95 00:08:37.000 --> 00:08:41.019 % of all cell sites. WAPA 680 was broadcasting 00:08:41.019 --> 00:08:44.460 through the landfall. Its audience grew by a 00:08:44.460 --> 00:08:46.360 hundred thousand listeners because it was the 00:08:46.360 --> 00:08:49.820 only game left in town. When Hurricane Helene 00:08:49.820 --> 00:08:53.950 hit North Carolina in 2024, one of those Once 00:08:53.950 --> 00:08:56.590 every thousand year rainfall events, roads were 00:08:56.590 --> 00:09:01.070 gone, cell coverage gone. WWNC 570 Asheville 00:09:01.070 --> 00:09:04.409 ran continuous coverage. People were calling 00:09:04.409 --> 00:09:09.330 in about missing persons and dam failures. That 00:09:09.330 --> 00:09:11.289 was the information lifeline for communities 00:09:11.289 --> 00:09:15.710 that had nothing else. AM works in those scenarios 00:09:15.710 --> 00:09:19.669 because it doesn't need any of the infrastructure 00:09:19.669 --> 00:09:23.440 that fails first. It has long range propagation. 00:09:23.779 --> 00:09:26.879 Battery powered receivers can pick it up. Toss 00:09:26.879 --> 00:09:31.960 in a couple AA batteries. AAAs. AM radio doesn't 00:09:31.960 --> 00:09:34.419 need cell networks. It doesn't need the internet. 00:09:34.620 --> 00:09:39.600 No subscription required. In 2023, seven former 00:09:39.600 --> 00:09:44.679 FEMA administrators from both parties, President 00:09:44.679 --> 00:09:47.539 Clinton up through President Trump, sent a letter 00:09:47.539 --> 00:09:52.750 to Secretary Buttigieg saying, This directly 00:09:52.750 --> 00:09:57.269 quote the success of the national public warning 00:09:57.269 --> 00:10:01.730 system hinges on the use of AM radio. These are 00:10:01.730 --> 00:10:04.070 not people who love radio for sentimental reasons. 00:10:04.169 --> 00:10:07.769 These are emergency management professionals 00:10:07.769 --> 00:10:11.009 looking at the infrastructure. These are not 00:10:11.009 --> 00:10:14.610 people who love radio for sentimental reasons. 00:10:14.669 --> 00:10:16.929 These are emergency management professionals 00:10:16.929 --> 00:10:20.679 looking at the infrastructure. The funding comparison 00:10:20.679 --> 00:10:25.179 is worth sitting with The 2021 infrastructure 00:10:25.179 --> 00:10:29.179 law committed 42 billion dollars to royal broadband 00:10:29.179 --> 00:10:33.519 FEMA's entire PEP hardening program is somewhere 00:10:33.519 --> 00:10:39.460 between 50 and 115 million dollars both real 00:10:39.460 --> 00:10:43.539 investments not connected to each other in any 00:10:43.539 --> 00:10:47.740 policy conversation though and we also need to 00:10:47.740 --> 00:10:51.779 talk about the bill that can't get a floor vote. 00:10:52.980 --> 00:10:58.500 Tesla announced last October that its 2026 base 00:10:58.500 --> 00:11:03.659 Model 3 and Model Y would ship with no AM and 00:11:03.659 --> 00:11:09.940 no FM. First mainstream U .S. car manufacturer 00:11:09.940 --> 00:11:14.879 to drop over the air radio entirely. The technical 00:11:14.879 --> 00:11:20.159 argument is EMI. Electromagnetic interference 00:11:20.159 --> 00:11:26.899 from EV drive motors. But, let's be honest, Stellantis, 00:11:27.279 --> 00:11:33.240 Toyota, Hyundai, they all solved it. Using shielded 00:11:33.240 --> 00:11:37.259 cables and isolated receivers. It's an engineering 00:11:37.259 --> 00:11:41.039 problem that Tesla just were too lazy to fix. 00:11:41.940 --> 00:11:47.129 There's known solutions. Congress? Introduced 00:11:47.129 --> 00:11:52.690 the AM radio for every vehicle act in 2023. It 00:11:52.690 --> 00:11:57.710 cleared the Senate commerce vote. Uh, you know, 00:11:58.009 --> 00:12:01.070 it cleared the house energy commerce 45 to two 00:12:01.070 --> 00:12:07.389 in 2024 had over 270 co -sponsors in the house 00:12:07.389 --> 00:12:10.570 and 63 in the Senate expired without a floor 00:12:10.570 --> 00:12:15.240 vote. And then it got reintroduced in 2025. cleared 00:12:15.240 --> 00:12:19.220 the committees again, and both chambers now has 00:12:19.220 --> 00:12:23.600 around 375 co -sponsors, one of the most broadly 00:12:23.600 --> 00:12:28.259 supported bills in this Congress. President Trump 00:12:28.259 --> 00:12:31.539 endorsed it in January. The NAB ran national 00:12:31.539 --> 00:12:38.480 PSA campaigns. Still, no floor vote. The commercial 00:12:38.480 --> 00:12:44.039 AM market is, well, failing for real reasons. 00:12:44.200 --> 00:12:50.399 And the numbers are clear about that. But a failing 00:12:50.399 --> 00:12:58.600 commercial market and a relevant piece of infrastructure 00:12:58.600 --> 00:13:02.899 are two different things. And it's worth being 00:13:02.899 --> 00:13:05.899 precise about which one we're actually talking 00:13:05.899 --> 00:13:10.080 about here. FEMA built a national emergency warning 00:13:10.080 --> 00:13:13.809 system on AM radio. Congress agrees it needs 00:13:13.809 --> 00:13:18.389 protecting. The bill to protect it can't even 00:13:18.389 --> 00:13:22.309 get scheduled for a vote. And the newest news 00:13:22.309 --> 00:13:26.210 station to lose its FM home is a 105 year old 00:13:26.210 --> 00:13:29.490 operation in Los Angeles that most people would 00:13:29.490 --> 00:13:35.490 have called a landmark a decade ago. Radio is 00:13:35.490 --> 00:13:39.950 Dead isn't wrong about where the business is 00:13:39.950 --> 00:13:46.460 headed. It's just not the point. Listen to more 00:13:46.460 --> 00:13:49.259 episodes at tylerwoodward .me slash podcast. 00:13:49.259 --> 00:13:51.740 Make sure you head over to tylerwoodward .me 00:13:51.740 --> 00:13:55.659 slash subscribe to get subscribed and never miss 00:13:55.659 --> 00:13:59.519 out on a future episode. I'll catch you next 00:13:59.519 --> 00:13:59.740 week.