Cumulus Media Restructures: Impacts on KZAC and Beyond
This year marks a significant milestone for San Francisco’s KZAC (560), as it celebrates its centenary since receiving licensing from the Federal Communications Commission. Despite this historic achievement, the station has gone dark following a decision by Cumulus Media, which operates KZAC, to halt its broadcasts. Cumulus has indicated to the FCC that it is currently evaluating the station’s future, considering either a change in format or a potential sale.
Strategic Changes in Cumulus’ Portfolio
Cumulus Media has embarked on a strategic review of its station portfolio, citing that some stations do not align with their market strategies. The company noted, “As part of our ongoing efforts to optimize our portfolio and allocate resources effectively in our local markets, we have determined that certain stations are no longer the right strategic fit within their respective markets.” This move is intended to allow Cumulus to concentrate on enhancing and maximizing the effectiveness of its other brands.
Market Adjustments in San Francisco
In a related restructuring maneuver, Cumulus shifted the talk programming from KSFO to what was once KGO (810) on January 1. This transition allowed the more popular conservative talk shows to harness a stronger 50,000-watt signal, thereby leaving KZAC without a clear operational direction. Alongside KZAC, Cumulus also manages four other stations in the San Francisco market, including KSAN (classic rock) and KNBR-AM/FM (sports).
Changes Beyond San Francisco
Cumulus’ decisions are not limited to the Bay Area. In St. Louis, the legacy station KMOX (News Radio 1120) received an FM simulcast, enhancing its broadcasting capacity. This change involved a full-signal FM simulcast on what was previously “Hot 104.1” WHHL. While the urban format associated with WHHL (with a 2.3 Nielsen rating in January) was not completely discontinued, it was transitioned to a new local FM translator at 98.7.
Additionally, the company has recently suspended operations at WLXX (101.5 Jack FM) in Lexington-Fayette, Kentucky. Initially launched in February 2018, this adult hits format consistently struggled, earning a low 1.4 share in Nielsen’s Fall 2024 survey, marking it as the lowest-rated station in that market.
Company’s Financial Strategy
In the previous month’s quarterly earnings call, CEO Mary Berner outlined Cumulus’ ongoing financial strategy focused on reducing costs, as business conditions have remained challenging. The company has reported a total reduction of $35 million in expenses during the fourth quarter alone, in addition to $128 million in savings accumulated from 2019 to the third quarter of 2024. Berner emphasized, “Looking ahead, our focus remains on re-engineering the business to drive operating efficiency,” projecting an overall expense reduction of 27% between 2019 and 2025.
Conclusion
The strategic operational changes by Cumulus Media represent a pivotal moment in not only the trajectory of KZAC but also signal broader industry shifts. As the company navigates these transitions, it remains apparent that the evolving landscape of radio broadcasting will likely see further adjustments across various markets.
