Radio Bits & Bytes: The Federal Communications act of 1996

The Las Vegas radio market changed forever when one of, if not the most dramatic changes in regulation occurred: The Federal Telecommunications Act of 1996. In the 1930s rules were set in place which were meant to ensure radio would serve the public interest and to prevent domination of the new medium by large national monopolies. A single person or corporation could own no more than 2 stations in a market and were capped with the amount they could own nationwide, with no more than 14 or 7 AM and 7 FM. The rules eased up a bit in 1984 with the total upped to 12 of both, and in 1992 it was raised to 18 of each.  That changed dramatically in 1996 when these ownership restrictions were removed entirely.

In Las Vegas, as was the case in most markets, that two-station limit was an

Klassy 100 Living Room Suite - Jaycee State Fair 1986

AM/FM combo.  Nationwide Communications had KLUC-98.5 FM and KXNO-1140 AM.  Lotus Broadcasting had KOMP-92.3 FM and KENO-1460 AM.  Donrey owned KYRK-97.1 FM and KORK-920 AM, in addition to the Review-Journal newspaper and KORK-TV3. Plus, they were about the only billboard company in town at the time, Donrey billboards were everywhere (thanks for reminding me, mailman Ron!)  Lotus picked up 97.1 FM in 1993 under new more relaxed ownership regulations, a changed the calls to KXPT and format to AAA (Adult Album Alternative.) In 1996 TV3 was owned by Valley Broadcasting Company, who also owned KVBC-105.1 FM.  The other time a newspaper-broadcasting cross-ownership occurred was when KLAS-1230 AM signed on the air in 1947, one of its owners was Sun publisher Hank Greenspun.  Donrey Media Group at one time had the greatest media ownership, with one FM, AM, and TV station, and the local newspaper.

Lifting these restrictions, companies started on a buying spree. Then bigger companies bought the smaller companies. Regent Broadcasting, headed by Jacor founder Terry Jacobs, purchased KFM-102 from Broadcast Associates, then added KSNE “Sunny 106.5″ and later 95.5 KWNR. Under a Sales Marketing Agreement (SMA) they took control of Young Country Y93 while ownership of the license remained with Broadcast Associates.  Not long after these four stations consolidated in the old First Western Savings bank building on Desert Inn Road (it’s the bank they used filming the movie “Casino.”)  Jacor then purchased Regent. Jacobs had been forced out of the company he founded in the early 90s; he said it was one of the most difficult things he ever did in dealing with Randy Michaels and Jacor when they acquired the company. There was another round of the bigger fish swallowing the big fish when Clear Channel merged with Jacor.

Across town American Radio Systems was consolidating, acquiring 94.1 “94 Jamz”, 98.5 KLUC, 107.5 KFBI, and Lite 100.5 KMZQ, along with AMs 840 and 1140. Then bigger fish CBS swallowed ARS. Privately-owned Lotus also added to their portfolio of KOMP 92.3 and KENO-AM 1460 with KXPT 97.1 and KORK-AM 920. They’ve since added AM-1100 and 101.9 FM to make their cluster a six-pack. Beasley Broadcasting was the last to consolidate signals under one roof, with KKLZ-96.3, Coyote Country 104.3, Fresh 102.7, KDWN-AM 720, and KBET-AM 790. KDWN was one of the last privately-owned stations, from its sign-on in 1975 until his death in 2005 it was owned by A.J. Williams.