This checklist provides a general idea of the documents and information that will be necessary for a due diligence investigation when purchasing a broadcast station.
Mississippi Checklist Purchasing a Broadcast Station
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FAQ
Given the looming headwinds for the radio industry, radio ownership in the future is a questionable investment with minimal potential for asset appreciation. Yes, I said it is still a good business for the time being. Radio stations in 2015 can still generate 30% cash flow.
What is the maximum distance an FM transmitter can broadcast without a license? The quick answer is approximately 200 feet for an FM Transmitter covered under Part 15 (Read FCC Public Notice dated July 24, 1991). The full answer is much more complicated than that: 250 µV/meter @ 3 meters (also measured as 48 dBuV/m).
Regardless of popular misconceptions, it is not legal to broadcast on FM at low power, or at any power, without a license from the FCC. It doesn't matter if you are less than 100 watts or less than 1 watt.
Part 15 certified FM transmitters can be used legally by anybody, anywhere in the U.S. without the need for a license.
How much profit can a radio station make? The exact profit of your radio station will obviously depend on factors ranging from audience size to programming cost to the amount of advertisers. However, the most popular local radio stations in the country are able to make over $60 million in ad revenue each year.
It is illegal to start and broadcast a radio station without a license from the appropriate authorities. Expect to spend around $4,000 for application and licensing fees.
The most important equipment you'll need includes a microphone, headphones and playback devices. You'll have to pay for engineering fees and transmitting equipment to broadcast signals to your target audience. All the gear also needs to be licensed and approved for the country you're operating in.
Here are a few steps you can take to tackle the task of creating and starting your very own TV network:Stake out your territory. Many people don't realize that there are channels available for lease by everyday people.Set up your technical equipment.Announce your channel.Generate a paycheck.
Many stations get on the air for under $15,000 and can stay on the air for less than $1,000 per month. The main start-up expenses for a radio station are engineering fees, studio equipment for producing radio shows, and transmitting equipment for sending your signals out to the world.
Typically, you can buy a radio station using one of two methods: purchasing the station's assets or purchasing the station's stock. Each sale could have different tax consequences, depending on the circumstances. You should discuss tax implications with an accountant.
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