Radio station is all business on programs: KBLA goes for business news format on 24-hour basis.

Radio station is all business on programs

KBLA goes for business news format on 24-hour basis

A new radio station went on the air in Los Angeles last week with a 24-hour business news format.

The majority owner of KBLA-AM (1580) is real estate mogul Fred Sands, with a minority interest held by developer Paul Amir. KBLA is operating on the frequency that formerly was KDAY, a rap music station. Sands paid $7.2 million for the frequency, and has spent a lot more renting offices in the Century Plaza Towers and employing about 30 people (including 14 in the news department).

"I'm amazed it (hasn't been) done in a city like Los Angeles (where) people are obsessed with business news," said Sands, who also owns KNAC-FM (105.5) a "heavy metal" rock music station. "We believe it will be successful. I like the industry, and it's been good to me."

Radio consultant Jeff Pollack, who helped Sands convert KNAC to a heavy metal format, said he doubts KBLA will be successful because it is targeted to a "fringe boutique" market. He also criticized the call letters, which, of course, sound out the word "blah" even though they stand for "Business Los Angeles."

But Sands said his market is all "middle to upper" income people interested in "stories that affect your life and your pocketbook." He said he wants to appeal to "not just CEOs, but anyone interested in" and affected by business news.

"I don't think L.A. needs, on AM, another music station," said Sands, in explaining the format choice. "We don't expect to have the highest ratings in town. . . . The first year is the tough one. This is a $400 million market. We don't need a big chunk of that market to be successful."

Promotional information on the station's philosophy says KBLA is aimed at men and women more than 34 years old. The program philosophy states, in part: "Rather than |event-driven' news, often selected for its sensational appeal, KBLA will select from the day's events only news with the most direct impact on the majority of our listeners."

According to documents filed with the Federal Communications Commission, KBLA is 55 percent owned by Sands' company Business News Network. A separate Sands company, Flagship Broadcasting, owns KNAC.

Amir, who owns several office and apartment buildings on the Westside, holds a 45 percent interest as a limited partner, meaning he has no control over station operations.

Sands has applied to the FCC to transfer 45 percent interest, now held by Business News Network, to Sacramento Hospitality Group, another company owned entirely by Sands. He said the transfer is being made for tax purposes. Sacramento Hospitality Group owns the Radisson Hotel in Sacramento.

Business News Network would remain the only general partner and Sands, therefore, would maintain total control.

KNAC Vice President and General Manager Gary Price said KBLA Vice President and General Manager Ed Kerby will be reporting to him.

"What you try to do in radio is fill a need, offer something to the public that no one else is doing," said Price. "We think we'll be showing a profit within the first 12 months."

Other people involved in KBLA include:

* Kerby, who has been general manager of KDAY since 1975.

* Program Director John Darin, who has worked in broadcasting for more than 25 years, including positions as a business reporter for KHJ-TV (Channel 9) and Financial News Network, and as general manager, program director and news director for several radio stations in Los Angeles and San Francisco.

* News Director Lee Marshall, who has also worked in broadcasting for 25 years, was news director at KABC radio for eight years.

* Talk show host Chuck Ashman, former host on KFI, KABC and former anchor of "Metro News" on KTTV (Channel 11). Most recently, he has hosted radio shows in San Francisco.

KBLA is a 50,000-watt station that will broadcast 24 hours per day, seven days a week, in Southern California. It will receive audio feeds from the ABC Entertainment Network, the Wall Street Journal Report, the Business Radio Network and Metro Traffic.

It is subscribing to the Reuters International Business Wire, the New York Times Wire, City News Service and Business Wire.

Price said 90 percent of the programming will be locally produced, mostly live. The format topics will include general news, local business news, national business and investment news, business talk shows, personal finance, retirement planning, medical and science news, Pacific Rim reports, news of the defense and aerospace industries, entertainment news, lifestyle and career planning, self-improvement and motivation, and information on ecology and the environment.

There is no mention of real estate news in promotional materials, but Sands said his industry will be covered "if it's part of the news."

The morning drive time (5 a.m. to 9 a.m.) show will combine news and talk and will include interviews with newsmakers. The day-long news format (9 a.m. to 4 p.m.) will include stock updates, network features and guests. The afternoon drive slot (4 p.m. to 8 p.m.) will be Ashman's show, which will include interviews and audience interaction.