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Weekly News Recap June 4-8, 2018

Political Stars Align In Radio’s Favor For Election Spending. Political experts say radio has good the industry has a good shot at number of districts in play this year reason to be optimistic about 2018 capturing more political ad dollars will lift radio’s prospects. “We have campaign spending. Fundraising than it did during the last midterm a lot of states that are more rural in levels are up and the election elections four years ago. “With a lot nature and people know the best map is working in radio’s favor. of races that are closer to home, way to reach them is through radio,” And who votes during midterms maybe radio could do a little better he explained. “But even in urban also favors traditional media given the dynamics of how the areas, radio will be important for outlets. “There are so many open election works,” he said. reaching certain demographics as seats, open primaries and activity well. Radio is poised to have a really going on right now that it’s been The election map is working in solid political cycle.” an unprecedented political cycle radio’s favor in a way it didn’t two and from a spending perspective or four years ago. Not only is every Michael Meehan, a Democratic we are seeing people spending House member up for reelection but political strategist who is CEO at money in a variety of ways,” said so are 33 Senators. Squared Communications, agrees Brian Jones, a Republican political traditional broadcast radio and strategist who is a partner at Black Plus there are gubernatorial races television will see “significant spend” Rock Group. in 36 states, including many where this year in part because midterm there are no incumbents such as voters are disproportionally older. , Florida, , Minnesota, But what will also work in radio’s Connecticut, Nevada, favor is that political ads don’t clog and Idaho. Four years ago, the the radio airwaves as much as they governors’ races were responsible do on TV. “Candidates are going to for nearly a quarter of all political want to buy ads where people are ad spending and Kantar-CMAG listening and they’re not looking for estimates that could grow to 30% politics which is disruptive,” Meehan this cycle. predicts.

“I’ve heard from some campaign Despite some high-profile races, folks that radio is worth taking a lot of the money in campaign another look when television gets advertising war chests remains so crowded,” Passwaiter said. unspent at this point in the cycle. So “The fact that radio tends to be experts say the best gauge of what less cluttered for ads makes it an sort of year it’ll be for radio is by Borrell Associates projects $8.8 interesting alternative platform to taking measure of how fundraising billion will be spent during the use when TV is oversold. And radio is going for candidates. “Fundraising current election cycle. That’s a offers reach.” is the key because most of the 6.3% jump over what was spent fundraising by the national parties during the last mid-term in 2014. Political Ad Dollars Begin Flowing will be spent on television, radio and And it projects radio will pocket No ad spending data has been digital communicating persuasion $564.3 million in election-related publicly released so far but messages or negative messages on ad spending in 2018. Passwaiter said Kantar-CMAG opponents,” Meehan said. data shows “healthy” amounts of Kantar Media’s Campaign Media money have been spent in states A general rule of thumb is that half Analysis Group (CMAG) estimates and districts where primaries have the money raised by a candidate 70% of political ad dollars will be already taken place. Of these goes to running the campaign— spent on television advertising has been the biggest, thanks to an the other half goes to advertising during the 2018 election cycle. open governor’s seat that’s shaping “There’s already more spending this What about radio? While it doesn’t up to be the most expensive this cycle than at this juncture in 2014,” release a radio-specific outlook cycle. Jones thinks that a larger Meehan said. VP/GM Steve Passwaiter thinks

Page 1 Weekly News Recap June 4-8, 2018 Radio’s Streaming Ad Revenue To Hit $2.3 Billion By 2022. After three years of modest declines, over the air radio ad revenues are forecast to inch ahead in 2019, according PwC. But online audio advertising from traditional radio broadcast- ers will power the industry’s growth engine over the next five years. PwC says traditional radio advertising in the U.S. will total $15.90 billion this year, down a smidge from $15.91 million in 2017. The forecast calls for a slight increase to $15.92 billion in 2019, then $15.94 billion in 2020, $15.96 billion in 2021 and $15.99 billion in 2022. While the 2017-2022 over-the-air trend is for a meager compound annual growth rate of 0.10%, AM/FM radio’s digital streams are on track to grow by an annual rate of 7.8% over the same period. Here’s the streaming trend line for broadcast radio: $1.65 billion (2018), $1.79 billion (2019), $1.93 billion (2020), $2.07 billion (2021) Emerging From Chapter 11, Cumulus Turns Page On New and $2.20 billion (2020). See more HERE Chapter. Cumulus Media is brandishing more than just a redesigned 46% Of CMOs Rank Radio As An Effective Ad Channel. logo. The company has newfound financial freedom after Radio industry leaders have been working to better tell the emerging Monday from a sometimes grueling six months in medium’s story to big brand advertisers and a new study from bankruptcy court. Cumulus now has a new board of directors, Nielsen suggests they are making solid progress. Surveying new lenders, newly issued shares of stock and new ammuni- chief marketing officers about the importance and effective- tion and flexibility to continue on its turnaround path. As part ness of various media channels, Nielsen found 43% say radio of the court- approved restructuring, Cumulus has shed more is extremely, very or somewhat than $1 billion in debt, reducing its total debt from $2.34 billion important. Looked at another way, to $1.30 billion. The restructuring cancels all of the company’s roughly one in four (23%) ranked existing stock and issues roughly 20 million shares in the re- radio as either highly or extremely organized company. As it said from the get-go, 83.5% of the important, which is in line with equity goes to the former lenders and 16.5% to the general print (25%) and direct mail (25%) unsecured creditors, mostly made up of bondholders. Cumulus but ahead of out of home (20%). will briefly trade under the temporary ticker of “CMIA” on the Nielsen’s CMO Report 2018 notes over the counter Pink Sheets exchange. The company has an that radio continues to lead all application pending to relist its stock on the NASDAQ exchange channels in terms of weekly reach as “CMLS.” Cumulus says it will use its improved financial in the U.S. CMOs were also asked to rate the effectiveness of flexibility to continue the business transformation it launched media channels for their business with 46% finding broadcast more than two years ago, when Mary Berner replaced Lew radio to be an effective channel. Of that, 19% gave radio the Dickey as CEO in late 2015. See more HERE highest marks – 6% ranked it extremely effective and 13% very effective. Another 27% called radio somewhat effective. More Bankruptcy Exit Is Game-Changer Inside Cumulus, Too. than 51% of respondents ranked linear television as either While Cumulus Media’s exit from Chapter 11 helps remove a highly or extremely important, with 30% of respondents call- negative overhang for the radio industry, there is a feeling of ing TV “extremely important.” Among digital media channels, rejuvenation inside the organization as well. “This is a good 79% of respondents ranked search as “very” or “extremely” story for Cumulus and a positive story for radio,” says Brian important, while 73% thought the same about social media. Thomas, Cumulus Country Corporate PD and PD of country See more HERE “Kicks 101.5” WKHX . Now, “getting the success of our local story and national ratings turnaround in key markets Translators Are Price Cumulus Pays For Bankruptcy At to clients is critical,” says Louie Diaz, OM, Cumulus Atlanta The FCC. and PD of CHR “Q100” WWWQ Atlanta. Cumulus CEO Mary Cumulus Media is paying a price for effectively changing hands Berner conveyed the news flash to employees at 4:30pm to new owners as part of its Chapter 11 financial reorganiza- eastern Monday, via a live video appearance. In response, the tion. While Cumulus had previously announced it would part company’s FORCEBook intranet fostered dozens of thumbs with FMs in four markets to comply with local radio owner- up reactions. Executive VP of Content & Programming Mike ship limits, the biggest sacrifice McVay says the outpouring hasn’t been confined to just those it is making is giving up several within Cumulus. Programming heads from other radio compa- FM translators, including some nies were high-fiving McVay during a Monday evening Garth in big markets. That’s because Brooks listening party he attended in Nashville. And McVay under the FCC’s rules, a change says he was surprised at the amount of congratulatory emails of ownership after the short-form he received from his peers at other companies, along with air application deadline disqualifies a talent and people in the music business. “While we’ve stayed potential auction bidder. With eight focused, it’s always out there in the back of your head, what’s translator applications filed as part going to happen,” McVay says. “Now this distraction is away of Auction 100, Cumulus will be sidelined with its attempts to from us and everyone is full speed ahead. If you were a pro- add translators in Washington, DC (103.1); Providence, RI ducer in the music world, you would be saying, all faders up.” (102.9); Fayetteville, NC (98.5); Little Rock, AR (99.9); Knox- See more HERE ville, TN (102.5); Columbia, SC (103.5); Modesto, CA (107.5); and Boise, ID (104.7). See more HERE New Deal Keeps Raúl Alarcón At Helm Of SBS. Weekly News Recap Raúl Alarcón has signed a new employment contract with June 4-8, 2018 Spanish System that keeps him as president, CEO and chairman of the Hispanic media company through the end of 2022. The new deal, which took effect May 29 and replaces the contact he signed in 2014, will pay Alarcón an Count ‘Em: iTunes Now Hosts 550,000 Active Podcasts. annual base salary of $1.75 million and a retention bonus iTunes now hosts more than 550,000 active podcasts, up of $1.6 million. Alarcón won’t collect the retention bonus all from the 525,000 that Apple reported in April — a momentous at once, however. He received $216,668 after signing the jump from the 3,000 programs new contract and will collect $50,000 a month for 28 months. it hosted when the platform Alarcón is also eligible for an annual performance bonus of launched in 2005. TechCrunch $750,000, should the company hit certain earnings targets, reports that 18.5 million individual and a separate discretionary bonus determined by the board’s episodes are now available, while compensation committee. See more HERE 50+ billion episodes have been streamed or downloaded since NABOB, MMTC Ask FCC To Maintain AM/FM Subcap 2005, of which 13.7 billion were Restrictions. tracked in 2017. That’s up from Two public advocacy groups that the FCC has often relied 10 billion in 2016. And in other announced numbers, “Stuff on for their input in media decision-making have renewed You Should Know” has become the first podcast to break 500 their opposition to changing the current AM/FM subcap million plays, according to Apple. See more HERE restrictions. The lobbying by NABOB and MMTC comes as the FCC considers ideas to include in its quadrennial media Joe Brewer Upped To Katz President Business Ops & ownership proceeding set to begin Innovation. later this year. “Elimination of the Katz Media Group has upped veteran media executive Joe FM subcap would lead to a rapid Brewer to president of Business Operations and Innovation, deterioration in the AM service tasked with leading the company’s and undermine the Commission’s programmatic, data and technology AM revitalization efforts,” the initiatives for Katz Radio Group, groups said in a disclosure Katz Television Group and Katz statement after meetings with FCC Digital, continuing to report to officials. “Since AM stations are Katz CEO Mark Gray. Brewer will disproportionately minority owned, increase his focus on business eliminating subcaps would further disadvantage minorities by operations across the three units, diminishing minority broadcasters’ asset value and growth with the goal of “streamlining and survival potential.” See more HERE company processes and aligning technology and innovation initiatives with company goals.” Wondery Goes All In On IAB Podcast Measurement Brewer joined Katz in 1996 as VP of Information Technology Standard. Services, and has since held such roles as VP of Client In a positive step toward standardizing podcast measurement, Services and Senior VP, Chief Information Officer. This is the Wondery says it will become the first podcast publisher to latest among several key promotions at Katz. completely adopt the IAB’s measurement standards. The IAB See more HERE Tech Lab’s Podcast Measurement Technical Guidelines 2.0 provide a recommended process for generating audience and downloading metrics, with details on filtering for unique, eliminating pre-load requests, eliminating potential bots and bogus requests, applying thresholds for what gets counted and other best practices. Wondery tells Digiday the switchover has resulted in a “double-digit percentage” drop in downloads for many of its shows, putting it at a competitive disadvantage, until the industry as a whole gets on board with the new standard. “It is the right thing to do,” Wondery CEO Hernan Lopez told Digiday. Other podcasters are proceeding at their own pace. See more HERE

Entercom Drops From HD Radio Side Channels. Since retreating from the AM airwaves in 2014 (apart from L.A.), Radio Disney has enjoyed a second life as an HD Radio side channel in a number of major markets, including , , , , and . But the mouse has now had his ears clipped as Entercom outlets have taken the kids network off all of its HD multicast channels that aired it, after Entercom chose to not renew its contract with Radio Disney. Current HD Radio licensor Xperi’s Jordan Miller tells Inside Radio the time has now come for many radio companies to monetize their own HD channels. HD Radio-equipped car market penetration has grown from 19 to 50 million vehicles. As a result, according to Miller, “This has led to broadcasters in many markets wanting to program and monetize their own strategic, market-specific programming.” See more HERE

Page 3 Weekly News Recap SALES – STATIONS March 12-16, 2018

Grand Junction, CO – Grand Junction Media files a $420,000 SALES –TRANSLATORS deal to buy two FMs and three translators from Tom Troland. The cluster includes classic hits “Red Rock 101” KGJX and Palm Springs, CA – Sunnylands Broadcasting files a $50,000 its sister “Red Rock 92” KBDX located in nearby Blanding, deal to buy the Indio, CA-licensed translator K226BT at 93.1 UT. The three translators that are part of the deal include FM from Penfold Communications. Sunnylands already used the Grand Junction-licensed K297BR branded as “Canyon the translator to simulcast classic hits KVGH (1270) which Country 107.3.” Plus the Grand Junction-licensed K232FB it brands as “Valley 106.5” thanks to its simulcast on the which is branded “Kiss 94.3” airing a hot AC format. And the Thousand Palms, CA-licensed translator K293CL at 106.5 Grand Junction-licensed K284AP which is branded “Juan FM. Broker: MCH Enterprises 104.7” and carries a Spanish-language format. All three are fed from KGJX’s HD subchannels. Grand Junction Media CLOSINGS: owns the Colorado Daily Sentinel newspaper and the FCC’s Nov. 2017 decision to lift the newspaper-broadcast cross- – Educational Media Foundation closes on a $21.5 ownership prohibition cleared the way for the company to million deal to buy WCKL-FM (97.9) from Merlin Media. EMF add the radio cluster. The FCC decision is currently being took over the station in March and flipped what had been challenged however a federal appeals court ruled in February classic hits “The Loop” into an affiliate of its contemporary that the new regulations could take effect while the case Christian “K-Love” network. The “Loop” format may yet be proceeds. revived however. Merlin sold the brand’s intellectual property to Cumulus Media as part of its still-pending $18 million deal Richmond, VA – Stu and Nancy Epperson’s Truth to buy alt-rock sister WKQX (101.1). Broadcasting files a $150,000 deal to buy contemporary ColaChristian Wars “K-Love” Hit Full affiliate Force With WLRB (100.5) from Educational Chicago – Fred Eychaner’s Newsweb closes a deal to sell Pepsi,Media Foundation. Coke Vying It’s On a reversal Radio. of sorts since EMF bought one of its six stations in the Chicago market with a $5.099 the Class A station from Nancy Epperson’s Delmarva million deal to spin WCPQ (99.9) to Bible Broadcasting Educational Association for $125,000 in 2016. The station Network. The Charlotte-based religious broadcaster owns 46 has most recently been airing EMF’s contemporary Christian other full-power stations but WCPQ will become its first in “K-Love” format. Once the sale closes EMF will still own four the Chicago metro. Newsweb still owns ethnic “Polski FM” stations in the Richmond market including WLFV (98.9), WCPY (92.7), talk WCPT (820), ethnic WNDZ (750), Spanish WKYV-FM (100.3), Christian CHR “” affiliate WARV (90.1) “La Promesa” WAIT (850), and ethnic WSBC (1240) in the and Spanish religious “” WNVU (89.7). market. Broker: Bob Heymann, Media Services Group

Nashville – Moody Bible Institute is selling one of its three Indiana – Arthur Angotti’s Sound Management closes a $4.4 stations in Nashville. Iglesia Misionera Jesucristo Viene million deal to buy CHR “B-97” WBWB, Bloomington, IN and Pronto files a $125,000 to buy religious WFCM-FM (91.7) “Hoosier Country 105.1” WHCC from Art Angotti’s Artistic from Moody. The deal also includes Smyrna, TN-licensed Media Partners. The deal amounts to an inter-generational translator W234DF at 94.7 FM. Once the sale closes Moody transfer of the two FMs from father to son. The sale leaves Bible Institute will still own religious WFCN (1200) and Artistic Media Partners with a four-station cluster in the Sound Spanish-language religious WFCM (710) in the Nashville Bend, IN market including classic rock “Rock 977” WYXX, “All market. 80`s 102.3” WYET, CHR “U-93” WNDV-FM and its simulcast WDND (1620). – Christopher Lobdell files to sell his 23% stake in Oconee River Broadcasting’s classic hits WYZI, Royston, Minnesota – Linder Radio Group closes an $800,000 deal to GA (810) to Kristopher Kendrick for $24,000. The transfer buy “Real Classic Rock 106.5” KFMC-FM and “Ag-Country will give Kendrick a 34% stake in the company. Benjamin 1370” KSUM in Fairmont, MN from Woodward Broadcasting. Kurtz and Randal Graby each own a 33% stake in the station Linder Radio Group already owns four other stations in the and Royston, GA-licensed translator W262DB at 100.3 FM. area including country “Minnesota 93” KATO-FM, New Ulm, Oconee River Broadcasting also owns “Lake Country 102.3” MN; “Country 101.5” KRRW, St. James, MN; “ 100.5” WKZR and AC WMVG (1450) in Milledgeville, GA which KXAC, St. James, MN; and talk KTOE, Mankato, MN (1420). aren’t included in the sale. Shreveport, LA – Christian Broadcasters Kalamazoo, MI – Vineyard Academy files to donate religious expands its footprint into market No. 140 as it closes a WVAV (91.5) to Holy . The station is already $200,000 deal to buy KTKC-FM (92.9) and airing Holy Family’s Catholic programming. Holy Family KTKC (1460) from Leon Hunt. Houston Radio already owns stations in the Grand Rapids, MI and Christian Broadcasters owns 30 other stations across the Battle Creek, MI markets. South. Once the sale closes Hunt will still own stations in Crockett, TX; Madisonville, TX; and Mansfield, LA.

More closings HERE

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