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TUESDAY, MARCH 17, 2015
Price: the thermometer is the barometer of Q1 sales. The weather’s improving, and so are first quarter pacings. Coincidence? Not at all, says Townsquare Media CEO Steven Price. “Generally it’s gotten better and in part because weather has gotten better,” he said on a call with analysts. Sure it snows every winter. And last year’s Polar Vortex was news-making. But Price says in a number of his company’s clusters the drag was additional missed selling days, especially in its 16 Northeast markets. But Townsquare expects to show growth in the first quarter nevertheless. On a conference call with analyst, CFO Stuart Rosenstein said pro forma net revenue is expected to grow low-single digits compared to a year ago. It’s up mid-single digits when the impact of political dollars and the decision to drop two multi-day music festivals are removed from the equation. Rosenstein also noted that in some of the oil-producing markets where the company operates, business has slowed as lower gas prices have led to layoffs at refineries. Even so, Townsquare believes total 2015 same-station revenue will grow in the mid- to high-single digits this year, excluding political. Looking backward to fourth quarter, Townsquare says fourth quarter pro forma revenue increased 9.5% to $93.7 million, led by strong gains in the company’s live events business. The radio division saw revenue climb a healthy 5.6%. For 2014 overall, Townsquare Media revenue grew 39.2% to $373.9 million, driven in part by the addition of a number of Cumulus Media and Peak Broadcasting stations and the launch of several new live events. On a same-station basis, radio division revenue grew 2.6% last year, with total revenue of $302.6 million. Beer and inflatables are the recipe to live event success for Townsquare Media. Nearly one out of every three dollar that Townsquare Media bills comes from non-broadcast radio sales. A growing component of that is the live event business, which accounted for 13% of the company’s revenue last year, bringing in $52 million in sales. CEO Steven Price credits the company’s focus on growing two big events: craft beer festivals and what it has branded “Insane Inflatables 5K” runs. He says their music festival business also had a “banner year.” But sometimes it’s also better to walk away from an event, according to Price, who told analysts that Townsquare opted to scrap two multi-day music festivals that were held in the fall of 2013 but not repeated in 2014. “Just because we’ve done something for one year doesn’t mean we’ll do it for a next year,” Price explained. “If we don’t see the prospects for significant growth and expansion and ultimately the kind of margins that we look for, we’re just not going to do those again.” He declined to identify what the two events were. Even though two events were off the calendar, Price said Townsquare created about 140 local market events in the fourth quarter. That was up 12% from a year earlier. Triton Digital sale was a year in the making. One year ago Triton Digital management showed up with a plan that its majority equity holder liked the sounds of. The net result is Oaktree Capital has now sold its stake in the company to the technology-focused private equity firm Vector Capital. It’s a move Triton CEO Neal Schore says will help the nine-year old company accelerate its growth in the digital market. Oaktree bankrolled the launch of Triton in 2006 and, thanks to the recession, its ownership lasted two- to three-times longer than it wanted. The stability may’ve helped Triton weather the economic downturn, but being part of an older Oaktree fund meant it no longer had the access to capital it needed to grow and respond quickly in a fast-changing sector. Schore calls it “an inflection point” for the company. “This partnership will
[email protected] | 800.275.2840 PG 1 NEWS insideradio.com TUESDAY, MARCH 17, 2015 allow Triton to accelerate our growth through investments into our products, customers and partners,” he says. Working with financial advisor Macquarie Capital during the past year, Triton met with about a dozen potential buyers, whittling the list down to three before Vector emerged the winner. While there are no synergies with Vector’s other holdings, the firm invests in emerging markets and digital audio fits the bill. VP Alex Kleiner says it is committed to investing in growing Triton into new products and service capabilities and into new markets around the globe. “We believe with strong backing from Vector, the company will continue to capitalize on the exciting trends in the digital audio market,” he says. Financial terms of the deal were not disclosed. Triton management, which still holds a minority stake in the company, confirms that there have been a small number of layoffs at the company with a focus shifting from building to operating and growing the business. PodcastOne recruits ex-Triton COO Mike Agovino as vice chairman. PodcastOne CEO Norm Pattiz’s love of the Los Angeles Lakers is well documented, and his appearance at a game last week wasn’t all that unusual. But at his side was Mike Agovino. And that was the real tipoff. The former Triton Digital COO is joining PodcastOne in the newly-created position of executive vice chairman. The news comes quickly on the heels of the sale of Triton Digital and a departure of Agovino. He says he’s long admired Pattiz’s leadership style and success, but they’ve never worked together until now. “The timing is finally right, and this is the perfect opportunity to expand upon everything I’ve learned over the last decade,” Agovino says. Agovino was a co-founder of Triton Digital and his media career extends back to executive level positions at Katz Radio Group, Clear Channel Radio Sales, and Interep. Pattiz says Agovino brings a unique global perspective to fast-growing PodcastOne, which expects to see its revenue double this year. “He shares our vision that on-demand premium content is a key driver in the future of audio,” Pattiz says in the announcement, adding, “I look forward to working Mike Agovino with him as we continue to build audience and revenue, while creating new opportunities across this powerful and growing platform.” Agovino will work with PodcastOne president Kit Gray and COO Greg Batusic to attract more national dollars to on-demand audio.
Nielsen: ‘Power 106’ starts to feel the pinch in L.A.’s hip-hop showdown. Emmis rhythmic CHR “Power 106” KPWR began to feel the pinch of its new direct competitor in Nielsen’s February survey but so far it’s been more of a prickle than a gaping wound. Among all listeners aged 6+, KPWR slipped from fifth to 9th (4.0-3.6) while falling from first to second in persons 18-34 with a 6.4 share. Upstart iHeartMedia urban “Real 92.3” KRRL, which launched February 6, debuted in 16th place with a 2.5 in 6+ and 11th in 18-34 with a 3.2. The February survey covers the period from January 29-February 25 and reflects three weeks of KPWR without Big Boy, who was yanked off the air by management on February 3. Without its high-profile morning host, KPWR’s morning drive ratings barely moved, dropping from a 12th place 2.9 in persons 6+ to a 14th place 2.8. KPWR ranked fifth in morning drive in February with a 5.0 share. Big Boy didn’t start on KRRL until March 9, so the first read on his defection won’t come until next month. ‘Boom’ hasn’t gone bust but it’s packing less powder. Radio One’s classic hip-hop format declined further in two of its markets and rebounded somewhat in the third, according to Nielsen’s February survey results. Houston’s “Boom 92” KROI — which tripled its share during its November launch month — posted a fourth consecutive monthly down trend, slipping 2.0-1.7 among listeners aged 6+. The station has lost nearly half of November’s 3.2 share. In Dallas, “Boom 94.5” KSOC fared better, inching 2.6-2.8 but down from the holiday survey’s 3.2 and December’s 3.4. Like Houston, Philadelphia’s “Boom 107.9” WPHI-FM is trending down but not as quickly. After debuting with a 3.8 in December, it has moved 3.9-3.7-3.5 during the past three surveys. “This format takes off like a rocket and then the ratings come down to Earth,” CEO Alfred Liggins told analysts in February. Liggins said that although he expects ratings to fall back, Radio One remains committed to making classic hip-hop part of its typical urban radio cluster. Visit StationRatings.com for more February PPM results. Listeners latch on to return of L.A. morning host. Mark Thompson, half of the influential “Mark & Brian Show” heard on KLOS for 25 years, debuted in second place among men 25-54 in Nielsen’s L.A. survey, second only to KROQ-FM’s long- running “Kevin & Bean Show.” Thompson, who left Cumulus Media’s classic rock KLOS in 2012 to relocate to the East
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Coast, debuted his new morning show February 2 on Bonneville classic rock “The Sound” KWSD (100.3), helping spur the station’s best ratings since its 2008 launch. Thompson joined an expanding group of former KLOS and L.A. rock radio vets, providing a strong lead-in for other dayparts, and helping boost the station’s cume 11% during February. KSWD grew its 6+ AQH share 9% in mornings and middays, 14% in afternoons, 32% in nights, and 8% in weekends. “It’s way too early for ‘Mark In The Morning’ to declare victory, but record listenership to The Sound is a great way to start,” PD Dave Beasing says.
Commercial-free helps put Chicago’s new country station on the ratings map. Marathon commercial-free music blocks have helped iHeartMedia country “Big 95.5” WEBG, Chicago quickly gain ground on CBS Radio’s heritage competitor “US 99.5” WUSN. When WEBG promised “Chicago’s most commercial-free hit country,” it wasn’t kidding. The station, which launched January 5, rolls into a commercial-free weekend Fridays at 11:30 am. And it airs three separate two-hour commercial-free blocks on most weekdays. That helped it rank tenth in persons 18-34 in February with a 3.3 share, narrowly edging rival WUSN, which ranked 11th with a 3.2. Yet WUSN remained out front with a 2.7 share in persons 25-54, ranked 17th, while WEBG was tied for 22nd with a 1.8 share. Among listeners aged 6+, WUSN posted a 2.8 in February, down from January’s 3.3 and November’s 4.1, before the holiday format disrupted country listening. Both boats rise in Atlanta’s CHR battle. Incumbents are rarely unseated in direct format wars. But it does happen. During Labor Day weekend 2012, Clear Channel (now iHeartMedia) introduced Atlanta to a new CHR, “Power 96” WWPW, with a 9,600-song commercial-free launch followed by a large-scale TV and outdoor campaign and cash giveaways. More than two years later, “Power” has been ahead of Cumulus Media’s “Q100” WWWQ for several books now in what has been a tight battle. But in February results released yesterday, both stations were at or near record levels. WWPW’s fourth place 5.5 share is its highest since January’s 5.0, which was its best since before it flipped from rock in 2012. WWWQ has been on a ratings tear of its own, trending 3.8-4.5-5.1 for its best showing since May 2013. All of which suggests the ultimate winners in format battles are the listeners and that competition often increases the overall listening for a format in the market.
NPR’s streaming royalties pact doesn’t assure deal for commercial stations. NPR and the Corporation for Public Broadcasting have reached a settlement agreement with Sound Exchange on royalty rates for the next five years for webcasting by public radio stations. While it’s the second agreement made by the digital royalty collections arm of the music industry with noncommercial webcasters in the past five months, the agreement isn’t seen as a harbinger of what’s ahead for commercial broadcasters working on new webcast royalty rates that will begin next year. “The issues and money involved with commercial entities are far different than those for noncommercial broadcasters, even NPR, so that it makes it much harder to finalize a settlement,” Wilkinson, Barker, Knauer attorney David Oxenford says. “It’s possible that other deals can be cut but each has its own unique set of circumstances, so you never know for sure if a deal is going to be done until it is finalized.” Terms of the new public radio agreement weren’t released but Sound Exchange CEO Mike Huppe says it “recognizes the unique circumstances and missions of these organizations, and compensates the creators of the music used in their programing.” Last October Sound Exchange reached an agreement with College Broadcasters Inc., which represents college radio. If adopted by the Copyright Royalty Board, the settlements with the pubcasters will be in effect for the years 2016-2020. Oxenford notes there still are other noncommercial broadcasters who have not settled with SoundExchange. New media tool: Try before you buy. Media buyers have a host of tools to help them evaluate how an ad campaign performed after the fact. But predicting its outcome before the first spot runs? Not so much. Marketing tech provider Concentric and Nielsen believe their new strategic alliance will help planners read the media tea leaves by mimicking real- world market conditions. Just as pilots use flight simulators, Cambridge, MA-based Concentric provides market simulation technology to help attribute the impact of marketing, forecast sales and test future strategies. The two companies say they can help marketers examine various potential marketing strategies to determine which is likeliest to drive brand value. They aim to enable advertisers and agencies to understand the potential outcomes for a given ad campaign and deliver the strongest return. Likewise, content owners will be able to test-run various strategies for distributing their content to
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com TUESDAY, MARCH 17, 2015 determine the best options. Nielsen will use Concentric’s cutting-edge technology, like agent-based modeling, complexity science, behavioral economics and machine learning, to replicate consumer and marketplace conditions, such as earned, paid and owned media, competitive activity, product features, consumer perceptions and word-of mouth. Nielsen says its new simulation offering is part of a new media planning system set for release in the second quarter. NAB asks for online public file exemptions for small broadcasters. The FCC’s proposal to phase-in an online public file requirement for radio stations has drawn a mixed reaction from the National Association of Broadcasters. The NAB acknowledges it would give the public access to documents, but urges new limits on complaints and “parity” among the audio services. “The same rationale for placing online broadcast radio stations’ public files applies equally to satellite radio licensees,” the trade group writes in a filing. The FCC has proposed an online public file requirement be put on stations in the top 50 markets with five or more full-time employees first. All other stations would get an additional two years to prepare for the mandate. But the NAB “strongly urges” the FCC to take a “measured approach” and create carve-outs for cash-strapped small operators. That includes permanently exempting all noncommercial stations and any commercial stations with fewer than five full-time employees from the requirement. “Imposing additional burdens on these radio stations would not serve the public interest,” NAB says. And while NAB says it has no problem with the top 50 markets going first, it suggests the FCC give broadcasters “at least six months” to upload their existing material. It also proposes letting stations leave letters and emails from the public out of digital public files. And asks to allow AM stations to leave contour maps off the list of documents they need to put on the web. “These proposals will help reduce unnecessary burdens on radio stations,” NAB says. Keep complaints local. One of broadcasters’ biggest worries of is that online public files will become a deep mine for groups upset with a company or the industry as a whole. Conservative talk stations in particular could carry a bull’s- eye with left-leaning activists digging through their public files and filing complaints. To prevent that from happening, the National Association of Broadcasters is proposing that as public files move to the web, the FCC adopt a policy of focusing its enforcement efforts on actual local station listeners. That would “reduce spurious allegations against stations,” NAB says in the filing. It says that’s more in line with the original reasoning of the public file rules, first adopted in 1965. It would also discourage mass electronic complaints that the NAB says can suck up the FCC’s limited resources. Longer term, the trade group says the Commission should open a rulemaking looking at its complaint procedures and enforcement priorities in the era of online public files. Reply comments in the proceeding are due April 14. If it’s Texas you want, FM Auction 98 delivers. When the cyber-gavel goes down on July 23, there will be 131 FM construction permits up for grabs. Auction 98 will have a decidedly Texas flavor with more than half of the signals located in the Lone Star State. That includes a Class C2 at 107.9 FM in the Tyler-Longview market (No. 143) for which the FCC has set a minimum bid of $75,000. And a new Moody, TX-licensed Class C2 at 99.1 FM in the Waco market (No. 198) where FCC demands at least $60,000. Beyond Texas the other rated markets where the FCC is demanding higher opening bids include a Class C2 at 98.3 FM in the Columbia, MO market (No. 238). A Class C frequency at 104.1 FM in the St. George, UT area, and a Class A at 100.9 FM in the Athens, GA area — both of which the FCC is opening the bidding at $75,000. In the Erie, PA market (No. 173), a Class A at 100.9 FM is also on the list, as is a Class A at 92.7 FM in the Redding, CA market (No. 229). The vast majority of frequencies going to auction are in small unrated communities, so Auction 98 will serve as the latest barometer on whether broadcasters are willing to take a chance on buying what brokers refer to as “sticks.” Among the 131 coming to market, 18 are FMs that previously attracted no bidders or the winners defaulted. The pending arrival of Auction 98 will have an impact on all broadcasters in the meantime as the Federal Communications Commission has put a freeze on any proposed changes to FM facilities. That’s to allow would-be bidders to better estimate what they’d be getting for their money without needing to account for a change made by an existing station. Read a list of all the frequencies going to auction HERE. Why Townsquare Media stopped buying stations. Townsquare Media has been one of radio’s fastest-growing groups during the past several years, and at 311 stations across 66 markets it now ranks as the third-biggest operator. In recent
[email protected] | 800.275.2840 PG 4 NEWS insideradio.com TUESDAY, MARCH 17, 2015 months however Townsquare has remained on the sidelines, not buying a single station in all of 2014. CEO Steven Price says there’s a simple explanation for that. “Price expectations these days are quite high,” he told analysts on a conference call yesterday. The last deal that Townsquare closed was in November 2013, prior to going public, when it added 71 stations in a three-way deal with Cumulus Media and Peak Broadcasting. Price said there has been “a handful of things” they’ve looked at on the broadcast side of their business, but no deals in mid-sized markets “at the right price” have come together. “We would like to make acquisitions on the broadcast side,” Price insisted. They’ve also passed up several potential deals in the events and digital businesses. Price said what they’ve considered proved too small to interest them. Spanish-language radio returns to Philly’s FM dial. Philadelphia’s Hispanic population will once again have an FM station of their own when Spanish CHR “Super Q” launches April 1. Pronounced “Super Koo,” the HD-Radio-fed FM translator is the result of an agreement among three broadcasters. Super Q Broadcasting will lease translator W246AQ at 97.1 from religious broadcaster Priority Radio and WPEN-HD3 (97.5) from Greater Media. In addition to north and south Philly, the signal covers the South Jersey cities of Camden, Pennsauken and Collingswood. “To get this done took a long time of investigation, persistence, requirements, negotiations and God’s supervising,” Super Q principal Quilvio Perdomo (DJ Frankie) says. “The Hispanic community in the area is big and strong enough to be served by an FM.” It will go up against Aztec Capital Partners’ Spanish CHR “El Zol 1340” WHAT. Inside Radio News Ticker…Rare radio win for Wendy’s over McDs…The burger wars typically fire up in the warm weather months, but McDonald’s is struggling of late and Wendy’s owners apparently see an opening. Wendy’s aired 43,996 commercials last week on stations tracked by Media Monitors. That put it at No. 2 on the weekly Spot Ten ranker. It also put it two spots ahead of McDonald’s. Another quick serve restaurant also popped into the top 10 as Subway moved up from No. 17 to No. 9. A bit further back: Burger King (No. 15) and Taco Bell (No. 24). Media Monitors says Geico remained No. 1 for the week…CHR battle breaks out in Fargo…Ingstad Broadcast Group has given the Fargo, ND market its second CHR station as it launches “96.9 Hits FM” using the Moorhead, MN-licensed translator W245CM and the HD2 channel of hot AC sister “Big 98.7” KLTA. It’s going up against Midwest Communications’ CHR “Y-94” WDAY-FM, which Nielsen says had an 8.9 share (12+) in the Fall ratings. To make its mark it launches with a 33,969 songs commercial-free. The translator had been simulcasting classic country “Willie 1660” KQWB which Nielsen says had a 0.4 share in the Fall book…‘Big’ gets bigger at Delmarva beaches…Adams Radio Group has made its first move at its new Delmarva station group. It has begun simulcasting “Big Classic Rock 98.5” WGBG on WKHI, which had been “Hot Country 107.7” until the switch. The simulcast means the classic rock format will now cover more of the sprawling Salisbury-Ocean City market. Market manager Phil LoCascio says Adams plans to boost WKHI’s power to 25,000 watts during the next few months to better cover the area… People Moves…An urban radio programmer returns to Coastal Georgia. Read all the latest People Moves HERE. Dodgers and iHeart relaunch L.A.’s KLAC. With their television play-by-play blacked out in most of Los Angeles for a second year, radio will play a big part in the lives of L.A. Dodgers fans over the coming months. With opening day just a couple of weeks away, the team and iHeartMedia have relaunched KLAC as “AM 570 LA Sports.” The Dodgers organization announced last September it is taking a minority stake in its radio flagship. Now working together with station managers, the club is putting its touch on programming. The lineup will include more local shows, including a nightly “Dodger Talk” hour-long program. The show will air year-round, even when baseball is done for the season. Earlier in the day the station will carry the newly-created “LA Today” show with Bill Reiter and Leann Tweeden from 9am to 12noon. KLAC will still carry some Fox Sports Radio programming, such as Dan Patrick in morning drive and Jay Mohr in middays. IHeartMedia says an “extensive” outdoor and mobile campaign will launch throughout southern California to promote the new station. It will also cross-promote the relaunch on its seven other stations in the market. “We’re excited about the synergistic opportunities between our music, sports and entertainment properties,” market manager Greg Ashlock says. What impact the TV blackout has on radio ratings remains to be seen, but at one point last season Nielsen reported KLAC’s audience share had doubled when compared to a year earlier while its cume increased 48%. Another big driver for KLAC this year: it may be the final season for Hall of Fame announcer Vin Scully, who calls the first three innings in a radio-TV simulcast.
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