Weekly News Recap May 21-25, 2018 Radio Cozies Up With Automakers On Dashboard Of The Future. After a year of stepped-up dialogue and they love them in their car—but in hybrid mobile broadband technology. between radio and automakers, the addition to AM/FM radio, not instead of it.” The A8 radio uses a technology known two industries are getting serious as “service following,” which means it about collaborating on AM/FM radio’s Job No. 1 for the NAB has been working prefers the over-the-air digital signal, presence in the connected car. This to make radio “look as good as it sounds” but will switch to an analog FM version more cooperative spirit between two in the car, Layer says. As Inside Radio of the signal if digital transmission is industries comes after the Radio reported in December 2017, alongside not available. And when FM can’t be Board of the National Association of the NAB, Jacobs Media last year received, it switches to a streaming audio Broadcasters directed the trade group to conducted an audit of radio’s visual version of the station. become more proactive in working with appearance in the connected car in three automakers. Fulfilling that mission has markets – Philadelphia, Charlotte and “Service following” is also what Experi been priority number one for NAB VP Grand Rapids. Based on the audit results, has cooked up with its proprietary DTS of Advanced Engineering David Layer, Jacobs said radio got an “incomplete” Connected Radio platform, which became working with a group of consultants that score and suggests that the industry available for automotive integration at the includes Jacobs Media president Fred has more work to do. At the 2017 Radio beginning of this month in North America, Jacobs, along with John Ellis, the former Show, the NAB rolled out a digital dash Europe and Asia, although Experi hasn’t head of Ford’s Developer Program. report and best practices guide and has yet announced any auto partners. Layer and his team have become regulars since been encouraging radio groups to at the big auto shows and conferences audit their appearance on the dash and One hurdle to making hybrid radio a get busy implementing the report’s best reality is getting carmakers to adopt a practices. standardized platform. To that end, the NAB is working with GENIVI Alliance, Beyond ensuring that radio’s digital which collaborates with hardware and screen appearance in the car is consistent software companies to develop open with its streaming and satellite radio source platforms for automakers to use competitors, the industry and the NAB in their infotainment systems. As part of are working to evolve and innovate the its Pilot program, the NAB is working with in-car radio experience. Those efforts the consortium to incorporate hybrid radio currently are focused on what’s known features into their platforms. as hybrid radio, which combines the efficiency and coverage of over-the-air broadcast with IP-delivered content for and have participated in hackathons a richer, more interactive with Ford, General Motors and Honda experience. to develop new automotive apps that enhance the in-car radio experience. “As Layer points to the new Audi we talk to the automakers and explore A8 as an example of how how we can make radio even better in hybrid radio implementation connected cars and more advanced could ultimately pan out. As car designs like autonomous vehicles, the first vehicle to offer it, the I’m confident that the position of radio high-end A8, currently only in the car is going to stay right where it available in Europe, was is,” Layer says. The NAB isn’t alone in showcased at the Radio hearing that message from automakers. DNS booth at the NAB Michele Laven, president, Strategic Show last month in Las Partnerships Group, iHeartMedia, says, Vegas. Fully touch screen- “I have not spoken to an [automaker] activated, it includes a that will disagree with the power of our location-aware live listening radio stations and how we connect with guide that is supported by the audience. Consumers love apps

Page 1 Weekly News Recap May 21-25, 2018 With Analytics, iHeart Aims To ‘Claw Back’ Dollars From Digital. As radio looks to reclaim dollars that have shifted to Face- book and Google, the industry’s largest company will soon have a new tool in its quiver. Last week’s announcement of iHeartMedia Analytics will enable the broadcaster to deliver deep audience insights for individual ad campaigns, similar to systems such as Google Analytics and Facebook for Business. The new Analytics tool is an evolution of the company’s Smart- Audio planning and buying platform. “One of the first things we did when we realized that our digital and broadcast audiences were the same was to take the digital platform as a tool that we could use to express who the broadcast audiences were,” Brian Kaminsky, president of Revenue Operations and Insights for iHeartMedia, tells Inside Radio. The new Analytics part – which is being beta-tested now in a handful of markets – will validate that the SmartAudio audience that advertisers selected in the planning phase of the campaign was actually delivered. Most importantly, it will also measure the outcome of the campaign. At $28.3M, LA’s ‘K-Love’ Is Top Billing Hispanic Radio “What we think makes that really take off and changes the way Station. the entire industry is transacted is to now have a downstream Univision captured half of radio’s top 10 billing Hispanic ra- validation of those audiences we told you we were planning dio stations last year, including four of the top five. Spanish against,” Kaminsky says, while showing increases in search Broadcasting System placed two stations in the top 10, while results, store visitation rates, call center volume, brand lift and Entravision, Liberman Broadcasting and iHeartMedia each had other key performance indicators. one. The new 2017 Hispanic radio revenue numbers come from See more HERE new data provided to Inside Radio by BIA/Kelsey. Univision’s romantica “K-Love” KLVE In RMLC-BMI Share Of Market Faceoff, It’s A Matter Of Size. Los Angeles (107.5) brought in 2017 After the radio industry was unable to strike a new licensing revenues of $28.3 million, No. 2 SBS agreement with BMI, the Radio Music License Committee has tropical “Mega 97.9” WSKQ New formally requested a federal judge to set the rates that radio York booked $23.5 million, Univision stations pay songwriters. The stalemate continues to revolve regional Mexican “Buena 102.9” around how large a market share BMI has of the music busi- KLTN Houston had $22.5 million in ness. When BMI proposed hiking the revenue rate to 2% for the 2017 revenues, Univision regional new term, from the 1.7% revenue rate that stations had been Mexican “Que Buena 105.1” WOJO paying under the industry’s previous deal, the RMLC instead Chicago logged $19 million, and No. 5 Univision regional Mexi- went in the other direction. It proposed that stations pay a lower can “ZonaMX 101.9” KSCA Los Angeles reaped $16.5 million. 1.4% rate. BMI has pushed back against the argument that Nine of the top 10 are in the top six radio markets—New York, its market share has shrunk in the face of competition from L.A., Miami, Chicago and Houston—with the notable exception ASCAP, SESAC and upstart Global Music Rights. In court fil- of No. 10, iHeart tropical “Rumba 100.3” WRUM, which is all ings, BMI has said the RMLC used “incomplete and incorrect the way down in the No. 31 radio market, Orlando. It scored information” to base its proposed rate reduction. But RMLC $14 million in 2017 revenue. executive director Bill Velez told Inside Radio that it has been See more HERE “very difficult” for his team to come up with “a parity scenario” that puts ASCAP and BMI on equal footing. He said BMI has KLAX Drops A Full Share In Revised L.A. March Ratings. not done as good a job as ASCAP in keeping artists from jump- Nielsen reissued the March 2018 Los Angeles ratings Tuesday ing ship. BMI executive VP Mike Steinberg said the RMLC is and most of the market’s top 20 stations either gained a tenth now trying to use a “below market rate” that it negotiated with of a share in total audience or stayed flat. However, Spanish ASCAP to convince a federal rate court to lower what stations Broadcasting System regional Mexican “La Raza” KLAX-FM pay to BMI. With the rate-setting decision now in the hands (97.9) lost a full share in the revised 6+ ratings, declining from of Judge Louis Stanton, it is unlikely broadcasters will have a a ninth place 3.4 in the original March numbers to a 15th place final deal with BMI until 2019, or even later. In the meantime, 2.4 in the revised ratings. The reissued March ratings are the RMLC member stations will continue to pay an interim 1.7% first of seven monthly ratings reports to be redone, following rate agreed to in February 2017. See more HERE the removal of four homes from Nielsen’s L.A. PPM panel. With KLAX dropping out of March’s top 10, Entercom’s “1070 Urban One Will Pay $4.2M To Add WTEM To Washington NewsRadio” KNX moved from tenth place into ninth (while Cluster. staying at a 3.2) and CHR sister “97.1 Amp Radio” KAMP Urban One has disclosed the price it’s paying to add the advanced into the top 10 from 11th (2.9-3.0). The rankers of Washington Redskins flagship station to its radio cluster in the other top 10 stations weren’t affected. But eleven stations Washington, DC. In a regulatory filing, the company said it in the top 20 added a tenth of share in the reissued ratings. will pay Red Zebra Broadcasting $4.2 million in cash for “The On May 14, Nielsen informed clients that it was taking the Team 980” WTEM. Urban One has also inked a deal with the unprecedented action of reissuing L.A. radio ratings going Redskins to keep all of the NFL franchise’s games on WTEM. all the way back to October 2017 after an impact analysis of Urban One said it expects to generate around $1.7 million back data showed the four homes didn’t meet its standards. in pro-forma EBITDA from the station, which amounts to Nielsen removed the suspect households before last week’s a buyer’s multiple of roughly 2.5x cash flow. Red Zebra release of the April ratings. Broadcasting’s primary investor is Washington Redskins See more HERE majority owner Dan Snyder. See more HERE

Page 2 HOW DOES AUDIENCE PURCHASING POWER AFFECT YOU?

alk programmers know that trust is what’s given the show The Dave Ramsey Show. “Our before advertisers even book longevity—and what’s given ad- business has gone from a few a spot schedule, they consider vertisers brand credibility with hundred customers to thousands audience demographics like their customers. of customers in four years,” she age, income, and listener habits. said. “It’s such a solid investment But there’s one thing in particular for our company.” that’s often the deciding factor: the audience’s purchasing power. CONVERSION IS EVERYTHING Radio is one of the best ways to MONEY MATTERS reach a specific audience—but The amount of money a target The ROI only if you’re spending your audience has to spend directly marketing budget in the right impacts an advertiser’s bottom has been place. The Dave Ramsey Show line—and yours. The Dave Ramsey phenomenal. delivers both quality leads and a Show has an audience of 14 million It’s not just a high conversion rate, with 92% of combined weekly listeners, and his listeners shopping an adver- those listeners are an advertis- one-time hit. tiser mentioned on the show and er’s dream. They’re educated, It’s repeat and 54% making a purchase. engaged, and have cash to spend. referral revenue. “The ROI has been phenome- In fact, the average income of a nal,” said Allen Shipley, owner of Ramsey listener is 73% higher than Carpet Care Craftsman, Inc. “It’s the average American household. not just a one-time hit. It’s repeat

And 57% of those listeners are — Allen Shipley, owner of and referral revenue.” debt-free—which means they’re Carpet Care Craftsman, Inc. smart with their money. The Dave Ramsey Show, the largest independently syndicated radio THE TRUST FACTOR show in the country with more A lot has changed over the past Lisa Coffey, owner of Colorado than 600 affiliates, is about life 25 years. But Ramsey’s practical Springs-based Furnace World, and how that happens to revolve advice on life and money has credits much of her success to around money. Find out more at remained the same. His built-in her marketing relationship with RamseyMedia.com.

THIS IS AN ADVERTISEMENT

Page 3 Report: Sadusky To Succeed Falco as CEO Of Weekly News Recap Univision. May 21-25, 2018 Vincent Sadusky, a broadcast veteran of Media General and Telemundo, will succeed Randy Falco as chief executive Southwest Airlines Offers Free iHeartRadio On Flights. of Univision Communications, according to Bloomberg. His Southwest Airlines has aligned with iHeartRadio to bring the Spanish-language media experience also includes serving free streaming service to the onboard entertainment portal on the board of U.S. broadcast and cable TV company on the airline’s flights. Customers can choose from numerous Hemisphere Media Group. Notably, music genres, pick live iHeartMedia radio stations, select Sadusky also has experience at the specific artists and customize curated playlists. Fliers are deal-making table, having overseen able to access iHeartRadio through the Media General’s sale to Nexstar onboard entertainment portal on their Media Group for $2.13 billion in 2016. personal devices to begin the listening Sadusky is expected to start June 1. experience. Once activated, music His arrival comes as Univision faces will play as long as the entertainment a crossroads. The Hispanic media portal is open in a tab, allowing giant pulled its long-awaited IPO on customers to browse the rest of the March 6, citing “prevailing market conditions.” The company portal, check the flight tracker or utilize is conducting a business review that could trigger cutbacks the web if they have purchased WiFi access, according to the in the $200 million range and involve extensive layoffs as airline. Those that have the iHeartRadio app installed on their the company’s private equity backers prep Univision for a devices will be able to play personalized music and podcasts potential sale. See more HERE directly from the app while onboard Southwest flights. And those passengers who already subscribe to iHeartRadio’s All FCC Proposes Lowering Most Radio 2018 License Access on-demand subscription service will have access to Fees. their entire music library and saved playlists. The FCC is proposing to collect $322,035,000 in regulatory See more HERE fees from broadcasters and other regulated industries this year. That includes $26.9 million from AM/FM operators, a Craig Carton Files To Dismiss Securities Fraud Charge. 13% decrease compared to what it collected in 2017. Nearly Craig Carton has filed a motion to dismiss the securities every class of station would see a lower regulatory fee under fraud count he faces as part of the numerous charges levied the just-released proposal. The proposed fee schedule would against the New York-based sports radio host for running lower what FMs with the biggest potential audience reach an alleged ponzi-type ticket scheme. Carton’s lawyers claim pay by 15% to $18,800. And AM stations with the largest the government fails to prove their reach would see their annual fee drop 16% to $15,050. Most client had “intent to deceive” a classes of FMs and AMs would also see their annual fees hedge fund that loaned Carton reduced, although by a smaller percentage. Just a handful of and his business partner nearly $5 station classes would remain the same as what broadcasters million. Last September, Carton and paid in 2017. See more HERE co-defendant Michael Wright were charged with securities fraud, wire Baseball A Grand Slam For Sports Radio In April. fraud and conspiracy. The two are Sports radio had its highest April ratings share of the PPM accused of running a ticket resale era this year, driven by the onset of the 2018 Major League business and defrauding investors out of millions of dollars Baseball season. The earliest Opening Day ever, March to allegedly cover massive gambling debts. The motion 29, coincided with the start of the April PPMs, as America’s also asks for Carton and Wright to face trial separately. His Favorite Pastime propelled sports radio to a 4.6 total audience attorneys argue that Wright will become “in effect, a second share (6+). While not breaking records, Nielsen also showed prosecutor” who will present evidence against Carton, the increases in 18-34 numbers (3.5) and 25-54 where the New York Daily News reported. baseball broadcasts boosted numbers to just under a five- See more HERE share. Early spring numbers also show classic hits having its best April ever. The format posted a 5.7 share (6+) and also had its highest 18-34 (4.3) and 25-54 (5.2) numbers since the advent of electronic measurement in 2011. This follows the first quarter numbers the format put up to start 2018, when classic hits posted a 5.5 (6+), its best showing in the eight- year period tracked by Nielsen. See more HERE

Saga COO Warren Lada Announces Retirement. Warren Lada, a prominent player at Saga Communications for most of its 32-year existence, will retire as chief operating officer of the company at the end of June. Lada’s career has encompassed 42 years, all of it in radio. Lada was promoted to COO at Saga in March 2016 from executive VP of operations. He earlier served as senior VP of operations and GM of “Rock 102” WAQY Springfield, MA. “Warren has been an integral part of Saga for the past 27 years and we will deeply miss his contributions to Saga and its radio stations across the U.S.,” CEO Ed Christian said in a news release. A replacement has not been announced. See more HERE

Page 4 SALES – STATIONS

Washington, DC – Urban One strikes a $4.2 million deal SALES –TRANSLATORS to buy sports “The Team 980” WTEM from Red Zebra Broadcasting. As part of the deal Urban One has also entered Long Island, NY – Cantico Nuevo Ministry files a $32,256 into an agreement with the Washington Redskins—which deal to buy the Shirley, NY-licensed translator W243BF at like Red Zebra is majority owned by Dan Snyder—to keep 96.5 FM from Holding Out the NFL team’s play-by-play on WTEM. Urban One already Hope Church. The purchase owns urban “93.9 Kiss FM” WKYS, the urban AC simulcast of price reflects the amount of “Majic 102” WMMJ and WDCJ (92.7), gospel “Praise 104.1” back tower rent the sellers WPRS, talk WOL (1450), and gospel “Spirit 1340” WYCB owe to SBA Communications. in the Washington market. It’s the second deal between the As part of the deal Cantico two companies. Urban One last year bought WDCJ (92.7) in Nuevo Ministry also agrees Washington and sports “ESPN Richmond” WXGI (950) in the to make 63-hours a week Richmond, VA market from Red Zebra for $2 million. Broker: available to the seller through Greg Guy, Patrick Communications Aug. 2018. Cantico Nuevo Ministry will use the signal to simulcast Spanish contemporary Christian “Radio Cantico Indiana – Jack Didier’s Kensington Digital Media files a $2.4 Nuevo” WNYG (1440). million deal to buy country “Willie 103.5” WAWC, Syracuse, IN; classic hits WRSW-FM, Warsaw, IN (107.3); and news- CLOSINGS: talk “1480 News Now” WRSW, Warsaw, IN from the Dille family’s Talking Stick Communications. The deal also includes Ft. Wayne, IN – Swick Broadcasting closes a $300,000 deal the Warsaw, IN-licensed translator W259BJ at 99.7 FM which to buy the currently-stunting WFGA (106.7) from the Dille family’s Talking Stick Communications. Steve Swick already Colasimulcasts Wars WRSW. Hit Full Kensington Force With Digital Media also owns two owns five stations in the region but only AC WLKI, Angola, IN Pepsi,Nashville Coke market Vying stations: On Radio. classic hits “Hippie Radio 94.5” WHPY-FM and adult hits WHIN (1010). (100.3) and “Wheels Country 104.5” WLZZ, Montpelier, OH overlaps with WFGA. Alec, John and Sarah Dille’s Federated Maine – Immaculate Heart Media files a $750,000 deal to Media still owns a six-station cluster in Ft. Wayne. Broker: buy five Maine stations from The Presence Radio Network. Jason James, Patrick Communications They include WTBP (89.7) and WXTP (106.7) in the Portland, ME market. Plus WXBP (90.3) in the Bangor, ME market Pittsburgh – Bob and Ashely Stevens’ Broadcast and WWTP (89.5) in the Augusta-Waterville, ME market. Communications closes a $55,000 deal to buy KQV (1410) And WEGP (1390) in Presque Isle. Each has been airing from Calvary Inc. The former all-news station has been off the the religious “The Presence Radio” network. The deal gives air since the end of December. Broadcast Communications Immaculate Heart Media its first stations in Maine. already own seven other stations in the Pittsburgh region including adult hits WKHB-FM (103.9), classic rock WKVE Memphis, TN – Global Ministries Foundation files a $703,823 (103.1), smooth jazz “89.9 Qute” WQTW, adult standards deal to buy WUMY (830) from Ron Unkefer’s Memphis “Easy 88.1” WKGO, oldies/talk WKFB (770), talk/oldies First Ventures. The also includes the Memphis-licensed WKHB (620) and variety/brokered WEDO (810). Broker: translator W288BJ at 105.5 FM. The filing says $649,000 of Roger Rafson, CMS Station Brokerage the purchase price is attributed to the station assets with the balance related to tower leasing expenses. Once the sale Wyoming – Real Presence Radio closes a $50,000 deal closes Memphis First Ventures will still own country “95.3 The to buy contemporary Christian KGLL, Gillette, WY (88.1) Rebel” WEBL and classic hits “Guess FM” WGUE (1180) and from American Family Association. Religious broadcaster two FM translators in the market. Real Presence Radio already owns 10 stations and four FM translators in the upper Midwest and this is its first station in Birmingham, AL – Ken Layton’s TBTA Ministries adds a Wyoming. second station in the market with a $525,000 deal to buy oldies “97.7 The Peach” WHPH from Paul Reynolds’ Brantley McAllen-Brownsville, TX – Vision Hispana Incorporated Broadcast Associates. The deal includes a $325,000 Internacional closes a $37,500 deal to buy religious KVJS promissory note. TBTA Ministries already owns contemporary (88.1) from Believers International Broadcasting. Vision Christian “Revocation Radio” WKRE (88.1) in the Birmingham Hispana also owns Spanish-language religious stations market. It also owns WKUA (88.5) in Tuscaloosa and WJHO KVHI (88.7) and KSOX (1240) in Raymondville, TX—about (89.7) in the Talladega region. Once the sale closes, Brantley 50-miles to the north of the McAllen-Brownsville market. Broadcast Associates will still own stations in the Montgomery and Huntsville, AL markets. Broker: Jorgenson Broadcast Brokerage More closings HERE

More station and translator sales HERE

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