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FRIDAY, JANUARY 30, 2015

Programming’s biggest challenge in 2015: Keeping up with the audience. With a battery of entertainment options to choose from, consumer tastes and media behavior are changing faster than ever. Audience preferences have become a constantly moving target. One of programmers’ biggest challenges is keeping up with them. “They have too many places to get new, unique, different, creative, innovative content as opposed to the same compartmentalized eight or nine radio formats,” Cox Media Group VP of radio programming Steve Smith says. Smartphone penetration hit 77% in November 2014, up from 67% in November 2013, according to Nielsen. Half of Americans now own a tablet, up from 34% just one year earlier. With more choices, consumer behavior across all of media is changing at a faster clip. “The percentage changes are greater month to month,” Nielsen VP, programming business partner Jon Miller says. “The migration of audiences is happening faster than six months or a year ago.” With consumer access to nearly everything, all the time, programmers can ill afford to get caught off guard like some AC stations did five years ago when the core audience had moved on to Blackeyed Peas and Pink while AC stations were still banging Billy Joel and Rod Stewart. Consider that country looked unstoppable at this point last year. Now it’s coming off its quickest ratings declines in three years. The rate of change will likely only get faster. “We’re looking at where the audience is going, what kind of music they will want to hear and how we can present it in the right package so they listen for long periods of time,” Smith says.

Staying abreast of rapidly changing consumer tastes? There’s an app for that. While technology is speeding up the rate at which consumer tastes change, it’s also helping radio keep pace. Apps and other tools that allow listeners to vote for songs or provide instant feedback are becoming more prevalent. Beasley Media Group and Cox Media Group have built alerting features into their apps that ping listeners when their favorite songs air. “If we don’t figure out a way to give them what they want faster — right away, quite frankly — that will be a challenge,” Cox Media Group VP of radio programming Steve Smith warns. To remain in sync with evolving tastes requires carefully paying attention to the core audience: where they go, what they watch and listen to, how they communicate. What’s trending on social media, climbing the streaming songs charts, getting Shazamed or parodied on YouTube are all factored into the equation. “We can’t kid ourselves,” says CBS Radio EVP of programming Chris Oliviero. “With the content evolution of technology and the fragmentation of the audience, no format is immune from these challenges.” To avoid living in the past, Oliviero notes that the youngest members of the coveted 25-54 demo were born in 1990. It’s a poignant reminder of how programming must evolve as new generations enter and exit radio’s key formats. “We have to continue to check ourselves to keep looking forward as the world evolves and changes and realize that it never stops,” Oliviero says. “It’s about getting out in the streets, listening to the audience and finding out where they think it’s going to go,” Smith says. “Then going back in the building and creating those formats.” SESAC offers new rules — but radio’s not ready to say yes. Is it an olive branch worthy of ending a lawsuit, or a stick that could be used to beat radio stations into NEWS INSIDE >> submission? That will be the question before a federal judge as he weighs a request by SESAC to dismiss a suit brought by the radio industry after taking steps that its TiGHTER RESTRICTIONS attorneys argue undercut complaints made by broadcasters. SESAC presented its SOUGHT ON POLITICAL offer to the Radio Music Licensing Committee which has sued the performance rights AD BUMPING organization over its alleged heavy-handed business practices — most notably its all-

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com FRIDAY, JANUARY 30, 2015 or-nothing blanket licensing contracts. SESAC tells the court that as of November it has alerted music publishers that they’re now free to make deals directly with radio owners, a move designed to potentially allow a station to forego signing a contract. An online database has also been created which SESAC says will, for the first time, make it possible for a radio station to see which songs are in its catalog with a 30-day grace period for “unintentional” infringement when a new track is added. It also pledged to keep in place the “all-talk amendment,” which currently allows more than 1,850 radio stations to receive a 75% discount on blanket license fees. The now-expired offer would have put the limitations in place through December 2025. In a six-page letter to the court, CEO Patrick Collins says SESAC is aware of “hundreds” of radio stations that perform its works without a license but it’s only brought four lawsuits against eight stations during the past 21 years. “It is extremely rare for SESAC to bring a copyright infringement suit against radio stations,” he writes. The RMLC disputes that SESAC’s proposal constitutes “complete relief” and in a brief response to U.S. District Court Judge Darnell Jones it says it believes the radio industry’s lawsuit should move forward. A hearing on the request will be held this spring, further extending the timeline of a case first filed in October 2012.

SESAC’s closer to wrapping up its case with TV. A new offer to radio comes in the wake of SESAC’s settlement with the television industry where the performance rights organization is looking to speed up its settlement with the television industry. SESAC has asked a federal judge in New York to not waste any more time and move up a hearing that had been scheduled for March 18. SESAC says the two industries can’t be looked at in a silo, telling a federal judge that because some companies own both TV and radio it would be “impracticable, if not impossible” to put restrictions on radio that it’s lifting from TV. While SESAC would like to use similar rules for radio as in television, there’s a multimillion dollar difference in the legal cases. SESAC has agreed to pay $58.5 million in damages to the Television Music License Committee, which brought the case on behalf of its television station members in 2009. U.S. District Court Judge Paul Engelmayer has already given preliminary approval to a deal. The Radio Music Licensing Committee’s legal arguments have been less concerned with monetary damages, and more focused on changing the process by which rates are set, including moving away from a take- it-or-leave-it approach that’s frustrated broadcasters. That’s because RMLC believes if SESAC is brought into something similar to what ASCAP and BMI currently face, it will mean smaller rate hikes for radio. It’s still unclear what impact the Department of Justice’s ongoing review of the consent decrees under which ASCAP and BMI operate could have on radio’s case against SESAC. Political ad buyer seeks expanded FCC limits on station pre-emptions. As broadcasters prepare for the onslaught of political advertising that the 2016 presidential race is expected to bring, the Federal Communications Commission has agreed to give a fresh look at an often-used policy. The political ad buying agency Canal Partners Media argues the so-called “last in, first out” pre-emption method — used by stations to pre-empt a political spot in favor of a commercial advertiser’s previously-purchased spot — violates the federal law that ensures federal candidates access to the airwaves. Canal Partners Media argues any political spot must be treated as a “first-in” advertiser regardless of when the candidate actually purchased the airtime. The Media Bureau isn’t saying whether it agrees, but it has decided to take public comment on the ad agency’s request for a declaratory ruling. The FCC has set a March 2 deadline for filing comments, with reply comments due March 17. (MB Docket No. 15-24) Now it’s CBS Radio that’s sued by an ex-intern. A growing number of interns are taking on a new label: plaintiff. Now it’s CBS Radio that’s being sued by a former unpaid staffer. Camille Demere has sued the company for her time as a newsroom intern at all-news WCBS, New York (880) and as an online intern at CBSNewYork.com for nine months during 2009 and 2010. Filed in New York Supreme Court this week, the lawsuit claims her typical 40-hour per week unpaid duties violate the state law that requires a company to pay minimum wage since CBS would have otherwise needed to hire additional employees or extend staff hours. In the 10-page complaint, Demere seeks class action status to allow other interns to also seek payment from CBS. Over the past year there’s been a wave of intern lawsuits against media companies from unpaid

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com FRIDAY, JANUARY 30, 2015 staffers working on everything from NBC’s “Saturday Night Live” to PBS’ “Charlie Rose.” In most cases companies have opted to settle. In radio, iHeartMedia also faces legal action in New York by a former intern. That case is still pending. But it’s not just a New York issue. The federal Fair Labor Standards Act says if an employer would have hired additional staff or made regular employees work longer hours to get the job done, then interns will be viewed as employees and entitled to compensation. ANA: Majority of marketers to boost native ad spend in 2015. One of the hottest and most controversial trends in the advertising industry is earmarked for an infusion of dollars this year. Nearly two-thirds of marketers (63%) plan to up their spend on native advertising, according to a new Association of National Advertisers survey of 127 marketers. The practice of marketers weaving their message into the content has become widespread among marketers, from Macy’s to Subway. Almost three in five (58%) ANA respondents say their company used native advertising during the past year and 55% indicated their budgets increased for the marketing strategy. While most commonly associated with digital and social media, native advertising has made inroads at radio. CBS Radio and iHeartMedia last year hired executives to oversee branded content initiatives and Hubbard Broadcasting’s “Federal News Radio” WFED, Washington (1500) created a new director of custom media position to work with station clients to create native advertising programs across multiple platforms. Radio activations range from webinars and station-hosted client microsites to on-air feature reports and vignettes. The practice can blur the lines between content and advertising, a key issue among marketers. Two-thirds of ANA respondents agree that native advertising needs clear disclosure that it’s indeed advertising. The main benefit is the ability to create more relevant associations between the brand and consumer via content. Branded content is so important to Subway that it’s had a budget line for it since 2007. Yet despite the spending increases, native advertising currently accounts for a small percentage of overall ad budgets: 5% or less for 68% of respondents. As it prepares for a possible IPO, Univision extends CEO Falco’s contract. Univision Communications announced Thursday that it had extended Randy Falco’s employment agreement as president & CEO through January 2018, validating the growth the company has made in the nearly four years since the former AOL and NBCUniversal executive joined in 2011. The extension is seen as keeping a steady hand on the wheel of America’s largest Hispanic media company as it prepares for a possible public offering. Falco is credited with launching new partnerships and TV networks focused on sports, telenovelas and news and a joint venture with ABC for Fusion, an English-language news and entertainment cable network. During his tenure Univision made a strategic investment in El Rey, a new English-language cable outlet, created the bilingual digital video network UVideos and introduced Uforia, a digital music service. Aiming to unify its radio and TV stations to give advertisers one-stop shopping, Falco last year revamped Univision’s management Randy Falco structure to put all of its 66 radio and 61 TV stations under Univision Television Group president Kevin Cuddihy in the newly created position of president of local media. “Under Randy’s leadership and vision, the company has meaningfully increased earnings and accelerated its transformation from a niche broadcast network to a multimedia powerhouse, with platforms across the spectrum of traditional and new media that appeal to the diverse U.S. Hispanic audiences like no other media company can,” Univision chairman Haim Saban said in a statement. We’ll be right back — after the lead singer takes a shower. One recent trend in new radio facilities has been to include performance spaces for visiting musicians to play live when they’re in town. For Seattle adult alternative KEXP (90.3), an essential stop for tastemaker bands, making musicians comfortable has gone beyond just a well-appointed soundstage. The public radio station’s new 27,500 square-foot Seattle Center studios will include showers, washers and dryers for visiting artists. The $15 million facility will include a room designated just for securing and storing musical equipment so acts don’t have to worry about their gear being stolen from their tour buses and cars. The L-shaped new digs will also house live performance spaces that accommodate up to 75 people and a curated record store. What might seem extravagant for some radio stations is actually a pragmatic incentive to attract traveling bands whose budget doesn’t include a stay at the Four

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Seasons Hotel. The design came out of a string of detailed conversations station managers had with musicians. “It’s less square footage and more our responsibility to make changes that serve the artists and the music lovers and the Seattle music ecosystem,” KEXP executive director Tom Mara tells Crosscut Public Media. “We’ll be constantly and relentlessly pursuing that.”

Inside Radio News Ticker… HD Radio standard on new Alfa Romeo Spider…The buyers of the roughly 400 Alfa Romeo 4C Spiders available to U.S. dealers this year will get a premium HD Radio-equipped sound system to go with their hand-built coupe this year. The Italian sports car will come with HD Radio as standard equipment. The Spider is the first Alfa Romeo model to integrate HD Radio…Chicago’s ‘Mr. Cub’ gets ultimate radio goodbye...In a rare move usually reserved for presidents and popes, Tribune news-talk “Radio 720” WGN, Chicago is breaking away from regular programming Saturday to give wall-to-wall commercial-free coverage to a memorial service. It’s the tribute to Chicago Cubs baseball great Ernie Banks, who died January 23rd at the age of 83. WGN sports director Dave Eanet will anchor the broadcast. Tribune says it will stream the memorial service as well, knocking its regular “Kathy and Judy Show” to its secondary WGNPlus.com website… New term begins for FCC’s O’Rielly…FCC chair Tom Wheeler yesterday swore-in commissioner Michael O’Rielly to a new term on the Federal Communications Commission. He previously had been serving out the term of former commissioner Robert McDowell. In December the Senate confirmed the former Capitol Hill staffer’s nomination without a fresh round of confirmation hearings. “Glad you’re back,” Wheeler told O’Rielly…Rosenworcel names new media advisor…There are several staff changes in the office of FCC commissioner Jessica Rosenworcel. Most importantly for radio, she’s named Valery Galasso as her policy advisor for media issues. Galasso had already been working in her office on consumer affairs and education issues. She earlier worked in the Obama Administration as a liaison between Vice President Joe Biden and Congress. Galasso replaces Clint Oden who heads to Capitol Hill to work for the Democrats on the Senate Commerce Committee…Auction default still costs bidder…Winning the auction turned out to be the easy part. Paying for it is what has tripped up Ace Radio Corporation (ARC). With a $309,400 bid it won a construction permit for a Mertzon, TX-licensed Class A signal at 101.1 FM during Auction 62. But the FCC says the money never came, and it’s now demanding it pay up. It had given ARC until December 10, 2014 to submit its balance plus a 5% late fee. But no check arrived. So it’s canceled the winning bid and says ARC owes a 3% default fee totaling $9,282…Conclave returns to July dates…After moving out of its mid-summer position last year, the Conclave Learning Conference is returning to its normal July timeframe. The 40th annual programming conference is slated for July 16- 17 at the Double Tree by Hilton Minneapolis Park Place. This year’s Conclave will present its first annual Speed Mentoring Breakfast…People Moves…Longtime iHeartMedia VP of Hispanic programming Jim Lawson is expanding into a multi-format role with the company. And modern rock “91X” XETRA-FM, San Diego-Tijuana promotes assistant program director and evening personality Matt Stone to morning drive. Read more People Moves HERE. As door to Cuba opens, a move to close one for Radio Marti. With the opening of U.S.-Cuban relations, efforts in Congress to power down the Radio and TV Martí services may finally attract enough support to pass. For U.S. broadcasters it could have implications since the Radio Marti broadcasts into Cuba have been a thorn in the country’s side and one of the reasons the Castro regime regularly stepped on U.S. stations’ signals. Bill sponsor Rep. Betty McCollum (D-MN) calls Radio and TV Marti “Cold War artifacts” and says tax money shouldn’t go toward funding “propaganda broadcasting.” Over the past three decades Radio and TV Martí have cost taxpayers $770 million. McCollum says the opening of diplomatic relations is a perfect opening to shut the services down. “The radio and television broadcasting that we fund is simply not providing appropriate value and should be ceased immediately,” she says. Surveys have shown just small numbers of Cubans tune into the broadcasts, although the numbers may be influenced by a fear of admitting to listening to a U.S. broadcast.

Correction: A Deal Digest item in yesterday’s Inside Radio incorrectly identified the relationship Nevada Radio’s Floyd Brown has with contemporary Christian “90.9 The Shine” KGCB, Flagstaff-Prescott, AZ. He serves on the board of Arizona Christian University which owns the station.

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GENERAL SALES MANAGER - SAN FRANCISCO DIGITAL SOLUTIONS SALES - ANY U.S. LOCATION iHeartMedia San Francisco has an opening for a General Sales Manager. This is a leadership and sales role responsible for managing Triton Digital’s Publisher an extended team of Account Executives and working collaboratively Development Team is with other market GSMs. responsible for building Triton’s audio publisher network through Primary responsibilities include generating station sales revenue the direct-sale and licensing and achieving sales goals; identifying, developing, and managing a of Triton’s AMP Platform and group of local sellers; growing and deepening customer relationships Triton’s Audio Platform. Success that translate into sales; and, general management activities that in this digital solutions role will support sales (eg, reporting, incentive plan creation, performance require proven talent in sales, a management, ongoing routines, etc.), and achieving sales & revenue knowledge & passion for digital targets with ever more sophisticated clients in a dynamic & highly media, as well as the ability to competitive marketplace. manage through a complex sales process. Strong communication & The GSM will create revenue by having a deep understanding of their presentation skills are essential as clients’ needs and the local marketplace, and through coaching & well as an entrepreneurial desire guiding their team of local sellers. to help prospective and current clients grow their business with College degree and two years related experience Triton solutions. E.O.E. and/or training, or equivalent combination of education/experience preferred.

For a full list of qualifications and requirements, or to apply for this position, please CLICK HERE.

iHeartMedia is an equal opportunity employer. If the description above depicts you, send resume to: [email protected] tritondigital.com/about-us/ careers

GSM - CHICAGO The most respected and imitated Classic Rock station in the qual country has a rare opening for GENERAL MANAGER - MINNESOTA a General Sales Manager. Rare GM opening for Hubbard radio in northern Minnesota! Candidates should have at least 4 years of experience in leading Hubbard Broadcasting, Inc. is looking for an energetic, motivated veteran team of quality sales and creative manager to lead our five radio stations in Bemidji, MN. executives. This position requires As GM you will oversee sales, marketing and operations of KZY 95.5, a depth of knowledge in new Z99, KB101, WQXJ 104.5 and KBUN. The last management team business development and was in place for over 25 years so it’s a rare opportunity to lead our five new digital sales applications. strong brands in a robust and competitive market. Sales background To apply, visit: is preferred but not required. The opportunity provides the best of www.wdrv.com/jobops.php both worlds—small market localism with major market resources. We can’t wait to hear from you! Send letter & resume to: Dan Seeman, [email protected] WDRV-FM is an Equal Opportunity Employer Equal Opportunity Employer.

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication MORE OPPORTUNITIES may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed @ INSIDERADIO.COM >> beyond the physical address of the named subscriber. Address: P.O. Box 567925, Atlanta, GA 31156. Subscribe to INSIDE RADIO monthly subscription $39.95 recurring payment. For information, visit www.insideradio.com. To advertise, call 1-800-248-4242 x711. Email: [email protected].

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