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THURSDAY, MARCH 12, 2015
The deal market is off to a slower start in 2015. The first quarter is never the busiest time of year for deal-making. The unofficial start of the transaction season is when brokers, buyers and sellers huddle at the NAB Show in Las Vegas. But 2015 is off to a slower start compared to a year ago. Through the end of February there have been 66 station sales announced, down from 163 last year. BIA/Kelsey says the value of the announced deals adds up to $56 million, down from $180 million during the first two months of 2014. And the firm says February’s pace was even more sluggish than January. “If the market slows down in 2015 it will be because of inventory,” Patrick Communications managing partner Greg Guy predicts. Several brokers tell Inside Radio the biggest challenge this year will be a market shortage of high-quality inventory that buyers are willing to pay top dollar for. The proverbial low-hanging deals have largely come to market since the end of the recession. And with ad dollars not growing, bidders are less likely to make a move on a station they see as a second choice. It’s even slower for television. Radio deal-making may be in first gear, but BIA/Kelsey data shows TV trading is stuck in neutral as owners hold onto their stations to see what develops as a result of the FCC’s planned spectrum auction. Depending on how that develops, some companies believe they’ll be able to get more by selling their spectrum to the government than to another operator. CBS is giving a hard look at its TV portfolio according to CEO Les Moonves, who said the company may be able to slice off some spectrum being used by CW stations in several markets. “There’s a lot of money available,” Moonves said yesterday, telling an investor conference, “We’d be dumb if we didn’t take a big chunk of it.” Read Inside Radio’s Deal Digest on Page 5. Nielsen: Radio’s reach expands. AM/FM radio’s reach expanded in the fourth quarter while traditional TV’s cume diminished somewhat and smartphone usage continued a sharp upward trajectory, according to a new report from Nielsen. Radio’s monthly cume increased to 258.4 million, up from 257.0 million in the fourth quarter of 2013. That put it closer to traditional TV, which slipped to 285.1 million monthly viewers from 286.7 million in 2013. AM/FM radio also ranked second in weekly time spent among eight media tracked by Nielsen, out-performing smartphones, accessing the internet from a computer, time-shifted TV, game consoles, DVD/ Blu-ray devices and multimedia devices. But like traditional TV and use of the internet on a computer, time spent with radio is slowly declining. Among adults 18+, daily time spent with AM/FM radio decreased from 2 hours and 50 minutes in the fourth quarter of 2012 to 2:46 in 2013 and to 2:43 in 2014, a 4% decline in two years. Still perched at the top of the heap, live TV captured four hours and 51 minutes, but it experienced a sharper 6% decline compared to 2012. One culprit for traditional TV’s usage decline is time-shifted TV, which grew to 33 minutes a day, a 22% increase from two years earlier. Who listens the most to radio? When it comes to radio usage, generally the older the demo, the more time spent tuning in. Yet despite an older-skewing audience and year-over-year time spent listening declines in every measured demo, new
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Nielsen data shows AM/FM radio ranked second behind traditional TV in weekly time spent for every measured demo in 2014’s fourth quarter. Adults 50-64 spent the most time with AM/FM radio: 14 hours and 55 minutes per week. Adults 35- 49 racked up 13 hours and 39 minutes, followed by adults 25-34 (11:30), adults 18-24 (10:25) and teens 12-17 (7:12). For the most part, younger demos showed the biggest fourth quarter declines: Weekly listening among teens fell 7% in 2014 compared to 2013 while 18-24 listening dropped 4%. Nielsen recorded 5% declines in weekly listening among 25-34 year- olds and 35-49 year-olds. Radio’s oldest listeners had the lowest slippage: 2% for 50-64 year-olds and 1% for persons 65+. AM/FM radio estimates in Nielsen’s new Total Audience report are based on RADAR and the firm’s National Regional Database. Nielsen says listening to HD Radio broadcasts, internet streams of AM/FM radio stations and satellite radio is included in the Persons Using Radio estimates in the report where the tuning meets its reporting and crediting requirements.
On demand access is expanding consumers’ media day. A snapshot of the fast-fragmenting media universe, Nielsen’s new Total Audience Report underscores the accelerating changes in how consumers access content. Armed with a multitude of devices and services, consumers are spending more time with media than ever. But that consumption has progressively shifted from live to on-demand, Nielsen SVP of insights Dounia Turrill says. “U.S. consumers are adding time to their media day and making time to connect with their favorite content, no matter where it exists,” Turrill says. “Devices and services that enable on-demand access to content, subscription-on-demand services that deliver programming content as well as audio content, are growing by leaps and bounds.” While more consumer time with media creates additional opportunities for content owners, the economics in digital remain challenging for all but a few, Turrill contends. Calling today’s landscape “a modern-day gold rush for traditional video and audio,” she says the relatively small number of digital leaders that have emerged “are looking not just to compete, but to stake a claim and prosper in that space.” Univision preps for $1 billion IPO: report. For the past two years the private equity owners of Univision Communications have been looking at either a sale of the company or an IPO. With no buyers emerging, the company has reportedly taken steps to go public. Reuters says Univision has hired Goldman Sachs, Morgan Stanley and Deutsche Bank to lead an initial public offering. It could bring the return of Univision as a public company in the second half of the year. Citing sources, Reuters says the firms won’t exit their ownership of the Hispanic media company altogether. Instead, they’re looking to sell about $1 billion of stock in a deal that would value Univision overall at roughly $20 billion. Univision went private in 2007 as part of a $12.3 buyout led by Haim Saban along with Madison Dearborn Partners, Providence Equity Partners, TPG Capital and Thomas H. Lee Partners. Among the companies that reportedly looked at buying Univision, but ultimately passed on making an offer, were CBS and Time Warner. Sell some markets? Sure, but here’s why Moonves says CBS will stay in radio. Some new companies have formed, operated and sold since CBS first said eight years ago it was interested in selling off its small- and mid-sized clusters. That’s still true, but CEO Les Moonves has found a new reason to love radio. “We have a large local interactive presence and they’re working closely together in terms of content and sales,” he told the Deutsche Bank Media Conference in Palm Beach, adding, “The radio guys and TV guys are all selling interactive and that’s growing greatly in local — so that really works.” Radio is playing an even larger role in that effort, following the launch of the Play.it podcast portal earlier this year. There are also more cross-selling efforts under way, according to Moonves who said the company’s large market radio stations are working “hand in hand” with their TV sisters. As for selling stations elsewhere, Moonves said “trimming” the portfolio beyond the big cities remains something CBS is willing to do. “That would be a good idea for us,” he said.
Pittman on programmatic and why 2015 is the ‘year of ROI.’ Over the past two years iHeartMedia CEO Bob Pittman has become radio’s high-profile pitchman to Wall Street and the ad community. There was no shortage of selling the value of radio to advertisers during appearances on CNBC and at the Goldman Sachs TMT Conference yesterday in New York. But Pittman also reflected on how his own company is evolving. A flattening of the management structure began last year, putting Pittman and COO/CFO Rich Bressler closer to the front lines. “We continue to change and evolve it as we learn and
[email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, MARCH 12, 2015 see performance and opportunities,” Pittman said at the investor gathering. It’s a playbook that’s led to a fresh look at operations. “In any business that’s been around this long we’re hanging onto costs that were built for another era, so we’re taking a hard look at how we can operate more efficiently and get a better return out of every dollar we spend.” The review includes looking at how stations are structured and how iHeart operates its digital business. At a recent manager’s meeting he said the company declared 2015 as the “year of ROI” — not just for clients, but internally. “In a world that’s changing with programmatic and automated buying coming along, that will take humans out of the process and we’ve already begun to streamline that process,” Pittman told investors. That could mean fewer sales reps down the road but for now he said it means more efficiency for salespeople who spend “way too much time doing paperwork.” The self-assessment is what’s partly behind iHeartMedia shedding $800 million in noncore assets Bob Pittman during the past two years, selling everything from towers to land and international holdings. “The legacy of the business was we own a lot, so why not convert it over to a better way of doing business,” Pittman said. IHeartMedia asks for its FM back. It won’t take a sale or swap for iHeartMedia to bring back one of its Florida stations that’s been held in the Aloha Station Trust for sale since 2008. The company has filed to return WCZR, Vero Beach (101.7) to the iHeart banner since it will bring its market total to five stations. In a metro the size of Ft. Pierce-Stuart-Vero Beach, current FCC rules allow up to six, as long as no more than four are on the FM or AM band. WCZR simulcasts talk “Real Radio 94.3” WZZR from the nearby West Palm Beach market. If the FCC goes along with the move, iHeartMedia will also own country “Wave 92.7” WAVW, “Oldies 103.7” WQOL, AC “Kool 105.5” WOLL, and “News Talk 1370” WZTA in the Ft. Pierce-Stuart-Vero Beach market. The transfer would also bring the number of stations remaining in the Aloha Trust down to 15 with stations in the Albuquerque; Augusta, GA; Columbus, GA; Dayton; Eau Claire, WI; Frederick, MD; Huntington-Ashland, WV; Lexington, KY; Minot, ND; and Roanoke-Lynchburg, VA markets. The trust was created seven years ago when Bain Capital and THL Partners bought the company and several grandfathered oversized clusters were no longer permitted. ‘This has been the longest deal in my lifetime.’ That’s Adams Radio Group CEO Ron Stone, who happily reports his company has finally closed its $3.15 million deal to buy six Delmarva stations from Great Scott Broadcasting. “We started this process in September 2013 and are elated to finally reach the goal line,” Stone says. Between then and now, a fight erupted when Hola Media Network said it had a right of first refusal to buy Spanish CHR “Maxima 900” WJWL under the terms of a 2010 local marketing agreement. Great Scott said it didn’t know anything about the promises made by a since- deceased owner, Mitch Scott. But after talking with Adams the two companies agreed to honor the right of first refusal and gave Hola a 30-day window to buy WJWL. Hola failed to make a bid and the FCC ultimately decided it was a private contract dispute, not something for the agency to moderate. Now that the sale has closed, Adams has installed Phil LoCascio as its market manager. He takes over from Great Scott manager Jim McHugh, who becomes director of sales for the cluster. Besides WJWL, the cluster includes “Classic Rock 98.5” WGBG, rock “The Beach” WZBH (93.5), “Hot Country 107.7” WKHI, rhythmic CHR “OC 104” WOCQ, and adult hits “Sue AM 1280” WJWK. The deal also includes two FM translators: the Seaford, DE-licensed translator W242AV at 96.3 FM and the Georgetown, DE-licensed translator W262BF at 100.3 FM. Adams Radio Group also owns stations in suburban Chicago; Ft. Wayne, IN, and Las Cruces, NM. Be careful using ‘March Madness’ — it’s trademarked. Warnings to avoid using the term “Super Bowl” without holding the rights have become an annual refrain for radio. As March Madness is about to begin, broadcast attorney David Oxenford warns the NCAA championship’s trademarked name is just as potentially dangerous. “These championship names are trademarked, and the owners are active in policing and protecting their marks,” he writes in a blog post, noting that official NCAA sponsors pay lots of money to have the rights to use March Madness in their spots. It’s of course fine for air personalities and sportscasters to use the phrase on-air. Oxenford says where things go over the line is most notably in
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, MARCH 12, 2015 a commercial. Short of policing every bit of ad copy, he suggests stations just use an alternate phrase to avoid any legal headaches. Its two scoops of NCAA play-by-play for Clark Kellogg. He’s been the face and voice of NCAA championship basketball on CBS-TV since 1997. This year Clark Kellogg will pull double duty, in a move that will bring him back to radio. He’ll serve as an analyst during Westwood One’s Final Four and National Championship games next month. “My broadcasting career started on the radio 28 seasons ago with the Indiana Pacers, so this is a wonderful opportunity to go back to the future,” Kellogg says in a statement. He’ll also continue to be part of the TV announcing team on CBS-TV and Turner Sports. Here’s how that will work. Immediately following the pregame show broadcast on TV, Kellogg will make his way courtside to the Westwood One radio broadcast position, where he will partner with Kevin Kugler and John Thompson. Then he will rejoin TV for halftime before repeating the process in the second half and postgame show. Westwood One says more than 500 stations will carry its March Madness play-by-play that begins Tuesday and will stretch 67 games until the final game on April 6. Clark Kellogg Inside Radio News Ticker…Journal, Scripps shareholders vote yes…In a pair of simultaneous but separate votes, shareholders at Journal Communications and E.W. Scripps today gave their approval to a proposed merger of the two companies. The deal will see radio and TV operations combined under the Scripps umbrella, with a newly-created Journal Media Group operating the two company’s print assets. The deal is expected to close next month...Pandora reports nine million in-car users…Pandora says more than nine million users currently access its streaming service through their car dashboard and that 160 car models offer in-dash Pandora integrations. The connected car and connected home devices are the next stops for what Pandora calls its “audio everywhere” strategy for advertisers, SVP of ad product sales and strategy Lizzie Widhelm says in a new blog post…Missing paperwork means FCC fine…The FCC has levied a $10,000 fine against Peconic Public Broadcasting jazz/news WPPB, Long Island, NY (88.3) for missing paperwork in the station’s public inspection file. The agency says issue and program lists are missing from December 2010 until December 2013, an oversight WPPB concedes. The error is likely tied to a change in ownership. The paperwork started missing right after Peconic bought WPBB from Long Island University. It now has 30 days to pay up or seek a reduction. On a brighter note, the FCC has decided to give WPPB a new license…Bobby Bones creates scholarship…“I know I’m no Oprah, but I’m trying,” syndicated host Bobby Bones says in the announcement that he is creating a college scholarship for students at his former high school in Arkansas. The host will select the recipient of “The Bobby Bones Don’t Be Skipping Class” annual scholarship, to be awarded at Mountain Pine High School. “Education was a really important part of my life, so I hope to give back to someone who needs the help, much like I did,” Bones says. The announcement came as part of his show’s second annual “Joy Week” celebration, which encourages listeners to “choose joy, spread happiness, and do good things for others”…People Moves…Seattle’s 20-year morning man Mitch Levy inks a new contract with “Sports Radio 950” KJR. And country “93.7 The Dawg” WDGG, Huntington, WV program director and afternoon drive personality Jeff “Crawdawg” Crawford died March 10 after a long battle with cancer. He was 55. Read People Moves HERE. New online radio aggregator prides itself on simplicity. A new online radio aggregator is positioning itself as a faster, simpler alternative to TuneIn and iHeartRadio. Available as a free app for iOS device users, Swipe Radio is intended as a barebones way for users to access their favorite stations online without having to jump through hoops. The app serves up a list of popular local stations for users who give it permission to access their location, according to TechCrunch. Using swipe gestures, users can access their favorite stations for a basic streaming experience. It allows users to assign a different color to their favorite stations to make finding and listening to them easier. Part of the app’s differentiator is what it doesn’t offer: no personalized playlists, mood-based stations, or artist bios. Or as Swipe Radio’s slogan puts it, “No password, no login, no shifting through other people’s noise.”
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S A L E S Salisbury-Ocean City, MD — The Voice Radio Network files a $1.7 million deal to buy the classic rock simulcast of “The Vault 103.5/106.1” WJKI/WXSH, urban “Power 101.7” WZEB, and Spanish CHR “Maxima 95.3” WKDB from Great Scott Broadcasting. The deal also includes the Seaford, DE-licensed translator W242AV at 96.3 FM and the Georgetown, DE-licensed translator W262BF at 100.3 FM. The sale was first announced in September, but it only now has been filed with the FCC. The Voice Radio Network has been operating the stations under a local marketing agreement since 2010. Great Scott Broadcasting is selling its other Salisbury-Ocean City market stations to Adams Radio Group. Sioux City, IA — Charles Brennan’s Badlands Airtime files to buy ‘80s oldies “Sunny Radio” KZOY (1520) and the Sioux Falls- licensed translator K221FO at 92.1 from John and Heidi Small’s Cup O’ Dirt LLC for $1.5 million. Cup O’ Dirt still owns “Sunny” station KZOI (1250) and has a pending deal to buy the Sioux City, IA-licensed translator K248AY at 97.5 FM (see below). A Sioux Falls native, Brennan is a former rock concert promoter who made his millions creating the Dollar Loan Center, a consumer loan retailer with locations around the Midwest. He’s credited heavy advertising on rock radio — including on Howard Stern’s show — for building his business. Nebraska — The Nebraska Rural Radio Association strikes a $1.335 million deal to buy AC “Mix 105” KTMX and classic hits KAWL (1370) in York, NE from Mark Jensen’s MWB Broadcasting. He’d owned the stations since 2004. The Nebraska Rural Radio Association adds to its portfolio which also includes rural Nebraska stations in Lexington, Scottsbluff, West Point, and Cozad.
Indiana — IHeartMedia files to buy the Franklin, IN-licensed translator W248AW at 97.5 FM from Educational Media Foundation for $275,000. EMF has also filed a waiver request to change the translator’s city of license to Indianapolis, where it says iHeartMedia will simulcast “Sports Radio 1260” WNDE on the signal. In seeking what’s known as a Mattoon waiver, EMF points out the translator was licensed in September 2008 and the facility hasn’t been modified since then, and it’s also not engaged in “hopping” which FCC translator limits are designed to block.
Tulsa — Key Plus Properties files to buy regional Mexican “Que Buena 1530 AM” KXTD from Gaytan-Galvan for $100,000. Key Plus, a 50/50 partnership of Jose Esteban Torres and Jose Moguel, will operate the stations under a local marketing agreement until closing. Key Plus Properties is a commercial real estate firm in the Tulsa metro. Nebraska — Cup O’Dirt Communications files to buy the Sioux City, IA-licensed translator K248AY at 97.5 FM from pay Ron Unkefer’s First Ventures Capital Partners $50,000. Cup O’Dirt will simulcast ‘80s oldies “Sunny Radio” KZOI (1250) on the signal. First Ventures last month filed to relocate the translator to KZOI’s tower and boost its 17-watts to 145-watts.
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C L O S I N G S Salisbury-Ocean City, MD — Adams Radio Group closes a $3.15 million deal to buy “Classic Rock 98.5” WGBG, rock “The Beach” WZBH (93.5), “Hot Country 107.7” WKHI, rhythmic CHR “OC 104” WOCQ, Spanish CHR “Maxima 900” WJWL, and adult hits “Sue AM 1280” WJWK from Great Scott Broadcasting. The deal also includes two FM translators including the Seaford, DE-licensed translator W242AV at 96.3 FM and the Georgetown, DE-licensed translator W262BF at 100.3 FM.
Dallas — Tron Dinh Do’s Intelli closes a $1.6 million deal to buy sports “ESPN 1460/93.1” KCLE from Gary Moss’ M&M Broadcasters. The deal also includes two FM translators: the Cleburne, TX-licensed translator K226BM at 93.1 FM and the Burleson, TX-licensed translator K239CC at 95.5 FM — the latter of which is a construction permit. Intelli already owns the Vietnamese-language stations WAZX (1550) in Atlanta and KAZA (1290) in San Jose. Broker: Sandi Bergman
Fresno — Gore-Overgaard Broadcasting’s ethnic KBIF (900) removes one of the two names on its masthead as Cordell Overgaard will move from a 56% owner of the standalone station to a 100% owner by closing a deal to buy out the Gore family in a deal valued at $410,000. KBIF was the last station owned by Gore-Overgaard Broadcasting, the partnership between Overgaard and longtime station owner and media broker Hal Gore, who died last August. It airs a variety of Asian-language programming targeting the Central Valley, where 9% of the population is of Asian descent.
Indianapolis — Brent Lee and Randy Lawson’s Community Radio Partners closes a deal to buy hot AC “Radio Mom” WIRE (91.1) from Hoosier Broadcasting for $205,000. Lee and Lawson also own the commercial radio group Leeson Media, which owns “Country 103.9” WRBI, Batesville, IN. The deal includes a $150,000 promissory note to be paid over a five year period.
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[email protected] | 800.275.2840 PG 6 CLASSIFIEDS insideradio.com THURSDAY, MARCH 12, 2015 qualFINANCIAL SHOW HOST MARKET MANAGER - COLORADO MULTIMEDIA SPECIALIST Cumulus-Colorado Springs is searching for an exceptional Market Simply Money Media group is Manager to guide our 6 well positioned and impactful stations. The expanding and growing! We’re successful candidate will have a history of leading high performance looking for an individual with a sales teams, coaching good to great, and attracting sales all-stars. financial background who can Here’s your opportunity to join our growing company and become an tell compelling and meaningful integral part of our stellar team in Colorado Springs by contributing money stories to the consumer. to their continued success. Not many better places to live and work than in the beautiful landscape of Colorado. This person will know how Inquiries will be held in to be memorable and be a the strictest confidence: strong advocate for the target [email protected] consumer. This person will know Equal Opportunity Employer how to make money simple and qual easy to understand. MEDIA ADVERTISING & SPONSORSHIP SALES This is not a normal job-posting… because this is not a job! We have The winning candidate will be “one” incredible opportunity available, that will change your life. The featured on television, online only question is “Are you that person?” Ramsey Solutions has an video, radio, audio podcasts and opening for the right person who possesses as a minimum: in print. Comfort in all video, • Proven track-record of closing million dollar deals audio and digital disciplines are • Ability to deliver results for your client b/c you seek the right solution a must. This position is based in • Personal integrity that allows your to rise above your competition Cincinnati, Ohio, headquarters of • Aptitude to hear the word “No” as an opportunity Simply Money. • Fortitude to manage the resources of Radio, Video, Digital, Print, and Event Sponsorships to create unlimited earning potential • Strong working knowledge of what we do and “Why” it works so well
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If you are an experienced, strategic, creative, organized brand manager with a can-do attitude, we want to talk to you. Applicants must be proficient in identifying new air talent, earns the respect of high profile morning teams, is excited about social/digital/events and develops ideas that are sellable not because he/ she has to, but because he/she understands a full integration with sales is the key to success. The perfect candidate knows how to strategically program for ratings for both PPM/diary markets and is a leader who is ready to take on corporate responsibilities as well as manage a cluster of stations.
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