Weekly News Recap May 7-11, 2018
TV And Digital Woes Nielsen Media Impact planning tool, expected in coming months.
Have Advertisers Radio is likely benefitting from troubles in other media sectors. The TV market is increasingly fragmented and digital Rediscovering Radio. media is suffering repeated missteps. After marketers plowed money into The tide is turning. After combatting a re-discovering the power of radio and digital, the medium’s patina is tarnished stagnant ad market and losing dollars how it can augment, supplement and amid concerns about fraudulent to newer, data-rich digital channels, amplify their media mix,” Kelly wrote in delivery and unsavory environments. the radio industry is getting revived the report. That has resulted in some major brands interest and increased activity from pulling back on spending. CPG giant advertisers. Some brands, including Such positive news is helping radio Proctor & Gamble is one of the biggest major national players, are reinvesting, sellers reframe their message, but the leading the way, having shifted millions while others are making their first buys. challenge isn’t attracting audiences away from digital and invested more to radio, but rather swaying the ad in radio. Also, new direct-to-consumer Why all the sudden attention? In community to follow them, top radio brands like Dollar Shave Club, Casper recent years, it’s not that brands executives say. With nine out of 10 Mattress and Blue Apron are making have doubted radio, but rather they Americans listening to radio, “We radio a centerpiece of their strategy. In may have been distracted, industry definitely don’t have a consumer its tracking, the RAB sees CPG, health, executives say. “Radio just sort of fell challenge. As an industry though, legal and financial services up in local out of their consciousness. So now we often face a marketer perception markets. we’re reintroducing it to them. And challenge,” says Gayle Troberman, they’re engaging, they’re very open to CMO of iHeartMedia. It isn’t all rosy for radio, though. Indeed, it,” Nielsen’s Head of Audio Brad Kelly in both local and national sales, recently told Inside Radio. Nielsen reports that 93% of adults listen “It’s trench warfare out there,” says to radio weekly, yet marketers surveyed Beasley’s McCurdy. thought the number was closer to 52%, she points out. “This is our biggest Some marketers haven’t changed their challenge: helping the advertising radio spend — for better or worse. In community understand the new Charlotte, agency chief Nancy Haynes consumer journey with audio begins says her clients “never lost faith in with mass reach on broadcast radio radio” and have maintained radio and then extends to new and emerging budgets, in some cases for decades. audio platforms, including streaming, To prove radio’s effectiveness, her podcasts, smart speakers and more,” agency closely tracks clients’ calls, foot she says. traffic and web activity by date and time. Adds the principal at Collins, Haynes & Others offer a more direct explanation. Radio Back In CPG Back Media Mix Lully, “During radio flights, all of these Pierre Bouvard, chief insight officer for At Beasley Broadcasting, several increase.” Westwood One and Cumulus Media, consumer packaged goods (CPG) contends, “The renewed interest in brands have increased their radio radio is a direct result of the collapse spend in the last of TV viewing and the dawning horror year. Grabbing a over digital ad fraud.” larger share is just the WHAT HAS beginning, says VP of There’s also urgency in the advertising sales Bob McCurdy. market. At a time when marketers “For these advertisers PROGRAM are demanding accountability, radio to continue to invest, can back up its pitch with data and it is critical that their studies—and more transparency than media mix modeling DIRECTORS ever. corroborate radio’s positive impact TALKING? In a widely circulated report, Nielsen on their ROI,” he recently noted that blue chip brands are says. For instance, Read more on page 3 committing tens of millions of dollars to McCurdy says it will radio across music and spoken word help when Nielsen formats. “Billion dollar advertisers are adds radio to its THIS IS AN ADVERTISEMENT
Page 1 Weekly News Recap May 7-11, 2018
Saga’s Ed Christian On Q1: ‘It’s Better Than Anticipated.’ Saga Communications had a 7.1% net revenue lift to $28 million as ever colorful CEO Ed Christian called the first quarter “better than I anticipated; I was skeptical about Q1,” he said. Same station revenue increased 0.3% to $26.2 million, and operating income was up 17.5% to $2.3 million. Christian pointed to challenges for the company, including “an awful winter,” which had a direct impact on over-the-air advertising. Add to that “longer ramp-up conditions than we expected” with the company’s Charleston stations, part of a $23.0 million deal with Apex Media in May 2017 that included four FMs, one AM and two translators in Charleston, and three FMs and two translators in Hilton Head and Beaufort, SC. Looking at categories in Q1, the CEO explained that two in particular saw losses. “Automotive is either hot or it is not,” he said. As well, medical & hospitals experienced a dip. Looking ahead, Field Tells Entercom Investors Hold On For ‘Solid Growth.’ Christian told shareholders that there are potential underlying A perfect storm of factors caused Entercom to turn in what quandaries with the nation’s political turf that could come into David Field called a “weak” financial performance in its first play. “Like it or not, our country could well be facing some full quarter of financial results since closing its historic merger depressing economics,” he noted. “Internally at Saga, we with CBS Radio. However, the CEO told investors to expect refer to the environment in which we operate as a jitter buggy “meaningful, sustainable growth” in the second half, once economy. We’re really dependent on the economy and the organizational, structural and programming changes have feeling of well being in this country.” See more HERE time to take root. The company took a $12 million revenue hit from its ongoing problems with United States Traffic Network, FCC Proposes Eliminating Posting Requirement At which buys and resells Entercom ad inventory. Overall soft Transmitter Sites. ad market conditions were another factor. Meanwhile, a half As part of the ongoing Modernization of Media Regulation dozen post-merger format changes reduced company billings Initiative, the FCC has proposed eliminating a 1930 rule that by 1%. Entercom is also is in the midst of getting rid of so-called has required stations to physically display their broadcast cash infusion deals, in which third parties resell inventory at licenses and authorizations. The FCC said the old requirements a deep discount. That slimmed billings by another 1%. These were intended to ensure that info regarding station ownership factors, coupled with higher merger integration costs, “masked and contact info is readily available and easily accessible to the underlying progress” the company is making, Field said. the public. But now that stations’ local public inspection files are posted online, it has tentatively concluded the posting “We still have lots of work to do,” he added, “as these tempo- requirements are “redundant and obsolete.” The FCC has rary factors abate and our growth initiatives take hold.” On a opened a comment period asking for feedback. Among the same-station basis, revenues for the quarter declined 7.5% to issues it’s considering is whether there are any public safety $300.6 million. Same station revenue was down 4% when the implications that could hamper emergency responders’ on- USTN impact is backed out of the numbers. See more HERE scene assessment during an accident or disaster when online databases may not be accessible. MORE Entering Boston’s Sports Market Paid Off For Beasley. Owning sports stations in both of the markets that sent teams Townsquare Puts Priority On Its Core Radio Business. to Super Bowl LII paid off for Beasley in Q1. The company re- In reporting Q1 2018 earnings, Townsquare Media touted ceived a revenue boost after picking up New England Patriots’ its Local Marketing Solutions division – which encompasses flagship radio station “The Sports Hub” WBZ-FM (98.5) Boston local radio and digital – as the force behind its growth. The from Entercom/CBS Radio, just as Tom Brady and company segment saw its 17th consecutive quarter of positive organic made a run for another NFL Championship. And while Beasley revenue growth in Q1 with a 5.9% gain, or 5.6% excluding doesn’t own the broadcast rights to the Philadelphia Eagles, political revenue. The increase helped the company’s overall the buzz around the Super Bowl Champion Birds in sports- billings increase $5.8 million, or 6.6%, to $94.2 million. crazed Philly helped increase revenue “National revenue, which has experienced a fairly significant at “97.5 The Fanatic” WPEN, too. headwind over the past several years, was flat inQ1 and our CEO Caroline Beasley said the first local revenue, once again, drove the growth in this segment,” full quarter operating WBZ-FM fueled co-CEO Bill Wilson said. Year-over-year political billings grew the majority of the company’s 2.6% from $450,000 to $700,000. While noting that the company revenue growth to $55.2 million in the made difficult decisions to reset their local live events and first quarter. Beasley didn’t report pro- national digital businesses, Prasad said he was “pleased to forma results for Q1. The company report that both of these businesses had outstanding quarters.” also experienced some ad slowdown in the first quarter in the The exception to that was the company’s North American Northeast due to four back-to-back Nor’easters, which closed Midway Entertainment (NAME) sector, which continues to be business and schools and kept many people at home. National a drag on the company. Townsquare said last month they are business remained “challenged” in several Beasley markets open to selling NAME. Q1 Entertainment revenue increased but the company was able to offset that with local revenue 11% to $13.7 million. See more HERE gains in some cases. See more HERE
Pirates Would Face $2 Million Fines Under New Weekly News Recap Congressional Proposal. May 7-11, 2018 The cost of being a pirate radio operator could soon be significantly higher. A bipartisan group of lawmakers has introduced and cosponsored the “PIRATE” Act, which would Univision Expands Live Events, Adds Advertiser Data allow the FCC to fine someone who operates an unlicensed Solutions. radio station up to $100,000 for each day they’re on the air—up Univision Communications announced new initiatives to to a maximum $2 million per incident. The current maximum help advertisers connect directly with its audience during its fine is $19,246 per day for each violation or each day up to a Q1 earnings call. CEO Randy Falco said the company has statutory maximum of $144,344. Not only would the pirates embarked on a multi-year “accelerated themselves be subject to stiff fines, so would landlords and transformation strategy” that includes any business providing “physical goods or services” to the managing costs and addressing its unlicensed station. That would include not just a place to content, delivery platforms and selling house the station but also financial assistance, an indirect capabilities. The plan also encompasses deterrent aimed at advertisers buying time on some of the an expansion of its live events platform, more sophisticated pirate stations. See more HERE with the launch of a new branded content studio, and an increase of its experiential offerings such as Radio Comes To Salem’s Rescue As Publishing, the Euphoria concert series. Univision is also expanding Digital Take Hits. data-driven solutions for advertisers. New tools include Salem took a double-digit hit on its publishing division in Q1 precision targeting to help clients tailor campaigns, a new bringing total company revenue down 1.8% to $63.8 million. self-serve platform for programmatic buying, and technology Its radio sector rose slightly, with a revenue increase of 0.5%. that helps marketers evaluate performance and effectiveness That was the media company’s Q1 bright spot, as digital of campaigns while also measuring brand impact. See more media revenue also decreased 2.7%, alongside publishing’s HERE punishing 17.6% revenue decline. Salem’s 40 Christian teaching and talk stations contributed 42% of total broadcast Stacey Schulman Rises To CMO At Katz. revenue for the quarter; its 34 news/talk posted a 6% increase Katz Media Group has promoted executive VP of Strategy, in revenue, contributing 19% of total broadcast revenue, 13 Analytics and Research Stacey Schulman to chief marketing Contemporary Christian music outlets represented 20% of officer at the rep firm. Reporting to Katz CEO Mark Gray, revenue; and network revenue increased 6%, providing 10% she will lead a team of marketing and of broadcast revenue for Q1. See more HERE insight professionals across both Katz Radio Group and Katz Television Group, Scripps Radio Division To Be Sold Piecemeal Instead driving marketing strategy and insights for Of ‘One Big Bang.’ 14 regional offices that serve 3,300 radio After announcing plans to sell its 34 radio stations across stations, 800 TV stations and their digital eight markets in late January, E.W. Scripps offered an update platforms. Schulman brings more than 20 during its Q1 earnings call this week. According to CEO years of media, consumer and marketing Adam Symson, the company intends to divest the properties research experience to lead the company’s piecemeal in order to “maximize marketing strategy nationwide. She joined Katz in 2014 from the value of the assets.” “The television station trade group TVB, where she served as radio sale process continues. chief research officer. She earlier held executive positions We’ve made a decision in order to at Turner Broadcasting, ad agency holding company The maximize the value of the assets Interpublic Group and CBS. See more HERE to sell the division in several pieces instead of one big bang,” he told investors. “I think that’s where we see the greatest value for the company and for shareholders. So it’s a little more complicated, I’d say, than if it were a singular transaction.” See more HERE
Entravision: Digital Growth Offsets Radio & TV Declines. Exponential digital growth made up for sharp decreases in Entravision’s television and radio divisions in the first quarter. Radio billings decreased 10% to $14.1 million with local down 12% and national off 6%. But second quarter is pacing ahead of first quarter and chairman & CEO Walter Ulloa told investors the company is seeing “some improvements across categories” in its radio division. To improve its balance sheet, the company has taken steps to cut $8 million in expenses effective in Q2. President/CEO Jeff Liberman said Entravision “has taken a good look at radio,” telling investors to expect the results of its expense reduction to pan out in the second, third and fourth quarters. See more HERE
Page 4 SALES – STATIONS
Salt Lake City – Brigham Young University strikes an $875,000 deal to buy adult alternative “107.9 The Mountain” SALES –TRANSLATORS KUMT from Community Wireless of Park City. The deal includes FM boosters in Salt Lake City, Ogden, Randolph, and Indiana – Sandy Biddinger and Kathy Verseman’s Two Black Provo, and Bountiful, UT. The move will allow the University’s Cadillacs files a $60,000 deal to buy the Greensburg, IN- “Classical 89” KBYU-FM to remain untouched as the school licensed translator W282AZ at 104.3 FM and the Greensburg- puts its BYUradio brand on KUMT and several booster FMs IN licensed W278BB at 103.5 FM from Martin Hensley’s around the Wasatch Front. It airs a mix of talk and public New Beginnings Movement. The filing says both translators affairs programming. BYUradio airs a mix of talk and public are valued at $30,000. Biddinger and Verseman already affairs programming. Once the sale closes Community own “Tree Country 1330” WTRE in Greensburg, which the Wireless of Park City will still own news-talk/adult alternative translator already simulcasts. KPCW (91.7) in the Park City, UT area. Broker: Greg Merrill, Media Services Group San Luis Obispo, CA – Dimes Media files a $10,000 deal to buy the Baywood-Los Osos, CA-licensed translator K229AK Burlington, VT – Vox Radio Group files a $660,000 deal at 93.7 FM from First Ventures to buy classic hits WVTK (92.1) from Ken Barlow and Lori Capital Partners. Dimes Media Young-Barlow. The deal effectively reverses the $550,000 already uses the signal to create sale Vox made in 2009 to the couple. Ken Barlow holds a the alternative rock “Alt 93.7” minority 35% stake in Vox alongside majority owner Bruce brand by relaying KYNS (1340). Danziger (53%) and Keith Thomas (12%). Vox Radio Group already owns rhythmic CHR “Hot 96.7” WXZO, hot AC “Star Wyoming – Vic Michael’s 92.9” WEZF, sports “ESPN 101.3” WCPV and sports “960 Mountain Community Translators The Zone” WEAV in the Burlington-Plattsburgh market. It will files a $10,000 deal to buy the operate WVTK under a local market agreement until closing. Cheyenne, WY-licensed translator K277CP at 93.3 FM. Cola Wars Hit Full Force With The signal is one of the translators that had been owned by Long Island, NY – Cantico Nuevo Ministry files a $350,000 Pepsi, Coke Vying On Radio. Community Translator Network before it filed for bankruptcy deal to buy ethnic WLIM (1580) from Polnet Communications. in 2015. The company has most recently been overseen by Cantico Nuevo Ministry already owns Spanish-language trustee Michael Thomson. A bankruptcy judge in Utah has religious “Radio Cantico Nuevo” WNYG (1440) in the Nassau- already given his approval to the sale. Once the construction Suffolk market and it operates WNYH (740) under a lease permit for K227CP is built, the filing says the translator will agreement with Win Radio Broadcasting. It also owns the simulcast Educational Media Foundation’s contemporary Medford, NY-licensed translator W295CK at 106.9 FM which Christian “K-Love” affiliate KLWV, Chugwater, WY. relays WNYG. Once the deal closes Polnet will still own six stations including ethnic Polish WRKL (910) in the nearby CLOSINGS: Hudson Valley, NY market. Broker: Kozacko Media Services Honolulu – Bill Shirk closes a deal to buy a controlling 51% Monterey-Salinas-Santa Cruz, CA – Educational Media stake in Hochman Hawaii Three. In a transaction valued Foundation files to spin-off one of its three FMs inthe at $1,873,065 Shirk increases his 25.5% stake to a 51% Monterey-Salinas-Santa Cruz market. Natural Bridges Media position through a deal to buy out the 25.5% stake held by files a $265,000 deal to buy Christian CHR “Air1” affiliate the estate of William Mays. George Hochman’s 49% stake in KSRI (90.7) from EMF. It plans to change the station’s call the partnership remains unchanged. Hochman Hawaii Three letters to KSQD and rebrand the FM as “K-Squid” after the owns “Oldies 101.1” KORL-FM and several translator-based deal is finalized. After the sale closes EMF will still own stations including classic hip-hop “Hot 97.1” K246BR, “101.5 contemporary Christian “K-Love” affiliates KLVM (88.9) and K-Rock” K268BE and ethnic Korean CHR “107.5 K-Pop” KNVM (89.7) in the market. K298BA. The deal includes a $150,001 cash payment and forgiveness of several outstanding promissory notes. Indiana – Brent Lee and Matt Moore’s Spoon River Media strikes a $237,000 deal to buy country “The Eagle 96.7” WCEO Tampa – Nearl Ardman closes a $350,000 deal to buy “Radio and adult standards WLOI (1540) in La Porte, IN from La Romantica 1470” WMGG from Bruce Maduri’s Genesis Porte County Broadcasting. The deal was filed in bankruptcy Communications. Ardman already owns regional Mexican court where La Porte County Broadcasting sought chapter “96.1 La Mexicana” WTMP-FM and classic hip-hop “Boomin 11 protection in Jan. 2017. Spoon River Media already owns 1150” WTMP in the market. Under the terms of the contract adult hits “Q-98.1” WILP in nearby Cuba, IL. Matt Lee also if or when Ardman sells WMGG he agrees to pay 10% of the owns “Country 103.9” WRBI in Batesville, IN. net profits from the sale to Genesis. Ardman further agrees that if he were to sell WTMP-FM that he’ll pay 10% of the net Florida – Immaculate Heart Media files a $150,000 deal to profits to Genesis. Once the sale closes Genesis will still own buy religious WIGW, Eustis, FL (90.3) from On This Rock two stations in the Tampa market including “AM 820 News Communications. Immaculate Heart Media will program Talk” WWBA and sports “1040 The Team” WHBO. the station under an agreement with the seller pending the sale’s closing. The Class C3 FM covers an area between the Orlando and Ocala-Gainesville, FL market. Immaculate Heart Media already owns three stations in the Ft. Myers- More closings HERE Naples, FL market.
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