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The Broadcast Financing Marko IDEAS WORKING NOW ART APRIL 2007 The Broadcast Financing Marko Top lenders look at 2 11 George Beasley Radio vet keeps the faith by moving forward Newsroom Conten Gathering & delivery using the latest tools A Publication from Radio & Television Business Report What do you think of when you think about RADIO? lvt'164\trearning ant 04ableInteractive 41,00/CdS gita Now that's whatwe mean by out of the box thinking. AIL/[FP 800-INTEREP www.interep.com 4.J April 2007Volume 24, Issue 4 contents SMART MEDIA Publisher & Editor Jim Carnegie Managing Director Cad Marcucci 2t RBRITVBRIMBR Staff Executive Editor Jack Messmer Managing Editor Dave Seyler The Broadcast Senior Editor Cad Marcucci Productico Manager Michael Whalen VP Admnistration Cathy Carnegie Financing Market Administrative Assistant Apnl McLynn Marketing/Sales Director June Barnes Top lenders look at 2007 Corporate Office Radio & Television Business Report 2050 Old Bndge Rd., Suite B-01 To take the temperature of the lending Lake Ridge. VA 22192 market, SmartMedia assembled a panel Main Phone: 703/492-8191 Editorial Fax 703/997-8601 of experienced broadcast lenders: Steve Subscription Phone: 703/492-8191 Healey of CapitalSource Finance LLC, Subscription Fax 703/997-2677 Email Addresses John Brooks of Wells Fargo Foothill and Publisher' [email protected] Robert Malone of GE Commercial Fi- Editorial. [email protected] [email protected] nance, Global Media & Communications. Sales' [email protected] Bradenton, FL Office Jack Messmer Cover Art (top to bottom): George Beasley, Chairman and CEO of Beasley Broadcasting; John Phone: 941/792-1631 Brooks of Wells Fargo Foothill, Steve Healey of CapitalSource Finance LLC. Fax: 253/541-0070 Email: [email protected] Columbia, SC Sales Office June Barnes DEPARTMENTS Phone: 803/731-5951 Fax 803/731-5982 Media Mix Email. [email protected] 4 The DTV set -top box subsidy and CRB's new royalties ©2007 Radio Business Report. IncAll content may not be reproduced, photocopied and/or 6 Newsroom transmitted without written prior consent. Any violations will be dealt with legally. Printed in News Directors on content gathering and delivery in the new media world USA. SMART MEDIA is published monthly by Radio Business Report, Inc Publishers of RBR/ Adbiz TVBR Daily Morning Epapers, MBR Daily Afternoon Epaper, rbr corn and tvbr tv 10Michael Bologna, Mediaedge:cia Senior Partner, Director of Emerg- ing Communications, on VOD Advertising Annual Memberships SMART MEDIA OneonOne RBR Epaper S108 16Beasley Broadcasting founder George Beasley looks back on 45 TVBR Epaper S108 MBR Epaper coq years in radio, and fast -forwards as well Cover Art Credit: Sales Chick Alcom 20TVB President Chris Rohrs talks about the new e-°ort system 9630 Mistletoe Rd. TuJunga. CA 91042 818151.5908 Engineering chickalcorn@solcom 22Bonneville's Gary Smith is getting around the HD Radio link problem SMARTMEDIA MEDIAMIN New CRB royalty rates NTIA details DTV alarm the industry As expected, the new, ridiculous Copyright Royalty Board copyright licensing coupon program fees for streaming radio stations has alarmed Internet broadcasters. NPRtook The National Telecommunications and Information Admin- the first step in its plans to pursue all possible action toreverse the decision istration (or, as some think of it, FCC Lite) has released by Copyright Royalty Board to drastically increase streaming fees. NPR fileda its game plan for the nobody -left -behind safety netpor- petition for reconsideration with the CRB panel, the first step in thisprocess. tion of the DTV conversion. US households can apply for Says Andi Sporkin, NPR VP/Communications: "These new rates tare) digital -to -analog converter box subsidies over ayear be- at least 20 times more than what stations have paid in the past...weare fore the DTV deadline takes affect. The distribution of being required to pay an Internet royalty fee that is vastly more expen- 990M in coupons will kick off 1/1/08, well in advance of sive than what we pay for over -the -air use of music, although fora frac- tion of the over -the -air audience." the 2/17/09 lights -out date for analog broadcast of televi- Kurt Hanson, publisher of the Radio and Internet Newsletter, said the sion. Households will be able to get either one or two 40 SoundExchange group, which collects these royalty fees, would becomea coupons until the 990M runs out, at which point contin- $2.3 billion dollar per year business should the rates the CRB accepted finally gencies begin to kick in. After 990M is reached, Congress become ratified. "When you apply the projected growth rate of Internet radio can release an additional 510M. The rules will tighten up, for the next three years, and also take into account the 2010 royaltyrate of however, with applicants required to self -certify that they .0019 per performance, BetaNews can now project that AOL Radio could do not subscribe to an MVPD service. Thecoupon pro- owe $146.4 million in royalties in 2010 alone. LaunchCast would owe $113 gram will be accessible via Internet, phone or mail, from million, Clear Channel would owe $61.7 million, and Live365.com wouldowe 1/1/08 through 3/31/09. $42 million. Just the top four streamers would be billed $363 million during the same year that all 14,000 US radio stations combined would be billed NAB President/CEO David Rehr said, "The NTIA's $550 billion...an Internet radio music provider is likely topay in royalties al- rulemaking helps to assure that all Americans will continue most ten times the amount for each of its listeners throughout theyear, than to enjoy the full benefits of over -the -air television, consis- the terrestrial broadcaster." tent with our program launched in late 2005 to work with SmartMedia observation: If the Copyright Royalty Board doesn't realize manufacturers to develop high -quality, low-cost digital -to- these rates are completely unattainable by everyone from the smallest online analog converter boxes. It is particularly gratifying that the broadcaster to the largest radio broadcaster to AOL Radio, then the Board NTIA followed our recommendations regarding converter- must be comprised of morons. No one is stupid enough to operate ata loss. box reception specifications and features, including smart Who are these people and how did they get placed in a position of such reck- antennas and electronic program guides." less authority-we'd like to know. UR JOB IS 0 MAKE YOUR JOB ASIER. It's why we're always finding new ways to stay on the cutting edge of technology. For instance, our flexible online licensing system allows you to report services as you add them. In addition to being convenient, it offers all kinds of coverage options for today's digital world. We stay ahead, you stay ahead. That's what we're here for. E C Fair, flexible, responsive music licensing like no one else. NASHVILLE I NEW YORK I LOS ANGELES I ATLANTA I LONDON sesac.com 4 / APRIL 2007 SMART The Nielsen Company Anytime Anywhere Media Measurement Integrating Internet Usage into television samples 7 ; C fs 441:,-.1% Measuring Television Outside the Home All -Electronic Local Measurement dv IND I I 41$ OS OS OS OS OSS n OO U 0. a00 eft, Measuring Video on Personal Media Devices rafassor- Working Directly with Clients to "Follow the Video" as it Moves to New Platforms For more information: http://a2m2.nielsenmedia.com/ Anytime Anywhere A2/M 2 nielsen Media Measurement Copyright 0 2007 The Nielsen Company. NEWSROOM CARL MARCUCCI News content gathering and delivery in thenewmedia world We spoke with a few TV station news directors about new forms of con- we don't have an army of live trucks and satellite trucks that can get pic- tent gathering and delivery they're using; how they get the audience in-tures to viewers and users immediately the camera phone has helped volved in news gathering/reporting and if they're retooling their staffs to supplement that. Once KTVB news crews arrive on scene they are trained include videojournalists, sending them out by themselves to cover stories to click off several still pictures and send back to the newsroom via the in their community. cell phone to allow us to get those pictures on air and online fast. The Mark Danielson, Executive News Director at Belo's KTVB INBC) in quality is sufficient for broadcast as well as the Internet during a breaking Boise, says in 10/06, KTVB News Group launched its first WiNG (Wireless news situation.The camera phone allows us to show people what is Internet News Gathering) Unit.WiNG consists of a WiNG photojournal- happening the moment we arrive on scene," says Danielson. ist, internally dubbed the "Wing Man." He's assigned legacy broadcast Chris Manson, VP/News Nexstar Broadcasting Group, says Nexstar is equipment (Ford Explorer, Beta SX camera, Tripod and light kit), and is also currently rolling out a new generation of websites designed to become using a lightweight camera (a small digital video camera that is tapeless- "community portals" for their markets: "These sites are much more than it uses a hard -drive), a Grass Valley LT (laptop Editor), and his vehicle has simple TV websites. They are centers of commerce, communication and been wired with broadband connectivity. connection for the communities in which we operate. Our new media platform relies upon RSS, SMS, MMS and Wireless/WiFi to become a homepage of choice for people in Nexstar com- munities. We hear regularly that people aren't willing to make an appointment at 5, 6 or 10 to watch the news, but they are willing to log on and get caught up on their schedule. Our sites are creating a new era of community involve- ment.
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