<<

800.275.2840 MORE NEWS» insideradio.com

THE MOST TRUSTED NEWS IN RADIO

THURSDAY, JULY 16, 2015

Radio ‘Held Back’ by Lack of Digital Measurement. The latest findings from comScore’s Project Blueprint may trigger a few pangs of research envy among radio broadcasters. The study well quantifies how broadcast TV networks are able to gain audience by distributing their programming over multiple platforms. But while radio stations are available in multiple places, cross-platform measurement that shows the incremental audience lift from digital still hasn’t moved beyond the testing phase. The study, conducted in May 2014, was presented for the first time this past spring by the Coalition for Innovative Media Measurement; CIMM collaborated on the numbers with comScore. Results showed that digital-only accounts for 4% of broadcast TV network viewing while TV in combination with digital represents 10% of viewing. Measuring the traditional broadcast viewing audience alone captures 86% of the total consumption among the advertiser-preferred demo of 18-49-year-olds. The study was unable to show a similar scenario for radio because neither comScore nor Nielsen Audio currently measures digital audio, although Nielsen is preparing to roll such a service out. “Solving this issue of combining the digital with the terrestrial is really significant,” Jane Clarke, CIMM CEO & managing director, told Inside Radio. “Radio is really underestimating their total audience and not de-duping it properly,” she added, referring to the process by which audiences only reached by a single platform are measured, which is also known as unduplicated reach. Clarke says the situation is frustrating, holding radio back from demonstrating the true size of its audience. “It’s way past the time when they should have had it,” she said.

Nielsen Sees Summer Release For Digital Measurement. Back in April, Nielsen SVP of digital Jeff Wender told NAB Show attendees the company’s long-delayed digital service was “coming very soon.” While no official launch date has been set, the latest word from company representatives narrows the premiere to sometime this summer. The launch phase will be confined to only broadcast radio streams—whatever occurs with pure-play streaming measurement won’t be part of it until a later date. And the service will initially be confined to the 48 markets measured by Nielsen’s PPM service. The digital audio measurement system employs the same MRC-accredited methodology Nielsen has been using to measure online video consumption. Clients place measurement software in the media player of their streaming app or Web browser, which captures listening data at the closest point to actual consumption. Four basic metrics will be included in the streaming audience reports, Nielsen says: Reach (number of listeners, sessions and quarter hours); Demographics (gender and age by daypart); Duration (Time spent listening); and Location (metro or DMA). Several of the largest streaming backbone providers, including Triton Digital and Wide Orbit, have integrated the software into the media players used by thousands of radio stations. A number of broadcasters are receiving preview data.

SoCal So Pumped By June Revenues. The Southern Broadcasters Association (SCBA) may not have loved the way the year started, but smiles returned to the Southland in June, as year-over-year revenues rose 1.1%. The listening base remained unchanged, but with a weekly cume of 10.5 million (according to Nielsen’s 5 am-5am Mon-Sun 12+ ratings for the Metro area), that’s still a hefty number in what is, by revenue, the largest radio market in the U.S. Another plus—listeners tuned in significantly longer per week—10 hours 15 minutes, up 15 minutes from the same measured Jan.-to-June time span a year ago. SCBA said 380 new advertisers spent $22,298,890 in the first five months of 2015, which association president Thom Callahan calls “a remarkable sign of confidence in broadcast radio.” Percentage-wise (though only through May), drug stores and pharmaceuticals up 43.4% YTD; home furnishing advertising was up 19%; restaurants rose 15%; department/discount stores and shopping centers climbed 28.5%;

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, JULY 16, 2015 and real estate/retirement community ad spending grew by a gigantic 224.3%. “There’s a great story to tell,” Callahan says. “This industry is undervalued.”

New Investor Buys Into Connoisseur Growth Potential. Connoisseur Media seems set for more station acquisitions, thanks to a new investment partner that’s now on board. Petrus Holding Company, the investment firm run by the family of Ross Perot, Jr., has bought a substantial stake in the company from Farallon Capital Management and Balance Point Capital Partners. Connoisseur’s management team, including CEO Jeff Warshaw, will continue to operate the stations. Warshaw says Connoisseur needed a partner with “a long-term vision and committed capital,” in order to grow. He sees Petrus’ investment in radio as another positive sign for the industry, adding that the timing of the move could be beneficial, especially if more stations come on the block. “The industry is substantially over-leveraged and hitting operational challenges,” Warshaw says. Those two factors will cause the inventory of available stations to rise, he believes. “We expect to be substantially larger than we are today,” he says. Started from scratch with 10 construction permits in 2005, Westport, CT- based Connoisseur has quickly grown to 42 radio stations in 12 markets. Warshaw estimates the company’s cash flow has grown by a multiple of 10 during the past three years. Connoisseur has a strong presence in the “Golden Ring” market surrounding City, including Long Island, Connecticut and New Jersey. Perot Companies chairman, Ross Perot, Jr., says the deal “will allow Connoisseur to continue investing in its people while ensuring it can remain prudently financed, locally focused and innovative.” “We believe in the enduring importance of radio, which continues to be the media with the greatest reach among adults,” Petrus Holding Company president Steve Blasnik says, adding that Petrus “jumped at the opportunity” to invest in Connoisseur.

Mobile Audio Hits Listener Record. The online audio industry hit a milestone in May as more than 75% of audio-stream listening now occurs on mobile devices, with less than 24% taking place on desktops. That’s up from a 72-28 split as recently as January, according to new data from Triton Digital. The migration of users to mobile devices continues to fuel dramatic gains in online listening. The number of Average Active Sessions during the Monday-Friday, 6am-8pm daypart soared 40.5% in May, compared to one year earlier, topping 4.24 million. The percentage growth was even higher in the broader Monday-Sunday, 6am-midnight daypart, surging 42.5% to 3.58 million. Broadcasters with the largest year-over-year gains were iHeartMedia, ESPN Radio, , Salem Communications and Beasley Media Group. Pandora remains far out in front of the pack, followed by Spotify in second, with iHeart third. Apple’s iOS remains the preferred operating system for audio streaming, capturing 38% of consumption, with Android in second at 31%. No other device came close—“other” ranked third at 11%, followed by Flash player (8%) and Google Chrome (7%). Geographically speaking, Miami led all U.S. markets for the largest monthly listening gain with a 10.7% increase in Average Active Sessions (Monday-Friday, 6am-8pm) in May, followed by (7.4%), (5.7%), Houston (4.3%) and Cleveland (3.6%). Read Triton’s May Webcast Metrics report HERE.

In Major Reorganization, Hendrich Will Run CMG Radio. Cox Media Group has promoted Jacksonville radio VP and general manager Bill Hendrich to EVP of Radio and CMG Research under a major management reorganization. Hendrich succeeds Kim Guthrie who will now be EVP of National Ad Platforms and president of TV rep firm Cox Reps. Also as part of the restructuring, Marian Pittman will be EVP of Digital Strategy. The new appointments follow the retirement of CoxReps president Jim Monahan after 35 years with the company. Hendrich will relocate from Jacksonville to , running the company’s radio division out of CMG headquarters. He joined Cox in 1996 in Orlando where he managed its radio cluster as VP/GM for a decade. In March 2006, he transferred

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, JULY 16, 2015 to the same position in Jacksonville. Based in New York, Guthrie will oversee all of CMG’s advertising platform businesses, including CoxReps, Videa and Gamut. Cox says she has long overseen TV markets in her management roles, in addition to her radio markets. Guthrie began her broadcasting career as a TV news reporter and anchor. Pittman, whose background is in news and TV station management, most recently was VP of news and marketing for television. She now oversees CMG’s digital strategy, content and sales efforts, succeeding Neil Johnston who was recently named EVP/CFO for Cox Automotive. Pittman’s division will also include CMG’s Digital Content Desk, Fans First Media and the Washington DC News Bureau. Susan Larkin, VP/GM of the company’s Orlando radio cluster, has been promoted to regional VP of Jacksonville and Orlando radio, adding the Jacksonville market to her purview.

Newest Research Has Radio Floating On “Ear.” The latest figures from Edison Research’s “Share of Ear” study point to continued dominance by AM/FM radio among all hours devoted to audio. The company’s Q2 numbers show over 52% of total listeners access audio by radio. In addition, while 15% listen to their own music, 6% of users listen to tunes from YouTube music videos—the same percentage that access SiriusXM Radio and Pandora. Another 3% of those surveyed prefer to do their listening through Spotify. The 15% figure of people listening to “owned music” is the biggest competitor for eartime—a stat touted in a new blog written by Pierre Bouvard, Cumulus/’s chief marketing officer, who collects comparative data showing radio’s strong position vs. its competitors. Last year, in Edison’s first-ever “share of ear” report, radio also clocked in at 52%. Online sources weren’t broken down by brand in that report, but the aggregate equaled 11.6%. Also, last year, SiriusXM had 7.7% of that total. YouTube CEO Susan Wojcicki told a “Fortune” magazine media conference recently that the company is still planning its new music video service, Music Key, set to debut by the end of the year. Half of YouTube’s use, she said, comes through mobile devices.

“Anonymous” Hijacks Terre Haute Station; Renewed Calls for Security. Internet hackers commandeered a Terre Haute, IN low-power station’s signal July 12, replacing the broadcast with their own messaging for about a half-hour. The “X 97.3” WXXR-LP (97.3) takeover, carried out by the shadowy online group Anonymous, is a reminder that stations need stronger security measures to ward off hacking. The Federal Communications Commission has been very vocal in urging stations to adopt better safeguards and protocols. FM radio broadcasts, in particular, can be overtaken without much trouble for those who know how, making them vulnerable to intrusions. In the X 97.3 incident, the engineer for Wabash Valley Educational Media’s WXXR noticed an unusual broadcast around 7:30 p.m. and called the studio to inquire, according to WISH-TV reports. The station’s usual modern rock format was replaced with a cryptic message that began: “We are Anonymous. We would like to take a few minutes of your time to inform you about the government’s plan to murder over 100 million citizens.” Anonymous did not reveal why it targeted the non-commercial FM station in that location. The engineer couldn’t trace the broadcast, and was heading to the transmitter site when the message ceased and the station’s broadcast resumed. “The biggest mystery to me is why us, why such a small station in an obscure town,” Doug Kirkham, director of underwriting, told WISH-TV. Some community members accused WXXR of staging the disruption as a promotion. (One person tweeted, “Publicity stunt or something else?” “Nice publicity play,” tweeted another.) But Kirkham denied any involvement, adding that, since his station is growing, “We have no need for a stunt.” The penalty for hijacking a signal is fines of up to $250,000 and/or a maximum of 10 years in prison.

A Good Defense Vs. Hijacking Now A Necessity. Cyberattacks like last weekend’s takeover of a Terre Haute, IN rock station serve as yet another reminder that radio stations—and all media companies—are vulnerable to attacks. Federal Communications Commission leaders and radio station technology execs have implored radio broadcasters to upgrade their security and back-up systems to protect their assets. Other recent attacks have seen the terrorist group ISIS take over a French TV station and hackers pillage Sony’s systems, releasing reams of sensitive information. Radio stations collect important personal data from listeners, which could easily fall into the hands of hackers, CBS senior VP of East Coast operations, Robert Ross, pointed out recently. When listeners enter contests, they often share critical details, including social security numbers, email addresses, home addresses and phone numbers. Ross suggests stations not comingle their systems, keeping music programming separate from billings, and keeping a preprogrammed laptop that has never been used online as a backup system. A simple antenna on a station’s roof could

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, JULY 16, 2015 also help get a hacked station back on the air quickly, he noted. At the FCC, rear admiral (ret.) David Simpson, chief of the FCC Public Safety and Homeland Security Bureau, has called on stations to beef up security voluntarily, before the federal government mandates actions. Cloud-based systems, he said earlier this year, make stations particularly vulnerable to hackers. “It’s critical for all businesses but especially you who are critical to public safety,” Simpson said.

Beats 1 Formatics: Big Library, Slow Rotations. In terms of presentation, Apple’s Beats 1 is the closest any large pureplay webcaster has come to approximating broadcast radio. Personalities, slogans, forward momentum and listener shout-outs are all part of the formula. But Beats 1 and broadcast radio diverge when it comes to music rotations and song familiarity. Top 40 stations in the U.S. play their hottest currents upwards of 100 times per week while alternative outlets hit their powers from 40 to 70 times a week. The most played songs on Beats 1 during its first week ranged from 19 to 29, according to an airplay analysis by Billboard. Pharrell’s exclusive track “Freedom” topped the Beats spin count with 29 plays, in part due to its status as the first track featured as a World Record exclusive. After “Freedom,” which is also the soundtrack for a Beats 1 TV commercial, were The Weeknd’s “Can’t Feel My Face” (27 plays), and the latest singles from Royal Blood (23 plays), D.R.A.M., Disclosure feat. Gregory Porter, Selena Gomez feat. A$AP Rocky (21 each), Alabama Shakes, James Bay and Beck (19 each). The station played more than 900 songs in its first broadcast week, which would be an exceedingly high number even for a library-based radio station, let alone a top 40. New music and recent hits comprised the majority of the playlist as 83% of its 54 most-played songs were released in 2015, per “Billboard,” with the rest from 2013 and 2014. Only seven of the current top 25 songs on the “Billboard” Radio Songs chart appeared. Alternative and indie rock ruled the Beats 1 playlist; the former accounted for almost 30% of its genre distribution, the latter 22%.

New Programming Roles for Jeffries, Gillette. SVP of programming, Jan Jeffries, is moving from to Washington, DC to oversee programming for CHR “DC’s 107.3” WRQX. He replaces Rick Gillette, who heads north on I-95 to New York to be program director for hot AC WPLJ (95.5). John Foxx, who previously held the PD position for WPLJ, will remain with the station as assistant program director. Jeffries will continue in his corporate role as SVP of programming and Gillette will retain his corporate program director/contemporary responsibilities. Cumulus is conducting a search for a programmer for Chicago classic hits station WLS-FM, which Jeffries has been programming. A 40-year broadcaster, Jeffries has programmed stations in Mobile, Birmingham, Tampa, /Washington, Atlanta, San Jose, Dallas and Chicago. He has operated his own consulting firm and served as president of Stratford Research. Programming-vet Gillette joined Cumulus in March 2014, after programming CBS Radio’s New York CHR. He has also programmed stations in Chicago and and was VP of Music Entertainment for DMX Music.

Univision America, Begun With a Bang, Ends With a Whisper. Univision America launched on July 4, 2012 in nine of the Hispanic media giant’s largest radio markets, with Univision Radio president Jose Valle touting the freshly minted Spanish news-talk network as a “powerful combination” of news, local weather and traffic, and “insightful” commentary. Three years later, the network has all but vanished from the dial. The nine AM stations that carried it in markets such as Los Angeles, Miami, Chicago, Houston and Dallas now air music and locally produced shows, including brokered programming. Among the canceled Univision America shows are “Doctora Isabel,” a self-help show hosted by Dr. Isabel Gomez Bassols, and “El Show de Fernando Espuelas,” a current events program. Only a select number of network shows continue to air, including “Locura Deportiva,” “Maria Marin” and “El Garage de AutoZone.” The original goal was to build a network with broad talk appeal with a wide variety of content. Univision America was important enough to the company that it devoted a FM to it (WQBU) for seven months. The dissolution of the network was done quietly by Univision in late-June as part of a move to better integrate its stations locally. It coincided with executive VP of Univision Local Media, Jaime Jiménez, adding oversight of the company’s radio properties and the reassignment of Valle, who had run the radio division and oversaw the network launch, to president of political and advocacy sales. — Get more news, people moves and insider extras @ www.insideradio.com. —

[email protected] | 800.275.2840 PG 4 DEAL DIGEST insideradio.com THURSDAY, JULY 16, 2015 S A L E S – Moving to establish a new beachhead in South Florida, Educational Media Foundation files to buy three FM stations plus two translators from American Public Media for $21.7 million. Stations included in the previously announced sale are WKCP, Miami (89.7); WPBI, West Palm Beach (90.7); WNPS, Fort Myers (88.7); and two translators: W270AD at 101.9 in West Palm Beach and W214BD at 90.7 in Gifford-Vero Beach. Collectively the stations make up the Classical South Florida network. EMF paid a $1.08 million deposit with the balance due on closing. The Christian broadcaster will take over the stations via LMA on July 17.

Multi-state – Continuing to prune its radio assets, Davidson Media Group files to sell 10 stations in six markets to TBLC Media for $3.1 million. The deal encompasses all of its stations in the Carolinas, including: classic hits WTOB (1380) and Spanish Contemporary Christian “Radio Adoracion” WSGH (1040) in Greensboro-Winston-Salem- High Point; regional Mexican “La Mega 1310” WTIK and Spanish contemporary Christian WRJD (1410) in Raleigh- Durham; regional Mexican “La Nueva 103.9 “ WOLI-FM and classic hits WOLI (910) in Greenville-Spartanburg; and Spanish contemporary Christian WNOW in Charlotte- Gastonia-Rock Hill (1030). Two Kansas City stations are also part of the deal: regional Mexican KDTD (1340) and Spanish contemporary Christian KCZZ (1480), along with the Indian Head, MD-licensed Spanish religious “Radio Poder 1030” WWGB in the Washington, DC metro. The sale cuts Davidson’s radio holdings in half, leaving it with 11 stations in Connecticut, Massachusetts, Minnesota, New Jersey and Rhode Island. It significantly expands TBLC’s radio footprint, which currently includes a pair of Hispanic AM stations in Nashville. Broker: Waller Capital for seller.

Utah – Nicolas Vicente’s AASAA Media files an all-cash deal to buy Woodruff-licensed KEGH (107.1) in the Salt Lake City metro plus 4 booster stations from SLC Divestiture Trust II for $1.8 million. The contract calls for AASAA Media to pay a $200,000 deposit with the balance due at closing. The company took over the stations via LMA on June 24 and flipped them from sports to regional Mexican as “La Raza.” AASAA Media is also buying regional Mexican “La Jefa 1550” KMRI in the market from Alpha & Omega Communications in a separate deal filed earlier this spring. Broker: Media Services Group

Texas – Tomlinson-Leis Communications has filed to buy a pair of stations in Markham from North Radio. In

MORE DEALS @ INSIDERADIO.COM DEAL DIGEST ARCHIVE | ADVERTISE: CALL 800-248-4242 X 711 | EMAIL

[email protected] | 800.275.2840 PG 5 DEAL DIGEST insideradio.com THURSDAY, JULY 16, 2015 the first, it will pay $257,860 for classic hits “Happy Radio 92.5” KKHA, which it has been operating under a local marketing agreement since June 2009. Tomlinson-Leis will make a down payment of $57,860 at closing and sign a note in the amount of $200,000 at 4.5% interest, payable in 60 monthly payments of $3,728.60 each. In the second deal, Tomlinson-Leis is paying $126,400 for the construction permit for KBYC (104.5). It will make a down payment of $26,400 at closing and pay the balance in a second loan at the same interest rate with 60 monthly payments of $1,864.30. The deals will give Tomlinson-Leis a total of four stations in the Lonestar State. North Texas Radio also owns two stations in Oklahoma.

Georgia – After taking over the station via LMA, Rome Radio Partners, LLC files to buy country “South 93.5” WSRM, Coosa from Rome Radio, LLC for $200,000 structured as a promissory note due at closing at 1% above prime. Rome Radio, LLC is wholly owned by James Scott Smith who owns 19% of Rome Radio Partners, LLC.

Georgia – Radio Elberton, LLC files to acquire two currently silent stations – WSGC, Tignall (96.7) and WMJE, Elberton (1400) - plus the Elberton-licensed translator W287CM at 105.3 from Georgia-Carolina Radiocasting for $100,000. The deal involves a $10,000 deposit with the balance in the form of a secured promissory note to be delivered at closing. Radio Elberton – owned by James Scott Smith, a partner in Rome Radio Partners – took over the stations via LMA July 13.

C L O S I N G S — Paul Anderson’s Idaho Wireless closes a deal to buy classic rock “World Class Rock 102.5” KMGI and “Oldies 930” KSEI in Pocatello, ID from Pacific Empire Communications for $850,000. Idaho Wireless already owns three other stations in the area, including country KZBQ (93.7), hot AC KORR (104.1) and classic country KOUU (1290, 102.9) in the Pocatello area

Kentucky — Thomas Abdoo’s Sunshine Radio Network closes on the purchase of oldies WIZD, Neon (1480) from G.C. Kincer’s Letcher County Broadcasting. According the FCC filing, Kincer charged just one dollar for WIZD in recognition of “years of friendship” with Abdoo. The buyer will end up paying more than one dollar, however, since the contract says he agrees to pay past-due 2014 regulatory fees to the FCC. WIZD is a 5,000-watt daytimer. Kincer still owns contemporary Christian WGCK-FM, Coeburn, VA (99.7), which carries EMF’s “K-Love” network.

MORE DEALS @ INSIDERADIO.COM DEAL DIGEST ARCHIVE | ADVERTISE: CALL 800-248-4242 X 711 | EMAIL

[email protected] | 800.275.2840 PG 6 CLASSIFIEDS insideradio.com THURSDAY, JULY 16, 2015 MARKET MANAGER - WINCHESTER VA Centennial Broadcasting is searching for an experienced Market Manager to lead our cluster of radio stations in Winchester, Virginia. Our radio products in Winchester are WINC-AM (News Talk), B-105 (Country) and WINC-FM (Hot AC serving Winchester, Leesburg and Northern Virginia). 9

We are seeking a smart and aggressive leader of people who can focus on generating healthy revenue growth by developing new local direct, local agency, digital and non-traditional business. Familiarity with all aspects of station operations, proven sales management techniques and knowledge of all aspects of team development and motivation, sales systems and accountability will be essential. 1 Candidates must have at least 3-5 years of sales management experience and preferably 5 years of market management experience. A college degree is preferable. 4 To apply, please forward your resume, cover letter & professional references to: [email protected]. EOE SALES MANAGER Tired of the Mega company rat race? 8 Want to work for a company where your efforts are appreciated? 9,148. That’s the number Santamaria Broadcasting seeks a Sales Manager for our of people who visited the Minneapolis Stations. Successful candidates should have a minimum classified ad section at of 5 years radio sales experience and a proven track record of Insideradio.com last week. sales success and leadership. If you are ready to take on a new challenge where the rewards will match your efforts send resume to: If you’re looking to hire: [email protected]. Equal opportunity employer. Account Executives Digital Executives qual GM/SM - MINNESOTA Programming Management GM/SM opening for Hubbard radio in northern Minnesota! Send your ad to: , Inc. is looking for an energetic, motivated [email protected] and creative manager to lead our three radio stations in Wadena, MN. As General Manager/Sales Manager you will oversee sales, marketing and operations of the K-106 KKWS-FM, KWAD-AM and KNSP-AM.

Hubbard Broadcasting recently acquired 16 radio stations in four northern Minnesota markets. The opportunity provides the best of both worlds—small market localism with major market resources.

We can’t wait to hear from you! Send a letter and resume to: Dan Seeman at [email protected] 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].

[email protected] | 800.275.2840 PG 7