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THURSDAY, MARCH 19, 2015

Clip to app listeners: Have it your way. The message to some station app users has just become: have it your way — broadcast or stream. Developer Clip Interactive has updated its roughly 100 station apps to give users of Android’s HTC One (M8) the choice of accessing the station’s audio via its broadcast signal or online stream. The new feature makes use of the smartphone’s embedded FM chip. So far it’s only available to Clip app users on the HTC One. But the company plans to enable the feature on more phones, albeit just ones from manufacturers and carriers that have activated FM chips. The capability, which sidesteps NextRadio, means stations using Clip-built apps can encourage listeners to listen to the broadcast signal to preserve their mobile data. “Our goal is enabling interactive radio listening for the total audience no matter how they listen,” Clip VP of marketing Sara Sisenwein says. The company plans to poll users and analyze its app usage data among HTC One owners to assess the appetite for FM listening among its users. “Time and data will tell us if tuning through the FM chip is the desired approach or not and what impact that has on the total audience,” Sisenwein says. Clip has developed interactive apps for about 100 stations owned by Alpha Media, Salem Communications, Beasley Broadcast Group and Digity, along with Cumulus Media in Indianapolis and Entercom in Portland. The apps enable listeners to interact with and respond to station programming, advertising, contests, polls and other content. CEO Michael Lawless says the platform has generated $5 million in new revenue for broadcasters, who share the interactive revenue with Clip.

Is Clip Now a NextRadio Competitor? Clip Interactive’s new FM-enabling app feature will compete with the Emmis- developed, NAB-backed NextRadio initiative on some levels. The Emmis cloud-based Tag Station system for NextRadio offers user interactivity similar to that offered by Clip. And both platforms enable FM listening on smartphones. But there are major differences between the two. For one, Clip app users can only access the broadcast signal of the station whose app they’re using. NextRadio functions like any FM tuner, providing access to all the stations within a user’s location. Both companies say, at least on the record, that they don’t see each other as competitors. In fact, Clip approached Emmis about a NextRadio partnership but Emmis CEO Jeff Smulyan says Emmis passed. “When people do it themselves, the broadcaster has complete control of their ecosystem,” he says. “When you turn it over to a third party, they take a significant percentage of the advertising and you cede control.” While it’s true that Clip is piggybacking off the work Emmis, the NAB and the industry have done to get FM chips activated, any station app provider could integrate with the FM chips that have been activated on certain smartphones, providing they’re willing to make the technical investment. “The point of NextRadio is it’s an agnostic, industry solution, a partnership between the broadcaster and the carrier,” Smulyan says. “Whether you do Tag Station or not, your radio station is on that chip.” But broadcasters don’t have to choose one over the other. In fact, many want to make their content available on as many platforms, devices and services as possible. For example, Alpha Media, a big NextRadio supporter, uses Clip-developed apps. Data consumption a concern for 42% of online radio listeners. One of NextRadio’s value propositions is the ability to listen to radio on a smartphone without eating into a consumer’s mobile data plan. Recently-released research from Edison Research and Triton Digital shows smartphone data plans are on the minds of many online radio users. Respondents were asked the question: “When listening to internet audio on your smartphone, do you ever take into consideration how much

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com THURSDAY, MARCH 19, 2015 data you are using on your cell phone?” More than four in ten (42%) answered yes. The younger the demo, the higher the number: 49% of 12-24 year-olds said it was a consideration, 38% of 25-54 year-olds and 33% of those aged 55+. The survey of 2,002 Americans aged 12+ used random digital dialing techniques, making it representative and projectable to the U.S. population. It included 900 interviews conducted on mobile phones. Interviews were done in English and Spanish as appropriate. Read the Infinite Dial study HERE. Tom Schurr joins Cumulus as operations executive. Just weeks after Cumulus Media announced it would not hire a No. 2 executive to assist CEO Lew Dickey run the radio group, it’s done the next best thing. Tom Schurr has been recruited as senior vice president of operations. Reporting to Dickey, the veteran radio executive will oversee station operations in several of Cumulus Media’s most important markets. That list includes Dallas and Houston, among others. “Tom is an extremely talented broadcast executive with unparalleled operating experience across all market sizes. We look forward to his important contribution to our success,” Dickey says in a statement. It was one year ago that Schurr exited iHeartMedia where in his final position he was president of operations for the company’s major markets. He earlier held regional operational duties in the East and Southeast regions. In addition to the beefed up regional structure, Dickey told analysts earlier this month he has been reorganizing the company’s managerial ranks to make the organization “flatter” and put more duties into the hands of its 95 managers. Dickey also said the company is making “key hires” across the company. That includes the just-announced hiring of Pierre Bouvard as chief marketing Tom Schurr officer. Best known in radio as the head of sales for Arbitron and a driving force for the rollout of the Portable People Meter, Bouvard most recently was working at TiVo Research & Analytics. Based in New York, Bouvard will work to sell Cumulus properties to advertisers and agency planners. And get Cumulus ready for the arrival of programmatic buying. “Incremental data beyond ratings is rapidly becoming the most important component in advertising decisions, and we are excited to have Pierre leading our effort to help our clients achieve a superior return on investment,” Dickey said.

How’s Business? SCBA predicts ‘very active’ second quarter. The Southern California Broadcasters Association is issuing an optimistic outlook for business in the coming quarter. In its quarterly guidance to stations, SCBA projects advertising activity will be “very active” as the economy ramps up. SCBA president Thom Callahan points to a stronger regional economy and improving job growth. “While caution is still the prevailing mood with some client categories, others will continue enjoying record months through the important second quarter consumer period,” he tells stations. One reason for that rosy outlook is how well Southern California broadcasters did last year in attracting new and returning advertisers to radio. In all, 456 new advertisers were brought onboard in 2014 which SCBA says contributed $40.6 million in station billings. “If radio’s real strength is local, then this impressive new business fact speaks loudly about the new partnerships that local and regional businesses have developed with Southern California radio,” he writes in the report. In terms of specific categories, Callahan says continued low interest rates and cheaper gas prices should fuel automotive ad spending. “We look to a 13.4% increase,” he tells stations. Auto parts and service retailer spending has also been strong. It grew 16.4% during January, and SCBA estimates it will be up 24% in Q2. SCBA also projects sizable spending increases in the casino, health care, home security system, and insurance categories. Home improvement advertisers increased their radio budgets by 19.1 % in January and with owners staying put rather than selling, SCBA estimates that category will grow 21% in the coming quarter.

Kantar: Top 1000 advertisers increased spending in Q4. Kantar Media’s year-end data shows that while spending among the ten largest advertisers declined in fourth quarter, there’s an important silver lining. “Although total spending volume slowed in Q4, a majority of the Top 1000 advertisers actually increased their year-over-year spending during the period, a promising sign for the start of 2015,” Kantar chief research officer Jon Swallen says. An upbeat sign for local radio is that mid-sized companies showed the most growth in spending last year, up 4.6%. The tier has now led the ad market for the past four years. Kantar says total U.S. ad spending grew by just 0.7% last year to $141 billion as fourth quarter spending

[email protected] | 800.275.2840 PG 2 NEWS insideradio.com THURSDAY, MARCH 19, 2015 actually slid 1.6% compared to a year earlier. Why radio didn’t show more growth last year is in part due to what Swallen says had marketers spending more last year: the Winter Olympics, World Cup and midterm elections. The two sporting events typically only lift Spanish radio revenue. And the election produced fewer dollars than expected. Those three factors are also why television spending grew as the other legacy media posted year-over-year declines. The firm also blames “steep reductions” in the financial services, restaurant and travel categories for the radio industry not doing better in 2014. And Kantar notes digital wasn’t immune. Display ads edged up just 0.9%. Good for radio: retail tops, insurance and local services grow. Retail remained America’s biggest advertising category last year according to Kantar Media. But due to what it says was a “broad slowdown” in spending during the second half, the category overall shrank 2.1% by year-end. Even so, two of radio’s growth categories proved to be gainers across the marketplace. Local services spending jumped 4.7% last year, enough to push the category in front of telecom, which recorded a year-to-year decline. Insurance moved up a spot to No. 9 as spending in the category increased 7.8% last year. “Heated competition for market share among auto underwriters continues to drive their media budgets higher,” Kantar says. The firm also attributes the growth to stepped-up spending by health insurance companies with the rollout of the Affordable Care Act. The largest advertiser last year across all media was Procter & Gamble, followed by General Motors and AT&T. Three of the top 10 spenders were auto companies. But there were fewer automotive dollars spent overall last year. Kantar says auto spending overall declined 6.8% with manufacturers (-5.7%) and dealers (-8.3%) scaling back on their advertising. Streaming adds up for music industry. Revenue from streaming topped CD sales for the first time last year, according to the Recording Industry Association of America. Streaming music services revenue grew 29% to $1.87 billion last year, which includes royalties from radio streams. The RIAA says the category accounted for 27% of music industry revenue, up from 21% in 2013. It’s part of what the RIAA calls “major changes driving market development beneath the surface.” Services that pay royalties to SoundExchange, including FM/AM webcasters, were one of the largest contributors to the music industry’s streaming revenue. The segment jumped 31% to $773.4 million. Other ad-supported streaming services contributed $294.8 million and paid subscription services like Spotify accounted for $799.1 million in revenue. The RIAA says the growth of streaming more than offset the 8.7% decline in revenue from the sale of digital downloads. The trade group says the sale of single downloads declined at a steeper rate than album download sales. Digital revenue overall totaled $4.5 billion. Overall, the RIAA reports music industry revenue totaled $6.97 billion last year, slipping a half point compared to a year earlier. While CD sales continued to shrink, down another 12.7% last year, the resurrection of the vinyl album continued. Vinyl sales grew 49%, representing a double-digit share of the physical music sales market for the first time since 1987.

Young owner recruiting fresh faces to radio. At age 39, Bold Gold Media Group president Vince Benedetto is one of the youngest group owners in the industry. Now he’s taking steps to help attract the next generation of broadcasters to the business, especially to talk radio. Benedetto has created the Bold Gold Broadcast and Media Foundation, which will award grants to college broadcast programs and give scholarships to students interested in joining radio’s ranks. “Radio is a great starting point and it synergizes so well with other media, that I think it’s a great place for young people,” Benedetto tells Inside Radio. He believes an infusion of new blood will be especially helpful to talk radio, with middle-aged hosts largely only appealing to a 35 and older demo. “To reach young people and get them to tune in and engage with those stations, we have to have more young people in those formats,” Benedetto says. “There are a lot of college kids interested in growing up and being Ryan Seacrest, and that’s great — but we need more going to the formats that are part of the national conversation.” His Foundation is the latest effort springing up in the industry designed to address the issue of too few young

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, MARCH 19, 2015 people entering the business. Programs such as the National Radio Talent System have created regional training courses. Benedetto recalls when he exited the military and bought his first station at age 29 without ever being in radio, he saw an industry undergoing evolution. And in that disruption, he thinks there’s opportunity for young broadcasters. “I don’t think radio was a place that entrepreneurial gets thrown around a lot,” he says. The not-for-profit Bold Gold Foundation will hold its first fundraising event in May in Wilkes-Barre, PA featuring Millennial citizen-journalist James O’Keefe as the keynoter. “Investing in the future providers of our communication needs is imperative,” Benedetto says. Golden Mikes raise more than $250,000. The black tie Golden Mike Awards on Monday brought in loads of green. The Broadcasters Foundation of America says it raised more than $250,000 during the annual fundraiser that attracted more than 250 broadcasters and celebrities. National Association of Broadcasters president Gordon Smith was this year’s honoree. The proceeds will help the Foundation provide help to broadcasters who’ve lost their livelihood through a catastrophic event, debilitating disease, or unforeseen family tragedy. Kari Clark accepted a posthumous Lifetime Achievement Award on behalf of her late husband, the legendary TV and radio personality Dick Clark. This was the first time the Broadcasters Foundation has given such an honor. Going forward, it will be awarded annually and be known as The Dick Clark Lifetime Achievement Award, in honor of the iconic broadcaster and entertainer. During the event, the Broadcasters Foundation also debuted a new video. It features grant recipients who shared their personal stories and expressed how the Foundation has made a difference in their lives. Watch it HERE. ABC News puts focus on content, not platform. ABC News is transforming its employee ranks, shifting toward more multiplatform staffers who will work across radio, digital and TV. It’s a redefinition that’s leading to a few dozen layoffs across ABC News, including some at ABC News Radio. “We will shift away from platform-based teams and towards content- based teams, which will be responsible for reporting and storytelling across all of our platforms,” Washington Bureau chief Jonathan Greenberger explained to his staff in a memo. ABC News says in the coming weeks it will begin hiring a new crop of newsroom employees as it adopts a content-based reporting structure. Love of radio brings software executive to streaming. There are already several places to find streaming radio on the web, thanks to apps like iHeartRadio and TuneIn. But in a rarity, Albuquerque now has a city-based portal for radio stations. Launched by radio veteran Dick Govatski, ABQ.FM aims to bring more listeners to local stations by having them join forces. “With my team of technology developers, and friends in Silicon Valley, I wanted to share the music by specifically programming radio stations for each generation and for missing genres here in New Mexico,” says Govatski. A self-described “huge fan of radio,” Govatski points out that earlier in his career he worked as an air personality in markets including Detroit, Kansas City, and Indianapolis. For the past two decades he’s worked in the medical software field. So far two local stations have cleared ABQ.FM to carry its webcast: locally-owned talk KIVA (1600) and public radio outlet KANW (89.1). Govatski says he’s talking with the other operators in the Albuquerque market to bring their streams online. Inside Radio News Ticker…Ratings high for ‘Dish Nation’…Three-year old “Dish Nation,” the 20th Century Fox show hosted by major market morning shows, achieved a new all-time viewer high this month. The syndicator says the show had a 1.77 million viewer cume, a 24% increase compared to the same week a year earlier when it had 1.43 million viewers. It also scored a 1.2 household rating, matching its previous high-water mark. The half-hour entertainment news program, featuring drive-time personalities from around the country, was recently renewed through the 2016-2017 season by 20th Century Fox…Ex-hosts sue over offer reversal…Two Billings, MT morning show hosts are suing their former employer, alleging it interfered with their hiring at a cross-town rival. Former CHR “Planet 106.7” KPLN hosts Michael Foth and Kaitlyn Stryjewski filed suit in state court against Connoisseur Media. The Billings Gazette reports their suit seeks $1 million. It alleges Townsquare Media CHR “97.1 Pop Crush” KKBR yanked a job offer after Connoisseur managers called the station to warn of “the negatives of hiring each other’s company’s employees”…People Moves… Weigel Broadcasting’s classic hits “87.7 MeTV FM” starts staffing up its Chicago radio station: it has hired market vets Mark Zander as program director and Mike Horn as imaging director. Read more People Moves HERE.

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Lubbock, TX — Alpha Media strikes a $23 million deal to buy classic rock “Rock 101” KONE, rhythmic CHR “104.9 The Beat” KBTE, country “96.3 K-Triple-L” KLLL-FM, and hot AC “Mix 100” KMMX from Wilks Broadcasting. Broker: Michael Bergner Asheville, NC — The Radio Training Network files to buy contemporary Christian “His Radio” WLFA (91.3) from the Asheville Educational Association for $500,000. The religious broadcast group has operated WLFA under a time brokerage agreement since August 2003. Daytona Beach — Miracle Media Group files a $300,000 deal to buy classic rock WROD (1340) from Volusia Broadcasting Company. The deal includes the Daytona Beach-licensed translator W284AV at 104.7 FM. Patricia Miracle will operate the station under a time brokerage agreement until closing. Montana — Cherry Creek Radio strikes a $250,004 deal to buy news/talk KCAP, Helena, MT (950) from The Montana Radio Company. The deal includes the Helena-licensed translator K242BB at 96.3 FM. Cherry Creek has been operating the signals since October under a time brokerage agreement. It already owns five other stations in Helena, including country “99.5 The Bull” KBLL-FM, “Gold Country” KHGC (98.5), hot AC “B-104” KBMI-FM, classic rock “Z-101” KZMT, and KBLL (1240) which has been silent since losing its transmitter site in November.

Arkansas — Paul Coats’ Bluff City Radio converts a local market agreement into a $162,000 purchase of AC “K-Train” KTRN, White Hall, AR from William Wachter’s My Town Media. Coats also files a separate $40,000 deal to buy three construction permits in the Pine Bluff, AR area including KTPB (98.1); KPBA (99.3) and KHUC (101.3) from Nancy Miller. Coats has partnered with former Arkansas Governor Mike Huckabee, who’ll hold a 49% stake in his company. While Huckabee has worked in radio on-and-off during his life, this is the first time he’s owned stations. His spokesperson says Huckabee will be a silent partner, explaining he and Coasts have been friends since they were teenagers and both worked at KXAR, Hope, AR (1490). Huntsville, AL — Somerville Baptist Church files an $80,000 deal to buy oldies WKZD (1310) from Abercrombie Broadcasting. The deal includes the Priceville, AL-licensed translator W285EN at 104.9 FM. Abercrombie still owns “Big Country 105.7” WQAH-FM in Huntsville. Indiana — I.B. Communications files to buy the Goshen, IN-licensed translator W252AR at 98.1 FM from Calvary Radio Network for $54,000. I.B.’s regional Mexican “La Raza” WKAM (1460) will be simulcast on the translator.

Midland-Odessa, TX — Javier Flores files a $40,000 deal to buy the Odessa, TX-licensed translator K282BF at 104.7 FM from Edgewater Broadcasting. The filing says the translator will simulcast KWXW, Kermit, TX (93.7).

Wyoming — IHeartMedia files two separate deals to improve its position in the Cheyenne, WY market. The first is a $25,000 deal to buy the Loveland, CO-licensed translator K297AK at 107.3 FM from Vic Michael’s Mountain Community Translators. The filing says the translator will simulcast the AC “Sunny 107.3” format relayed off the H2 channel of “Big Country 97.9” KXBG, Cheyenne, WY. The “Sunny” format also airs on the Loveland, CO-licensed translator K297AK at 107.3 FM. In a second deal, iHeartMedia files to buy the Cheyenne-licensed translator K245BP at 96.9 FM from Mary Medicus for $10,000. The filing says iHeart will simulcast country “Kolt 100.7” KOLZ on the signal. MORE DEALS @ INSIDERADIO.COM >> DEAL DIGEST ARCHIVE | ADVERTISE: CALL 800-248-4242 X 711 | EMAIL

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OPERATIONS MANAGER Digity LLC continues to grow and needs the best Inquiries will be held in Operations Managers in the country! the strictest confidence: [email protected] If you are an experienced, strategic, creative, organized brand manager Equal Opportunity Employer 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.

Qualified candidates will have at least five years of proven success as a programmer, preferably in a PPM market. Candidates must be strategic and analytical but also must possess creativity and the instinct to win. OM must be proficient with RCS Selector, Adobe Audition, PPM Analysis Tool, Social Media platforms, Audio Vault, PD Advantage and Media Monitors. Find a full list of qualifications and responsibilities in our ad at insideradio.com. Send resume to: [email protected]. EOE LOOKING FOR THE PERFECT RADIO MANAGEMENT OR SALES PRO? PLACE YOUR JOB OPENING HERE! EMAIL: [email protected] FOR A QUICK QUOTE.

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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