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WEDNESDAY, APRIL 1, 2015 L.A.’s KIIS-FM is radio’s top biller. For the first time in five years a different station sits atop BIA/Kelsey’s annual ranking of America’s top-billing radio stations. The firm reports iHeartMedia CHR KIIS-FM, Los Angeles (102.7) reclaimed the No. 1 position with a 7% revenue increase over the prior year. “The L.A. market overall was down last year so for ‘Kiss’ to increase its revenue share in that downtime is a testament of their position in the marketplace and its management,” BIA/Kelsey chief economist Mark Fratrik says. The last time KIIS-FM was at the top was in 2009, before losing the crown to Hubbard Radio’s all-news WTOP-FM, Washington, radio’s top-biller for the past four years. BIA/Kelsey says it now ranks No. 2 after its revenue held steady at $63.5 million. “Overall it was a flat year but we were encouraged because both local and digital were up,” WTOP director of sales Matt Mills says. “The government contracting business was a bit harder because of sequestration, but it is still our biggest category by far and we continued to do well with that category last year.” The top ten was again dominated by New York and Los Angeles stations with just two coming from other markets: CBS Radio’s Chicago all-news WBBM (780, 105.9) and WTOP. In an unusual twist, no stations moved on or off the top 10 ranker, although a few changed positions. Most notably, hot AC “104.3 My FM” KBIG leapfrogged AC sister “106.7 Lite FM” WLTW, New York and CBS Radio all-news WINS, New York (1010). With three all-news stations still ranking among the billing elite, Fratrik says it shows AM radio’s health is still closely tied to its content. “There are heritage stations that continue to provide programing that people want to hear that they can sell to advertisers,” he says. Steady year for radio overall. While there were some ups and downs among the top billers, BIA/Kelsey says 2014 was a status quo year for radio. “It was a flat year if you look at the industry overall,” BIA/Kelsey chief economist Mark Fratrik says. By the firm’s calculations, on-air spot sales totaled $14.3 billion with digital sales generating an additional $636 million to help offset the “slight decline” in over-the-air billings. “It really drives home the fact that stations have to be in more than over- the-air advertising — they have to be involved in digital and other activities,” Fratrik says. “They’re not just a radio station anymore; they are a local media company providing an audience to advertisers in many different ways.” Some markets showed growth last year, something Fratrik attributes to more robust political campaigns and stronger local economies overall. But across the board, from digital pureplays encroaching on local radio to more aggressive cable TV sales, Fratrik says the media marketplace is quickly evolving. “There’s so much competition for advertising, and that’s the real challenge for radio stations,” he says.

Analysis: Top ratings don’t always equal top revenue. Last year’s highest billing radio stations were, in many cases, the top ratings performers in their markets. In radio’s richest revenue market, iHeartMedia CHR KIIS-FM (102.7) and hot

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AC sister “104.3 My FM” KBIG spent 2014 trading places as L.A.’s top-rated station among 25-54 year-olds. When one wasn’t No. 1, the other was. The 25-54 ratings difference between KIIS-FM and KBIG last year was so razor-thin that each station had a virtually identical average 5.2 share in the Money Demo. KIIS was basically flat from 2013 while KBIG was down. But not every station on BIA/Kelsey’s list of top revenue producers was perched at the top of the ratings. CBS Radio modern rock KROQ-FM, Los Angeles (106.7) is a solid 25-54 and 18-34 performer but it’s rarely at the top in either demo. In fact, L.A. stations not on the top billers tally posted higher 25-54 ratings than KROQ last year, like Emmis rhythmic CHR “Power 106” KPWR, iHeartMedia AC “Coast 103” KOST and CBS CHR “97.1 Amp Radio” KAMP-FM. That top ratings don’t automatically translate into top revenue speaks to the power of a station’s brand. Sitting just left of center, KROQ personifies hip and remains a cultural trendsetter in a trend-setting city. It also has the market’s top-rated and longest running morning show in Kevin & Bean. “It has a lot to do with being local,” BIA/Kelsey chief economist Mark Fratrik says of 2014’s top billers. “They have great on-air talent that provides a local flavor.”

Radio’s top billers are evergreen brands in top markets. In New York, a pair of quintessential evergreen music brands made the prestigious BIA/Kelsey top billers list. Even without the year-end ratings lift of the all-Christmas format, AC “106.7 Lite FM” WLTW, New York was almost always No. 1 in 25-54 in 2014 while iHeartMedia CHR sister “Z100” WHTZ was typically No. 2. But other music stations close behind on New York’s 25-54 ranker didn’t make the BIA list, like Spanish Broadcasting System’s tropical “Mega 97.9” WSKQ-FM, Emmis urban AC WBLS (107.5) and CBS Radio’s classic hits WCBS-FM (101.1). Instead, a trio of spoken word brands that rank much lower in the Money Demo were once again top revenue generators: CBS Radio all-news sisters WCBS (880) and WINS (1010) and sports “The Fan” WFAN-FM (101.9, 660). Venerable all-newsers like WCBS and WINS skew older but have highly engaged, active audiences with strong qualitative profiles. What’s more, spoken word stations aren’t as vulnerable to tune out from bulkier spotloads, giving them more inventory to sell. In addition to almost always ranking first in 6+, Hubbard Broadcasting all-news WTOP-FM, Washington, DC (103.5) is one of those rare all news stations that’s also consistently among its market’s top performers with 25-54 year-olds. Apart from WTOP-FM, all of 2014’s top billers are deeply entrenched brands located in the top three markets. “It’s pretty much the powerhouses that have a loyal following,” BIA/Kelsey chief economist Mark Fratrik says. “These stations spend a considerable amount of money on programming, personnel and marketing and so they’re still able to deliver large audiences for their advertising clients.” How the top 10 stacks up through the years. Radio’s top 10 billing stations contributed $475.4 million dollars to the industry’s bottom line last year. That’s down 2.9% compared to the $489.4 million the same group of power players contributed a year earlier. Even so it was still mostly in line with what the top 10 billed in the post-recession era. In 2012 the top ten contributed $473.3 million. In 2011, they brought in $477.1 million. In 2010, they put $456.5 million on the books. And in 2009, at the height of the recession, when they billed $432.1 million. Looking ahead, there may be a horse race for the top spot in 2015. WTOP-FM (103.5) director of sales Matt Mills says the year is “off to a great start” with total billing up double-digits at the Washington all-news station, led by “massive” digital sales gains and “really strong” local sales.

Classic rock: The genre that refuses to burn. Consultant Fred Jacobs once compared classic rock to a cockroach, meaning the format was virtually indestructible. Despite classics by Led Zeppelin remaining in rotation for decades, a new online survey from researcher Mark Kassoff shows their extraordinary resiliency. Asked to agree or disagree with the statement, “Classic rock sounds every bit as good now as it did decades ago,” two-thirds of the 320 survey respondents who listen to classic rock radio strongly agreed. Respondents who listen to classic rock radio were also more likely to agree that the greatest rock of all time was recorded in the ‘70s (averaging a 3.0 on a 4-point scale) than the ‘80s (2.8), the ‘60s (2.6) and the ‘90s (2.3). Three out of four classic rock radio listeners who took the survey disagreed strongly with the statement, “You’re tired of listening to classic rock.” Generally the older the respondent, the more likely they were to strongly disagree. For instance, 52% of 35-44 year-olds disagreed strongly, but the percentage jumped to 68% with 45-54s and 73% of 55- 64s. Put another way, those that have heard the music the most are the least tired of it. The music’s enduring appeal is also reflected in Nielsen ratings. Nearly 30 years after it emerged as a rock splinter format, classic rock shattered its PPM ratings record in February, underlining the timeless nature of the music.

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BMW shows more support for HD Radio. As an early adopter BMW was the first auto brand to commit to HD Radio, putting the technology into its cars for the past 10 years. Just in time for summer, the latest integration has just gone on sale in the BMW 2-series convertible. The German-made brand offers HD Radio receivers as standard equipment and the new convertible will be no different. It’s not a car for the masses however, with a starting list price at $37,900. BMW has long been a fan of digital radio technology, becoming the first auto manufacturer to offer HD Radio Technology as a pro- duction feature during the 2006 model year. “We’ve enjoyed growing with the BMW brand,” iBiquity COO Jeff Jury says. “Ten years ago, it started with BMW and now, all major automakers in the U.S. offer the HD Radio experience to their driv- ers.” The company says more than 25 million HD Radio receivers are now in use, with a majority of them in the dashboard of the 190 car models that feature digital radio. BMW opens its car door for iHeartRadio. When the doors open at the New York International Auto Show today in New York, on display will be something never before seen. A BMW with iHeartRadio integrated into its ConnectedDrive dashboard entertainment system. The luxury brand has announced it will begin featuring the streaming service on BMW and Mini car models. Drivers will first need to be using an iPhone and have downloaded the iHeartRadio for Auto app from the Apple App Store. Once that’s done and the phone is connected, the controls will switch to the dashboard control display. IHeartRadio will join several other streaming offerings available to BMW drivers, including TuneIn, Pandora, Stitcher, and Spotify. Macy’s retains its showcase role at iHeartRadio Festival. With the growing success of the annual iHeartRadio Music Festival there was little doubt the event would return to Las Vegas this September. It will be held at the MGM Grand on September 18 and 19. As much as the show has become a showcase for radio and the streaming service, it’s become a key component of Macy’s annual radio strategy. The department store has renewed its partnership to find America’s next “Macy’s iHeartRadio Rising Star.” It’s a component that won’t wait for the show with online voting in the talent competition already underway. The winners will take the stage at the Festival as well as at several Macy’s events this fall. The deal will also again pump the Macy’s mstyleradio-branded iHeartRadio channel into Junior’s and Young Men’s departments in stores nationwide. Macy’s chief marketing officer Martine Reardon says it’s a way to build on the store’s goal of merging fashion, music and pop culture. “As a fashion and entertainment brand, we are leveraging the power of mstyleradio, our incredible events, and the iHeartRadio Music Festival and Village, to create an extraordinary platform for up-and-coming talent to connect with millions of fans,” she says in a statement. Last year’s Rising Star contestants received more than seven million votes. Macy’s has become “part of the fabric” of the Festival, according to iHeartMedia president of national sales Jeff Howard, noting it will be the fourth year it’s taking a lead role for the five-year old event. Other sponsors already onboard include Buffalo Wild Wings, Garnier Fructis, Matador Beef Jerky, Pepsi, Snickers, State Farm, Taco Bell, The CW Network and Ulta Beauty.

Aire softens weaker spot sales at SBS. Despite growth at its network radio and special events divisions, Spanish Broadcasting System reports fourth quarter radio revenue slid 2%. The company closed the books with a similarly-sized decline in total radio sales for all of last year. Billing declines were steeper at its Mega TV division and SBS says companywide revenue declined 3% in fourth quarter. The result is total revenue fell 5% to $142.3 million last year. SBS tells investors spot business remained tough in most of its markets, although Miami was a standout as it showed growth in both local and national sales. CEO Raul Alarcon says the company’s 14-month old Aire Radio Networks “continued to expand its reach, content offerings and advertising client base.” The company didn’t release any revenue figures for the network but it did say Aire now has 103 affiliates. Even with softer revenue, SBS income jumped 13% during the fourth quarter as it cut $1.7 million in operating expenses. “We made continued progress in strengthening our content and executing our plan to strengthen our multi-media offerings,” Alarcon tells investors.

FCC asks court to uphold Emmis’ New York deal. The Federal Communications Commission is asking a federal court to uphold its decision clearing the way for Emmis to add urban AC WBLS (107.5) and gospel WLIB (1190) to its New York cluster. Agency lawyers tell the U.S. Court of Appeals in Washington that four New Yorkers who have fought to have the sale reversed failed to raise any new evidence and that the deal fully complied with local ownership limits. “The Commission’s

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com WEDNESDAY, APRIL 1, 2015 determination in this matter was reasonable and should be affirmed,” government attorneys tell the court. The legal protest claims Emmis’ $131 million deal with YMF Media should be undone on “grounds of racial discrimination,” saying the loss of two previously black-owned radio stations to the “corporate elite” would lead to a reduction of radio programming “geared toward Black and local audiences.” The list of those bringing the suit includes former WWRL, New York VP of programming Bob Law, a local TV cameraman, a longtime community activist, and New York Assemblyman Charles Barron, who previously tangled with Arbitron over the impact of PPM on stations targeting African Americans. The group says the FCC overlooked the importance of radio in the black community when it sanctioned the transfer of the licenses. The FCC has rejected all of their appeals, telling the D.C. Circuit that the agency hasn’t considered potential programming changes when considering a station sale for nearly four decades “on the ground that it would deter innovation.” Emmis has said it believes the suit is “without merit,” telling shareholders the Appeals Court has reversed station sales in the past only in “exceedingly rare circumstances.” The court has not yet scheduled a date for when the case will be argued.

TV awards show proves to be a draw for iHeartRadio. The ratings are in for the iHeartMedia Music Awards and Nielsen says the show was the top-rated program on Sunday among the 18-49 demo. That gave NBC its first Sunday night win among that age group since the 40th anniversary special of “Saturday Night Live” aired in mid-February. Across all demos Nielsen says the show reached 5.26 million viewers. The results were even stronger on social media. In a memo to employees, iHeartMedia says the program generated 14 billion social impressions from the start of the promotional effort to the time the last award was handed out. That compared to 8.5 billion impressions during last year’s show. To put that into perspective, the Oscars generated about 5 billion impressions. Sony launches Spotify-powered PlayStation Music. Sony has launched PlayStation Music, making Spotify the backbone of a new global music service that targets Sony’s 64 million active PlayStation Network users. The service makes it easier for gamers to enjoy their favorite tracks while playing their favorite games. PS4 and PS3 gamers can link their accounts with Spotify, making it easy to subscribe to Spotify’s premium service. Users will be able to create a music collection and listen to playlists and on all Spotify-supported devices. The service will also become available on Sony-manufactured Xperia smartphones and tablets. “We’re bringing back that magic of gaming with music — all in a beautifully designed and smooth experience that looks great on the big screen,” Spotify chief product officer Gustav Söderström said in a statement.

Inside Radio News Ticker...Westwood One adds two VPs…Westwood One is adding two executives to its Midwest office: Zack Ficke as vice president of strategic partnerships and Kelli Hurley as vice president of national partnerships and digital activation. Both join from Premiere Networks where they worked as national account managers. They’ll be based in Chicago and report to Westwood One EVP of Midwest sales Doug Johnston, a fellow ex-Premiere executive. “I am thrilled to be back together with these two very talented sales individuals,” he says…Cops: assault inside Tennessee station...A Tennessee general sales manager is facing criminal assault charges after police say he allegedly had inappropriate sexual contact with a 17-year old female co-worker at B&E Broadcasting’s AC daytimer WSLV, Ardmore, TN (1110). Johnny Mansell, 62, was released on $2,500 bond. Local reports say Mansell is a registered sex offender after he previously was convicted on three counts of rape in Tennessee and Alabama…Eagles get HD station from CBS…The Philadelphia Eagles will receive a 24/7 year-round HD Radio station as part of its new play-by-play deal with CBS Radio. The games will also remain on “Sportsradio 94” WIP-FM. The station has been carrying Eagles games since 1992. Merrill Reese, the NFL’s longest tenured play-by-play announcer, and former Eagles All-Pro wide receiver Mike Quick will continue to call the games. Nielsen’s U.K. move steps forward. Nielsen has released details of the structure by which its worldwide headquarters will relocate from the Netherlands to the U.K. The ratings company says in a regulatory filing that it has created a U.K.-based subsidiary which the current company will be merged into allowing for the Dutch company to be dissolved. But shareholders must first approve the plan, which was first disclosed in February. A vote will be held at the company’s annual meeting in the coming months with a move to be completed during the third quarter. U.S. customers may not notice much difference. Nielsen’s executive team will remain in New York and the company will still be traded on the New York Stock Exchange under the “NLSN” ticker abiding by U.S. laws. But executives say becoming a British company should help attract more investors.

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