September 26 2016, Issue 518 Inside WMN’s New Structure “The deal is, if you say you’re in the promo department, you have to do 10 pushups. It is now called the Radio & Streaming department.” So says Warner Music Nashville Chairman/ CEO John Esposito, holding court in his office with the newly minted head of said department, SVP Kristen Williams, as well as Chief Marketing Officer Peter Strickland. Aided by some late Friday afternoon refreshments, Espo and company lay out the label group’s latest evolution. CA: Why this change and why now? JE: My decision was driven by trying to see where the puck is going and to recognize we have to reinvent ourselves on a regular John Esposito basis or we’re lemmings. It’s like free shows. Everybody bitches about them, but everyone is still doing them because we’re all afraid to be the one who stops. We know how important radio is, Fest To See: MCA’s Sam Hunt (c) takes in the High Roller with especially in country. They’re going to be here iHeartMedia’s Kevin LeGrett (l) and Rod Phillips while in Las for a long time and engaging with them is Vegas for the iHeartRadio Music Festival. going to be incredibly important. But when 65% of our marketing budget and half our Kristen overhead is promotion, it doesn’t recognize Williams Radio Show & Tell the massively growing streaming reality. The 2016 Radio Show closed Friday Country [streaming revenue] is a little behind, (9/23) in Nashville. Here are recaps of a few but we’re catching up. We’re in the mid-30s noteworthy sessions. [percent of revenue] now. Nobody is breaking Marketing Trends: “It’s gone stale, it’s out champagne, but [the broader record become ineffective, and now there’s a recoil business] hasn’t had year-on-year growth against brands that do it.” That’s financial since 1998 and we’re on track to have it. expert and syndicated talk radio host Dave We’re small labels down here and Ramsey Wednesday (9/21) talking about Dave Ramsey everybody has one or two people devoted to Peter marketing by repetition. He pointed to two approaches that have streaming. How crazy is that when it’s half Strickland worked to cut through that noise for his brand, starting with tribal of overall revenue? Equally important, it’s a marketing. “They will spread the word on you,” he says. “And no music discovery vehicle, too. I sat back and thought, if I’m going amount of radio advertising is going to offset that.” Ramsey says to continue to spend this much overhead on what we call a promo his listeners identify one another based on a phrase he uses when department, why don’t I take people (continued on page 8) asked how he is: “Better than I deserve.” ©2016 Country Aircheck™ — All rights reserved. Sign up free at www.countryaircheck.com. Send news to [email protected] September 26, 2016 Page 3 The second approach was use of the story, because the for reaching younger generations. “If we don’t go to where they human brain remembers stories best. The key, he said, is to are, we will be left behind,” he said. Later, he included community make customers the hero while the radio station or the advertiser involvement in that definition, noting how much priority he places is the guide. Having listeners call his show to scream “I’m debt on being on the ground and accessible in Houston. “I don’t care free!” evolved into a staple of his show. “I was interviewing the how big you are on social media or what TV shows you can get hero about how they slayed the dragon,” he said. “I was walking on ... I’m going to kill you on these streets.” through the airport with a friend [when a] guy yelled, ‘Dave He also led the room in several rounds of Ramsey! I’m calling you in November!’ My friend goes, ‘who’s audience participation on the most important that?’ I said, ‘I don’t know. That’s tribal talk. The hero just told the aspects of radio: “Ratings and revenue.” guide he’d be debt free in November.’” Quarter Hour Care: The average Underscoring those points was Big & Rich’s John Rich, human attention span has fallen in recent who discussed his growing Redneck Riviera brand. “Personal years to eight seconds, opened talent coach experience is the biggest thing,” Rich said on his advice for radio Randy Lane Thursday afternoon. Talent can marketing. “Come up with ways that, when a listener shows up at counter the quick out by planning/writing an event ... they go home and say, ‘I like those guys at that radio engaging teases, starting every content Randy Lane station, I’m rooting for those guys.’ It’s building loyalty with those segment with a headline, teasing at the end of people by giving them an experience they didn’t have before they every content segment, teasing with appointments and by being a ran into you.” master storyteller. Humor, compelling stories and conflict/drama Passion Programming: Thursday morning’s programming represent “A-level” content, while information, performance and session focused on the “passion formats” – Spanish, Religious, contests, which the audience should be able to play along with, Urban and Sports. K-Love President/CEO Mike Novak pointed can be thought of as “B-level.” to his time at KSON/San Diego as the inspiration for changing the Univision SVP/Local Research Kathleen K-Love network’s mantra to “Be the best radio network you can be Bohan focused on the perils of being that happens to be Christian.” A convenience store owner shared overly reliant on PPM data. “Every time your a secret to success that Novack passed on: “I do what most people numbers go up, it’s not solely due to the want most of the time.” brilliance of programming,” she said, likewise “Commit robbery,” urged Barrett Sports Media President when ratings decline. A better strategy is Jason Barrett, saying great hosts steal listeners’ time and choice. to closely monitor programming strategy iHeartMedia VP/Hispanic Operation Hector Marcano had a alongside PPM and other data sources (music message for managers. “Treat the talent with respect,” he said. “If Kathleen Bohan tests, listener panels, digital and social media you do, they will take care of the listeners.” Radio One personality metrics). Over time, she said, the approach can provide a more Madd Hatta stressed the importance of social media, particularly reliable account of what is and isn’t working. ©2016 Country Aircheck™ — All rights reserved. Sign up free at www.countryaircheck.com. Send news to [email protected] September 26, 2016 Page 6 Cumulus VP/Programming Analytics & Strategy Ralph Cipolla cautioned attendees against “programming to PPM” MY TUNES: MUSIC THAT SHAPED MY LIFE by displaying a photograph of a Nashville Oliveme's Marie Osmond discusses her Predators hockey game. “Radio is the game,” most influential music: he reminded the audience. “PPM is the 1. Judy Garland: We were both child stars. scoreboard. The chance of failure increases I knew she knew how I felt. There was a dramatically when the scoreboard becomes loneliness, growing up. When you're the only your game.” His recommendations: Embrace girl in the family... I didn't know if I wanted balance (know the rulebook, focus on and to compete with my brothers, because what listen regularly to the product); be realistic if I failed? When she sang "Somewhere Ralph Cipolla with regard to the segment of the audience Marie Osmond Over The Rainbow," it gave me the courage being served and corresponding ratings; and to believe in myself, to go to Nashville and program to people – not meters. record "Paper Roses." –Jess Wright, Chuck Aly, Russ Penuell 2. Loretta Lynn: I saw her in concert right after "Paper Roses" was out. She had me come backstage and we had the best time. She said, "You are a country singer. Never quit singing." Chart Chat 3. Steve Perry: Because of him, I had the desire to learn to work Congrats to Justin Moore, George at my voice as an instrument, to be able to sing multiple genres. Briner, Ashley Sidoti and the whole Valory 4. Zeffirelli'sMadame Butterfly: I fell in love with the team on scoring this week’s No. 1 with “You art, technique and power of opera. It was one of those jaw- Look Like I Need A Drink.” The lead single dropping moments. I sing "Nessun Dorma" in our show in Las from Kinda Don’t Care is his sixth chart-topper. Vegas now. I studied opera 15 years before I ever sang it live. 5. Bob Hope: He was like a second father to me. He took me And kudos to Tom Martens and the WAR under his wing and I did so many USO tours with him. He had crew on grabbing 39 adds for Dan + Shay’s such a loveUPDATE of his country and God, and love for these men “How Not To,” topping this week’s board. Justin Moore and women who sacrificed everything for our freedom. It really changed my life. • Highly regarded music you've actually never heard: News & Notes Until recently, it was Chris Stapleton's Traveller. I'd heard his Adams recognized top performers at the company’s singles, but just downloaded the whole album. He's phenomenal. annual meeting in Nashville, including Las Cruces, NM GM • An "important" piece or style of music you just don't Aaron Criswell (GM of the Year); Fort Wayne, IN GSM Kevin get: I would say rap, but on my new album we have SisQo on Musselman (GSM of the Year); Ocean City, MD Business Mgr.