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TV's REPACK COULD CAUSE SERIOUS DISRUPTION for Fms

TV's REPACK COULD CAUSE SERIOUS DISRUPTION for Fms

Inside Radio Recap March 26-30, 2018 TV’s REPACK COULD CAUSE SERIOUS DISRUPTION FOR

holds an estimated 60% share of the FMs. FM antenna market, has already built The FCC’s 10-phase repack schedule nearly 50 backup facilities. picks up in earnest in the coming months, with the current timeline Every station and site has calling for TV stations in Phase 1 to specific engineering variables, and begin constructing their new facilities some determine how much it will cost in April. A testing period is then slated to create a backup site. “If you are to start in September, with those building auxiliary facilities where you stations making the leap to their new want to operate four or six stations dial positions in late November. Each at their full of the phases will follow with the last licensed set of TV stations scheduled to move power it can by July 3, 2020. be a six-digit number—but How long the repack work actually it can also It’s the eve of the television repack, takes will depend on several variables, be as little and the radio industry is racing to including whether the TV station as $20,000,” prepare for what could be a serious just needs a new antenna or if more Harland said. disruptor for hundreds of FMs to extensive work is necessary. “Best remain on the air. The repack process guess is to plan for a couple of weeks, Weller suggests that the first step will result in 957 television stations as long as the weather holds up,” for radio is to talk to their television changing dial positions—with nearly American Tower senior manager of neighbors. “Not all the stations have 700 FMs co-located with TV antennas broadcast operations Jim Leifer said. all their schedules lined up to the day likely impacted by the process. That’s There’s also the issue of whether there or month, but get some idea if a TV between 10% and 20% of all FMs on are enough training tower climbers to station is going to require major tower the radio dial, including at least one cover all TV jobs on the repack docket. work that’s going to go on for weeks,” station in each of the top 25 markets. he said. Just how many stations already have The prospect of going dark during backup facilities isn’t clear. Based More: TV Repack’s Impact On Radio. drive time for days, weeks or a month on information culled from the FCC’s has some group owners racing to database, the NAB estimates that half secure auxiliary sites. And that may of the impacted FMs may already be only part of the conundrum that have an auxiliary in place. But broadcasters—and the equipment NAB VP of spectrum policy Bob companies they work with—face as Weller said because some of the repack rolls forward. those may be at the same site as the main antenna, the backups Even though the FM dial isn’t changing, might be of no use when a crew as crews do work on towers replacing needs to climb up an adjacent a TV station’s antenna, the FM needs tower. to power down in order to protect those workers from RF radiation Electronics Research, Inc. (ERI) exposure. Further complicating things VP of marketing Bill Harland said is the fact that, unlike a routine repair that some broadcasters have been like changing a tower light, the TV getting ready for the past several repack construction process takes years. He said ERI, which days or weeks—if not longer.

Page 1 Inside Radio Recap March 26-30, 2018

Network Up, Radio Group Down At Cumulus In Q4. Four months into a Chapter 11 bankruptcy proceeding, quietly issued its fourth quarter and full year 2017 financial results Wednesday. The company reported a 1.9% revenue decline to $293.9 million in Q4, from $299.5 million one year earlier. Cumulus had a net loss of $206.1 million, compared to a loss of $543.7 million in fourth quarter 2016. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA, a measure of cash flow) came in at $49.9 million, down 12.3% from $56.8 million one year earlier. While overall revenue was down in Q4, grew revenues 2.5% to $91.3 million from $89.1 million on year earlier. However the company’s radio station group, which accounts for more than two-thirds of it billings, dropped 3.7% to $201.9 million from $209.7 million. FULL STORY Three Ad Categories Doubled Radio $$ in February. National radio ad buys placed by agencies were up 15% Katz Radio Group Promotes Christine Travaglini To year-over-year in February, totaling $128.7 million. What President. drove the gain? Three key ad categories doubled their Katz Media Group has promoted Christal Radio president spend on radio last month, compared to the same period Christine Travaglini to president of Katz Radio Group, one year earlier, according to Standard Media Index. tasked with overseeing the radio rep firm’s nationwide Casual dining restaurants, consumer electronics and sales operations. She reports to Mark Gray, who had been entertainment each doubled their year-over-year national running the radio rep firm until March 2017, when he was radio allocation in February promoted to CEO of Katz Media Group. A longtime Katz 2018, according to SMI. But veteran, Travaglini has been president of Katz division they weren’t alone in allocating Christal Radio since 2008. She more dollars to the medium last will now drive overall business month. Telecom upped its radio outlay by 27%, making development and strategy of Katz it radio’s biggest spending category in February. That’s Radio Group’s 14 regional offices more than five times the growth rate for telecom across that serve as the national sales all media platforms. Specialty retail was radio’s second rep firm for more than 3,300 radio largest national advertiser in February, despite a 27% stations and their digital audio decrease. Quick serve restaurants were third, up 43%; platforms. Travaglini was the first followed by insurance, which spent 35% more on national person to rise from an assistant to president within the Katz radio buys. Auto, a key category for radio and all media, organization. In 2013, she was named president of Katz was fifth with a 33% decline. SMI’s figures don’t include Partnerships, the business development team focused direct sales—and thus represent an incomplete picture of on deepening relationships with agencies and developing radio ad spend. FULL STORY innovative campaigns for today’s big brands, in addition to her role at Christal. Travaglini will continue to lead Katz Cumulus Downplays Two New Objections To Its Partnerships and Christal Radio. FULL STORY Restructuring Plan. Two creditor groups have filed strongly-worded objections 28% Of Website Traffic Shows ‘Non-Human Signals.’ to Cumulus Media’s proposed Chapter 11 reorganization A new study gives radio more ammo to help convince plan. But the company seems unworried by the latest marketers to shift some of their ad dollars back to radio hurdles, calling them “anticipated” and “normal parts of from digital media. The Adobe study shows 28% of website the restructuring process” that won’t impact its financial traffic exhibits strong “non-human signals,” suggesting that reorganization timeline. The first objection comes from the traffic came from bots or click farms, according to The a group well known to anyone following the long and Wall Street Journal. While Adobe’s new research isn’t the winding case—the Official Committee of Unsecured first study to document online fraud, it is part of a growing Creditors. Their objection was filed under seal so details volume of evidence that has raised serious concerns of the group’s objections aren’t publicly known at this time. about digital media advertising. Issues like fraudulent Also objecting is the Ad Hoc Cross-Holder Committee, traffic, ads that aren’t viewable or those that are displayed which includes some of the holders of $2.025 billion in in unsafe environments continue to plague the industry, term loans and 7.75% senior notes due in May 2019. The even as marketers keep pouring buckets of money into cross-holders claim the plan can’t be confirmed until it first the dilemma. That has some advertisers, including the resolves what they call “two fatal flaws” – Cumulus “grossly world’s largest, Procter & Gamble, rethinking their digital underestimated” its value so it can hand a controlling advertising strategy. FULL STORY equity share to “their preferred new owners;” and the plan would give a 16.5%, equity stake in the company to the JOBS: unsecured creditors in a way that “fundamentally violates” Sponsorship Director the bankruptcy Code’s distribution scheme. FULL STORY West Coast Regional/Network Radio Sales Executive

Page 2 HOW DOES A NATIONAL TALK SHOW WIN LOCALLY?

Grand Rapids, MI Home of WOOD Radio The Dave Ramsey Show Affiliate

here are many reasons na- them not to lose hope, and pro- forms like podcasts, streaming, tional programming works viding life-changing advice that video, and others. in one market and not others. So can be applied at any point in when a show becomes success- their financial journeys. Over the Dave’s thoughtful guidance for ful in both large and small mar- past 25 years, The Dave Ramsey each caller’s situation has been kets across the nation, it’s worth one of the main drivers behind taking a closer look. the average listener tuning in for 59 minutes per day. When you THE DIFFERENCE compare that to the industry av- Everyone is familiar with the main erage of 37 minutes for the rest players in who mostly If Dave of talk radio, it makes you won- offer a political slant. That kind of der if Dave is on to something. topic can be polarizing, but has can win and been the secret to success for those win big THE PROOF like Rush Limbaugh, Sean Hannity, in the Upper The show’s success happens in and Glenn Beck for decades. small towns as well as the larg - Midwest, est cities across the nation. Phil But how does a program that Dave can win Tower, WOOD radio’s director of isn’t political, polarizing, or full anywhere in news & content-programming in of commentary stand shoul- Grand Rapids, , puts it der-to-shoulder with the pro- America.” this way: “If Dave can win and win grams that are? By listening to big in the Upper Midwest, Dave the caller, caring about the sit- can win anywhere in America.” uation, and giving solid advice And he does. — Phil Tower, Director that changes lives day in and day Grand Rapids, MI out—at least, that’s how Dave The Dave Ramsey Show has Ramsey does it. grown to be the third-largest nationally syndicated radio talk THE CONNECTION Show has grown one caller at a show and has been recognized Dave can be heard talking with time. Today, the show reaches an as the fourth most downloaded callers each weekday on stations average weekly audience of 9.5 podcast of 2017—so something across the nation—celebrating million listeners on radio and an- seems to be working. Find out financial victories, encouraging other 3.5 million via digital plat- more at RamseyMedia.com.

THIS IS AN ADVERTISEMENT Inside Radio Recap March 26-30 2018

cases representing more than 50% of the overall spending in key product categories,” Nielsen says in a new report, “Black Dollars Matter: The Sales Impact Of Black Consum- ers.” FULL STORY

Before Public Offering, Spotify Offers Growth Forecast. In advance of its intention to begin publicly trading shares April 3, Spotify has filed with the Securities and Exchange Commission its financial outlook for its first quarter and full year 2018. Its projections are lofty: For the year, the pureplay streaming service said it expects monthly active users to grow between 26% and 32% to reach between 198 million and 208 million. It also projects between 30% and 36% growth to its premium subscriber base year over year, at between 92 million and 96 million. For the quarter, Spotify expects to hit between 73 Forecasters See Up Arrows For 2018 Advertising. million and 76 million paid subscribers by the end of March, Four in ten small and medium-sized businesses—the sort the company said, according to analysis of the SEC filing by that makes up the bulk of local radio ad sales—expect to CNET. Its next biggest competitor, Apple Music, said earlier increase their ad spending by anywhere from 5% to 30% this month it had reached 38 million subscribers, up by 2 this year. And the vast majority says no million in a little more than one month, the website noted. cutbacks are planned. Borrell Associates Total monthly active users for the quarter will reach between latest survey of SMBs finds that 2% even 168 million and 171 million. FULL STORY predict they’ll boost their ad budgets by more than 30% this year. However a New Nielsen Report Peel Back Curtain On Diarykeepers. majority (52%) of the 173 businesses Nielsen is pulling back the curtain on raw listening data in surveyed said their ad budgets will be its diary markets to give subscribers a faster, more granular similar to what they spent in 2017. A small read of who’s listening – and what the market sample looks number—just 5%—forecast their business will pull back like. Similar to the Control Panel Reports launched in PPM on marketing this year. The latest Borrell forecast predicts markets in October 2016, the new Diary Monthly Insights overall local advertising spending will increase 5.3% to Reports promise an alternative to extrapolations of monthly $126.8 billion in 2018. FULL STORY audience estimates, more data on each station’s specific diarykeepers, and market rankers by specific ages across Veritonic Ranks WWO Spots On Listener ‘Happiness,’ each phase during the survey.The new reports include rank- ‘Excitement.’ ers and trends across a dozen discreet demos and dayparts. Lowe’s, KFC, Wendy’s and Samsung know how to make ra- In a first for diary markets, they also provide diary counts dio listeners happy. These brands scored the highest among and raw quarter hours for each month, demographic details some 109 spots that aired during Westwood One’s March for the station’s top 10 diarykeepers, as well as listening by Madness broadcast, in an analysis with Veritonic to rank specific age, zip code and format. FULL STORY the audience’s emotional reaction to advertising messages. The network’s “Sports Sound Awards: Basketball Finals Podcast To Broadcast: Ben Shapiro To Westwood One. edition” aligned with audio effectiveness platform Veritonic The growing trend of popular podcast personalities to test which commercials were trusted, what emotions expanding to AM/FM just got another nod, as conservative they generated and how well they drive purchase intent. talker Ben Shapiro is picked up for syndication by Westwood Data was collected from more than 3,000 panelists. No. 1 One for an hour-long broadcast. “The Lowe’s “Spring Projects” makes listeners feel both happy Ben Shapiro Show” is launching in seven and excited with a commercial touting garden supplies. “The markets, including five of the top 10. The creative includes a likeable music bed with whistling and 34-year-old Shapiro, who also serves clapping,” according to Westwood One, which analyzed the as editor-in-chief of The Daily Wire, said winners on its “Everybody’s Listening” blog. FULL STORY that the radio program will feature the same content as his podcast, except Black Spending Power Report Provides Ammo For with recorded transitions built in, according to Politico. Urban Radio Sellers. Launch stations include WABC (770), KABC Los Radio stations with large shares of Black audiences have Angeles (790), WLS (890), WMAL new data to demonstrate the buying power of their listen- DC (630/105.9), WYAY Atlanta (106.7), KKAT Salt Lake ers. With $1.2 trillion in annual spending power, African- City (860) and KTTH (770). All outlets are owned American consumers are a crucial population segment for by Cumulus, except Bonneville’s KTTH. WWO says marketers. While Blacks account for 14% of the overall that advertising time for the launch is already sold out. population, they punch way above their weight, representing Shapiro’s podcast is downloaded 15 million times each more than half of total spending in key product categories. month. FULL STORY “Black consumers and consumers of color alike are making considerable contributions to the overall market—in some News updated as it happens - InsideRadio.com

Page 4 SALES – STATIONS Multistate Deal – Cumulus Media files to spin four FMs to the newly-created Mainstay Station Trust as part of its bankruptcy reorganization. The stations include sports “106.5 The Ticket” – Gary Shorman’s Eagle WTOD in the Toledo, OH market; country “ FM 104.9” Radio files a $13,500 deal to buy WPCK in the Green Bay, WI market; “Cool 97.5” KJMO the Abilene, KS-licensed translator in the Columbia, MO market; and country “102.1 FM Nash K233CF at 94.5 FM from Ron Icon” WNUQ in the Albany, GA market. The Mainstay Station Unkefer’s First Ventures Capital Partners. The translator Trust is overseen by MVP Capital managing director Elliot will continue to “ Talk 910” KINA in the Evers, who also manages the Last Bastion Trust for Cumulus. Salina-Manhattan, KS market.

New Jersey – has struck a $17 million deal CLOSINGS to buy CHR WPST (94.5) and sports “920 The Jersey” WNJE – Don Tlapek closes a $600,000 deal to buy hot in Trenton, NJ and religious WCHR (1040) in the Monmouth- AC KRAI-FM (93.7) and country KRAI (550) in Craig, CO Ocean market from Connoisseur Media. It is Townsquare’s from Frank Hanel’s Wild West Radio. The deal also includes third acquisition in the last nine months. The company the Steamboat Springs, CO-licensed translator K272DE at already owns news-talk “ 101.5” WKXW-FM in 102.3 FM which relays KRAI-FM. The deal also includes Trenton (market No. 152) and it owns five other stations in the a six-month consulting agreement that will pay Hanel an Monmouth-Ocean (market No. 54) including hot AC “94.3 The additional $150,000. Tlapek already owns four stations in the Point” WJLK, AC WOBM-FM (92.7), classic rock “105.7 The Steamboat Springs area including “96.9 Big Country” KBCR- Hawk” WCHR-FM, and oldies “Beach Radio” WADB/WOBM FM, classic rock “100.5 The River” KCOQ, soft AC “Easy (1310/1160). 94.1” KEZZ, and “ 98.9” KTYV.

Minnesota – Lucas Carpenter’s Crystal Media Group files a – Gendreau Broadcasting closes a $240,000 deal to $2.925 million deal to buy “Bob Total Country” buy “94.7 Mac FM” KMCN and adult standards KDDG (105.5) and farm/classic country KASM (1150) in KCLN (1390) in Clinton, IA from Vanessa Wetterling’s Prairie ColaAlbany, Wars MN from Hit FullStarCom. Force The With deal also includes the Albany, Communications. Brad and Ashley Gendreau already own a Pepsi,MN-licensed Coke translator Vying On K299BT Radio. at 107.7 FM which fitness club and auto dealership in the community. Gendreau KASM. Broadcasting will operate the stations under a local marketing agreement until closing. -Ft. Worth – Saumil Thakkar and Poorvesh Thakkar’s Decatur Media Land files a $1.375 million deal to buy – Bunyard Broadcasting closes a $155,000 deal to ethnic KVTT, Mineral Wells, TX (1110) from John and Linda buy “Fox 92.7” KBEU from Robert Delgiorno’s Hammond’s Texoma Broadcasting. The deal includes the Freed AM Corp. Under the terms of the contract Jay Bunyard Decatur, TX-licensed translator K238CC at 95.5 that gives will also spend a to-be-determined amount of money to buy the 50,000-watt daytime-only AM a 24-hour signal. Texoma and install a new transmitter for use by Freed AM Corp.’s Broadcasting bought KVTT for $2.625 million in 2011. “Sports Radio 94.1” KTRG in the Texarkana, TX-AR market. Decatur Media Land has been operating the station under a Bunyard Broadcast already owns three stations in the area local marketing agreement since Aug. 2017 programming the including country “Y-95.3” KCXY, urban “Magic 104.5” KMGC, South Asian “Fun Asia” format which also airs on cross-town and AC “K-97.1” KAMD-FM. KZMP-FM (104.9) under a local marketing agreement with Liberman Broadcasting. Traverse City-Petoskey-Cadillac, MI – Northern closes a $150,000 deal to buy classical WICV (100.9) -St. Paul – Kongsue Xiong files to take full from the . control of Asian American Broadcasting’s ethnic KFXN (690) already owns contemporary Christian/religious teaching in a deal valued at $135,000. He previously was in a 50-50- “The Promise FM” WOLW (91.1) in the market. Interlochen partnership with Xeng Xiong. KFXN targets the Twin Cities’ Public Radio still owns three other stations in the Traverse Hmong community. City market including news-talk WHBP/WICA (90.1/91.5) and classical WIAA (88.7) as well as several translators in the Utah – Doug and Marianne Barton’s Sanpete County region. Broadcasting files a $135,000 deal to buy 80s hits KTMP, Heber City, UT (1340) from Troy Shelley’s Air-Free Wireless. –Sun Media closes a $150,000 deal to buy classic The deal also includes the Heber City-licensed translator hits “Magic 102.7” WJML-FM and its simulcast WMJL (1500) K233DP at 94.5 FM. Sanpete County Broadcasting owns six in Marion, KY from Joe Myers Productions. Sun Media other stations in Utah but none overlaps with KTMP. It will already owns classic rock “Rock 98.3” WJLI, Metropolis, IL. operate the station under a time brokerage agreement until closing. Kentucky – Baker Family Stations closes a deal to reclaim the currently-silent WONS, Cannonsburg, KY (1080) from SALES – TRANSLATORS Expression Production Group. Baker Family’s Big River Iowa – Vanessa Wetterling’s Prairie Communications files Radio subsidiary sold the 1,800-watt daytime-only station a $20,000 deal to buy the Muscatine, IA-licensed translator to Expression Production Group for $320,000 in 2014 and K236CF at 95.1 FM from Randal Miller’s Kaskaskia the transfer forgives the outstanding $94,174 remaining on Broadcasting. The signal will continue to simulcast classic a promissory note. Baker Family Stations doesn’t own any country KWPC, Muscatine, IA (860) which has 250-watts day other stations in the Huntington-Ashland, KY stations. and 8-watts night. More Closings HERE.

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